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Should You Invest in Convertible Bonds?

by Fred Fuld III

A convertible bond (often referred to as a convertible note or a convertible debenture) is a type of corporate bond that gives the bondholder the option to convert the bond into a predetermined number of the issuing company’s common stock or other securities, typically at a predetermined conversion price. In simpler terms, it is a bond that can be converted into shares of stock.

Do not confuse convertible bonds with convertible preferred stocks, which are a completely different type of security, and the subject of another article.

Here’s how a convertible bond works:

Issuance: The company issues the convertible bond to investors, typically at a fixed interest rate and with a maturity date.
Bondholder receives interest payments: Similar to regular bonds, the bondholder receives periodic interest payments (coupon payments) based on the bond’s face value and the fixed interest rate.
Conversion option: The bondholder has the right, but not the obligation, to convert the bond into a specified number of shares of the issuing company’s stock. The conversion price is the predetermined price at which the bond can be converted into stock.
Stock price appreciation: If the company’s stock price rises above the conversion price, the bondholder can convert the bond into stock and potentially benefit from the stock’s price appreciation.

Advantages of convertible bonds:

Potential for capital appreciation: Convertible bonds offer the potential for investors to benefit from an increase in the issuing company’s stock price. If the stock price rises significantly, the bondholder can convert the bond and profit from the capital appreciation.
Income generation: Before conversion, the bondholder receives regular interest payments, providing a steady income stream.
Reduced downside risk: Unlike pure equity investments, convertible bondholders have a bond floor or a minimum value. If the company’s stock price declines, the bond retains some value as a fixed-income instrument.
Priority: If the company goes out of business, the bondholders get paid off before the stockholders.

Disadvantages of convertible bonds:

Lower coupon rates: Convertible bonds typically have lower coupon rates compared to regular bonds due to the additional value derived from the conversion feature. This means the bondholder may receive lower interest income compared to non-convertible bonds with similar risk profiles.
Dilution risk: When bondholders convert their bonds into equity, new shares are issued, which can dilute the ownership stakes of existing shareholders.
Limited potential upside: While convertible bondholders can benefit from stock price appreciation, the conversion feature may limit their potential gains compared to holding the company’s stock outright.
Interest rate sensitivity: Convertible bond prices can be sensitive to changes in interest rates. If interest rates rise, the value of the bond may decline, affecting its attractiveness to investors.
Liquidity: They can be illiquid, with most not traded on any exchange. Not all brokers offer them.

It’s important to note that the specific terms and features of convertible bonds can vary, so investors should carefully review the bond’s prospectus.

Tesla (TSLA) issued 2.00% Convertible Senior Notes due May 15, 2024. The bonds, which were issued in 2019, had an Initial Conversion Price of approximately $309.83 per share of Common Stock and an Initial Conversion Rate of 3.2276 shares of Common Stock per $1,000 principal amount of Notes.

Since that time, Tesla had a three for one stock split in 2022, so based on the prospectus, it appears that the conversion rate would be adjusted.

It is very difficult to find these bonds or even get a price.

The utility Southern Company (SO) issued its Series 2023A 3.875% Convertible Senior Notes due December 15, 2025.

Interest on the Convertible Notes will be paid semiannually at a rate of 3.875% per annum. The Convertible Notes will have an initial conversion rate of 11.8818 shares of Southern Company’s common stock per $1,000 principal amount of the Convertible Notes

PPL Capital Funding, Inc., a wholly-owned subsidiary of PPL Corporation (PPL), issued 2.875% Exchangeable Senior Notes due 2028.

The notes will be senior, unsecured obligations of PPL Capital Funding and will be fully and unconditionally guaranteed on a senior, unsecured basis by PPL Corporation. The notes will bear interest at a rate of 2.875% per year, payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2023. The notes will mature on March 15, 2028, unless earlier exchanged, redeemed or repurchased.

The notes will be exchangeable at an initial exchange rate of 29.3432 shares of PPL Corporation’s common stock per $1,000 principal amount of notes.

General Motors (GM) issued a mini-convertible bond at $25 par value. The General Motors, 5.25% Series B Convertible Senior Debentures due 3/5/2032 have a conversion rate of 0.3852. It appears that the bonds were formally exchange listed but have since been delisted, and from what I can tell, it appears that the bond interest payments have been suspended.

If you are considering converting a portion of your portfolio to convertibles, beware of the risks, and lack of liquidity.

Looking for Collectable Investments at Auction?

by Fred Fuld III

Whether you spell it collectable or collectible, there is a great fascination with collecting and some of those collections turn out to be great investments.

Investing in collectibles, such as artwork, rare coins, stamps, vintage cars, or sports memorabilia, can have both advantages and disadvantages. Let’s explore them:

Advantages of investing in collectibles:

Potential for high returns: Some collectibles can appreciate significantly in value over time, especially if they are rare or in high demand. For example, certain pieces of art or rare coins have fetched enormous prices at auctions.
Diversification: Collectibles can be an alternative investment that diversifies your portfolio beyond traditional assets like stocks and bonds. They may have a low correlation with the stock market, which can provide a hedge against market volatility.
Tangible assets: Unlike stocks or other financial investments, collectibles are tangible assets that you can physically enjoy. Owning a valuable piece of art or a classic car can bring aesthetic pleasure and emotional satisfaction, in addition to potential financial gains.
Privacy and autonomy: Collectibles can be stored privately, offering a level of anonymity and independence from financial institutions or regulatory bodies that govern traditional investments.

Disadvantages of investing in collectibles:

Illiquid assets: Collectibles are often illiquid, meaning they can be difficult to sell quickly, especially at a fair price. Finding a buyer who is willing to pay the desired price may take time, which can limit your ability to access funds when needed.
Lack of income generation: Unlike stocks or rental properties that can generate regular income through dividends or rent, most collectibles do not generate any ongoing income. Their value is primarily determined by the buying and selling market.
Volatile market: The collectibles market can be highly volatile and subject to fluctuations in demand. The value of collectibles is often subjective and influenced by factors such as trends, popularity, and changing tastes. Market sentiment can greatly impact prices, making it challenging to predict or control investment outcomes.
Expertise and authenticity risks: Investing in collectibles requires specialized knowledge to accurately assess the authenticity, condition, and value of items. Without proper expertise, there is a risk of purchasing counterfeit or overpriced collectibles, potentially leading to financial losses.

If you are a Disney (DIS) fan, Van Eaton Galleries will be auctioning The Joel Magee Disneyland Collection, the largest privately owned collection of Disney Parks memorabilia in the world. There are over 1500 Disneyland items on July 17, 2023 through the 19th. The auction offers everything from a Disneyland Security Officer badge to a One of a Kind Hitchhiking Ghosts Animatronic Display with an estimate of $100,000 to $200,000.

If that’s too rich for your blood, you can pick up Peter Pan’s Flight Original Attraction Vehicle with n estimate of $75,000 to $100,000.

The item with the lowest start price is a Disneyland Donald Duck Birthday Squeaker Hat with a starting bid of $20 and an estimate of $100 to $200.

For you music fans out there, you can get Tupac Shakur’s inscribed Gold, Ruby, and Diamond Crown Ring, designed and commissioned by him in 1996. The estimate is $200,000 to $300,000. It is being offered by Sotheby’s on July 18.

If you enjoyed watching M*A*S*H, Heritage Auctions is offering Alan Alda’s “Capt. Benjamin Franklin ‘Hawkeye’ Pierce” Screen Used Dog Tags and Boots from MAS*H. It is currently bid at $11,500 and closes on July 28.

