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7 Stocks Paying over 10% Yields

by Fred Fuld III

Many investors have been looking for ways to generate higher yields. Unfortunately, other than Series I Bonds, there aren’t many alternatives.

Interest rates are going up for mortgages and credit cards, but as for bank accounts, you are lucky to get over 1% on a certificate of deposit.

However, there are seven profit-making stocks that are currently offering yields of more that 10%.

All of these companies have market caps over $2 billion, have a trailing price to earnings ratio below 14, and a forward P/E ratio less than 15.

AllianceBernstein Holding L.P.(AB) is an asset management company with a market cap of $4.03 billion. The trailing P/E ratio is 10.44, the yield is 11.68%.

Arbor Realty Trust, Inc. (ABR) is a Mortgage Real Estate Investment Trust, also referred to as a mortgage REIT. This $2.32 billion market cap company has a P/E of 7.59, and a yield of 10.74%.

Another mortgage REIT is Chimera Investment Corporation (CIM), with a market cap of $2.15 billion. It trades at 13.19 times earnings and has a generous yield of 13.86%.

FS KKR Capital Corp. (FSK) is a $5.93 billion market cap asset manager with a very low P/E of 2.41. It pays a high yield of 13.26%.

Annaly Capital Management, Inc. (NLY) is yet another mortgage REIT, and has a $9.70 billion market cap. The P/E is a low 3.64, and the yield is a very high 14.26%.

Southern Copper Corporation (SCCO) has a market cap of $37.12 billion. This copper producer trades at 11.1 times earnings and yields 10.65%.

Last but not least, UWM Holdings Corporation (UWMC) is a mortgage finance company with a market cap of $5.50 billion. The P/E is 6.38, and the yield is 11.46%.

Beware of High Yield Issues

A few thing to be aware of regarding these high yields:

• The dividends are subject to change and elimination
• Putting limited partnerships (such as AllianceBernstein) in a qualified plan, such as an IRA, may have adverse tax consequences. (Talk to your account about this issue)
• Often there is a negative reason for stocks to trade at very high yields
• Many mortgage REITs use leverage to boost their yields, which creates added risk

Before making a rash decision about investing in any of these companies, do some research on them and be aware of the risks.

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

History of the Tesla Dot Com Website in Pictures

by Fred Fuld III

Have you ever wondered what the old websites look like for various companies? The Tesla.com website has had a few dramatic changes over the years, because for a long time, the domain name wasn’t even owned by Elon Musk’s Tesla (TSLA) company.

The following shows what the old home pages looked like for Tesla.com:

Tesla Year: 2002

Tesla Year: 2008

Tesla Year: 2010

Tesla Year: 2013

Tesla Year: 2016

Tesla Year: 2017

Tesla Year: 2021

Screenshots are courtesy of the WaybackMachine.

Disclosure: Author owns TSLA

Buy Rush Limbaugh’s Palm Beach Mansion for Only $175 Million

by Fred Fuld III

Looking for a new home in Florida?

Forget tiny houses. The perfect location is available to you in Palm Beach.

The mansion that was owned by conservative talk show host Rush Limbaugh is up for sale, according to ZeroHedge and the Wall Street Journal. Limbaugh passed away last year.

The home sits on a lot over two acres, and has over 16,000 square feet of living space, according to Zillow. It reportedly has 20 bathrooms.

The asking price is between $150 million to $175 million.

Record Setting Gift: Ring with 24,679 Diamonds!

by Fred Fuld III

With inflation causing the price of everything to rise, maybe you should start doing your Christmas shopping now.

How about a ring with 24,679 diamonds? Talk about a unique gift!

The ring is named Ami, which is Sanskrit for immortality.

This unique ring was created by SWA Diamonds in India.

It was created with the use of computer-aided-design and 3D printing.

No conflict diamonds were used. The ring was created in the shape of a pink oyster mushroom.

This breaks the Guinness World Records record for the most diamonds set in one ring.

Surprisingly, SWA Diamonds has valued the ring at only $95,243. Sounds like a bargain to me.

*Diamond Ring – Credit: Guinness World Records*

RARE Steve Jobs Autograph on a Macintosh Floppy Disk

by Fred Fuld III

Previously, I’ve written about investing in racehorses, NFTs, and baseball cards.

Now is your chance to put your money into something totally unique. Steve Jobs autograph on a 1984 Macintosh System Disk Version 1.0.

This outstanding item is being offered by the Paris, France auction house, Pierre Bergé & Associés.

This is a floppy disk of the very first Macintosh software operating system from 1984 and dedicated by Steve Jobs.

