Posts

Does heavy spending by Oracle signal long term upside?

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  Oracle (ORCL) has recently increased its investments while many other technology companies right now are cutting down their investments and playing it safe. Oracle is a database and cloud software company based in Austin, Texas, and its main competitors in the cloud industry are Amazon, Microsoft, and Google.  Back in June, Oracle purchased Cerner Corporation, a healthcare records company for roughly $28 billion with the hopes of strengthening its cloud services. Although Oracle only makes up 2% of the cloud market, Oracle aims to compete with Amazon, Microsoft, and Google by building smaller data centers in more regions (Statista). By doing so, Oracle currently has data centers in 40 regions which is almost double the amount AWS has.  Expanding data centers does come at a cost since Oracle has spent over $2.44 billion in capital expenditures during the 2nd Quarter which is a 163% increase in their capital spending. The increase in spending has put Oracle as #1 for the ...

Micron Technology: One of the Biggest Hidden Stocks of this Year

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I believe Micron Technology(MU), a semiconductor producer, is a good investment because there is a long-term upside to the stock. Top U.S. semiconductor companies like AMD outsource their semiconductor manufacturing to Asian countries like China, but the U.S. and China’s relationship has soured which is causing the U.S. to focus on production here. To boost U.S. chip manufacturing, Micron has received a subsidy from the Biden administration which has allowed them to expand their market share in semiconductor production by investing $40 billion into building more chip-making factories in the United States. With U.S. companies focusing on buying semiconductors in the United States, Micron's large market share will help them sustain long-term growth in sales. Subsequently, it will boost investor confidence in the stock which will lead to stock gains. Although Micron’s stock has dipped in the past year due to a decrease in computer demand caused by lifted lockdown restrictions, this pr...

Nvidia is one of the strongest stocks for 2022

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With the rise of technology, Nvidia(NVDA) has become a driving force in the chip-making industry. They are known for their graphic processing units(GPUs) and system on chip units. The rise of gaming and crypto mining has helped Nvidia grow because the chips that they produce are in high demand in these growing industries. Since esports is becoming more popular among Gen Z individuals, Nvidia will continue to feel its impact by seeing consistent revenue increases. Similarly, the rising popularity of cryptocurrencies such as Bitcoin and Dogecoin has attracted individuals to mine their own bitcoin in hopes of becoming rich. However, mining is an arduous process so it requires a strong GPU, and Nvidia processors have become in high demand for miners. Although there has been a chip shortage the past year, it hasn't stopped them from beating analysts' EPS predictions every single time for the last three quarters. As the chip shortage comes to an end, there is a strong upside for Nvid...

Opinion: The Effects of Rampant Inflation and How to Address It

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Inflation is currently the worse that it has been in the past 30 years. The partial cause of this rampant inflation can be attributed to the Federal Reserve's inaction. However, a combination of government stimulus, a supply chain shortage, and rising wages are causing inflation to go above the Federal Reserve’s 2% target.  Inflation is costly for everyone in the economy and especially low income individuals as it can be seen as a universal taxation. The only way to adapt to an increase in inflation is by investing your money.  Signs of inflation have already been acknowledged a few months ago, but the Federal Reserve did nothing to address it and still kept interest rates at near zero levels because of they wanted to decrease unemployement. Their low interest rates postition had adverse consequences because it causes companies and individuals to keep on investing and spending in an economy that is already on the rise which is leading to higher prices and inflation.  Addi...

Is Iron Mountain Inc (IRM) a safe stock to invest in?

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  In the wake of the pandemic, people are using technology more than ever whether it is zooming at home or watching Netflix. Consequently, all these technology companies collect data from users in order to help improve their experience or even sell it to 3rd parties. Gathering all this data means that companies have the responsibility to protect the consumer by keeping their data safe from hackers or other entities.  Iron Mountain Inc(IRM) is an international company that "stores, protects and manages, information and assets". Over 7,500 companies use the services provided by Iron Mountain and out of the 7,500 companies, a majority of the companies are in the Fortune 1000. As the world becomes digitalized, more companies will need to use the services provided by IRM which will help their future sales and show that they have the demand in the future.  With a juicy dividend yield of 5.78%, it has similar dividend yields of oil companies, but without the volatility of o...