It’s important to note that investing in collectibles carries inherent risks, and outcomes can vary significantly based on individual items, market conditions, and personal expertise. It’s advisable to research thoroughly, seek professional advice, and diversify your investment portfolio appropriately to manage risks effectively.

Political ETFs: Yes, You Can Buy a Republican or Democrat ETF

by Fred Fuld III

Normally, I never publish anything directly related to politics on this site. However, on the predecessor site, I did publish the President Barack Obama Stock Portfolio and the Mitt Romney Stock Portfolio, back in 2012.

Earlier in 2007, I published the Bill and Hillary Clinton Stock Portfolio and the Hillary Clinton Stock Index. There were also many other stock indexes that year, including:
Rudy Giuliani Stock Index
John McCain Stock Index
Joe Biden Stock Index
Mitt Romney Stock Index

With the presidential election coming up in less than a year and a half, and the primaries much sooner, investors are paying more attention to politics.

So did you know that there is a Republican oriented Exchange Traded Fund and a Democrat oriented ETF? A conservative ETF and a liberal ETF? Well there are.

The Unusual Whales Subversive Democratic Trading ETF (NANC) invests in companies that sitting Democratic members of United States Congress and/or their families also have reported to have invested in. The expense ratio is 0.75%.

The Unusual Whales Subversive Republican Trading ETF (KRUZ) invests in stocks that sitting Republican members of United States Congress and/or their families also have reported to have invested in. The expense ratio is 0.75%.

*NANC vs. KRUZ, Source: Yahoo! Finance (blue line Democratic, red line Republican)*

As you can see, so far this year since inception, just comparing the two ETFs that track the investments of politicians, the Democrats are outperforming the Republicans. But there are plenty more political ETFs.

The God Bless America ETF (YALL) is an ETF that screens out companies that support liberal political activism and social agendas. Year-to-date total return is 26.04% and the expense ratio is 0.65%.

The Democratic Large Cap Core ETF (DEMZ) invests in large cap companies that make political contributions to Democratic Party candidates and political action committees above a certain threshold. Year-to-date total return is 13.67% and the expense ratio is 0.45%. It pays a yield of 0.91%.

The Point Bridge America First ETF (MAGA) has a goal of investing in companies that are highly supportive of Republican candidates. Year-to-date total return is 1.93% and the expense ratio is 0.72%. It pays a yield of 1.42%.

The American Conservative Values ETF (ACVF) invests in stocks that meet its politically conservative criteria. Year-to-date total return is 14.45% and the expense ratio is 0.75%. It pays a yield of 0.92%.

The 2ndVote Life Neutral Plus ETF (LYFE) invests in stocks that meet its pro-life social criteria.

The 2ndVote Society Defended ETF (EGIS) invests in stocks that meet its 2nd Amendment and border security social criteria.

So now, not only do you have many choices of presidential candidates, you also have many political ETF choices.

Disclosure: Author didn’t own any of the above at the time the article was written.

Have You Cemented Your Stock Portfolio with Cement Stocks?

by Fred Fuld III

The cement industry is a major contributor to the global economy, with a market size of over $326 billion. The industry is expected to grow at a CAGR of 5.1% from 2022 to 2029, driven by demand from infrastructure projects and urbanization.

Infrastructure projects, such as roads, bridges, and dams, are major consumers of cement. As developing countries invest in their infrastructure, the demand for cement is expected to grow. In addition, urbanization is also driving the demand for cement. As more people move to cities, there is a need for more housing and commercial buildings. Cement is a key ingredient in these structures.

The growth of the cement industry is not without its challenges. One challenge is the environmental impact of cement production. Cement manufacturing is a major source of carbon dioxide emissions. The industry is working to reduce its environmental impact, but this is a challenge.

Another challenge facing the cement industry is the increasing competition from emerging markets. China is the world’s largest producer of cement, but its growth is slowing. Other countries, such as India and Vietnam, are seeing rapid growth in their cement industries. This competition is putting pressure on prices and margins in the global cement market.

Despite these challenges, the cement industry is expected to continue to grow in the coming years. The demand for infrastructure and urbanization will continue to drive growth. The industry is also working to reduce its environmental impact, which will help to sustain its growth.

Here are some additional details about the factors driving growth in the cement industry:

Infrastructure projects: Governments around the world are investing heavily in infrastructure projects, such as roads, bridges, and dams. This is creating a significant demand for cement.
Urbanization: The world’s population is becoming increasingly urbanized. This is leading to a need for more housing and commercial buildings, which also require cement.
Economic growth: In many developing countries, economic growth is leading to an increase in disposable income. This is creating a demand for new homes and other structures, which also requires cement.
Increasing demand for sustainable construction materials: There is a growing demand for sustainable construction materials, such as cement made from recycled materials. This is creating new opportunities for the cement industry.

Vulcan Materials Company (VMC), which is traded on the New York Stock Exchange, is a producer of construction aggregates, primarily crushed stone, sand and gravel, and a major producer of aggregates-based construction materials including asphalt and ready-mixed concrete. The company’s products are used in nearly all forms of construction, including roads, bridges, buildings, and airports.

Vulcan Materials is the largest producer of construction aggregates in the United States, with operations in 29 states. The company also has operations in Canada and Mexico. Vulcan Materials is headquartered in Birmingham, Alabama.

The company’s stock is traded on the New York Stock Exchange (NYSE) under the ticker symbol “VMC.”

Vulcan Materials is a profitable company with a strong financial position. The company has a long history of growth and is well-positioned for future growth.

Here are some of the company’s strengths:

Strong market position: Vulcan Materials is the largest producer of construction aggregates in the United States. This gives the company a significant advantage in terms of market share and pricing power.
Diversified product portfolio: Vulcan Materials produces a wide range of construction materials, which helps to reduce its reliance on any one product or market.
Strong financial position: Vulcan Materials has a strong balance sheet and generates a lot of cash flow. This gives the company the financial resources to invest in growth and acquisitions.

Here are some of the company’s challenges:

Cyclical industry: The construction industry is cyclical, which means that demand for Vulcan Materials’ products can fluctuate.
Environmental regulations: The construction industry is heavily regulated, which can increase costs and delay projects.
Competition: Vulcan Materials faces competition from other producers of construction aggregates, as well as from companies that produce alternative construction materials.

Overall, Vulcan Materials is a strong company with a bright future. The company has a dominant market position, a diversified product portfolio, and a strong financial position. However, the company faces some challenges, such as the cyclical nature of the construction industry and the increasing regulatory burden.

The $29,5 billion market capitalization company has a trailing price to earnings ratio of 48 and a forward P/E ratio of 29. Quarterly earnings growth year-over-year were 31% on a revenue growth of 7%. Earnings per share growth for next year is expected to be 19.3%. The stock pays a dividend of 0.76%.

Cemex (CX) is a global building materials company with headquarters in Monterrey, Mexico. It is one of the largest cement companies in the world, with operations in over 50 countries. Cemex produces a wide range of building materials, including cement, ready-mix concrete, aggregates, and asphalt.

Cemex’s products are used in a wide variety of construction projects, including roads, bridges, buildings, and infrastructure projects. The company’s customers include governments, contractors, and individual consumers.

Here are some of Cemex’s strengths:

Strong market position: Cemex is one of the largest cement companies in the world, with operations in over 50 countries. This gives the company a significant advantage in terms of market share and pricing power.
Diversified product portfolio: Cemex produces a wide range of building materials, which helps to reduce its reliance on any one product or market.
Strong financial position: Cemex has a strong balance sheet and generates a lot of cash flow. This gives the company the financial resources to invest in growth and acquisitions.
Global reach: Cemex has operations in over 50 countries, which gives the company a global presence and access to new markets.

