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Cheap Stocks: Stocks Selling Below Cash per Share with No Debt

by Fred Fuld III

If you are looking for a stock that has limited downside, it is hard to beat a stock that is trading at a price below the amount of cash it has per share, and on top of that, has little or no debt.

If a debt free company is selling below its cash per share, and if the company were to go out of business today, assuming all the company’s assets are completely worthless except for the cash, then an investor would have a guaranteed profit.

This biggest problem with these below-cash stocks is that sometimes corporate spending can deplete cash very quickly.

There are actually a few companies that all into this category, in spite of the fact that the stock market is trading near an all time high.

LendingClub Corp. (LC), which provides an online marketplace that facilitates loans to borrowers and investments, is trading at a 27$ discount to cash per share.

LendingClub is a financial services company headquartered in San Francisco, California. It was founded in 2007 and is the first peer-to-peer lender to register its offerings as securities with the Securities and Exchange Commission (SEC) and to offer loan trading on a secondary market.

Today, LendingClub is more than just a peer-to-peer lender. It is a full-spectrum fintech marketplace bank that offers a variety of financial products and services to its members, including:

Personal loans: LendingClub offers personal loans for a variety of purposes, such as debt consolidation, home improvement, and medical expenses.
Savings accounts: LendingClub offers high-yield savings accounts with competitive interest rates.
Certificates of deposit (CDs): LendingClub offers CDs with a variety of terms and interest rates.
Checking accounts: LendingClub offers checking accounts with features such as mobile banking and bill pay.
Business loans: LendingClub offers small business loans for a variety of purposes, such as working capital, expansion, and equipment financing.
Auto refinance loans: LendingClub offers auto refinance loans to help borrowers lower their interest rates and monthly payments.
Patient solutions: LendingClub offers patient solutions to help borrowers with medical bills.
K-12 education loans: LendingClub offers K-12 education loans to help parents finance their children’s education.

As of December 31, 2023, the company had over 4.7 million members and had originated over $80 billion in loans.

The stock is selling at a 24% discount to its book value, and has an excellent price to sales ratio of 0.75.

This $946 million market cap company has a trailing price to earnings ratio of 24 and a forward P/E of 10. Earnings per share growth next year is anticipated to be 270.66%.

American Well Corp. (AMWL), which provides online healthcare services, is trading at an amazing 24% discount to its cash per share, and the amount of long term debt being very low. The market capitalization is $316 million.

American Well Corp., operating as Amwell, is a leading company in the telemedicine field, headquartered in Boston, Massachusetts. They connect patients with doctors through secure video consultations, offering a convenient and flexible alternative to traditional in-person visits. Amwell primarily operates through two arms:

Platform solutions: They provide a subscription-based platform to healthcare providers, enabling them to offer telehealth services to their patients. This includes features like scheduling, video conferencing, and electronic health record integration.
Direct-to-consumer services: Through their Amwell Medical Group, patients can connect with licensed doctors directly for various non-emergency concerns,receiving diagnoses, prescriptions, and referrals if needed.

Amwell boasts a vast network, partnering with 55 health plans, 240 health systems, and over 40,000 providers, reaching millions of patients across the US. They also offer specialty consultations, chronic condition management programs, and are continuously expanding their services in this ever-evolving healthcare landscape.

The company has $538 million in cash, yet only $11.8 million in long term debt.

The stock has a reasonable price to sales ratio of 1.18 and an excellent price to book value of 0.63. Unfortunately, the company has been generating negative earnings.

NET Power, Inc. (NPWR), a $596 million market cap company, is a provider of clean energy technology.

Net Power Inc. is a clean energy technology company aiming to revolutionize power generation with their “energy trifecta”: clean, reliable, and low-cost energy. Founded in 2010 and headquartered in Durham, North Carolina, they focus on natural gas as a fuel source while capturing and sequestering the resulting CO2 emissions.

Their key innovation lies in the NET Power Cycle, an oxy-combustion process that combusts natural gas with pure oxygen. This unique method captures over 97% of carbon dioxide at the source, significantly reducing greenhouse gas emissions compared to traditional methods. Additionally, the captured CO2 can be used for industrial purposes or safely stored underground, further minimizing environmental impact.

The stock is trading at 92% of its cash per share and has no debt. Earnings have been negative.

Just Remember this About Below Cash Stocks

Often there are significant (negative) reasons why stocks sell below cash. In addition, these stocks are very low cap, so they should all be considered extremely speculative.

