What is Trending on Amazon

by Fred Fuld III

Have you ever wondered what the hot items are on Amazon (AMZN) that people are ordering? The following is a list of the latest trending items.

By the way, Amazon reports earnings on April 27.

Nintendo Switch – OLED Model – The Legend of Zelda: Tears of the Kingdom Edition

Polaroid Originals Now I-Type Instant Camera

LEVOIT Air Purifier

Keurig K-Iced Coffee Maker

Gotland 8 Piece Outdoor Patio Furniture Set with Gas Fire Pit

AND FOR MOTHER’S DAY:

Breville Smart Oven Air Fryer Pro

Salt, Fat, Acid, Heat: Mastering the Elements of Good Cooking

Disclosure: Author owns AMZN stock. This article contains Amazon affiliate links whereby I would receive a small commission on any sale through those links at no additional cost to you.

Top 5 Pure Play AI Stocks

By Fred Fuld III

You’ve seen it on TV, you’ve read about it on news websites. Artificial Intelligence, commonly referred to as AI, is now the hottest industry. Stocks that are involved in this industry are taking off.

I originally wrote about a form of artificial intelligence back in October of 2021 in an article called The Future of Artificial Intelligence: Can You Invest In It Now?

So you may be wondering what companies are the purest plays.

WHAT AI IS

Artificial Intelligence, or AI for short, refers to the ability of machines to perform tasks that typically require human intelligence, such as learning, reasoning, problem solving, and decision-making. AI algorithms are designed to analyze data, recognize patterns, and make predictions or recommendations based on that analysis.

In other words, AI is a way to teach machines to perform tasks that would normally require human intelligence, and to improve their performance over time based on the data they analyze. This technology has the potential to revolutionize many aspects of our lives, from healthcare to transportation to entertainment. AI is even being used to write articles and books.

WHAT CHAT AI IS

One of the most popular types of AI services is Chat AI. 

Chat AI refers to the use of artificial intelligence technologies, such as natural language processing (NLP) and machine learning, to enable machines to communicate with humans via chat interfaces, such as chatbots or virtual assistants.

Chat AI is used in a variety of settings, such as customer service, where chatbots can be used to answer frequently asked questions, provide information, or help customers troubleshoot issues. Chat AI can also be used in healthcare to provide personalized support and advice, in education to assist with learning, and in business to streamline operations and improve customer engagement.

The key advantage of Chat AI is that it enables organizations to provide 24/7 support to their customers, without the need for human intervention. Additionally, Chat AI can help organizations save costs by automating routine tasks and reducing the need for human labor.

To enable effective Chat AI, developers must ensure that the algorithms are capable of understanding and interpreting natural language, as well as providing appropriate responses to user queries. This requires a combination of NLP and machine learning techniques, as well as ongoing training and improvement of the chat AI system.

Overall, Chat AI is an increasingly popular technology that has the potential to transform the way we interact with machines and automate routine tasks in various industries.

CREATING IMAGES WITH AI

Yes, artificial intelligence is now being used to create images, such as book covers, logos, album covers, and many other purposes. You just need to type in a simple description, and a picture will automatically be created. One of the most popular AI image services is called DALL-E.

DALL-E is an artificial intelligence system developed by OpenAI that is capable of generating images from textual descriptions. The name “DALL-E” is a combination of the artist Salvador Dali and the Pixar character Wall-E.

The DALL-E system uses a combination of machine learning techniques, including natural language processing and computer vision, to interpret textual descriptions and generate corresponding images. It is capable of creating images of objects and scenes that do not exist in the real world, such as a teapot made of giraffe or a snail-shaped harp.

THE BIG PLAYERS

The DALL-E system was trained on a dataset of text-image pairs, which enabled it to learn the relationship between textual descriptions and their corresponding visual representations. The system was trained on a massive amount of data, including images from the internet and text descriptions from a variety of sources.

The potential applications of DALL-E are numerous, including in the fields of art, design, and advertising. It has the potential to streamline the creative process and help artists and designers bring their ideas to life more quickly and easily. However, there are also concerns about the potential misuse of this technology, such as the creation of fake images or the propagation of harmful stereotypes.