This eco-friendly oil company has a bright future

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Occidental Petroleum(OXY), an American oil company located in North America, the Middle East and, and South America, is working on a project that extracts CO2 from the air produced by factories. United Airlines(UAL) is also investing in this project which shows that this project has promise for expanding into other sectors and becoming a leader in CO2 extraction. The stock is currently priced at $28.32, and has been up over 60% since the beginning of the year. It is projected to reach $42 or 43% by the end of the year(CNN Money). Also, 9 out of 28 analysts has a buy rating on the stock while 16 have a hold, but in the long-term, this stock seems worth the buy since it is currently at a discount and will have potential to increase a lot more in the future. Positioned well below their 52-week range of $32 allows them much flexibility for their stock to increase. OXY's net income has been on the increasing trend from 2015-2018(2019-2020 data not available) with its net income quadrupl...

Microsoft will maybe acquire Nuance Communications. Is this good for Microsoft shareholders?

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  You probably haven't heard Microsoft(MSFT) on the news for anything crazy the past decade, but Microsoft has been quietly growing ever since it moved its focus towards cloud. Microsoft has a current valuation of $1.93 trillion and is on route to join Apple as the only two companies to reach $2 trillion. Microsoft has been on a roll this year going up over 17% and increasing over 54% in the past year showing their strong performance. Microsoft is working to acquire AI and speech recognition company, Nuance Communications(NUAN) for $16 billion. If Microsoft were to successfully reach an agreement with Nuanace, it will help them with their expansion into the health care industry. A combination of their cloud services with AI software can help hospitals transition into the digital age and let them provide better services, while also benefitting Microsoft. If Microsoft can settle the deal, Microsoft is a definite buy for the long run.

Stocks to Avoid in 2021

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The pandemic and the rise of the digital age has sped up the decline for companies who haven't adapted to these changes in society. A few of these companies were some of the most successful, but as time  passed they are falling like the Roman Empire. Two of the most talked about companies in the past month were  AMC Entertainment Holdings Inc(AMC) and GameStop Corp. (GME) because investors tried to inflate the stock price. However, these companies don't seem to have a bright future as people switch to digital platforms.  The closure of movie theatres because of the pandemic was a big blow to AMC as most of their business comes from people going to their movie theatres causing them to lose around $4.6 billion dollars in 2020. Even once COVID-19 starts to die down, people will still be wary going into movie theatres as there are many other options to stream movies safely at home such as Disney Plus, Netflix, Amazon Prime Video, Hulu, HBO Max, and much more. Also, ...

Bond Market Signals Stock Decline

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The bond market's recent surge has been fueled from the fears of inflation caused by the 1.9 trillion stimulus package. Investors are fearful of that this huge package will cause inflation because the demands in the economy will increase without the limited supply which will cause prices to skyrocket and devalue the USD. The only way to combat inflation is to increase interest rates because it will encourage more savings, such as in a bank, and less spending such as taking loans to buy a house. The U.S. 10 Year Treasury bond has been up almost 40% the past month to 1.572% which further shows the threat of inflation is real because the interest rates rising shows inflation fears are real and needed after all this money being added into the economy.  The S&P 500 and Nasdaq Composite have been taking some hits in the past few weeks and is starting to show the end of the bull market and the start of the bear market. The Nasdaq has been down almost 10% in the past month an...

Is General Motors hot?

