You can now SELL YOUR VOTES

by Fred Fuld III

I am surprised that there isn’t a law about this. There is a company that provides a vote exchange where you can buy or sell votes.

It is for shareholders of publicly traded companies. The company is called Shareholder Vote Exchange.

The service allows shareholders to sell the rights to the proxy votes of stocks in order to generate additional income.

Companies and activists are the usual buyers.

For example, if you own 1000 shares of Apple (AAPL), you could sell your voting rights for $187.44 to $9,372.00 per year, depending on various factors.

For 1000 shares of Disney (DIS), it would be $91.07 to $4,553.50.

You don’t need 1000 shares, You could sell your votes for 100 or 10 shares, or even 1 share.

For example, if you own 100 shares of Tesla (TSLA), your votes could be sold for anywhere between $22.37 to $1,118.55.

If you had 100 shares of Meta/Facebook (META), you might get $33.50 to $1,675.20 each year.

Here’s a summary of the Shareholder Vote Exchange:

What they do:

  • SVX enables shareholders to buy, sell, and trade their voting rights for upcoming company meetings on their online platform. This allows passive investors who are not interested in voting to monetize their votes, while also giving activist investors and companies a way to acquire additional voting power.

Key features:

  • Unique auction system: SVX uses a proprietary auction system designed to optimize value for both vote sellers and buyers.
  • Integration with major brokers: The platform is integrated with major brokers like Schwab and Vanguard,making it easy for shareholders to participate.
  • Regulatory compliance: SVX’s auctions comply with all applicable state and federal regulations, ensuring transparency and investor protection.

Benefits for shareholders:

  • Monetize voting rights: Shareholders can earn cash for their votes, even if they are not interested in voting themselves.
  • Increase liquidity: The SVX platform provides a market for votes, which can make it easier for shareholders to buy and sell them.
  • Participate in corporate governance: Shareholders can use the platform to express their views on important company matters, even if they cannot attend shareholder meetings in person.

Current status:

  • SVX is a relatively new company, but it has already attracted a significant amount of interest from investors and the media.
  • The company is currently in the process of expanding its operations and adding new features to its platform.

Potential impact:

  • SVX has the potential to revolutionize the way shareholder voting works. By making it easier for shareholders to buy and sell their votes, the platform could increase shareholder participation in corporate governance and make it more difficult for companies to ignore the interests of their investors.

Now with votes for political candidates, it is illegal to buy or sell a vote, according to 18 U.S. Code § 597 – Expenditures to influence voting.

But that hasn’t stopped people from trying.

Back in the year 2000, some people tried to sell their votes on eBay (EBAY).

Anyway, it will be interesting to see what happens with these shareholder votes.

Disclosure: Author is long AAPL, DIS, and EBAY, and is short TSLA.

Monthly Dividend Business Development Companies Paying Over 9%

by Fred Fuld III

A business development company (BDC) is a type of financial institution that specializes in providing financing to small and medium-sized businesses (SMBs). They do this by raising capital from investors, typically through issuing stocks or bonds, and then using that money to make loans or investments in private companies.

Here are some key things to know about BDCs:

  • Focus on SMBs: BDCs primarily focus on providing financing to SMBs that may not be able to easily access traditional bank loans or other forms of debt. This could be due to a variety of factors, such as the company’s size, stage of development, or credit history.
  • Debt and equity investments: BDCs can make both debt and equity investments in companies. Debt investments typically involve providing a loan to the company, while equity investments involve buying a ownership stake in the company.
  • High yields: BDCs are known for offering high dividend yields to their investors. This is because they are required to distribute 90% of their taxable income to shareholders each year. However, it is important to note that BDC investments are also considered relatively risky.
  • Publicly traded: Many BDCs are publicly traded companies, which means that their shares can be bought and sold on stock exchanges. This makes them more accessible to a wider range of investors than private equity funds or venture capital firms.

BDCs play an important role in the economy by providing financing to growing businesses that may not be able to obtain it from traditional lenders. This can help to create jobs and boost economic growth.

The following BDCs pay dividend yields of more than 9% and pay their dividends monthly:

Horizon Technology Finance (HRZN), which has a yield of 9.71%.

Horizon Technology Finance Corporation, established in 2003 and headquartered in Farmington, Connecticut, is a specialty finance company with a focus on providing capital and financing solutions to venture capital and private equity-backed companies. The industries targeted by Horizon Technology Finance include technology, life sciences, healthcare information and services, and sustainability.

The company’s core services revolve around venture debt financing, offering loans to support the growth and development of technology and life sciences companies. In addition to debt financing, Horizon Technology Finance may engage in equity investments, participating alongside its debt offerings. The company actively manages a portfolio of investments in various stages, ranging from early-stage to expansion-stage and late-stage companies.

Pennant Park Floating Rate Capital (PFLT) yields 9.75%.

PennantPark Floating Rate Capital Ltd. is a specialty finance company that operates as a closed-end, non-diversified investment company. It is publicly traded and focuses on providing customized financing solutions primarily to middle-market companies. The company’s investment strategy centers around investing in floating rate loans and other investments in the form of senior secured loans, mezzanine debt, and equity investments.