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

Russian Professor Predicted Collapse of US in 2010

In December of 2008, Igor Panarin, a Russian professor and dean of the Russian Foreign Ministry’s academy for future diplomats, predicted the economic and moral collapse of the United States in the year 2010.

This former KGB agent says that by mid 2010, the US will be in a civil war causing the country to break into six parts.

He said that California will become the California Republic, and be under Chinese rule, and Texas will become part of Mexico.

NYSE Stocks with the Highest Short Interest for Short Squeeze Plays

by Fred Fuld III

Have you ever wondered why stocks that are heavily shorted can spike up in price so much?

When you short a stock, it means that you plan 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 immediately, then buy back those shares at a hopefully lower price so that you can return those shares. 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 make money, but sometimes when the stock moves against them, and begins to rise, the short sellers jump in fast 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 positive 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 the number of short sellers from the previous month.

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

Company	Symbol	Short Interest	Short % Change	Short Interest Ratio
Fisker Inc	FSR	47.28%	13%	3.8
Carvana Co	CVNA	40.04%	-11%	3.9
C3.ai Inc	AI	38.08%	-2%	4.3
Kohl’s Corporation	KSS	27.11%	8%	5.4
Cinemark Holdings, Inc.	CNK	26.53%	-1%	9.4
IONQ Inc	IONQ	26.22%	2%	5.4

The fourth stock on the list, Kohl’s (KSS) has over 27% of its float shorted, an increase of 8% over last month.

The short interest ratio is 5.4, which means that it would take the short sellers over five days to cover their position, based on recent average volume.

Cinemark Holdings (CNK) is another stock that is heavily shorted with over 26% now short with almost no change in short interest from the previous month.

The short interest ratio is 9, which means that it would take the short sellers over nine days to cover their position, based on recent average volume.

Just keep in mind that just because a stock has good 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 had no positions in any of the above at the time the article was written.

Stocks Going Ex Dividend in February 2024

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.

Wells Fargo & Company (WFC)	2/1/2024	0.35	2.78%
MetLife, Inc. (MET)	2/5/2024	0.52	2.93%
Starbucks Corporation (SBUX)	2/8/2024	0.57	2.46%
Penske Automotive Group, Inc. (PAG)	2/14/2024	0.87	1.98%
Amgen Inc. (AMGN)	2/15/2024	2.25	2.89%
Johnson & Johnson (JNJ)	2/16/2024	1.19	2.98%
Lockheed Martin Corporation (LMT)	2/29/2024	3.15	2.93%

To access the entire list of over 100 ex-dividend stocks, subscribers will receive an email in the next couple days with the full list. 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.

U.S. Island Escapade: Why Owning Your Own Paradise Might Be a Smart Investment

by Fred Fuld III

Ah, the allure of owning your own private island. It’s a daydream most of us indulge in, but for some, this fantasy becomes reality.

Intangible Benefits of Island Ownership

While the financial considerations of island ownership are certainly intriguing, the true treasures lie beyond the bottom line. Let’s dive into the myriad benefits, both tangible and intangible, that await aspiring island escapists:

Unparalleled Seclusion: Your island becomes your sanctuary, a refuge from the hustle and bustle of the everyday world.

Adventure Awaits: Every day on your island is an opportunity for discovery and adventure.

Stress-Melting Serenity: Your island becomes a haven for peace and rejuvenation, a place to reconnect with yourself and nature.

Digital Detox: Unplug, unwind, and rediscover the simple joys of life. Leave the constant notifications and endless to-do lists behind. Your island becomes a space for mindful living, where the present moment reigns supreme.

Creative Catalyst: The raw beauty and solitude of your island can spark inspiration like wildfire. Whether it’s writing a novel, composing music, or painting landscapes, your island becomes a muse for the creative spirit.

Building Your Own Utopia: Design your island as a haven for loved ones, creating lasting memories and fostering deeper connections.

Environmental Stewardship: Become a guardian of your own ecosystem. Implement sustainable practices, preserve endangered species, and leave a positive impact on the land you call home. Your island becomes a beacon of conservation, setting an example for generations to come.

A Family Legacy: Owning an island is more than just an investment; it’s a legacy you can pass on to future generations.