Steve Jobs – Credit: Pierre Bergé & Associés

It is inscribed as “To André Steve Jobs”.

In addition, included in the lot is a 1984 floppy disk, unsigned, for MacWrite and MacPaint.

This auction lot as an estimate of €10,000 to €20,000, with a starting bid of €8,000.

The original Macintosh was the first successful mass-market all-in-one desktop personal computer to have featured a graphical user interface, built-in screen, and mouse.

Apple Computer (now Apple Inc.) first started selling the Mac in January of 1984.

If you are into technology and autographs, this rare item is for you.

How to Short a Stock by BUYING a Stock

AXS Investments Launches First-Ever U.S. Suite of Single-Stock Leveraged Bull and Bear ETFs

by Fred Fuld III

Recently I wrote an article called 10 Ways to Make Money in a Bear Market. Well, now there is an additional way. You can now buy a single stock bearish ETF for certain stocks.

AXS Investments, a leading asset manager providing access to alternative investments for growth, income and diversification, today, July 14, 2022, launched a suite of eight ETFs that seek to provide leveraged long or inverse exposure to the daily performance of some of the most actively traded stocks across a variety of sectors.

“We are thrilled to be the first firm to bring single-stock leveraged and inverse ETFs to U.S. investors,” said Greg Bassuk, CEO of AXS Investments. “With the launch of this highly innovative family of ETFs, AXS has once again opened new access for traders and sophisticated investors, namely to express their high-conviction views on some of the most actively traded single stocks, regardless of whether their sentiment is bullish or bearish. AXS is excited to continue our aggressive build-out of highly differentiated ETFs designed to provide investors with unique, first-of-their-kind investments to achieve their varying objectives.”

The initial suite of AXS single-stock ETFs provides investors with leveraged long (“Bull”) and short (“Bear”) daily exposure to the following stocks:

• Tesla: AXS TSLA Bear Daily ETF (TSLQ)

• NVIDIA: AXS 1.25X NVDA Bear Daily ETF (NVDS)

• PayPal: AXS 1.5X PYPL Bull Daily ETF (PYPT) and AXS 1.5X PYPL Bear Daily ETF (PYPS)

• Nike: AXS 2X NKE Bull Daily ETF (NKEL) and AXS 2X NKE Bear Daily ETF (NKEQ)

• Pfizer: AXS 2X PFE Bull Daily ETF (PFEL) and AXS 2X PFE Bear Daily ETF (PFES)

As you can see, some of these ETFs have a leveraged bearish goal, such as Pfizer, which has a goal of providing two times the inverse of the daily performance of the price of the stock.

AXS Continues to Expand Fund Lineup with Fast-Growing Suite of First-of-Their-Kind Strategies.

Today’s rollout of these new ETFs is just one of many major strategic growth initiatives successfully achieved by AXS.

“Whether it is powerful inflation fighting tools, ways to express views on innovation, or a host of other novel investments that previously were unavailable to investors, our goal remains to be the leader in providing investors with access to the tools needed to build portfolios and to trade effectively in today’s volatile markets,” continued Bassuk. “We’re very excited about today’s news, and all that we still have in our product pipeline for 2022 and beyond.”

How Much Can You Lose by Investing in Bonds?

by Fred Fuld III

Have you considered moving out of stocks and into bonds to protect your investment portfolio? Think twice before you do.

Unless you are investing in Series I Bonds, you might want to avoid bonds at this time.

Remember, when interest rates go up, bonds drop in value. As a very simplistic example, If you have a bond paying 5%, and interest rates in general rise to 10%, a 30 year bond would drop to almost half its value.

Of course, you could sweat it out and hold on for 30 years to get your original investment back.

Even short term bonds can drop significantly, far exceeding what interest you have earned on the bond for the year.

You never know what the Federal Reserve Board will do with interest rates. Currently it looks like much higher rate hikes are in the cards due to rising inflation.

It looks like Fed Chairs are pushing for a 75 basis point (3/4%) interest rate increase for their upcoming meeting near the end of July hoping to help offset inflation.

So if rates continue to rise, how will it affect the value of your bonds?