Headquartered in New York, PennantPark Floating Rate Capital seeks to generate current income while preserving capital through its investment activities. As of my last knowledge update in January 2022, the company primarily targets companies operating in various industries, including healthcare, industrial manufacturing, automotive, technology, energy, and other sectors.

PennantPark Floating Rate Capital’s portfolio is diversified across multiple industries and consists of investments in debt and equity securities. The focus on floating rate loans provides the company with the potential for income generation in a rising interest rate environment.

The company is managed by PennantPark Investment Advisers, LLC, a registered investment adviser with expertise in credit and private equity markets. The management team is responsible for implementing the company’s investment strategy and making decisions aimed at optimizing returns for shareholders.

Prospect Capital (PSEC) pays an extremely high yield of 11.63%.

Prospect Capital Corporation is a business development company (BDC) that operates as a closed-end investment company. Headquartered in New York City, the company specializes in providing financing solutions to middle-market companies across various industries. As a BDC, Prospect Capital is focused on supporting the growth and expansion of its portfolio companies through a range of financial instruments.

The investment strategy of Prospect Capital involves deploying capital in a diversified manner, including senior and subordinated debt, as well as equity investments. The company typically targets companies with strong management teams and growth potential, often in need of capital for acquisitions, recapitalizations, or other corporate purposes.

Prospect Capital’s investment portfolio spans a wide array of industries, including but not limited to energy, manufacturing, healthcare, technology, and consumer services. The goal is to build a diversified portfolio that mitigates risk while generating income and potential capital appreciation for shareholders.

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

Is It Possible to Invest in Flying Car Companies?

by Fred Fuld III

Many years ago, I bought stock in a Davis, California based flying car company called Moller International Inc. (MLER), which was the only publicly traded company that I knew of at that time that was in the flying car business.

I even went to one of their annual meetings back then, where they provided a free lunch, but sold copies of their “annual report“, pictures of their flying cars, and almond butter.

If you want to see one of them fly, you can check out the following video.

You will notice in the video that there is a crane with a tether attached to the M400X flying vehicle. It actually does fly; it’s not the tether that’s holding it up, and you look closely, you will see that the tether is slack, not tight.

Founded in 1983 by Dr. Paul Moller, a visionary engineer with a background in engines and Wankel technology, the company has been dedicating itself to this ambitious goal.

Early days and technological advancements:

  • Spin-off: Moller International emerged from Moller Corporation, continuing their work on VTOL aircraft.
  • Key technologies: The company focused on integrating crucial elements like electronic control systems, efficient ducted fan designs, thrust vectoring, and stable airframes.
  • Rotapower engine: A significant achievement was the Rotapower, a Wankel rotary engine that became a spin-off company, Freedom Motors.

Challenges and milestones:

  • Development time: Despite extensive testing and prototype advancements, the M400 Skycar, the flagship personal VTOL, faced a long development process fueled by fundraising and regulatory hurdles.
  • Publicity and controversy: Moller International attracted both attention and critiques, some skeptical of the Skycar’s feasibility and claims. In 2000, they settled a case with the SEC regarding promotional statements without admitting wrongdoing.
  • Progress and partnerships: Despite challenges, Moller International secured various contracts with government agencies and aerospace companies, demonstrating the potential of their technologies.

Unfortunately, the company hasn’t made any SEC filings since 2015, the stock symbol is no longer active on Yahoo!Finance or OTCMarkets, and several shareholders posted on Facebook that TD Ameritrade has removed the stock from their accounts with a notice that says: REMOVAL OF WORTHLESS SECURITIES (608689105).

Even the company website shows “Invalid symbol” for MLER.

So, you may be wondering, are there any other publicly traded flying car sites?

The term “flying car” can still be ambiguous, as many companies are developing different types of VTOL (vertical take-off and landing) vehicles with varying capabilities and target markets. However, several publicly traded companies are involved in this space, though most focus on air taxi services rather than personal flying cars.

Here are some notable examples:

Pure-play eVTOL companies:

  • Joby Aviation (JOBY): Developing an electric VTOL aircraft for air taxi services, with strong government and investor backing. $4.2 billion market cap.
  • Archer Aviation (ACHR): Aims to launch flying taxi services in Los Angeles and Miami, known for their innovative “Maker” design. $1.7 billion market cap.
  • EHang Holdings (EH): A Chinese leader in the eVTOL market, with passenger and cargo drones already in commercial use. $918 million market cap.
  • Eve Urban Air Mobility Solutions (EVEX): A subsidiary of Embraer (ERJ), focusing on the Brazilian air taxi market with its eVTOL model. $1.9 billion market cap.

Traditional automakers exploring eVTOL:

  • XPeng (XPEV): A Chinese electric car manufacturer, investing in flying car technology through its affiliate HT Aero. $12.7 billion market cap.
  • Geely Automobile Holdings (GELYY): Another major Chinese automaker, partnering with Terrafugia to develop eVTOL vehicles. $10.8 billion market cap.
  • Toyota Motor Corporation (TM): Collaborating with Joby Aviation on eVTOL development and infrastructure. $252 billion market cap.