Financial Benefits of Island Ownership

While the recreational and personal benefits of island ownership are undeniable, there are also some potential financial advantages to consider. However, it’s crucial to remember that these benefits are not guaranteed and depend heavily on various factors like the island’s location, size, amenities, and development potential. Here are some possibilities:

Direct Income:

Island Rental: Renting your island to high-end vacationers or celebrities can generate substantial income,especially if it boasts unique features or luxurious accommodations. Think private beaches, eco-tourism bungalows, or amazing boating spots.
Resource Extraction: Depending on the island’s resources, you could potentially establish sustainable harvesting of fish, timber, or even natural resources like minerals, with proper permits and environmental considerations.
Eco-Tourism Development: Create a sustainable eco-resort or nature reserve, attracting eco-conscious tourists and generating income through guided tours, educational programs, and accommodation.

Indirect Financial Benefits:

Appreciation: If strategically chosen, the value of your island could appreciate over time, especially if it’s located in a desirable area with limited supply. This appreciation can offer a significant return on investment in the long run.
Tax Advantages: There may be some tax benefits, if the island is rented out.
Debt-Free Retirement: Owning an island can be a unique, self-sufficient retirement plan. By building your own home and growing your own food, you can significantly reduce your living expenses and achieve financial independence.

Additional Considerations:

Upfront Costs: Purchasing and maintaining an island can be incredibly expensive. Initial costs include the purchase price, legal fees, building permits, and infrastructure development. Ongoing costs involve maintenance, staff salaries, utilities, and security.
Accessibility and Infrastructure: Remote islands might require significant investments in transportation infrastructure like boats, airstrips, or solar power, further adding to the initial costs.
Legal and Regulatory Issues: Navigating island ownership involves complex legal and regulatory hurdles,particularly regarding land use, environmental regulations, and building codes.

Remember, owning an island for financial gain is a high-risk venture. Thorough research, expert consultation, and a realistic appraisal of your resources are crucial before embarking on this adventure. The financial benefits should be carefully weighed against the potential risks and challenges.

Ultimately, the decision to purchase an island for financial reasons should be driven by a combination of passion, careful planning, and a healthy dose of financial prudence.

Benefits of US Islands Over Other Countries

For an American considering owning an island, there are several potential advantages in choosing a US island over one in another country:

Legal and Regulatory Ease:

Familiar legal system: Owning land in the US means operating within a legal system you likely already understand, reducing complications and simplifying processes like property registration, permits, and tax filing.
English as the primary language: Communication with authorities, contractors, and potential business partners becomes much easier as you don’t need to navigate language barriers.
Clearer property rights: Property ownership laws in the US are generally well-established and transparent,providing greater security and clarity compared to some foreign countries.

Accessibility and Travel:

Reduced travel time and cost: Domestic travel is often faster and less expensive than international trips,making it easier to visit your island more frequently and manage its upkeep.
Familiar infrastructure: Transportation and logistics will likely be more straightforward, with established infrastructure for transportation, communication, and utilities.
Emergency response and security: Access to familiar emergency services and law enforcement can provide peace of mind, especially for remote islands.

Financial Considerations:

Potentially lower overall cost: Depending on the specific islands being compared, US islands may offer more competitive purchase prices and development costs due to established markets and infrastructure.
Tax implications: American citizens are typically subjected to US tax laws regardless of where they own property, potentially streamlining tax reporting and avoiding complicated international tax treaties.
Investment appeal: US real estate, particularly waterfront properties, is generally considered a stable and reliable investment, potentially increasing the resale value of your island in the future.

Cultural Similarities:

Familiar community and amenities: You’ll likely find more cultural similarities with the surrounding communities, simplifying integration and access to familiar amenities.
Reduced language barrier: Communication with potential employees, neighbors, and service providers will be easier, fostering smoother relationships and collaborations.
Similarities in business and legal practices: Conducting business on your island, if desired, will be more familiar and straightforward due to shared business practices and legal frameworks.

Of course, the specific advantages will vary depending on the location of both the US and foreign islands being considered. Factors like distance to the mainland, development level, and environmental regulations will also play a role. It’s crucial to do your research and evaluate each island based on your individual needs and priorities.

Ultimately, while owning an island in another country can offer unique experiences and opportunities, an American looking for a familiar, easily accessible, and potentially financially advantageous option may find significant benefits in choosing a US island.

California Islands and Other US Islands For Sale

So are there islands you can actually buy within the United States? The answer is a definite Yes!