The following shows what will happen to a 3% 30 Year Bond:

Value of a 30 year bond
If interest rates increase	30 year bond
Interest rates	3% bond	Drop in value
3%	$1,000.00
4%	$827.08	17%
5%	$692.55	31%
6%	$587.06	41%
7%	$503.64	50%
8%	$437.11	56%
9%	$383.58	62%

The following shows what will happen to a 3% 5 Year Bond:

Value of a 5 year bond
If interest rates increase	5 year bond
Interest rates	3% bond	Drop in value
3%	$1,000.00
4%	$955.48	4%
5%	$913.41	9%
6%	$873.63	13%
7%	$835.99	16%
8%	$800.36	20%
9%	$766.62	23%

The following shows what will happen to a 4% 30 Year Bond:

If interest rates increase	30 year bond
Interest rates	4% bond	Drop in value
4%	$1,000.00
5%	$846.28	15%
6%	$724.70	28%
7%	$627.73	37%
8%	$549.69	45%
9%	$486.32	51%
10%	$434.39	57%

The following shows what will happen to a 4% 5 Year Bond:

If interest rates increase	5 year bond
Interest rates	4% bond	Drop in value
4%	$1,000.00
5%	$956.71	4%
6%	$915.75	8%
7%	$876.99	12%
8%	$840.29	16%
9%	$805.52	19%
10%	$772.55	23%

Why Bond Mutual Funds are Bad

The worst possible bond investment during rising interest rates is a bond mutual fund. The reason?

There is no yield to maturity.

What that means is, if rates rise after you invest and never drop to that level again, then it doesn’t matter how long you hold onto the fund, even 50 years. You won’t get your principal back.

What can make it worse for the funds is if there are a lot of redemptions as interest rates rise and drop in value.

The fund is then forced to liquidate bonds at losses, thereby locking in losses for the whole portfolio.

Summary About Bonds

So if you have bonds in your portfolio, or you are consider buying bonds for your portfolio, make sure that you are aware of the downside.

Elon Musk Owns Shares In A Beverly Hills Entertainment Co.

by Fred Fuld III

Elon Musk is involved in a lot of businesses, including Tesla (TSLA), the Boring Company, SpaceX, and Neuralink, and almost became the head of Twitter (TWTR).

However, many investors don’t realize that Musk has been on the Board of Directors of a company called Endeavor Group Holdings, Inc. (EDR).

In addition, Elon Musk owns 7,583 shares of Endeavor Group Holdings, according to a recent SEC Form 4 filing.

Musk has been a director of the company since its IPO, but has resigned as of June 30.

So what is this Endeavor Group Holdings?

Endeavor, formerly named William Morris Endeavor Entertainment, is located on Wilshire Boulevard in Beverly Hills.

It is an entertainment conglomerate. It owns such businesses as UFC, the talent management company IMG, Professional Bull Riders, Miss Universe, and nine Minor League Baseball Teams.

The company has a market cap of $6.2 billion, and a sky high price to earnings ratio of 730. However, it does have a reasonable price sales ratio of 1.10.

Revenues year-over-year have gone from $3.48 billion in 2020 to $5.08 billion in 2021.

The Endeavor Talent Agency launched in 1995. In 2009, WMA and the Endeavor Talent Agency merged to form William Morris Endeavor, or WME.

Endeavor executives Ari Emanuel and Patrick Whitesell became co-CEOs.

On April 28, 2021, Endeavor Group went public on the New York Stock Exchange.

Disclosure: Author has a short option position in TSLA.

Elon Musk’s Letter to Twitter Canceling His Acquisition of Twitter

by Fred Fuld III

By now, you should have heard the news. Elon Musk, the head of Tesla (TSLA), has decided to cancel his acquisition of Twitter (TWTR).

Musk is claiming that Twitter is in material breach of multiple provisions of the agreement, and has also claimed that the company has more bot accounts than what Twitter claims it has.

Musk originally agreed to buy the company at $54.20 a share. Twitter stock is now down to 35.04 in after-market trading as of last Friday, July 8, 2022.

Do you want to see the actual letter dated July 8 that Elon Musk sent to Twitter’s chief legal officer through Musk’s attorney? Here is the link:

Elon Musk Letter from his Attorneys Canceling the Twitter Acquisition

712 Acre Bahamas Island Up for Auction

Little Ragged Island - Credit: Sotheby's — Little Ragged Island – Credit: Sotheby’s

by Fred Fuld III

A couple weeks ago, I reported on a Scottish island that is for sale. If you a little warmer island life, now you have your chance.

St. Andrew’s Island, also known as Little Ragged Island, is the largest private island for sale in the Bahamas. The size is 712 acres and it is located at the southern end of the country.

There are many private beaches and large ships have deep water access on the eastern side.

The island is being auctioned by Sotheby’s with a current listing of $12.5 million with no reserve. There is a 12% buyers premium; however, there is a starting bid incentive [SBI] of 6%. A SBI is a credit to reduce the buyer’s premium by 50% related to the starting bid amount. The Sotheby’s web site has a video that shows how the SBI works.

The island, suitable for developing, has its own private airstrip. What a great opportunity.

Bidding opens on July 25, 2022 at 6 PM EDT.