Here are some of Cemex’s challenges:

Cyclical industry: The construction industry is cyclical, which means that demand for Cemex’s products can fluctuate.
Environmental regulations: The construction industry is heavily regulated, which can increase costs and delay projects.
Competition: Cemex faces competition from other cement companies, as well as from companies that produce alternative building materials.

Overall, Cemex is a strong company with a bright future. The company has a dominant market position, a diversified product portfolio, and a strong financial position.

This $10.7 billion company trades at 18 times trailing earnings and 190 times forward earnings. Quarterly earnings growth year-over-year were 21% on a revenue growth of 8.4%. Earnings per share growth for next year is expected to be 18.9%. The company does not pay a dividend.

Eagle Materials Inc. (EXP) is a leading manufacturer of basic construction materials in the United States. The company produces cement, gypsum wallboard, recycled paperboard, and concrete and aggregates. Its products are used in residential, commercial, industrial, infrastructure, and energy applications.

Eagle Materials was founded in 1963 as a division of Centex Construction Company. The company became an independent public company in 2004. Eagle Materials is headquartered in Dallas, Texas, and has operations in 11 states.

Eagle Materials is a profitable company with a strong financial position. The company has a long history of growth and is well-positioned for future growth.

Here are some of the company’s strengths:

Strong market position: Eagle Materials is a leading manufacturer of basic construction materials in the United States. This gives the company a significant advantage in terms of market share and pricing power.
Diversified product portfolio: Eagle Materials produces a wide range of construction materials, which helps to reduce its reliance on any one product or market.
Strong financial position: Eagle Materials has a strong balance sheet and generates a lot of cash flow. This gives the company the financial resources to invest in growth and acquisitions.
Focus on innovation: Eagle Materials is constantly investing in new technologies and products. This helps the company to stay ahead of the competition and meet the needs of its customers.

Here are some of the company’s challenges:

Cyclical industry: The construction industry is cyclical, which means that demand for Eagle Materials’ products can fluctuate.
Environmental regulations: The construction industry is heavily regulated, which can increase costs and delay projects.
Competition: Eagle Materials faces competition from other manufacturers of construction materials, as well as from companies that produce alternative building materials.

EXP has a trailing P/E of 15 and a forward P/E of 13. Earnings per share growth for next year is expected to be 36.2%. The company pays a dividend of 0.54%.

Overall, the cement industry is expected to continue to grow in the coming years. The demand for infrastructure and urbanization will continue to drive growth. Maybe one of these stocks could be the foundation for your portfolio.

Disclosure: Author did not own any of the above at the time the article was written.

Movie Review: BlackBerry

by Fred Fuld III

Are you looking for a great movie to watch over the long weekend? Check out BlackBerry, currently available as an Amazon Prime Video.

Does anyone remember the BlackBerry smartphone? Do young people even know what a BlackBerry is?

The riveting true story of BlackBerry takes us on a whirlwind ride through the ruthlessly competitive forces of Silicon Valley. With excellent pacing and a well-written screenplay, the two-hour runtime flies by. Jay Baruchel and Glenn Howerton deliver outstanding performances, supported by a talented cast. The cinematography and score are top-notch, immersing us in the captivating narrative.

BlackBerry tells the tale of Mike Lazaridis (Jay Baruchel), the genius behind the world’s first smartphone. Joined by Jim Balsillie (Glenn Howerton) as Co-CEO, they navigate the highs and lows of the company’s journey. The film unveils surprising behind-the-scenes details that kept me engaged throughout.

Adapted from the novel by Matthew Miller and directed by Matt Johnson, the stellar dialogue holds our attention, even in quieter moments. It offers a fascinating exploration of the cutthroat business world. Baruchel and Howerton deliver career-defining performances, especially Howerton.

BlackBerry impresses with its editing, direction, and music choices. As a Canadian film starring Canadian actors, it deserves recognition. The film strikes a balance between serious storytelling and clever satire, making it even more enjoyable. I cannot recommend BlackBerry enough – a must-watch

Are Cell Tower Stocks Calling? Yields up to 13%

by Fred Fuld III

The cell tower industry is currently in a state of growth, driven by the increasing demand for mobile data and the rollout of 5G networks. The global cell tower market is expected to reach $120 billion by 2025, up from $80 billion in 2020.

The growth of the cell tower industry is being driven by a number of factors, including:

The increasing demand for mobile data: As more and more people use their smartphones and tablets to stream video, download music, and play games, the demand for mobile data is growing rapidly. This is putting a strain on existing cellular networks, and cell towers are needed to increase capacity and improve coverage.
The rollout of 5G networks: 5G is the next generation of cellular technology, and it promises to deliver much faster speeds and lower latency than 4G. This will enable new applications such as virtual reality, augmented reality, and self-driving cars, which will all require a significant amount of bandwidth.
The increasing popularity of small cells: Small cells are a type of cell tower that is much smaller and less visible than traditional cell towers. They can be deployed in a variety of locations, such as on streetlights, utility poles, and buildings. This makes them ideal for areas with high demand for mobile data, such as city centers and sports stadiums.

The Future of Cell Towers

The future prospects for the cell tower industry are very positive. The demand for mobile data is expected to continue to grow, and the rollout of 5G networks will further accelerate this growth. In addition, the increasing popularity of small cells will create new opportunities for the cell tower industry.

Overall, the cell tower industry is a good investment for the future. It is a stable and growing industry with a bright future.

Here are some additional reasons why cell towers are a good investment:

They are in high demand. The demand for cell towers is growing rapidly, as more and more people use their smartphones and tablets to connect to the internet.
They are relatively low-cost. The cost of building and maintaining a cell tower is relatively low, compared to other types of infrastructure.
They have a long lifespan. Cell towers can last for many years, making them a sound investment.
They provide a steady stream of income. Cell tower operators typically lease space on their towers to telecommunications companies, which provides a steady stream of income

If you are looking for cell tower stocks, there are a few options to consider, primarily those that are structured as real estate investment trusts [REITs] .

American Tower

American Tower Corporation (AMT) is a leading global real estate investment trust focused on owning, operating, and leasing wireless communications infrastructure. Established in 1995, the company has become one of the key players in the cell tower industry, providing essential infrastructure for wireless communication networks worldwide.

Key aspects of American Tower Corporation include:

Global Presence: ATC has a significant global presence, with operations in various countries across North America, Latin America, Europe, Africa, and Asia. They own and operate a vast portfolio of cell towers and other communication infrastructure assets in these regions.
Cell Tower Ownership: The core of ATC’s business revolves around owning and operating cell towers. These towers are equipped with antennas and other equipment necessary for transmitting and receiving wireless signals from mobile devices.
Diverse Portfolio: American Tower’s portfolio includes a wide range of wireless infrastructure assets, including macro cell towers, rooftop installations, and distributed antenna systems (DAS). This diversity enables them to cater to the specific needs of different wireless carriers and provide coverage in various environments.
Wireless Carrier Leasing: The company primarily generates revenue by leasing space on its towers to wireless carriers, telecommunications companies, and other wireless service providers. These companies use the infrastructure to provide cellular and data services to their customers.
Support for Emerging Technologies: ATC has been actively involved in supporting the deployment of emerging technologies like 5G. As 5G networks continue to roll out globally, the demand for cell towers and infrastructure is expected to grow, benefiting companies like American Tower.
Financial Performance: American Tower Corporation has experienced strong financial performance over the years, driven by the increasing demand for wireless communication and the expansion of mobile networks. The company’s revenue is derived from long-term lease agreements with its tenants, providing a stable source of income.
Sustainable Growth: Given the ongoing growth in mobile data consumption and the constant need for improved wireless connectivity, American Tower is positioned for sustainable growth in the long term. The company continues to invest in expanding its infrastructure and exploring opportunities in emerging markets.