First, let’s get the large stocks out of the way. There are many companies involved in AI, ranging from startups to large corporations. However, some of the biggest companies involved in AI are:

Google (GOOG) (GOOGL) is known for its search engine, but it’s also heavily invested in AI, with products like Google Assistant, Google Photos, and Google Translate all utilizing machine learning.

Amazon (AMZN) is using AI in many areas, such as its recommendation engine, its Alexa voice assistant, and its Amazon Go stores, which use computer vision to enable a checkout-free shopping experience.

Microsoft (MSFT) has been investing heavily in AI and has developed several AI-powered products, including Cortana, Skype Translator, and Microsoft Cognitive Services.

IBM (IBM) has a long history of developing AI technologies, and its Watson platform is one of the most well-known examples of AI in action.

Meta/Facebook (META) uses AI in a variety of ways, including facial recognition technology for tagging photos and content moderation.

Apple (AAPL) has been incorporating AI into many of its products, including Siri and Face ID.

NVIDIA (NVDA) is a leading manufacturer of GPUs, which are essential for training and running AI models.

Baidu (BIDU) is a Chinese search engine that is heavily investing in AI, with projects ranging from self-driving cars to voice recognition.

Tesla (TSLA) is using AI in its autonomous driving technology and is working to develop a fully self-driving car.

Alibaba (BABA), the Chinese e-commerce company, is investing in AI to improve its recommendation engine and other areas of its business.

THE PURE PLAYS

Now let’s get to the purer plays in artificial intelligence.

C3.AI

C3.ai, Inc. (AI) is a software company, located in Redwood City, California, that provides enterprise AI solutions for a variety of industries, including energy, healthcare, and finance. The company was founded in 2009 by Dr. Thomas M. Siebel, who is also the CEO of the company.

Before founding C3.ai, Dr. Siebel was the founder and CEO of Siebel Systems, a leading enterprise software company that was acquired by Oracle Corporation in 2006. After the acquisition, Dr. Siebel focused on developing AI-based solutions for the enterprise market and founded C3.ai.

Initially, C3.ai focused on developing predictive maintenance and energy management solutions for the energy industry. The company’s first product, C3 Energy Management, was designed to help utilities optimize their energy generation and distribution systems using machine learning algorithms.

Over time, C3.ai expanded its focus to other industries, including healthcare, financial services, and manufacturing. The company’s current product offerings include C3 AI Suite, which is a platform that enables organizations to develop and deploy AI applications, and C3.ai Ex Machina, which is an AI-powered data science platform for data scientists and developers.

C3.ai has received funding from several prominent investors, including Breyer Capital, TPG Growth, and the Rise Fund. In December 2020, the company went public on the New York Stock Exchange under the ticker symbol “AI,” raising $651 million in its initial public offering.

The stock has a market capitalization of $2.45 billion. This debt-free company has $6.76 in cash per share.

SOUNDHOUND AI

SoundHound AI, Inc. (SOUN) is a Silicon Valley-based technology company that specializes in developing sound recognition and voice-enabled AI solutions. The company was founded in 2005 by Dr. Keyvan Mohajer, who is also the CEO of the company.

Initially, the company started as a music recognition app called “Midomi,” which allowed users to hum or sing a song, and the app would identify the song. Later on, the company expanded its focus to voice-enabled AI technology and changed its name to SoundHound Inc.

In 2015, SoundHound Inc. launched its flagship product, Hound, which is an AI-powered voice assistant. Hound uses a natural language processing (NLP) technology that enables users to speak complex and specific queries in a conversational manner. The Hound voice assistant is available as a mobile app and can be integrated into other devices and applications.

In addition to Hound, SoundHound AI, Inc. also offers a suite of AI-based products and services, including sound recognition technologies for speech-to-text and music identification, and voice-enabled AI solutions for automotive, hospitality, and other industries.

The company has received funding from several prominent investors, including NVIDIA, Samsung, and Tencent Holdings. By 2021, SoundHound AI, Inc. had raised over $250 million in funding.

