Trading Ideas

Pot stocks are volatile. Though I’m sure you don’t need to be told that.
And even though the sector is getting some mainstream momentum, it remains a speculative area of the market… at least for now.
But that doesn’t mean we can’t apply traditional metrics to cannabis companies.
Besides revenue growth, we’ve looked at price-to-sales ratio, price-to-book ratio and other ways to identify whether these young companies are overvalued or undervalued.
Well, today, we’re going to the extreme. We’re looking at weed stocks using one of the most conservative valuation metrics there is: price to tangible book value (PTBV).
PTBV represents the price of shares …read more […]

A good investor is a principled investor. It’s easy to get into trouble if you don’t stay disciplined. So we’ve compiled the new “investing gospel.” If you stick to these 37 investing principles, you are statistically more likely to be successful in the markets.
The National Bureau of Economic Research conducted a study of financial planning amongst Americans over 50 years old. Those who had a plan and stuck to it achieved an average net worth three times higher than those without a plan. Even those who thought about planning had double the net worth than those who never considered a …read more […]

If you’re trying to eat better, you won’t focus on the grocery store, but rather the choices you make there.
Today, Alexander Green explains why the same is true for investors: The key to health (and wealth) isn’t where you shop, but what you buy.

The post How to Eat Better, Live Longer… and Get Richer appeared first on Investment U. …read more […]

Last week, I sat down for an interview that will be aired on PBS. One of the questions I was asked was about the tools that are available for investors today compared with those that existed years ago.
In addition to all of the online retirement calculators, independent research and real-time quotes, a big development for individual investors has been the increased abundance of exchange-traded funds (ETFs).
A traditional mutual fund is priced at the end of the day according to its net asset value. An ETF is a fund, but it trades like a stock.
Most ETFs are passive, meaning there is …read more […]

Colorado sold nearly twice as much recreational marijuana as it did medical cannabis last year. Data from the Colorado Department of Revenue shows that in 2017, the state sold 172,994 pounds of medical cannabis flower and 238,149 pounds of recreational flower. In 2018, it sold 147,863 pounds of medical and 288,292 pounds of recreational. Since 2014, when the state’s first retail stores opened, the number of pounds of recreational cannabis sold to consumers has increased by 646%.
The gap between medical and recreational sales isn’t surprising. Because marijuana is still illegal at the federal level, there has been very little research …read more […]

Colorado sold nearly twice as much recreational marijuana as it did medical cannabis last year. Data from the Colorado Department of Revenue shows that in 2017, the state sold 172,994 pounds of medical cannabis flower and 238,149 pounds of recreational flower. In 2018, it sold 147,863 pounds of medical and 288,292 pounds of recreational. Since 2014, when the state’s first retail stores opened, the number of pounds of recreational cannabis sold to consumers has increased by 646%.
The gap between medical and recreational sales isn’t surprising. Because marijuana is still illegal at the federal level, there has been very little research …read more […]

On Friday, I was doing my morning run on the treadmill as I flipped through premarket financial news.
And I watched the former head of the Food and Drug Administration (FDA), Dr. Scott Gottlieb, on CNBC’s Squawk Box.
At times, the interview had me irritated. At other points, I was nodding my head.
In my view, his comments really painted the problem American cannabis and CBD companies are faced with. And a lot of it comes down to lack of clarity.
Gottlieb stated that “all the CBD being put into food and dietary supplements is illegal.”
When those words left his mouth, I cringed at …read more […]

If you’re trying to eat better, you won’t focus on the grocery store, but rather the choices you make there.
Today, Alexander Green explains why the same is true for investors: The key to health (and wealth) isn’t where you shop, but what you buy.

Tell people you are an investment analyst, and you’re bound to hear the same question over and over: “So what do you think about this market?”
“I try not to,” I often reply.
I’m not being flip. Most investors spend far too much time obsessing over the market.
Is it overvalued? Is it undervalued? Will the bull market continue? When …read more […]

Dwight D. Eisenhower said, “Farming looks mighty easy when your plow is a pencil and you’re a thousand miles from the corn field.”
Those words rang true over the past couple of years.
This past week, the markets were rocked as U.S.-China trade negotiations faltered… again. And the U.S. will be slapping new tariffs on Chinese imports starting September 1.
Now, the casualties in this trade war are largely American agricultural products. And we’ve seen prices for some of those suffer steep drops over the past several days.
But there’s another trade war putting the squeeze on American consumers…
Goodbye, Guacamole
I love avocados. Millions of …read more […]

Bitcoin has the best security track record of any cryptocurrency. Its network has never been hacked. And its decentralized design means there’s no single point of failure. That’s one of the reasons why we like it so much.
This week, bitcoin’s security got even stronger.
The bitcoin hash rate – the amount of computing power used to validate bitcoin transactions – surpassed 80 quintillion SHA256 hashes per second on Thursday. (SHA256 stands for Secure Hash Algorithm 256 bit, a type of hash function commonly used in blockchain.) That’s the highest it’s ever been. And it indicates the network is stronger than ever.
That’s …read more […]

Marijuana is going from the black market to the stock market. And the growth is incredible. According to the Cannabis Industry Annual Report, legal marijuana sales doubled from 2016 to 2019. Also, the report estimates total marijuana sales will reach $24 billion by 2025. Every day the marijuana industry gains more steam, and you can get a piece of the action. Marijuana small cap stocks will help investors make millions.
For now, marijuana is in the growth stage. And that is a great place for investors. If you play your cards right, you could own a piece of the next Microsoft …read more […]

Editor’s Note: This week, we asked our readers whether they have allocated any new funds to exchange-traded funds (ETFs) over the past six months.
If you’re not familiar with ETFs, they’re collections of stocks that share a common theme, like sector or index. They’re not actively managed, so they’re less expensive and post better performance than most mutual funds. They can also serve as an excellent tool for diversification.
However, in spite of these benefits, our readers were fairly evenly split between those who had purchased ETFs since February and those who had not.
This is surprising because when we asked in December …read more […]

As a child, I was obsessed with Greek mythology. I spent endless summers reading about the Greek gods. Zeus, Athena, Hercules, Poseidon – I couldn’t get enough of them!
One of my favorite stories from Greek mythology is the tale of Icarus. Icarus was the son of Daedalus. Daedalus was a famed master craftsman in Greece. And at the request (read: order) of Crete’s King Minos, Daedalus built a labyrinth to imprison a minotaur (half-man, half-bull). But because Minos didn’t want anyone to know the secret of the labyrinth, he imprisoned Daedalus and Icarus.
So Daedalus did what inventors do. He figured …read more […]

As a child, I was obsessed with Greek mythology. I spent endless summers reading about the Greek gods. Zeus, Athena, Hercules, Poseidon – I couldn’t get enough of them!
One of my favorite stories from Greek mythology is the tale of Icarus. Icarus was the son of Daedalus. Daedalus was a famed master craftsman in Greece. And at the request (read: order) of Crete’s King Minos, Daedalus built a labyrinth to imprison a minotaur (half-man, half-bull). But because Minos didn’t want anyone to know the secret of the labyrinth, he imprisoned Daedalus and Icarus.
So Daedalus did what inventors do. He figured …read more […]

The post This Quality Leads to Excellence… in Life and in Investing appeared first on Investment U. …read more […]