American Tower Corporation’s role in the cell tower industry is crucial, as it provides the backbone infrastructure that supports wireless communication, enabling people around the world to stay connected and access mobile services. With its strong market position, global presence, and focus on emerging technologies, ATC continues to play a significant role in shaping the future of wireless communication networks.

The stock, with a market cap of $89.9 billion, trades at 69 times trailing earnings and 35 times forward earnings. Long term annual growth estimate for the next five years is 10.48%. It pays an annual dividend yield of 3.48%.

Crown Castle

Crown Castle International Corp. (CCI) is a leading real estate investment trust specializing in the ownership, operation, and leasing of wireless communications infrastructure, with a particular focus on cell towers. Here is a profile of Crown Castle, highlighting its involvement in the cell tower industry:

Cell Tower Ownership: Crown Castle owns and operates a vast portfolio of cell towers across the United States. These towers are strategically located in urban areas, suburban regions, and rural locations to provide comprehensive wireless coverage to a wide range of customers.
Macro Cell Towers: The company’s primary focus is on macro cell towers, which are tall structures equipped with antennas and other equipment necessary for transmitting and receiving wireless signals. These towers are designed to support multiple wireless carriers and their customers simultaneously.
Tower Infrastructure Services: Crown Castle provides essential infrastructure services to wireless carriers, telecommunications companies, and other wireless service providers. The company leases space on its towers, allowing tenants to install their antennas and equipment to enhance their network coverage and capacity.
Small Cell Networks: In addition to macro cell towers, Crown Castle also operates and deploys small cell networks. Small cells are lower-power wireless access points that complement macro towers, providing increased capacity and coverage in densely populated areas such as urban centers.
Fiber Optic Infrastructure: Crown Castle has expanded its operations into fiber optic infrastructure to support the increasing demand for high-speed data transmission. The company owns and operates an extensive fiber network, connecting its cell towers and providing backhaul connectivity to wireless carriers.
National Presence: Crown Castle’s portfolio covers a broad geographic footprint across the United States. The company’s extensive network of cell towers and fiber infrastructure enables it to provide comprehensive wireless coverage and support the deployment of new technologies, including 5G.
Wireless Carrier Relationships: Crown Castle has established long-term relationships with major wireless carriers, including Verizon, AT&T, and T-Mobile. These relationships are crucial for leasing space on its towers and driving revenue growth.
Site Development Services: Crown Castle offers site development services to support wireless carriers in the process of deploying new cell towers or expanding their existing infrastructure. This includes identifying suitable locations, obtaining necessary permits, and managing the construction and installation process.
Financial Performance: Crown Castle has a strong financial track record, with a steady revenue stream driven by long-term lease agreements with its tenants. The company’s success is attributed to its portfolio of high-quality assets, ongoing investment in infrastructure expansion, and reliable cash flow generation.
Commitment to Innovation: Crown Castle is actively involved in supporting the evolution of wireless communication technologies. The company embraces innovation and invests in research and development to meet the changing needs of wireless carriers and consumers.

Crown Castle’s focus on owning and operating cell towers, along with its investment in fiber optic infrastructure, positions it as a key player in the telecommunications industry. With its extensive network, national presence, and commitment to innovation, Crown Castle continues to play a critical role in enabling seamless wireless communication and supporting the growth of mobile networks in the United States.

The stock, which has a market cap of $49 billion, has a trailing price to earnings ratio of 30 and a forward P/E of 33. Earnings per share growth this year was 44.6%, however, on a quarterly basis, earnings were down slightly at -0.7%. The company pays a generous yield of 5.5%.

SBA Communications

SBA Communications Corporation (SBAC) is a leading independent owner and operator of wireless communications infrastructure, with a particular emphasis on cell towers. Here is a profile of SBA Communications, highlighting its involvement in the cell tower industry:

Cell Tower Ownership: SBA Communications owns and operates a substantial portfolio of cell towers primarily in the United States. These towers are strategically located across urban, suburban, and rural areas to provide wireless coverage to a diverse range of customers, including wireless carriers and other telecommunications companies.
Macro Cell Towers: The company focuses on macro cell towers, which are tall structures equipped with antennas and equipment to transmit and receive wireless signals. These towers support multiple wireless carriers and their customers, enabling them to deliver voice, data, and other wireless services.
Tower Leasing and Colocation: SBA Communications generates revenue by leasing space on its towers to wireless carriers and other service providers. Tenants can install their antennas and equipment on these towers, leveraging the infrastructure to expand their network coverage and capacity. SBA Communications also facilitates colocation, allowing multiple tenants to share a single tower.
Diverse Tower Portfolio: SBA Communications owns towers of various types, including freestanding towers, rooftops, and other structures suitable for wireless communication infrastructure. This diversity enables the company to meet the specific requirements of different tenants and provide coverage in various environments.
Geographic Reach: SBA Communications has a strong presence not only in the United States but also in international markets. The company’s tower portfolio extends across North, Central, and South America, providing wireless infrastructure solutions to customers in multiple countries.
Site Development and Services: SBA Communications offers site development services to support wireless carriers in their network expansion efforts. This includes identifying suitable locations, obtaining permits, and managing tower construction and installation. The company also provides maintenance and upgrade services to ensure optimal tower performance.
Financial Performance: SBA Communications has demonstrated consistent financial growth, driven by its extensive tower portfolio and the ongoing demand for wireless communication infrastructure. The company generates revenue through long-term lease agreements with its tenants, providing a stable source of income.
Commitment to Innovation: SBA Communications actively monitors and adapts to evolving industry trends and technological advancements. The company invests in research and development to ensure its towers and infrastructure are equipped to support emerging technologies, such as 5G and future wireless standards.

SBA Communications’ emphasis on owning and operating cell towers, combined with its geographic reach and commitment to innovation, positions it as a significant player in the wireless communications industry. With a diverse tower portfolio and a focus on customer service, SBA Communications continues to play a vital role in facilitating wireless connectivity and supporting the growth of mobile networks.

SBA is a $24.9 billion company, with fairly high P/E ratios, 68 trailing and 40 forward. Earnings per share growth this year was 97.4%, with next year growth anticipated to be 20.9%. The company has no long term debt and pays a yield of 1.47%.