SoundHound has a market cap of $580 million. The company is debt-free and quarterly sales increased by over 79% year-over-year.

BIGBEAR.AI

BigBear.ai Holdings, Inc. (BBAI) is a technology company that develops and provides artificial intelligence (AI) solutions for defense and intelligence organizations, as well as for commercial customers. The company was founded in 2018 and is headquartered in Reston, Virginia.

BigBear.ai’s technology solutions use AI and machine learning to help customers make sense of large and complex data sets, as well as to automate decision-making processes. The company’s AI-driven solutions are designed to improve situational awareness, increase operational efficiency, and support decision-making across a range of industries and applications.

The company’s solutions cover a range of capabilities, including computer vision, natural language processing, and data analytics. BigBear.ai’s solutions are used in a variety of applications, such as intelligence analysis, threat detection, predictive maintenance, and supply chain optimization.

BigBear.ai has a broad customer base that includes government agencies and commercial customers in various industries. The company has received funding from several venture capital firms, including Riverside Partners, Chart National, and Blu Venture Investors.

In 2021, BigBear.ai announced that it had entered into a definitive agreement to merge with GigCapital4, a special purpose acquisition company (SPAC), in a deal that valued the combined company at $1.57 billion. The merger was completed in August 2021, and the combined company is now publicly traded on the NASDAQ under the ticker symbol “BBAI” as “BigBear.ai”.

This debt-free company has a market cap of $458 million. 

T STAMP

T Stamp Inc. (IDAI) is an identity authentication software company that uses artificial intelligence (AI) to develop solutions for government, enterprise partners, and peer-to-peer markets in the United States, the United Kingdom, and Malta.

T Stamp’s AI-powered solutions leverage biometric science, cryptography, and data mining to deliver identity and trust predictions, protect sensitive user information, and extend the reach of digital services through global accessibility. The company’s solutions include converting biometric and other identifying data into an Irreversibly Transformed Identity Token that serves as a secure tokenized identity. T Stamp also offers solutions for privacy and data protection, document validation, identity verification, geolocation, duplicate detection, and biometric capture.

T Stamp’s solutions serve a variety of industries, including banking/fintech, humanitarian and development services, KYC/AML compliance, government and law enforcement, P2P transactions, social media, and sharing economy, and real estate, travel, and healthcare. The company was incorporated in 2016 and is headquartered in Atlanta, Georgia.

Overall, T Stamp’s mission is to provide secure and scalable identity authentication solutions that leverage AI and advanced technologies to protect user privacy and combat identity fraud.

This is a microcap stock with an extremely low market cap of $18 million, and should therefore be considered extremely speculative. 

MARPAI

Marpai, Inc. (MRAI) is a software company that specializes in developing and deploying artificial intelligence (AI) systems for the enterprise market. The company was founded in 2016 by a team of experienced entrepreneurs and AI researchers, including CEO and Co-founder Mark Sears.

Marpai’s platform, called “Cortex,” is designed to help businesses leverage AI to automate processes, extract insights from data, and improve decision-making. Cortex uses advanced machine learning algorithms to analyze large amounts of data and provide actionable insights to users.

The company has received funding from prominent venture capital firms, including Bain Capital Ventures, Crosslink Capital, and SVB Capital, among others. In May 2021, Marpai announced that it had raised $30 million in a Series A funding round led by M12, Microsoft’s venture fund, with participation from other investors.

Marpai has a range of customers across different industries, including finance, healthcare, and retail. The company’s solutions are used for a variety of applications, such as fraud detection, customer service automation, and supply chain optimization.

Overall, Marpai’s mission is to democratize AI and make it more accessible to businesses of all sizes, by providing a scalable and user-friendly platform for deploying AI solutions.

The stock is debt-free and quarterly revenue growth year-over-year was 28.8%. This is another microcap stock with an extremely low market cap of $40 million, and should therefore also be considered extremely speculative.

AI SUMMARY

According to Fortune Business Insights, “The Artificial Intelligence market is projected to grow from $387.45 billion in 2022 to $1394.30 billion by 2029, at a CAGR of 20.1%.”