As a matter of fact, you can even buy islands in California, of all places.

You have a couple options in the San Francisco Area. Red Rock Island (also known as Moleta, Molate Rock, and Golden Rock) is for sale for $25,000,000.

Picture credit: Zillow.com

The size of the island, according to PrivateIslandsOnline is six acres, 5.8 acres according to Wikipedia, and 5.78 acres according to the listing agent, Christopher Lim with Christie’s Int’l Real Estate as reported on Zillow.

It is located near the Richmond/San Rafael Bridge, just a hop, skip, and a jump from the city of San Francisco. It has a sandy beach on the east side, hiking trails, and tunnels.

This unique property is the only privately owned island in San Francisco Bay.

Dutras Island in Oakley, California, is probably one of the most inexpensive islands for sale in the world, at only $125,000.

Oakley is a small town in the far eastern part of the San Francisco Bay Area, in Contra Costa County.

Dutras Island, formerly called Dutra Island, is four acres, and is accessible by boat and air. The following video shows an aerial view.

The island is offered through Ron Pargett Real Estate.

Vladi Private Islands has almost a dozen U.S. islands for sale, in such states as New York, Wisconsin, Maryland, South Carolina, Florida, Texas, and Maine.

Owning an island isn’t just about making money or escaping the world; it’s about embracing a new way of life. It’s about reconnecting with nature, rediscovering yourself, and leaving a lasting legacy. So, if the call of the open ocean whispers in your ear, and the dream of your own island paradise beckons, remember, it might just be the smartest investment you’ll ever make.

Top Stocks of the Freest Country in the World: Singapore

by Fred Fuld III

The Heritage Foundation has named Singapore as the number one country in its Index of Economic Freedom.

The Country Index of Economic Freedom, published by The Heritage Foundation, is a widely used measure of the economic liberty enjoyed by individuals in different countries. It works by analyzing and scoring 12 key areas considered essential for economic freedom, grouped into four broad categories:

1. Rule of Law (property rights, judicial effectiveness, government integrity): This category assesses the protection of individual property rights, the fairness and efficiency of the legal system, and the level of corruption within the government.

2. Government Size (fiscal freedom, government spending, public sector burden): This category examines the extent of government intervention in the economy through taxation, spending, and regulations.

3. Regulatory Efficiency (business freedom, labor freedom, monetary freedom): This category evaluates the ease of starting and operating a business, the flexibility of labor markets, and the soundness of the monetary system.

4. Open Markets (trade freedom, investment freedom, financial freedom): This category assesses the openness of a country’s borders to trade and investment, and the level of government intervention in the financial sector.

Each of these 12 areas is graded on a scale of 0 to 100, with 100 representing the most economically free environment. The overall score for a country is then calculated by averaging the scores across all 12 areas, giving equal weight to each one.

Here are some additional points to keep in mind about the Country Index of Economic Freedom:

Methodology: The Heritage Foundation uses a variety of quantitative and qualitative data sources to compile the index, including official government statistics, surveys of businesses and experts, and reports from international organizations.
Uses: The Country Index of Economic Freedom is widely used by businesses, investors, and policymakers as a tool for understanding and comparing the economic environments of different countries.

Singapore shines in many areas. Here are five key things it’s often praised for:

1. Economic Powerhouse: Singapore boasts a dynamic and diverse economy, consistently ranking high in global competitiveness and ease of doing business. Its strategic location, efficient transport networks, and skilled workforce attract multinational companies and contribute to its robust GDP growth.

2. Culinary Melting Pot: A vibrant mosaic of cultures translates to a mouthwatering culinary scene. From traditional hawker centers bursting with local delicacies to Michelin-starred restaurants showcasing global cuisines, Singapore tantalizes any palate.

3. Green City in Bloom: Despite its urban landscape, Singapore prioritizes green spaces. Lush parks, vertical gardens, and tree-lined boulevards offer residents and visitors a refreshing escape from the city buzz. Sustainability initiatives like the Green Plan 2030 further promote environmental consciousness.

4. Innovation Hub: Home to world-class research institutions and tech giants, Singapore embraces innovation. From fintech ventures to cutting-edge healthcare research, the city-state constantly pushes boundaries and fosters collaboration within a thriving startup ecosystem.

5. Multicultural Mosaic: Singapore’s diverse population, representing various ethnicities and religions, thrives in harmony. This inclusive and tolerant society celebrates its multicultural heritage through festivals, traditions, and everyday interactions, enriching the social fabric.