Uniti

Uniti Group Inc. (UNIT) is a real estate investment trust that specializes in owning, acquiring, and operating mission-critical communication infrastructure, including a focus on cell towers. Here is a profile of Uniti Group, emphasizing its involvement in the cell tower industry:

Cell Tower Ownership and Leasing: Uniti Group owns and leases a substantial portfolio of cell towers across the United States. These towers are designed to support wireless communication by providing infrastructure for wireless carriers and other telecommunications companies. Uniti Group generates revenue by leasing space on its towers to tenants, allowing them to install their antennas and equipment.
Tower Portfolio and Diverse Assets: The company’s tower portfolio consists of a mix of macro towers, rooftop installations, and distributed antenna systems (DAS). This diversity enables Uniti Group to cater to different customer requirements and provide coverage in a variety of environments, including urban areas, suburban regions, and rural locations.
Strategic Tower Acquisitions: Uniti Group has been actively engaged in acquiring cell tower assets to expand its portfolio. Through strategic acquisitions, the company aims to enhance its market presence and strengthen its position in the cell tower industry.
Wireless Infrastructure Services: In addition to owning and leasing cell towers, Uniti Group provides a range of infrastructure services to support wireless carriers and their network deployment. These services include site development, tower construction and installation, maintenance, and upgrades.
Fiber Optic Connectivity: Uniti Group has a significant focus on fiber optic connectivity, which complements its cell tower assets. The company’s fiber network connects its towers, providing backhaul connectivity and enabling high-speed data transmission to support the increasing demand for mobile data and emerging technologies.
Customer Relationships: Uniti Group maintains relationships with various wireless carriers, telecommunications companies, and other customers in the wireless industry. These relationships are crucial for leasing space on its towers and providing tailored solutions to meet customer needs.
Geographic Reach: While primarily focused on the United States, Uniti Group has a nationwide presence, with towers located across multiple states. This geographic reach allows the company to offer wireless coverage and infrastructure services to customers in different regions.
Financial Performance: Uniti Group’s financial performance is driven by the recurring revenue generated through long-term lease agreements with its tenants. The stability of these leases provides the company with a predictable income stream.
Commitment to Innovation: Uniti Group recognizes the importance of technological advancements and evolving industry trends. The company actively invests in research and development to stay at the forefront of the rapidly changing wireless communication landscape.

Uniti Group’s focus on cell tower ownership, leasing, and fiber connectivity, combined with its strategic acquisitions and commitment to innovation, positions it as a significant player in the wireless infrastructure industry. Through its diverse tower portfolio and infrastructure services, Uniti Group plays a vital role in supporting wireless connectivity and the growth of mobile networks.

Being one of the smaller companies in the industry, it has a market cap of $1 billion. The stock trades at only 10 times forward earnings. Although earnings per share this year were negative, earnings per share growth for next year are anticipated to increase by over 72%. This $4.62 per share stock is debt free and has 30 cents in cash per share. The dividend yield is a towering 13%.

US Cellular

United States Cellular (USM), the only non-REIT on this list, is a prominent wireless telecommunications provider in the United States, offering cellular service to millions of customers across multiple states. US Cellular operates and utilizes cell towers as a crucial part of its network infrastructure to ensure comprehensive network coverage and connectivity. Here is a profile of US Cellular with emphasis on its involvement with cell towers:

Wireless Service Provider: US Cellular serves as a wireless telecommunications carrier, delivering voice, data, and other wireless services to consumers and businesses. It operates as a regional carrier, primarily focusing on serving customers in specific geographic areas rather than offering nationwide coverage.
Cell Tower Infrastructure: US Cellular owns and operates a substantial number of cell towers strategically positioned throughout its service areas. These cell towers act as essential infrastructure, facilitating the transmission and reception of wireless signals.
Network Coverage and Capacity: The cell towers maintained by US Cellular play a pivotal role in extending network coverage and enhancing capacity for its wireless services. Equipped with antennas and other necessary equipment, these towers transmit voice and data signals to customers’ mobile devices.
Tower Leasing: In addition to its proprietary tower infrastructure, US Cellular may also lease space on third-party cell towers to expand its network coverage in specific locations. By engaging in tower leasing agreements, US Cellular can extend its reach and offer service in areas where it doesn’t have its own towers.
Network Investment: US Cellular continues to invest in expanding and upgrading its network infrastructure, including cell towers, to meet the increasing demand for mobile data and enhance the overall customer experience. These investments involve deploying new technologies such as 5G to improve network speed, capacity, and capabilities.
Site Development and Management: US Cellular actively participates in site development activities, including identifying suitable locations for new tower installations, securing permits, and overseeing the construction and installation process. The company ensures that its tower infrastructure adheres to regulatory and environmental standards.
Partnerships and Roaming: US Cellular forms partnerships and establishes roaming agreements with other wireless carriers, allowing its customers to access coverage and services beyond its own network footprint. These agreements may involve sharing tower infrastructure and network resources with partner carriers.
Customer Focus: US Cellular places a strong emphasis on providing reliable wireless service to its customers, prioritizing personalized experiences and tailored wireless solutions. The company leverages its cell tower infrastructure to deliver network coverage, capacity, and connectivity that meets the unique needs of its customers.

US Cellular’s cell tower infrastructure forms the foundation of its wireless network, enabling the seamless delivery of voice and data services to its customers. With a commitment to network expansion, technological advancements, and customer satisfaction, US Cellular continues to play a vital role in providing reliable wireless connectivity and services in its specific regional markets.

This $1.5 billion company has a forward P/E of 23. Earnings for this year are negative but are expected t jump 77% next year. The stock is selling at a third of book value and has an extremely favorable price sales ratio of 0.36. It does not pay a dividend.

ETFs

If you are looking for more diversification, there are two ETFs with have some connection to the cell tower industry.

Pacer Benchmark Data & Infrastructure RE (SRVR) has a yield of 2.38%%.

Defiance 5G Next Gen Connectivity ETF (FIVG) yields 1.5%.

Keep a close eye on the price action of cell tower stocks, as they could be signaling a compelling buying opportunity, and may be calling your portfolio.

Disclosure: Author didn’t own any of the above at the time the article was written

Capture Stocks Involved in Carbon Capture

by Fred Fuld III

Carbon capture, also known as carbon capture and storage [CCS] or carbon capture, utilization, and storage [CCUS], is a technology that aims to mitigate the release of carbon dioxide, CO2, into the atmosphere, a major contributor to climate change. It involves capturing CO2 emissions from industrial processes, power plants, and other sources, and then storing or utilizing the captured carbon to prevent its release into the atmosphere.

The process of carbon capture typically involves three main steps: capture, transportation, and storage/utilization.

Capture: The first step is to capture CO2 emissions from the source. Various techniques are used for capture, including:
- Post-combustion capture: This method involves removing CO2 from the flue gas emitted after the combustion of fossil fuels. It typically employs chemical solvents or absorbents to capture the CO2.
- Pre-combustion capture: In this approach, the fuel is converted into a mixture of hydrogen and CO2 before combustion. The CO2 is then separated from the hydrogen, allowing for capture.
- Oxy-fuel combustion: This method involves burning fossil fuels with pure oxygen instead of air. The resulting flue gas primarily consists of CO2 and water vapor, making it easier to capture the CO2.
- Direct air capture: This technique involves extracting CO2 directly from the ambient air using chemical sorbents or other processes. It can be used to capture CO2 from diffuse sources or to remove historical emissions.
Transportation: Once the CO2 is captured, it needs to be transported to the storage or utilization site. Transportation methods include pipelines, ships, or trucks, depending on the distance and quantity of CO2 being transported.
Storage/Utilization: The captured CO2 can be either stored underground or utilized for various purposes.
- Storage: CO2 can be injected deep underground into geological formations such as depleted oil and gas fields, saline aquifers, or coal seams. These formations act as storage reservoirs, trapping the CO2 and preventing its release into the atmosphere. The CO2 may be stored in a supercritical state, where it exhibits properties of both a gas and a liquid.
- Utilization: Instead of storage, captured CO2 can be used for various purposes. It can be utilized in enhanced oil recovery (EOR), where the CO2 is injected into oil reservoirs to enhance oil production. Additionally, CO2 can be used in the production of chemicals, fuels, building materials, or other industrial processes.

In the energy sector, several prominent companies have made significant strides in carbon capture technology. Among these industry leaders are Equinor (EQNR), NRG Energy (NRG), Shell (SHEL), Chevron (CVX), Occidental Petroleum (OXY), Fluor (FLR), and Schlumberger (SLB), each of which has dedicated small divisions focused on advancing carbon capture initiatives.