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       General Motors Inc(Ticker:GM) recently closed down three of their power plants because of chip shortages for their vehicles. They also predict a 1.5 to 2 billion dollar reduction in their 2021 earnings because of these chip shortages. The closures make GM seem like a sell, but the drop in their stock price will opens an opportunity available to invest in GM stock before it gets too high as it has been rallying for the past month.           The positive aspect that comes from these chip shortages is that it displays the high demand for GM vehicles which will mean that they will likely produce stronger sales when they are able to receive more chips.     With the release of their 4th quarter earnings this week, GM surprisingly beat the predicted earnings and was even able to beat 2019 earnings despite COVID-19. Also, their global sales increased by 4%.      GM's launch of their new EV vehicles ...

Are automobile companies going to be hot in 2021?

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After the craziness of 2020, everyone hopes that 2021 will be a better year than last year.  The beginning of 2021 is off to a good start as COVID-19 vaccinesby Moderna and Pfizer/BioNTech has been approved by the FDA and is able to be distributed in the United States. The vaccine has investors excited as now there is hope that COVID-19's effect will be mitigated and the US economy can start to get back to normalcy. Even though we are able to combat COVID-19, a majority of commuters who used to use public transportation to go to work are now switching to cars as the mode of transportation because they feel safer using their own vehicle. The effects can already be seen as used Ford car prices are already up 16% since 2018(Cargurus). Automobile companies are one of the biggest winners from this positive outlook as production lines can soon start to open up more and increase their production to meet the high demands for new and used cars. General Motors Company(GM) is one of my favori...

The Housing Market is a Gold Mine

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    Coronavirus has caused most of us to turn our houses and apartments to a gym, workplace, and classroom. Some of us are lucky enough to have a big enough house to accommodate all this while others, especially city dwellers, are unlucky.     Many people have realized this and they are creating a large migration from the city to the suburbs as they can't handle being stuck in a apartment for months and not being able to access any nature parks nearby. According to Business Insider, there are over 13,000 apartments empty in Manhattan which are supposed to be all taken during this time of the year. Seems like the city is pretty much deserted.     Looking into the future, the cities will continue to follow this trend even after the pandemic, so cities need to make their cities look attractive such as lower taxes or holiday tax breaks or else they will become a lost city like Atlantis.      Going back to this crazy suburban m...

Free Custom Marketing Material

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Calling all Small Business Owners  If you are in need of help with marketing, UpBrite Design  is a company, started by me, which creates custom materials such as posters, flyers, logos and much more. Check them out at upbritedesign.wordpress.com to learn more.  Here are some examples: Flyer Flyer Logo

Top Stock Picks-July Edition

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The first stock that will preform well in the long-term is one of the most beloved restaurant in America, or at least is my favorite, Cheesecake Factory(CAKE). Cheesecake Factory has taken some heavy blows from Covid as dining in isn't available which makes up most of their revenue. However, this provides an opportunity to invest as the stock has dropped around 50% in the wake of covid, and  investors expect the stock to rise up to 48% in the next 12 months. A bonus is that Cheesecake Factory offers a  6.38% dividend which is nice to have while you wait for the stock the rise and can help offset the short-term losses when you are waiting for a long term gain. With Cheesecake Factory being one of the largest and most popular chain restaurants in America, they will post stronger sales as states start to reopen and people start to go back to their missed restaurants. This can be shown through Cheesecake factory beating analysts' earnings by 126% for Q1 EPS even during th...

Summer Review (July Edition)

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Summer and COVID-19 don't go well together, but the only thing keeping most of us sane is professional sports. The NFL post-season was wild with Tom Brady leaving the Patriots, while the Texans traded their No. 1 receiver. I haven't seen a live sports game in so so long so I was so hyped to see many sports leagues start to reopen. Summer plans have been going smoothly for some—relaxing at the beach, hosting a barbecue, or just sleeping at home—while others have to cancel or make changes to their plans to adapt to these unusual times. Are you looking forward to going on vacation, but aren't looking forward to stay at hotels? Then try out the new portable house. Unfortunately, there aren't portable houses for sale, but RVs are the next best thing and have been getting a lot attention. Starting off this Covid recap is Winnebago. Winnebago Industries, Inc.(WGO) is known for making RVs and their RVs have been selling like crazy during the past few months as people want...