These are just a few highlights, and depending on your interests, you might further appreciate Singapore’s efficient public transportation, world-class educational system, or vibrant arts scene.

So investors are asking, is there a way to invest ion Singapore?

One of the largest Singapore stocks that trades in the U.S. is Grab Holdings (GRAB), with a market cap of $12.4 billion.

The company is a Southeast Asian super app provider based in Singapore, offering a multitude of everyday services like ride-hailing, food delivery, and digital payments through its user-friendly mobile app.

Founded in 2012, Grab has grown into a regional powerhouse, serving millions of users across eight countries in Southeast Asia. Its commitment to innovation and local adaptation has helped it become a deeply ingrained part of the daily lives of many in the region.

While ride-hailing remains its core business, Grab has steadily expanded its offerings, venturing into food delivery, digital payments, financial services, and even grocery delivery. This strategic diversification has fueled its impressive growth and solidified its position as a leading tech player in the region.

Unfortunately, the company has been generating negative earnings, but is expected to be close to breakeven next quarter.

However, annual revenues growth over the last five years was 103.91%, with the latest quarterly revenue growth of 61%.

Another large Singapore company is the Internet and mobile gaming platform company, Sea Ltd. (SE), with a market cap of $20.4 billion.

Founded in 2009, it has exploded into a regional leader, serving millions across Southeast Asia and Latin America. Its mobile-first approach and deep understanding of local preferences have fueled its success, with Shopee dominating online shopping and Garena boasting thriving mobile games like Free Fire. SeaMoney further bolsters its ecosystem by offering cashless payment solutions, creating a seamless digital experience for users.

The stock trades at 35 times trailing earnings and has a forward price to earnings ratio of 46. Earnings per share growth this year was an amazing 140% and quarterly earnings growth per share year-over-year of 74.7%.

Annual sales growth for the last five years was 104%.

JOYY, Inc. (YY), the communication social platform, is a $1.42 billion company.

The stock has a forward P/E of 8.68, and earnings per share growth this year was 40.55%.

Of course, for diversification, you can always choose the iShares MSCI Singapore ETF (EWS), which has an expense ratio of 0.50%.

Will a free country benefit these stocks? Let freedom reign.

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

Top Stocks That Just Increased Their Dividends

by Fred Fuld III

Investors like stocks that have increased their dividend.

There are several reasons why investors tend to favor stocks that have had a dividend increase:

Increased income: A dividend increase means a larger payout to shareholders, providing a more immediate and reliable source of income. This is particularly attractive to investors seeking regular cash flow, such as retirees or those living off their portfolios.

Signal of confidence: A dividend increase is often seen as a signal of a company’s strong financial health and healthy long-term prospects. This suggests the company is confident in its ability to generate sustained profitability and share its success with shareholders. This confidence can boost investor sentiment and attract new investors seeking stable and growing income streams.

Growth potential: While not always the case, a dividend increase can also point to future growth potential. It can indicate that the company has excess cash and sees limited opportunities for reinvestment within the business. This suggests the company may be exploring new lines of business or initiatives that could unlock future growth, further increasing shareholder value.

Risk reduction: Dividend-paying stocks tend to be less volatile than their non-dividend counterparts. This is because they attract investors seeking income and stability, leading to a more consistent investor base. A dividend increase can further solidify this perception of stability, making the stock a less risky investment in the eyes of some investors.

Market psychology: A dividend increase can be seen as a positive momentum indicator, often sparking increased demand for the stock as investors try to capitalize on the perceived trend of future growth and income. This increased demand can drive up the stock price, adding to the potential returns for investors.

It’s important to note that not all dividend increases are created equal. Investors should also consider:

The size of the increase: A large increase is generally more favorable than a small one.
The company’s dividend history: A consistent track record of dividend increases is more reassuring than a one-time bump.
The reason for the increase: Understanding the company’s rationale behind the increase (e.g., strong earnings,increased cash flow) can provide context.
Overall financial health: While a dividend increase is positive, it shouldn’t come at the expense of the company’s financial stability.

The following is a list of stocks that have increased their dividends during the last week.