Just remember, that there are many ups and downs in new industries, and all the pure play stocks in this list should be considered speculative. Remember, no recommendations are expressed or implied. 

If you want to learn more about artificial intelligence, you should get the book Artificial Intelligence: What AI Is and How You Can Use It to Make Your Life Easier: A Guide to AI for Beginners, available in both paperback and Kindle.

Disclosure: Author didn’t own any of the above at the time the article was written, although may be making purchases in the near future. This article contains Amazon affiliate links whereby I would receive a small commission on any sale through those links at no additional cost to you. 

Four Ways to Invest in Apple (without using options)

by Fred Fuld III

Are you bullish on Apple (AAPL)? Are you bearish on Apple? Do you know these are four securities you cn buy to participate in the movement of the Apple stock?

AAPL

First, you can just buy the stock outright. That’s Apple with the symbol AAPL. What you buy is what you get. When the stock moves up a dollar in price, your share move up one dollar.

AAPD

If you are bearish on Apple, and you don’t want to take the risk of shorting the stock, you can buy the Direxion Daily AAPL Bear 1X Shares (AAPD). This ETF has a goal of moving inversely to the price of Apple, on a dollar for dollar basis. In other words, if Apple moves down a dollar, then AAPD should move up about a dollar.

AAPU

If you are really bullish on Apple, you can consider trading the Direxion Daily AAPL Bull 1.5X Shares (AAPU), which is an ETF with a goal of moving one and a half times the direction of Apple. So if Apple moves up one dollar, AAPU should move up about $1.50.

AAPB

Now if you are super bullish on Apple, you might want to look at the GraniteShares 1.75x Long AAPL Daily ETF (AAPB), which attempt to provide 1.75 times the movement of Apple stock. Just remember, if Apple goes down, this ETF will drop by about 1.75 times.

Keep in mind that these Bullish Single Stock ETFs and Anti Stocks (Bearish Single Stock ETFs) should primarily be used for trading as opposed to investing, and can obviously carry a lot of risk.

Disclosure: Author owns AAPL.

Get Income on Penny Stocks that Don’t Pay Dividends

by Fred Fuld III

Yes, you read that heading correctly. You can own penny stocks that don’t pay dividends or even regular stocks that don’t pay dividends, and still get income from them.

And for stocks that do pay dividends, you can increase your income from them.

I’m not talking about writing options. I’m not talking about selling off some of your shares.

What I am talking about is something called the Fully Paid Lending Income program which most major brokerage firms offer. It is a way of making money off traders who  sold shares of a stock short .

Fully Paid Lending Income (FPLI) is a type of income that investors can earn by lending their fully paid securities to other market participants, such as hedge funds or other traders, who want to short sell the securities.

When investors lend their fully paid securities, they earn interest on the loan, which is referred to as FPLI. The interest rate is determined by market forces and may vary based on factors such as the demand for the security, the supply of available securities to lend, and the length of the loan period.

The process of FPLI works as follows: An investor with fully paid securities can lend them to a borrower through a lending agent, such as a broker-dealer or a custodian bank. The borrower then sells the securities on the market with the hope of buying them back later at a lower price. If successful, the borrower returns the securities to the lender, who earns interest on the loan.In summary, FPLI is a way for investors to earn additional income on their fully paid securities by lending them to other market participants who want to short sell the securities.

So you are probably wondering, can you really make any money from Fully Paid Lending? The answer is yes, and I’m talking from personal experience.

I recently called my broker about another issue relating to dividends, and as we were going through the income on my account, I noticed income of $164 listed as Miscellaneous. I asked the customer rep what that was and he told me that’s the fully paid lending income.

So I started to look back at previous months.

The following is an example from last month from my Roth IRA at TD Ameritrade. (Confidential information has been redacted.)

The dollar value of this stock during this time was around $8,000 and you will notice that the collateral at month-end was zero, which means that my shares were not borrowed for the entire month.

In spite of that, my stock generated over $164 for the month. That works out to 2% for just one month. Not too shabby for a stock that sells for around $4 and doesn’t pay a dividend. And if you annualize it…..