Keep in mind:

  • Many of these companies are still in pre-revenue stages, focusing on development and certification.
  • Investing in them involves high risk and volatility, as the future of the eVTOL market remains uncertain.
  • Other private eVTOL companies, like Volocopter and Lilium, may also go public in the future.

It will be interesting to see if any of these stocks come high flyers.

Disclosure: Author owns MLER and TM. No recommendations are expressed or implied. Some of the mentioned stocks have low market caps, and should be considered speculative.

Fannie Mae List of Fake Companies Providing Fake Employment Verification: Why are these all in California?

Fannie Mae, the Federal National Mortgage Association, has a Mortgage Fraud Program that alerts the industry about frauds and potential frauds.

The organization has come up with a list of over 60 apparently fictitious companies that have provided fake employment verification using fake pay stubs.

Borrowers who are trying to get a mortgage to buy a house would list these companies as their employer and utilize bogus paperwork, such as W-2 Forms and paycheck stubs to prove that they have enough income to qualify for the loan

What I don’t understand is why are all these fake companies based in California?

As a matter of fact, Fannie Mae lists as one of the red flags for potential fraud as:
“California (geographic common denominator)”

How to Get a Free Jim Cramer Mad Money Sound Board

If you enjoy watching Jim Cramer and hearing all the sounds he makes on his Mad Money TV show, then you can have your own Jim Cramer’s Official Sound Board for free.

You can hear Buy-Buy-Buy, Sell-Sell-Sell, Bull, Bear, Hogs, Ka-Ching, Buzzer, and many more. There are a total of 20 sounds altogether.

You just need to go to the Mad Money Cramer’s Soundboard website.

Is the Corporate Gibberish Generator Better Than ChatGPT and Bard?

by Fred Fuld III

Let’s say you run a startup, and are trying to raise money. You want your offering circular to be impressive. Or maybe you are ready to go public and you need to beef up your prospectus.

Yeah, you can go to Bard or ChatGPT and create something usable.

But why do that when you can really impress potential investors with a bunch of corporate gibberish.

All you need to do is go to the Is the Corporate Gibberish Generator™, type in your company name, and click the Generate button.

A great set of gibberish will appear.

Could it be that this generator was originally created with an early form of artificial intelligence?

Crazy Woman Holding Your Money?

by Fred Fuld III

Supposed you asked someone where they put there money and they said Crazy Woman, would you think they were crazy?

Well maybe they wouldn’t be.

There is actually a bank holding company called Crazy Woman Creek Bancorp Incorporated (CRZY), which you can buy stock in, by the way. It was founded in 1936 and is based in Buffalo, Wyoming.

How’s that for stock market trivia?

The stock trades over-the-counter on the Pink Sheets.

It trades at a very reasonable 6.11 times trailing earnings and pays a dividend withy a forward yield of 1.48%.

The company posted the third-best performance in their 87-year history, with an annualized return on equity (ROE) of 10.41%.

The net interest margin at September 30, 2023 of 3.51% is above the state average of 3.31%. 

As of September 30, 2023, the Tier 1 Leverage Ratio was 9.37%, which substantially exceeds the current definition for “well-capitalized” institutions. Also as of that date, the bank had no foreclosed or repossessed assets.

Would I be crazy for owning Crazy Woman shares?

If you want more investment trivia, check out the book.

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

30 Years Ago, Kevin Costner Starred in ‘Ancient’ Apple Computer Ad: Wall Street Video of the Week

Does any one remember what a Lisa Computer was? Has anyone ever touched one? (I did, for a couple hours many years ago.) This was one of the first follies of Steve Jobs. Talk about a clunky, unattractive computer. Anyway, when Apple (AAPL), ran a Lisa television commercial long ago, guess who the star was? Kevin Costner, star of Field of Dreams, Dances With Wolves, Bull Durham, JFK, and many other movies.

This Day Today in Business & Investment History: January 4

by Fred Fuld III

The first issue of the Wall Street Journal is published in 1875.

The Stock Exchange in Vienna closes due to bank failures, contributing to the severity of the Great Depression in Europe in 1929.

Blackberry phones officially end service after a year-long transition to a software-based business model in 2022.

Wall Street Quotations for January

“Before you invest, investigate.” William Arthur Ward (1921-1994) author, educator.

“With an evening coat and a white tie, anybody, even a stock broker, can gain a reputation for being civilized.” Oscar Wilde (1854-1900) Poet & playwright

“Never invest in anything that eats or needs repainting.” Billy Rose (1899-1966) Composer and entrepreneur

“Emotions are your worst enemy in the stock market.” Don Hays, stock market commentator

“I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.” Warren Buffett (1930- ) businessman and investor 

“Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it.” Peter Lynch (1944- ) money manager

“Gentlemen prefer bonds.” Andrew Mellon, Businessman & financier (1855-1937)