Stock	% Increase	Yield
Fastenal (FAST)	11%	2.23%
Royalty Pharma plc (RPRX)	5%	2.87%
ONEOK, Inc. (OKE)	3.7%	5.71%
Penske Automotive Group, Inc. (PAG)	10%	1.97%
Independent Bank Corporation (IBCP)	4%	3.46%
NRG Energy, Inc. (NRG)	8%	3.09%
Franklin Electric Co., Inc. (FELE)	11%	1.04%

One of the stocks on the list, ONEOK (OKE), not only increased their dividend by 3.7% but also authorized a $2 billion Share Repurchase Program. The company is a major American energy infrastructure company, connecting key gas supply and demand centers through its vast pipeline network, primarily focused on natural gas liquids. The stock trades at 12.7 times trailing earnings and yields 5.71%.

Fastenal, which distributes fasteners and tools, and operates hardware stores, had one of the biggest increases in its dividend payout, increasing by 11%. The stock has a price to earnings ratio of 34 and yields 2.23%.

Let’s hope that higher dividends turn into higher stock prices.

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

5 Stocks with Short Interest Over 40%: Possible Short Squeeze Plays

by Fred Fuld III

Did you know that at one point, GameStop (GME), the high flying meme stock, had 140% of its total outstanding shares shorted, according to the book, The Antisocial Network (now republished as Dumb Money).

It is possible for a stock to have a short interest exceeding 100% of its outstanding shares. However, this is relatively rare and can occur due to several factors:

1. Naked Short Selling: This illegal practice involves selling borrowed shares without first locating them. While most brokers have safeguards to prevent naked short selling, it can still happen, especially with less-regulated stocks. In such cases, the number of shorted shares can temporarily exceed the number of outstanding shares.

2. Share Lending and Relending: When shares are borrowed for short selling, they can be re-lent to other short sellers multiple times. This can create a situation where the total number of shorted shares appears to be more than the number of outstanding shares, even though no naked short selling has occurred.

3. Synthetic Short Positions: These positions involve using derivatives like options or futures contracts to mimic the effect of short selling. While not directly borrowing shares, these positions can still contribute to the overall short interest and push it above 100%.

It is probably the lending and relending that contributed the most to GameStop short interest going over 100%.

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.

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

The following are some heavily shorted stocks that have short interest above 40%.

Company	Symbol	Short Interest	Float	Outstd	S. I. Ratio	% chg from prev month
Fisker Inc	FSR	47.28%	199.17M	218.20M	4.5	4%
Novavax Inc	NVAX	43.94%	111.96M	118.79M	6.5	8%
Upstart Holdings Inc	UPST	41.91%	72.37M	85.06M	3.5	-1%
Beyond Meat Inc	BYND	40.09%	60.86M	64.54M	8.2	-5%
Carvana Co	CVNA	40.04%	94.11M	106.54M	4.3	8%

The second stock on the list, Novavax (NVAX) has almost 44% of its float shorted, with an 8% increase in short interest over last month.

The short interest ratio is 6.5, which means that it would take the short sellers over six days to cover their position, based on recent average volume.

Just keep in mind that just because a stock has good short interest ratios and is heavily shorted, doesn’t mean that the stock will go up, especially in a bear market.

In addition, the short positions and other data can change at any time.

Also, stocks that are significantly shorted may up being just lemons.

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

What is the RMD and Why Should You Care If You’re Over 70

by Fred Fuld III

The Required Minimum Distribution (RMD) is the minimum amount you must withdraw from your traditional IRA or employer-sponsored retirement accounts each year, starting at a certain age. It’s essentially a way to prevent retirement savings from growing indefinitely tax-deferred, ensuring the government collects its share of the money eventually.

Here’s why RMDs are important:

Avoiding penalties: Failing to take your RMDs by the deadline results in a hefty penalty of 50% of the undistributed amount. That’s a significant chunk of your retirement savings potentially going to the IRS instead of you.
Planning for income: Knowing your RMD amount helps you plan your budget in retirement. You can factor it in when estimating your income and making spending decisions.
Managing taxes: Taking RMDs allows you to spread out the tax burden on your retirement savings over multiple years, potentially reducing your overall tax liability.

Here are some key things to remember about RMDs:

The RMD age is currently 73, having recently increased from 72 due to the SECURE Act 2.0.
The first RMD can be delayed until April 1 of the following year, but all subsequent RMDs must be taken by December 31st.
The RMD amount is calculated based on a formula that considers your account balance and your life expectancy. Several online calculators can help you estimate your RMD.