Now you are probably wondering, is this a one shot deal that you might get for only one month out of the year? The answer is no. Since December of last year, I have received over $100 every month.

Here is another example from January.

You can see that the same stock that generated $164 last month brought me $336 in January.

Let’s assume conservatively that this stock generates $150 per month. That’s $1800 per year, and for $8000 worth of stock, that’s a 22.5% return!

Considering that I originally bought the stock for just capital gains, this additional income is a nice bonus.

Now for the downside. You will notice that I had a second stock in January, which only generated six cents in lending fees. That can happen.

Sometimes you don’t make much and sometimes you don’t make anything on your stockholdings, but when you do, the income can be fairly high depending on if the stock is hard to borrow.

Be aware that you are not automatically enrolled in this program. You need to contact your broker, fill out some forms (which might need to be physical forms instead of electronic), and then wait a couple days for it to be activated.

I could not find any disadvantage to the program, although there are some basic requirements. I can sell my stock at any time. You can enroll both a regular account and an IRA account.

The way I look at it, I have nothing to lose and the possibility of a lot to gain. Especially with the low priced stocks.

Here’s to getting additional income on your stock portfolio.

NYSE Stocks with the Highest Short Interest

by Fred Fuld III

A short squeeze is a phenomenon that occurs in financial markets when investors who have sold shares of a stock short (i.e., betting that the stock price will fall) are forced to buy those shares back at a higher price than they expected. This can happen when the stock’s price rises sharply, causing losses for short sellers who need to buy the stock to cover their position and limit their losses.

As more and more short sellers try to buy the stock to close out their positions, this increased buying activity can drive the stock price even higher, creating a feedback loop that can lead to a rapid and dramatic increase in price. This can create a challenging situation for short sellers, who may be forced to buy back the stock at a loss, or risk even greater losses if the stock continues to rise. A short squeeze can also create opportunities for long investors who have purchased the stock, as they may be able to sell their shares at a higher price to short sellers looking to cover their positions.

On August 22, 2022, I posted an article about meme related short squeeze stocks, and pointed out Bed Bath and Beyond (BBBY) after it had its big run-up. In exactly one week after the article was posted, the stock jumped by more than 43%.

Another stock that was mentioned was Intercept Pharmaceuticals, Inc. (ICPT), which increased by almost 5% in just two days.

The stock with the biggest short ratio (days to cover), at 14.3 back then, was Heron Therapeutics, Inc. (HRTX). It rose by 9.5% in three days.

When you short a stock, it means that your goal is to make money from a drop in the price of a stock. Technically, what happens is that you borrow shares of a stock, sell those shares, then buy back those shares at a hopefully lower price so that those shares can be returned. This all happens electronically, so you don’t actually see all the borrowing and returning of shares; it just shows up on your screen as a negative number of shares.

Short sellers can be profitable, but sometimes when the stock moves against them, and begins to rise, the short sellers jump in right away to buy shares to cover their positions, creating what is called a short squeeze. When a short squeeze takes place, it can cause the share prices to increase fast and furiously. Any good news can trigger the short squeeze.

Some traders utilize this situation by looking for stocks to buy that may have a potential short squeeze. Here is what a short squeeze trader should take into consideration:

Short Percentage of Float ~ The float is the number of freely tradable shares and the short percentage is the number of shares held short divided by the float. Amounts over 10% to 20% are considered high and potential short squeeze plays.

Short Ratio / Days to Cover / Short Interest Ratio -This is probably the most important metric when looking for short squeeze trades, no matter what you call it. This is the number of days it would take the short sellers to cover their position based on the average daily volume of shares traded. This is a significant ratio as it shows how “stuck” the short sellers are when they want to buy in their shares without driving up the price too much. Unfortunately for the shortsellers, the longer the number of days to cover, the bigger and longer the squeeze.

Short Percentage Increase ~ This is the percentage increase in in the number of short sellers from the previous month.

The following are some heavily shorted tech stock that may be worth considering.