Will negative interest rates help revitalize our economy?

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Some of you have never heard of negative interest rates, like me, while other have. These are some wild times in our economy so some people are suggesting that the Feds lower the interest rates in the negative to help our economy. The first question you probably have is what do negative interest rates mean? Negative interests mean that you will have to pay a monthly fee to the bank to keep your money in which it will encourage you to spend your money, which is the goal, or just keep it in a safe at your house. On the bright side, the taking loans will be easier because you don't have to pay any interest rates so if you want to get a loan to buy a house, just do it. In theory, negative interest rates should help our economy because increased consumer spending means higher sales for companies, and some examples of these implementations can be seen in Japan and Europe. However, there is a discussion whether or not America should actually enact negative rates. President Trum...

Will Oil be the Jackpot?

   A new OPEC deal was made today with OPEC and its allies agreeing to cut oil production. What does this mean? It means that oil prices will rise tomorrow. Why is that?   The decrease in oil production means that the supply of oil will decrease which will allow the oil prices to increase helping energy companies and especially American energy companies. The past few weeks had OPEC has been meeting to try to agree on a decrease in oil because some countries didn't lower there oil production which was hurting American energy companies.   I recommend these stocks'/ETFS to buy tomorrow: 1. Exxon Mobil Corporation(XOM)- It is one of the largest oil companies in America which means that they will be one of the most positively affected by the new deal. They have dropped almost 40% since the beginning of the year and they have an attractive P/E ratio of 13. They offer also a nice dividend of 8% which adds the cherry on top. 2.  Invesco DB Oil Fund(DBO)- Cr...

Investment Picks with Edward-April Edition

   I just want to quickly thank the health workers who are fighting against the coronavirus.    So the market has been going up in the last week of March, but I feel that it will go back down because the markets rose on the sense of hope because a new drug was passed through the FDA to be used to combat the coronavirus. However, scientists predict that there will 100,000-240,000 deaths in the United States causing it to drag down the market. We are in volatile times right now with news being able to cause big drops or gains so it is the best to look long term. These are the top stocks I recommend in the long run: 1. Intel(INTC)-  It is the one of the largest semiconductor manufacturing companies in the United States with a market cap of $231.70 billion and a P/E ratio of 11.50 which makes it a cheap option. A bonus is that they have a dividend yield of 2.44%. It also has around $3 billion in cash which is benevolent because cash is KING right now. Technolog...

The Beginning of the End?

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   Some people expected 2020 to be their year, like me, but as we get into the third month, some people are acting like the world is going to end-they are buying all the toilet paper in the stores. I myself was almost was too late to buy toilet paper upon seeing some people take cart fulls of toilet paper with barely any left for others. I feel that they probably should see a doctor long before for COVID-19 if they need 144 rolls of toilet paper.     The idea of a recession has been around since last year and people started expecting a correction in the stock market after tremendous growth this past year, or even worse, a recession. Anything event detrimental to the US economy could've triggered a big fall in the stock market and COVID-19 was the chosen one this year. If you want to know more about my prediction of a recession, you can read more about it in my previous blog.    COVID-19 is causing widespread panic across the globe causing ma...

Gold is the new Green

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A shiny, yellow piece of metal that we call gold is commonly used for products such as the phone you are maybe using right now. A majority of people go to gold when there are the problems going on affecting the United States and the world. The Corona-virus, risk of recession, and other fears means that people will turn to gold as a safe haven. Also the risk of recession will definitely cause gold to rise because people are scared the inflation will devalue their money, but gold will keep its value when there is inflation causing more people to buy gold. Gold companies such Barrick Gold Corp(GOLD) or gold mutual funds would be the best to buy because buying gold directly won't give you much value when you are waiting for it to go up while gold stocks, ETFs, and mutual funds can give you dividends which is better.