It’s crucial to consult with an accountant or financial advisor if you have any questions or concerns about RMDs. They can help you understand your specific situation and ensure you’re taking the right steps to comply with IRS regulations and maximize your retirement income.

Schwab has a calculator that can determine how much you need to withdraw for your RMD, based on your date of birth, account balance, and other information.

Remember, 50% is a huge penalty, so make sure you withdraw it correctly.

Top Cell Tower Stocks

by Fred Fuld III

You may have seen an ad on TV recently from one of the major telephone companies, bragging about how they DON’T own cell towers in order to provide the consumers with lower costs and better service.

So what’s that all about?

Are there investment opportunities in the cell tower industry?

The cell tower industry, often referred to as the wireless infrastructure sector, plays a crucial role in enabling our ever-expanding mobile connectivity. It’s the backbone of the cellular networks that keep us connected on our phones, tablets, and laptops, providing the physical foundation for calls, texts, data transmission, and even emerging technologies like 5G.

At the core of the industry are the tower companies, who own and operate the physical cell towers. These companies lease space on their towers to mobile network operators [MNOs] like Verizon (VZ), AT&T (T), and T-Mobile (TMUS), who then install their own equipment to broadcast their signals. This allows MNOs to provide coverage to their subscribers in various locations, from bustling cities to remote rural areas.

The cell tower industry is a multi-billion dollar sector, driven by the ever-increasing demand for mobile data. As more and more devices connect to the internet, and as we rely on our phones for more aspects of our lives, the need for reliable and widespread coverage grows. This, in turn, fuels the demand for more cell towers and infrastructure upgrades.

The industry is also constantly evolving, with the deployment of 5G technology being a major driver of change. 5G requires a denser network of cell towers and small cell installations to deliver its promised ultra-fast speeds and low latency. This is opening up new opportunities for tower companies and creating fresh challenges in terms of network planning and deployment.

The cell tower industry is a vital but often unseen sector that underpins our mobile world. As our reliance on mobile technology continues to grow, the industry is sure to play an even more critical role in ensuring that we stay connected, informed, and entertained.

American Tower Corporation (AMT) is the largest real estate investment trust focused on owning, operating, and leasing wireless communications infrastructure.

Imagine a silent landlord for the cell towers that keep your phone buzzing – that’s ATC in a nutshell. They own and operate a whopping 225,000 communications sites across a staggering 25 countries, making them the world’s biggest independent owner of these crucial towers.

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 $95.5 billion, trades at 136 times trailing earnings and 44 times forward earnings. It pays an annual dividend yield of 3.33%.

Crown Castle International (CCI) stands tall as a Real Estate Investment Trust (REIT) in the realm of wireless infrastructure, boasting a crown jewel portfolio of over 40,000 cell towers, 115,000 small cell nodes, and an impressive 85,000 route miles of fiber – blanketing major US markets. From a strictly investment perspective, let’s delve into the kingdom of CCI and assess its potential for your portfolio.

A Moated Stronghold: Crown Castle’s moat lies in its dominant market position. As the largest tower operator in the US, they wield significant bargaining power with mobile network operators (MNOs) like Verizon, AT&T, and T-Mobile. These MNOs are constantly vying for space on CCI’s towers to cater to the insatiable demand for mobile data, leading to stable and predictable long-term lease agreements for Crown Castle. This translates to consistent rental income for investors, a cornerstone of REIT appeal.

Golden Growth Prospects: The ascent of 5G paints a golden picture for CCI’s future. This next-generation wireless technology requires a denser network of smaller cell installations – an arena where Crown Castle is rapidly expanding. Their strategic acquisitions of fiber assets and small cell providers position them to capitalize on this multi-billion dollar opportunity, potentially fueling dividend growth for investors in the years to come.

The stock, which has a market cap of $47.1 billion, has a trailing price to earnings ratio of 30 and a forward P/E of 31. The company pays a generous yield of 5.8%.

There are a few other smaller players in the cell tower arena, such as SBA Communications (SBAC), with a market cap of $25 billion.

However, if you want diversification, you might want to consider a cell tower ETF.

Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF (SRVR) yields 3.68%.

Defiance 5G Next Gen Connectivity ETF (FIVG) has a yield of 1.4%.

Just remember, the dominant position, predictable income, and growth potential in the 5G era offer a compelling proposition. However, navigating the regulatory landscape and the ever-evolving telecom market requires a keen eye and a well-balanced portfolio.

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