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2021 Roundtable: Vaccine News - Value

- Today our contributors who specialize in value, dividend, high yield, income, and REITs share their thoughts. -We will return with Part 2 of the 2021 Outlook Roundtable in early January. -The Marketplace team wishes to all who celebrate a Merry Christmas! We end our  2021 Roundtable - Part 1 - Vaccine News  series with our contributors who focus on value, dividend, high yield, income, and REIT investing. We asked our authors the following: Now that vaccines are approved in several countries, a post-COVID reality is in sight. How does this impact the investment horizon in your area of expertise for 2021? Name up to three stocks/ETFs that will outperform as a result. The answers were compiled as late as Sunday, Dec. 20. As usual, feel free to comment below - we'd love to hear your opinions. Out Fox The Street  by  Stone Fox Capital : A vaccine sets up the economic reopen trade for 2021 which includes a lot of the stocks in the Out Fox model. These stocks had solid business models h

Nikola: GM Deal Doesn't Add Value

  Nikola is still waiting on GM to finalize their strategic partnership. The company apparently needs GM's battery and fuel-cell technology to build superior second generation trucks. The stock is worth nearly $11 billion prior to an equity distribution to GM. Nikola has too much risk without a GM partnership and not enough proprietary technology with a deal to make the stock a buy here. Nikola  ( NKLA ) soared 15% on Wednesday following circulation of an  internal report  showing  General Motors  ( GM ) had finally signed the deal to work together. While a signed partnership from GM does solidify Nikola as a viable EV company, the deal doesn't make the stock a bargain. Contrary to my thinking, Nikola hasn't completely collapsed on the departure of founding CEO Trevor Milton, but my  investment thesis  remains negative with the stock up at $25. Read the full article on Seeking Alpha.  Disclosure: Long GM. Please review the disclaimer page for more details. 

Out Fox The Street - Oct. 5, 2020

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Article originally published to Out Fox members back on Oct. 5.  Aphria is a cheap Canadian cannabis stock up $1 since this call. Twitter remains favorite social media play. Sample research from  Out Fox The Street : Aphria ( OTC:APHA ) For a long time, Aphria was been a favorite amongst the Canadian cannabis LPs due to a cheaper valuation and stronger execution. Back on Sept. 24, the stock was  highlighted  as a better Canadian cannabis pick than  Aurora Cannabis  ( OTC:ACB ) when Aphria traded at $4.31. Aphria has gotten a big boost today with Cantor Fitzgerald hiking the price target by C$2.50 to C$15.50. The amount equates to $11.68 for a stock trading at only $4.41 before the market opened today. Some key points of the bullish call for the quarter ending August: Canadian Rec. revenue to grow 37% QoQ. Canadian Rec. EBITDA margins to top 20%. FQ1'20 revenues of C$171M. FQ1'20 EBITDA of C$16.3M. A big key to the quarterly results is the expectation of Aphria generating C$16.3

Out Fox The Street - Sept. 13, 2020

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  A few ideas recently discussed with members of   Out Fox The Street : Five Below ( FIVE )  The specialty retailer was a recent pick sent to members in chat. The stock was trading below $110 heading into earnings a few days later on September 2.  After strong FQ2 numbers, Five Below is now trading at $130 and looking to break strong resistance around $135. The stock already offers an 18% return in a matter of weeks.  The retailer recently opened their 1,000th store despite the economy being shutdown for parts of the last few months. Five Below is expected to return to nearly 20% revenue growth in the current quarter ending in October. The stock should ultimately break the all-time high right below $150 as the economy rebounds.  Lancadia Holdings II ( LCA ) Another recent pick around $15 is the future Golden Nugget Online run by Tilman Fertitta. Lancadia Holdings II is another SPAC that has an agreement to purchase GNOG. The below is a snippet of information provided to members: The st

Nikola: Too Many Promises For Now

Nikola has a long list of promises to meet in order to reach substantial out year revenue targets. The stock currently has a $15 billion market cap due to 425 million fully diluted shares outstanding. The company remains a 2024 revenue story. Investors need to realize Nikola has 200% upside, but the stock has 90% downside risk over the next few years. As with most IPOs and newly public companies, the initial earnings report is very volatile. The  Q2 earnings report  for  Nikola  ( NKLA ) was no different from the general market despite the unique method of going public via a SPAC. Whether or not to invest in the stock is more related to whether the zero emissions commercial transportation system company can meet staled promises. My  investment thesis  remains negative on the stock, considering the huge jump in the public float and the massive valuation for a company that hasn't delivered on revenues yet. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. P

Exxon Mobil: Dividend Should Be At Risk

Exxon Mobil continues to boost net debt levels in order to pay massive dividends. The energy giant continues to cut investing in the future in order to pay an 8.3% yield while watching the stock collapse. The stock isn't investable until the company cuts the dividend at least 50% similar to BP. After another quarter of massive amounts of cash exiting the balance sheet in favor of debt,  Exxon Mobil  ( XOM ) investors should want the energy giant to consider cutting the dividend. The biggest issue is that the company can't afford to correctly invest in the future with the massive dividend overhang. My  negative investment thesis  continues to project the stock having less value due to $15 billion in annual payouts causing irrational asset sales and volatile capital spending decisions that hurt investors. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please read the disclaimer page for more details. 

AMD: Another Intel Gift

Intel just delayed key manufacturing technology another 12 months. AMD should finally grab substantial market share gains in key server chips. My EPS target for AMD is now set at ~$4 based on the chip company reaching 25% market share off a $79 billion TAM. As  Advanced Micro Devices  ( AMD ) continues to prep for market share gains in semiconductor chips,  Intel  ( INTC ) provided the company the best gift ever. Not only was AMD on a path to maintain technology leadership, but also Intel announced they plan on allowing AMD to expand that leadership in the next couple of years. While the COVID-19 shutdown has potentially delayed some massive server transitions to Epyc chips, my  investment thesis  remains very bullish on the stock as analysts have to now raise financial models previously based on limited market share gains. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details.