CompanyTickerShort % of FloatShort % ChangeShort Interest Ratio
Silvergate Capital CorpSI76.92%-6%1.2
Carvana CoCVNA52.82%0%1.8
Wayfair IncW33.65%0%4.2
Big Lots, Inc.BIG32.44%-1%7
C3.ai IncAI27.31%5%1.4
Fubotv IncFUBO26.57%-27%3.2
Virgin Galactic HoldingsSPCE25.92%9%5.9
Bakkt Holdings IncBKKT24.53%6%4.3
AMC EntertainmentAMC24.39%1%3.7
Cinemark Holdings, Inc.CNK23.73%0%7.6

The third stock on the list, Wayfair (W) has over 33% of its float shorted, with no change in short interest over last month.

The short interest ratio is 4.2, which means that it would take the short sellers over 4 days to cover their position, based on recent average volume.

Just keep in mind that just because a stock has good earnings ratios and is heavily shorted, doesn’t mean that the stock will go up, especially in a bear market. Also, stocks that are significantly shorted may be shorted for a reason.

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

Is It Time to Invest in Watches? How about $5 Million for a Patek Philippe Watch?

by Fred Fuld III

Christie’s recently set a global record for the most expensive watch auctioned online.

The watch is a Patek Philippe Grand Complications ‘Sky Moon Tourbillon’ that was hammered at US$ 5.8 million (HK $45.4 million), above its high estimated.

The auction was part of the Christie’s Hong Kong Top Of The Time Watches Online.

Top Lot – Lot 111: Patek Philippe,
Grand Complications ‘Sky Moon Tourbillon’ , Ref. 6002G-001
Source: Christie’s

Here are the details on the watch:

Circa: 2015
Case material: 18k white gold
Diameter: 44 mm.
Strap material: Dark blue Patek Philippe CROCODILE strap
Dial: Blue cloisonné enamel
Movement: Manual
Functions: Cathedral minute repeating, tourbillon, perpetual calendar, retrograde date, moon phases, leap year indication, sidereal time, sky chart, phases and orbit of the moon
Buckle: 18k white gold hand-engraved Patek Philippe deployant clasp
With: Patek Philippe Certificate of Origin, Rate Accuracy Certificate, matching cufflinks, setting pin, sales tag, product literature, leather portfolio, leather holder, presentation box, additional presentation box with winding mechanism and outer packaging

An investment you can wear. It will even tell you the time.

Stocks Going Ex Dividend in April 2023

The following is a short list of some of the many stocks going ex dividend during the next month.

Many traders and investors use the stock trading technique called ‘Buying Dividends,’ also commonly referred to as ‘Dividend Capture.’ This is the strategy of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend.

This technique generally works in bull markets and flat or choppy markets, but during bear markets, you may want to consider avoiding this strategy. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can’t sell the stock until on or after the ex date.

The actual dividend may not be paid for another few weeks.

WallStreetNewsNetwork.com has compiled a downloadable list of the stocks going ex dividend in the near future. The list contains many dividend paying companies, lots with market caps over $500 million. Some of the stocks have yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the periodic dividend amount, and the annual yield.

Comcast Corporation (CMCSA)4/4/20230.293.18%
American Express Company (AXP)4/5/20230.601.51%
General Mills, Inc. (GIS)4/6/20230.542.71%
Dollar General Corporation (DG)4/10/20230.591.12%
Abbott Laboratories (ABT)4/13/20230.512.08%
Colgate-Palmolive Company (CL)4/20/20230.482.63%
Dell Technologies Inc. (DELL)4/24/20230.373.84%
Clorox Company (CLX)4/25/20231.183.02%
Hasbro, Inc. (HAS)4/28/20230.705.83%

The entire list of over 100 ex-dividend stocks will be emailed to all subscribers next week. If you are not a subscriber, you can sign up at the signup box below. Don’t miss out. Remember, it’s free!

Dividend Definitions

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Record date: the day when you must be on the company’s books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks at two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don’t forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written; affiliate links are on this page.

Is the Falling Stock Market Driving You to Drink? How About Booze Stocks?

by Fred Fuld III

The liquor and alcoholic beverage industry is a multi-billion dollar industry that has been growing steadily over the years. While the industry is not immune to the impact of global events such as the COVID-19 pandemic, there are several factors that suggest a promising future for the industry.