FuelCell Energy, Inc. (FCEL) is developing a carbon capture system in partnership with Chart Industries, Inc. (GTLS) . FuelCell has a $931 market cap and is currently generating negative earnings. The company has about $69 million in long term debt but $458 million in cash.

In regards to pure plays, Aker Carbon Capture ASA (AKCCF) is a Norwegian company that specializes in carbon capture, utilization, and storage technologies. Aker Carbon Capture is a subsidiary of Aker ASA, a diversified Norwegian industrial investment company.

The company focuses on developing and commercializing carbon capture solutions to help reduce greenhouse gas emissions. Aker Carbon Capture offers various technologies and solutions for capturing CO2 emissions from industrial processes, power plants, and other sources. These solutions encompass both post-combustion and pre-combustion capture methods.

Aker Carbon Capture aims to facilitate the transition to a low-carbon economy by enabling industries to capture their CO2 emissions and either store the carbon underground or utilize it for other purposes, such as enhanced oil recovery or the production of valuable products. The company’s technologies aim to provide efficient and cost-effective solutions for reducing carbon emissions across different sectors.

This $749 million market cap company is currently generating losses, and should be considered speculative. The stocks trades over-the-counter.

Delta CleanTech Inc. (DCTIF), headquartered in Calgary, Canada, is a company primarily focused on carbon capture. With a strong emphasis on sustainability, Delta CleanTech engages in various businesses related to CO2 capture and management. Their comprehensive offerings include CO2 capture solutions for CO2-enhanced heavy oil production, coal and gas power generation, and industrial food-grade CO2 markets. They employ cutting-edge technologies like LCDesign, PDOengine, and DeltaSolv to provide efficient and effective solutions in the field of carbon capture.

In addition to their expertise in carbon capture, Delta CleanTech also offers a range of supporting systems and services. Their Delta Purification system encompasses innovative technologies such as the Delta solvent reclaiming system and Delta glycol reclaiming system. These systems enable the reclamation of amine-based solvents used in natural gas processing and CO2 capturing processes, as well as the reclamation of glycols like mono-ethylene glycol and tri-ethylene glycol used for natural gas dehydration, cooling, and anti-freeze processes.

Recognizing the importance of hydrogen as a clean fuel source, Delta CleanTech is involved in the development of hydrogen fueling stations. They aim to contribute to the growth and adoption of hydrogen as an alternative energy option. Also, Delta CleanTech actively participates in the development, verification, and trading of CO2 offset credits.

This is an extremely low cap company at $2.2 million and should therefore be considered extremely speculative. The company is currently generative negative earnings.

A less risky alternative that would provide more diversification would be carbon capture related Exchange Traded Funds. There are a few to choose from:

KraneShares Global Carbon (KRBN)
VanEck Vectors Low Carbon Energy ETF (SMOG)
iShares MSCI ACWI Low Carbon Target ETF (CRBN)

Carbon capture technologies are still being developed and refined, and their widespread deployment is a subject of ongoing research and investment. The ultimate goal is to reduce greenhouse gas emissions and help mitigate the impact of human activities on climate change by capturing and safely storing or utilizing CO2 that would otherwise be released into the atmosphere.

Disclosure: Author didn’t own any of the above at the time the article was written.

Stocks Going Ex Dividend in July 2023

The following is a short list of some of the many stocks going ex-dividend during the next month, which can be helpful for traders and investors interested in the stock trading technique known as “Buying Dividends” or “Dividend Capture.” This strategy involves purchasing stocks before the ex dividend date and selling them shortly after the ex-date at a similar price, while still being eligible to receive the dividend payment.

Although this technique generally proves effective in bull markets and flat or choppy markets, it is advisable to exercise caution and consider avoiding this strategy during bear markets. To qualify for the dividend, it is necessary to buy the stock before the ex-dividend date and refrain from selling it until on or after the ex-date.

However, it is important to note that the actual dividend may not be paid for several weeks, as the payment date can be delayed by up to two months after the ex-date.

For investors seeking a comprehensive list of stocks going ex-dividend in the near future, WallStreetNewsNetwork.com has compiled a downloadable list containing numerous dividend-paying companies. Here are a few examples showcasing the stock symbol, ex-dividend date, periodic dividend amount, and annual yield.

Comcast Corporation Class A (CMCSA)	7/3/2023	0.29	2.89%
Campbell Soup Company (CPB)	7/5/2023	0.37	3.25%
Cisco Systems, Inc.(DE) (CSCO)	7/5/2023	0.39	3.10%
Dollar General Corporation (DG)	7/10/2023	0.59	1.38%
Oracle Corporation (ORCL)	7/11/2023	0.40	1.35%
Krispy Kreme, Inc. (DNUT)	7/25/2023	0.035	0.98%
Lowe’s Companies, Inc. (LOW)	7/25/2023	1.10	2.05%
Hasbro, Inc. (HAS)	7/31/2023	0.70	4.65%

To access the entire list of over 100 ex-dividend stocks, subscribers will receive an email in the next few days. If you are not already a subscriber, you can sign up using the provided signup box below. Don’t miss out on this valuable information, and the best part is that it’s free!

Dividend Definitions

To better understand the dividend-related terms, let’s define them:

Declaration date: This refers to the day when a company announces its intention to distribute a dividend in the future.
Ex-dividend date: On this day, if you purchase the stock, you would not be eligible to receive the upcoming dividend. It is also the first day on which a shareholder can sell their shares and still receive the dividend.
Record date: This marks the day when you must be recorded on the company’s books as a shareholder to qualify for the dividend. Typically, the ex-dividend date is set two business days prior to the record date.
Payment date: This is the day on which the dividend payment is actually made to the eligible shareholders. It’s important to note that the payment date can be as long as two months after the ex-date.

Before implementing the “Buying Dividends” technique, it is crucial to reconfirm the ex-dividend date with the respective company to ensure accuracy and avoid any unexpected changes.

In conclusion, being aware of the stocks going ex-dividend can be advantageous for traders and investors employing the “Buying Dividends” strategy. WallStreetNewsNetwork.com provides a convenient resource to access a comprehensive list of such stocks, allowing individuals to plan their investment decisions effectively. Remember to stay informed and consider market conditions before employing any investment strategy.

Disclosure: Author did not own any of the above at the time the article was written.

Healthy Chocolate May Help Chocolate Stocks

by Fred Fuld III

The demand for chocolate is currently on the rise. The global chocolate market is projected to grow at a CAGR of 4.98% from 2022 to 2029, reaching an estimated value of USD 67.88 billion by 2029.

There are a number of factors driving the growth of the chocolate market, including:

Increasing population growth and urbanization. The global population is expected to grow to 9.7 billion by 2050, and the majority of this growth will occur in urban areas. This will create a larger market for chocolate, as urban consumers are more likely to consume chocolate than rural consumers.

Rising incomes. As incomes rise, consumers are more likely to spend money on luxury goods, such as chocolate. This is especially true in developing countries, where the middle class is growing rapidly.

Increased awareness of the health benefits of chocolate. Chocolate has been shown to have a number of health benefits, such as reducing the risk of heart disease, stroke, and diabetes. This is leading to increased demand for chocolate, especially among health-conscious consumers.

Growing popularity of premium and dark chocolate. Premium and dark chocolate are becoming increasingly popular, as consumers are looking for more sophisticated and flavorful chocolate options. This is driving growth in the chocolate market, as these types of chocolate typically command a higher price than traditional milk chocolate.

Chocolate has been shown to have a number of health benefits, including:

Reduced risk of heart disease. The flavanols in chocolate can help to improve blood flow and reduce inflammation, which can help to protect against heart disease.