First, changing consumer preferences towards premium and craft spirits have led to an increase in demand for high-quality, unique and flavorful alcoholic beverages. This has led to a rise in small-scale distilleries and microbreweries, which offer unique and innovative products. The trend of craft beer and small-batch spirits is expected to continue in the future, with consumers looking for unique and high-quality products.

Second, the increasing trend towards health and wellness has also led to the emergence of low-alcohol and non-alcoholic beverages. This segment of the industry is growing rapidly, driven by consumers who are looking for alternatives to traditional alcoholic beverages. This trend is expected to continue as more consumers become health-conscious and seek out healthier beverage options. Plus, there are reportedly even health benefits to drinking alcohol in moderation.

Third, the growth of the e-commerce industry has provided new opportunities for the liquor and alcoholic beverage industry. Online sales have increased significantly over the years, and this trend is expected to continue in the future. As a result, companies that are able to establish a strong online presence and offer convenient and efficient delivery services are likely to benefit from this trend.

Finally, the increasing disposable income and changing lifestyles of consumers in emerging economies such as India and China are expected to drive growth in the liquor and alcoholic beverage industry in these regions. As the middle class grows and consumers become more discerning, demand for premium and high-quality alcoholic beverages is expected to rise.

Overall, while the liquor and alcoholic beverage industry is not immune to challenges, there are several factors that suggest a promising future for the industry. Companies that are able to adapt to changing consumer preferences and trends, and leverage new technologies and business models are likely to benefit from the growth opportunities in the industry.

For investors looking to invest in the booze sector, Constellation Brands (STZ) is one option. It was founded in 1945, and is a California based company with such brands as Robert Mondavi, Clos du Bois, Ravenswood, Black Velvet, and Canadian Whiskey. The stock trades at 18.8 times forward earnings and pays a dividend of 1.46%. Earnings per share are expected to grow next year by 10.8%.

Diageo (DEO), founded in 1997, is based in the UK. Its brands include Blossom Hill, Sterling Vineyards, Beaulieu Vineyard, Navarro Correas, Acacia Vineyard, Rosenblum Cellars, Piat d’Or, Chalone Vineyard, and Santa Rita. The stock has a trailing price to earnings ratio of 22.8 and offers a decent yield of 2.13%. Quarterly revenue growth was 37% year-over-year.

If you like Jack Daniel’s, then maybe Brown-Forman (BF-B) is the way to go. The trailing P/E is 34 and the forward P/E is 31. The yield is 1.3%.

Like anything, drinking should be done in moderation, and allocating your portfolio to liquor stocks should be done in moderation also.

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

Investing in the Future of Coffee

by Fred Fuld III

The coffee industry has been growing steadily over the years and is expected to continue to expand in the future. Here are some potential business opportunities in the coffee industry:

  1. Specialty coffee: The specialty coffee market has been growing rapidly as consumers become more interested in high-quality and unique coffee experiences. This presents an opportunity for businesses to offer specialty coffee products, such as single-origin beans, micro-roasted coffee, and customized blends.
  2. Sustainable coffee: Consumers are becoming more environmentally conscious, and this trend is driving demand for sustainable coffee products. Businesses can differentiate themselves by offering sustainably sourced and produced coffee, using practices that minimize their environmental impact.
  3. Coffee delivery: With the growth of online ordering and delivery services, there is an opportunity for businesses to offer coffee delivery services. This could include delivery of coffee beans, pre-made coffee drinks, or even a subscription service for regular coffee deliveries.
  4. Coffee tourism: As coffee continues to grow in popularity, there is an opportunity for businesses to offer coffee tourism experiences, such as visits to coffee plantations, coffee tastings, and coffee-related workshops.
  5. Technology-enabled coffee: Technology is transforming the coffee industry, with innovations such as coffee machines that use artificial intelligence and mobile ordering apps. Businesses can capitalize on this trend by offering technology-enabled coffee products and services.