Lowered blood pressure. The flavanols in chocolate can also help to lower blood pressure, which is another risk factor for heart disease.

Reduced risk of stroke. Chocolate has been shown to reduce the risk of stroke, especially in women.

Improved blood sugar control. The flavanols in chocolate can help to improve insulin sensitivity, which can help to control blood sugar levels.

Reduced risk of type 2 diabetes. Chocolate has been shown to reduce the risk of type 2 diabetes, especially in women.

Improved cognitive function. The flavanols in chocolate can help to improve cognitive function, such as memory and attention.

Reduced risk of Alzheimer's disease and dementia. The flavanols in chocolate may help to protect against Alzheimer's disease and dementia.

Improved mood. Chocolate can help to improve mood, possibly due to its effects on the brain's serotonin levels.

Antioxidant protection. Chocolate is a good source of antioxidants, which can help to protect cells from damage.

It is important to note that these health benefits are only seen with dark chocolate, which contains a higher concentration of flavanols than milk chocolate. Additionally, the benefits are seen when chocolate is eaten in moderation.

So what chocolate stocks are available to investors?

Hershey Foods Corporation (HSY), commonly known as Hershey’s, is a well-known American chocolate company. Hershey’s was founded by Milton S. Hershey in 1894 in the town of Hershey, Pennsylvania, USA. Milton Hershey had previous experience in the caramel business but turned his attention to chocolate manufacturing.

In 1900, Hershey’s introduced its iconic product, the Hershey’s Milk Chocolate Bar, which quickly became popular among consumers. The company’s success was largely attributed to its use of fresh milk and other high-quality ingredients.
Hershey’s experienced significant expansion throughout the early 20th century.

Milton Hershey established a model town called Hershey, Pennsylvania, to house the company’s employees and their families. The town included amenities such as housing, schools, recreational facilities, and a theme park called Hersheypark.
During World War II, Hershey’s was commissioned by the U.S. government to produce ration bars for the military. These bars provided soldiers with a high-calorie and nutritious food source during combat.

In addition to the classic chocolate bars, Hershey’s expanded its product line to include various confectionery items. This included the introduction of Hershey’s Kisses in 1907, Reese’s Peanut Butter Cups in 1928, and Kit Kat bars in the United States in 1970 through a licensing agreement with Nestlé.

Hershey’s expanded its reach globally, establishing manufacturing facilities and acquiring confectionery companies in different countries. Today, Hershey’s products are available in various regions around the world.

Over the years, Hershey Foods Corporation has grown to become one of the largest chocolate and confectionery manufacturers in the United States and has built a strong brand recognized globally.

Hershey has a trailing price to earnings ratio of 32 and a forward P/E ratio of 25. Earnings per share growth for this year jumped by 44.6%. The stock pays a dividend of $4.14 per year, giving a yield of 1.59%.

Mondelez International (MDLZ) has a rich history in the chocolate industry. The company traces its roots back to 1903 when it was originally established as the National Biscuit Company [NBC] in the United States. NBC quickly gained recognition for its popular snack products, including cookies and crackers. Over the years, NBC expanded its product portfolio and became a leading player in the global food and beverage industry.

In 1923, NBC introduced its first chocolate product, the iconic Oreo cookie, which went on to become one of the company’s most beloved and successful brands. This marked NBC’s entry into the chocolate segment and set the stage for its future endeavors in the chocolate industry.

In 1969, NBC merged with another prominent food company, Kraft Foods, forming the conglomerate known as Kraft General Foods (KGF). This merger brought together two industry giants and further solidified their presence in the chocolate and snack market.

In 2000, KGF underwent a significant restructuring and rebranding. The company spun off its international snack and confectionery businesses, including its chocolate brands, into a separate entity called Kraft Foods Inc. This move aimed to enhance focus and drive growth in the respective product categories.

In 2012, Kraft Foods Inc. made another transformational change. It split into two independent companies: Kraft Foods Group, which focused on the North American grocery business, and Mondelez International, which took charge of the global snacks and confectionery portfolio, including its chocolate brands.

As a result, Mondelez International became a standalone company dedicated to delighting consumers with a wide range of chocolate products. The company’s chocolate portfolio includes well-known brands such as Cadbury, Milka, Toblerone, and Côte d’Or, among others.

This $100 billion market cap company trades at 26 times trailing earnings and 21 times forward earnings. Quarterly earnings growth year-over-year jumped 147.8% on a rise of 18.1% increase in quarterly sales over the same period. The stock pays a dividend yield of 2.09%.

Tootsie Roll Industries has a storied history in the chocolate industry, dating back to its inception in 1896. The company was founded by Leo Hirshfield, who initially started his confectionery business in New York City. While Tootsie Roll Industries is best known for its namesake candy, the Tootsie Roll, its involvement in the chocolate sector is significant.

In the early years, Tootsie Roll Industries primarily focused on producing hard candies. However, in 1907, the company introduced a breakthrough product that would shape its future—the Tootsie Roll. This chocolate-flavored taffy-like candy became an instant success, winning the hearts of consumers across the United States.

Building on the triumph of the Tootsie Roll, the company expanded its chocolate offerings with the introduction of Tootsie Pops in 1931. These lollipops, featuring a chewy Tootsie Roll center, quickly became a beloved treat and a staple of Tootsie Roll Industries’ product lineup.

Over the decades, Tootsie Roll Industries continued to innovate and expand its chocolate portfolio. In 1971, they introduced another iconic product, the Junior Mints. These creamy, chocolate-covered mints gained popularity and have remained a favorite movie theater snack ever since.

Tootsie Roll Industries further expanded its chocolate offerings through acquisitions. In 1993, the company acquired the Charms Company, known for its popular Charms Blow Pops, which combined fruit-flavored hard candy with a gum center. This acquisition strengthened Tootsie Roll Industries’ presence in the chocolate and confectionery market.

Today, Tootsie Roll Industries is a leading player in the chocolate and confectionery industry. In addition to the classic Tootsie Roll and Tootsie Pops, the company offers a diverse range of chocolate-based candies, including Dots, Andes, and Caramel Apple Pops, among others.

This $2.68 billion market cap stock trades at 34 times trailing earnings. Quarterly sales were up 15.3% over the same period last year, and earnings increase 12.8% over the same period. The company offers a yield of 0.97%.

The Rocky Mountain Chocolate Factory is a confectionery company founded in 1981 by Frank and Rosalie Crail in Durango, Colorado. Starting with their first store in an old house, they offered a variety of chocolates and confections. As their high-quality chocolates gained popularity, the company expanded rapidly and began opening franchise locations across the United States.

Rocky Mountain Chocolate Factory became known for its diverse range of chocolate products, including caramel apples, fudge, truffles, nut clusters, and chocolate-covered treats. They also introduced innovative creations like gourmet popcorn, chocolate-dipped strawberries, and custom gift baskets.

To further expand, Rocky Mountain Chocolate Factory adopted a franchise model, allowing individuals to open their own stores under the brand’s umbrella. This approach contributed to the company’s rapid growth and the establishment of numerous retail locations nationwide.

In addition to its success in the United States, Rocky Mountain Chocolate Factory ventured into international markets. It opened stores in Canada, the United Arab Emirates, South Korea, Japan, and other countries, expanding its reach and introducing its products to a global audience.

Throughout its history, Rocky Mountain Chocolate Factory has maintained a commitment to using premium ingredients and traditional chocolate-making techniques. The company focuses on handcrafting its chocolates in small batches to ensure freshness and superior taste.