These are just a few examples of the potential business opportunities in the coffee industry. As the industry continues to evolve, there will likely be many more opportunities for businesses to innovate and grow.

Of course, there are also plenty of health benefits from drinking coffee.

So if an investor wants to sample some of the companies in this industry, there are a few available.

Starbucks (SBUX) is the Seattle, Washington based company with over 30,000 stores around the world that sell coffee, tea, blended drinks, sandwiches, pastries, and many other food and drink items. Starbucks has a large market cap of over $117.8 billion and pays a dividend yield of 2.05%. It trades at 35.6 times trailing earnings.

Coffee Holding (JVA) is a wholesale coffee roaster and dealer that manufactures, roasts, packages, markets, and distributes roasted and blended coffee for private labeled accounts and its own brands, with three product categories: wholesale green coffee, branded coffee, and private label coffee. With a very low market cap of $28 million, the company’s stock is very speculative. The stock  trades at 27 times trailing earnings.

Another option is Farmer Brothers Company (FARM), a coffee foodservice company that manufactures, wholesales, and distributes coffee, tea, and hundreds of other foodservice items to retailers and foodservice providers. Its customers include hotels, offices, restaurants, convenience stores, and other establishments. The company has a tiny market cap of $90 million, and is currently generating negative earnings, so should be considered extremely speculative.

Are you going to put your money where your mouth is and consider investing in coffee stocks?

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

Have You Made Your Portfolio Safe with Cybersecurity Stocks?

by Fred Fuld III

Cybersecurity is becoming an increasingly important issue in our interconnected world, and as a result, the future business potential of cybersecurity is significant. Here are a few reasons why:

  1. Growing need for cybersecurity: As more and more of our personal and business lives move online, the need for robust cybersecurity measures will only increase. With cyber attacks becoming more sophisticated and frequent, companies will have to invest in cybersecurity solutions to protect their data and infrastructure.
  2. Compliance regulations: Governments around the world are introducing new regulations to ensure companies are taking adequate measures to protect their customers’ data. For example, the European Union’s General Data Protection Regulation (GDPR) and California’s Consumer Privacy Act (CCPA) both require companies to take steps to protect consumer data. This means that companies will need to invest in cybersecurity solutions to comply with these regulations.
  3. Increased spending on cybersecurity: According to a report by Cybersecurity Ventures, global spending on cybersecurity products and services is expected to exceed $1 trillion over the next five years. This represents a significant growth opportunity for cybersecurity companies and service providers.
  4. Cybersecurity skills shortage: There is currently a shortage of cybersecurity professionals, which means that companies are struggling to find and hire qualified individuals to help protect their networks and data. This presents an opportunity for companies to invest in training and developing their own cybersecurity teams, or partnering with third-party providers to fill the gap.

Overall, the future business potential of cybersecurity is significant, with increasing demand for cybersecurity solutions and a growing market for cybersecurity products and services. Companies that invest in cybersecurity now will be well-positioned to capitalize on this trend in the years to come.

So how does an investor play this market?

The following is a selection of the many stocks involved in cybersecurity:

CompanySymbolMarket CapP/EFwd P/E
Palo Alto NetworksPANW$56 B244040
FortinetFTNT$47 B5737
CrowdStrike HoldingsCRWD$29 B64
ZscalerZS$19 B62
PalantirPLTR$17 B35
OktaOKTA$13 B75
SentinelOneS$4 B
If a section is blank, it means negative earnings

Th largest by market capitalization is Palo Alto Networks, which is based in Santa Clara, California and has been around since 2005.

The stock has a nosebleed high trailing price to earnings ratio of 2440, but a more reasonable forward P/E of 40.

Earnings per share growth this year was 47.6%, and next year anticipated to be 16.25%. Quarterly earnings growth year-over-year was 180%.

The next largest is Fortinet, based in Sunnyvale, California. It trades at 57 times trailing earnings and 37 times forward earnings. Earnings per share this year jumped 46.6%.

Quarterly revenue growth year-over-year was up 33%. The company is debt free.

Hopefully one of these stocks can protect your portfolio.

Disclosure: Author owns PLTR.