Rocky Mountain Chocolate Factory’s dedication to quality and its unique offerings have earned it a loyal customer base and recognition within the confectionery industry. Its stores are often sought out by chocolate enthusiasts and tourists looking for delicious treats.

Today, the Rocky Mountain Chocolate Factory continues to thrive, offering a wide selection of chocolates and confections in its stores and franchises. Its commitment to quality, innovative products, and expansion efforts have made it a well-known name in the chocolate industry.

The company is currently generating negative earnings, but has a reasonable price to sales ratio of 1.10. Rocky Mountain is an extremely low cap company at $33 million, and should therefore be considered extremely speculative.

Overall, the future of the chocolate industry is marked by innovation, sustainability, and meeting evolving consumer demands. As companies continue to adapt to changing trends and invest in responsible practices, the chocolate industry is poised for continued growth and diversification.

Disclosure: Author didn’t own any of the above at the time the article was written.

What is CRISPR and Why Should Your Portfolio Care?

by Fred Fuld III

What is CRISPR?

CRISPR (Clustered Regularly Interspaced Short Palindromic Repeats) is a revolutionary gene-editing technology that allows scientists to make precise changes to an organism’s DNA. It is based on a natural system that bacteria use to defend against viral infections. The CRISPR-Cas9 system, in particular, has gained significant attention and is widely used in scientific research.

The CRISPR-Cas9 technology consists of two main components: the Cas9 enzyme and a guide RNA (gRNA). The gRNA is designed to target a specific sequence of DNA, and the Cas9 enzyme acts as molecular scissors to cut the DNA at that location. Once the DNA is cut, the cell’s natural repair mechanisms come into play, which can be harnessed to introduce desired genetic changes, such as adding, removing, or modifying specific genes.

CRISPR technology has revolutionized the field of genetic engineering and holds tremendous potential for various applications, including medical research, agriculture, and biotechnology. It has opened up new possibilities for understanding genetic diseases, developing new therapies, creating genetically modified organisms, and enhancing crop characteristics, among other things. However, it is still an active area of research and there are ongoing discussions and considerations regarding its ethical, legal, and social implications.

There are a few publicly traded companies that are in the CRISPR field. The CRISPR technology industry is at its very early stages, so there are risks involved with some of the smaller companies. Here are some of the pure plays, all of which are generative negative earnings.

Intellia Therapeutics (NTLA) is a biotechnology company that was founded in 2014 with the goal of developing CRISPR-Cas9-based therapies for the treatment of genetic diseases. The company was co-founded by Jennifer Doudna, one of the pioneers of CRISPR technology, along with Rodger Novak, Luciano Marraffini, and Nessan Bermingham.

The history of Intellia Therapeutics is closely tied to the breakthrough discovery of CRISPR-Cas9 as a powerful gene-editing tool. Jennifer Doudna’s research group, along with Emmanuelle Charpentier, published a seminal paper in 2012 that demonstrated the potential of CRISPR-Cas9 for precise DNA editing. This discovery laid the foundation for the development of Intellia’s therapeutic approach.

In its early years, Intellia Therapeutics focused on establishing its intellectual property and securing licenses to key CRISPR-Cas9 patents. The company also built a strong team of scientists and researchers with expertise in gene editing, molecular biology, and drug development.

Since its founding, Intellia Therapeutics has made significant progress in advancing its pipeline of potential therapies. The company has collaborated with various partners, including Novartis, Regeneron Pharmaceuticals, and Ospedale San Raffaele, to develop and commercialize CRISPR-based treatments for a wide range of genetic diseases.

Intellia’s research and development efforts have focused on several therapeutic areas, including genetic disorders, liver diseases, and cancer. The company has been involved in preclinical and clinical studies to evaluate the safety and efficacy of its CRISPR-based therapies.

The stock has a market cap of $3.75 billion, cash per share of $10.44, and has no long term debt. The latest quarterly revenue growth year-over-year was 11.5%.

CRISPR Therapeutics (CRSP) is a biotechnology company that was founded in 2013 with the aim of harnessing the potential of CRISPR-Cas9 gene editing technology for the development of novel therapies. The company was co-founded by Emmanuelle Charpentier, Jennifer Doudna, and Rodger Novak.

The history of CRISPR Therapeutics is intertwined with the groundbreaking discovery of CRISPR-Cas9 as a powerful tool for precise gene editing. In 2012, Emmanuelle Charpentier and Jennifer Doudna published a seminal paper demonstrating the feasibility of using CRISPR-Cas9 for targeted genome editing. This discovery opened up new possibilities for gene therapy and genetic engineering.

CRISPR Therapeutics was established shortly after this pivotal discovery. The company focused on translating the potential of CRISPR technology into therapeutic applications for the treatment of genetic diseases. CRISPR Therapeutics obtained licenses to key CRISPR-Cas9 patents and assembled a team of scientists and experts in the field.

Since its founding, CRISPR Therapeutics has made significant progress in its research and development efforts. The company has collaborated with various partners, including Vertex Pharmaceuticals, to advance its pipeline of potential therapies. CRISPR Therapeutics has focused on several therapeutic areas, such as blood disorders, genetic diseases, and immuno-oncology.

The company has conducted preclinical and clinical studies to evaluate the safety and efficacy of its CRISPR-based treatments. Notably, in 2019, CRISPR Therapeutics initiated the first clinical trial in the United States for CRISPR-based gene editing in humans. The trial aimed to evaluate the use of CRISPR-Cas9 to treat patients with transfusion-dependent beta-thalassemia.

CRISPR Therapeutics continues to be at the forefront of CRISPR-based therapeutics development, leveraging the potential of gene editing technology to address unmet medical needs.

It has a market cap of $4.59 billion, is debt free and has cash per share of $23.38. Quarterly sales growth year-over-year skyrocketed by over 10,000%. This is due to the fact that sales were extremely low a year ago.

Editas Medicine (EDIT) is a biotechnology company founded in 2013 with a focus on developing transformative genome editing technologies, particularly using CRISPR-Cas9, to treat genetic diseases. The company was co-founded by Jennifer Doudna, Feng Zhang, George Church, Keith Joung, and J. Keith Joung, all prominent scientists who have made significant contributions to the development of CRISPR technology.

The history of Editas Medicine can be traced back to the breakthrough discovery of CRISPR-Cas9 as a versatile gene-editing tool. In 2012, Jennifer Doudna and Emmanuelle Charpentier published a seminal paper demonstrating the feasibility of using CRISPR-Cas9 for precise DNA editing. Feng Zhang’s lab at the Broad Institute of MIT and Harvard also independently developed the CRISPR-Cas9 system for gene editing around the same time.

In 2013, Editas Medicine was established with significant investments from venture capital firms and scientific institutions. The company aimed to leverage the power of CRISPR technology to develop novel therapeutics for a range of genetic disorders. Editas Medicine holds licenses to key CRISPR-Cas9 patents and collaborates with academic and industry partners to advance its research and development efforts.

Since its inception, Editas Medicine has made progress in developing therapies for various genetic diseases. The company has focused on specific conditions such as inherited retinal diseases, which can cause vision loss, and has initiated clinical trials to evaluate the safety and efficacy of its CRISPR-based treatments.

The company sports a market cap of a bit over $582 million, and is debt free with $4.39 in cash per share. The latest quarterly revenue growth year-over-year was 45.6%.

CRISPR, initially considered a niche within the biotechnology industry, has the potential to transcend boundaries and emerge as the preeminent and rapidly expanding force among all biotech enterprises, poised to redefine the landscape of scientific advancements and medical breakthroughs.

Disclosure: Author didn’t own any of the above at the time the article was written.