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>> silver <<
Silver also coming to life :o) Looking at the SLV chart, as with gold there is a quasi 12 year cup + handle (bullish), with the 3 year 'cup' having a quasi inverted head + shoulders (also bullish). It's much less classic than on the gold chart, but is easier to see now that silver is climbing. Also the 'neckline' on the silver chart is sloped, where gold's is flat and thus more 'classic'.
Anyway, looks like silver is playing catch up to gold. There is also a potential motivation for price suppression with silver, since it represents a key input cost for solar panels. Therefore keeping silver prices lower helps keep solar cost competitive with traditional types of energy. Not sure how much price suppression of silver has been going on in recent years, but like gold. it does seem to have peculiar 'smack downs' at times.
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>> silver <<
Silver also coming to life :o) Looking at the SLV chart, as with gold there is a quasi 12 year cup + handle (bullish), with the 3 year 'cup' having a quasi inverted head + shoulders (also bullish). It's much less classic than on the gold chart, but is easier to see now that silver is climbing. Also the 'neckline' on the silver chart is sloped, where gold's is flat and thus more 'classic'.
Anyway, looks like silver is playing catch up to gold. There is also a potential motivation for price suppression with silver, since it represents a key input cost for solar panels. Therefore keeping silver prices lower helps keep solar cost competitive with traditional types of energy. Not sure how much price suppression of silver has been going on in recent years, but like gold. it does seem to have peculiar 'smack downs' at times.
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Bigworld, >> silver <<
Silver also coming to life :o) Looking at the SLV chart, as with gold there is a quasi 12 year cup + handle (bullish), with the 3 year 'cup' having a quasi inverted head + shoulders (also bullish). It's much less classic than on the gold chart, but is easier to see now that silver is climbing. Also the 'neckline' on the silver chart is sloped, where gold's is flat and thus more 'classic'.
Anyway, looks like silver is playing catch up to gold. There is also a potential motivation for price suppression with silver, since it represents a key input cost for solar panels. Therefore keeping silver prices lower helps keep solar cost competitive with traditional types of energy. Not sure how much price suppression of silver has been going on in recent years, but like gold. it does seem to have peculiar 'smack downs' at times.
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Ombow, Here's more on 'Ableton Live' -
https://en.wikipedia.org/wiki/Ableton_Live
Looks like it could take some time to learn, but is a phenomenal tool. I see Amazon has the standard edition for $439.
Goldman - >>> Gold’s 'record march higher set to continue,' Goldman says
Yahoo Finance
by Ines Ferré·Senior
March 25, 2024
https://finance.yahoo.com/news/golds-record-march-higher-set-to-continue-goldman-says-164325765.html#:~:text=Goldman%20Sachs%20analysts%20upgraded%20their,phase%2C%20barring%20any%20geopolitical%20surprise.
Gold’s roughly 8% month-to-date rally has room to grow with the precious metal poised to hit $2,300 an ounce by year-end, according to Goldman Sachs analysts.
On Monday futures gained to trade as high as $2,182 an ounce. The precious metal is considered a safe haven during times of geopolitical tensions and when interest rates decrease. Last week, the Federal Reserve continued to signal that it would lower interest rates three times this year.
The Fed meeting “reinforced the market’s (and ours) expectations that three cuts are likely this year, lending renewed support to gold to test and surpass March’s earlier record high,” wrote a team of analysts led by Samantha Dart.
Goldman Sachs analysts upgraded their average gold price forecast for 2024 from $2,090 to $2,180 per ounce, targeting a move to $2,300 by the end of the year.
The analysts forecast gold prices in the near term will move toward another consolidation phase, barring any geopolitical surprise. However, “a substantive retracement lower will likely also be limited by resilience in physical buying channels,” wrote Dart, citing Chinese imports of the precious metal.
“Nonetheless, in the midterm we continue to hold a constructive view on gold underpinned by eventual Fed easing, which should crucially reactivate the largely dormant ETF buying,” wrote Dart.
Bullion's price increases have been disconnected from recent outflows seen in gold-related ETFs. Strategists believe investors have been rotating money into bitcoin ETFs as the token roared toward new highs earlier this month.
Central banks have been buying up gold at historic levels, helping to drive up demand over the past couple of years.
Adjusted for inflation, gold hit a record in 1980 when it hit $850 per ounce, which would equal almost $3,200 in today's dollars.
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Bigworld, Goldman recently came out bullish on gold (next post), so that's a factor, and another is that Wall Street often bases its decisions on TA / charts, and this big breakout is attracting attention. I figure numerous 'macro' factors are also at work, including the growing US debt bomb, the BRICS plans for their own gold linked currency to compete with the US dollar, etc. As we know, central banks have been piling into gold for years, so global demand grows and mining output has lagged.
So the 'stars + planets' are finally aligning to produce the big breakout. The professional 'gold bugs' are always bullish, and have their reputations and livelihoods wrapped up in the bullish side, via newsletters, book sales, etc. But it looks like gold's appeal is broadening, and some of the Bitcoin crowd might also be switching over to gold. Seeing gold being sold at Costco, and selling out within hours, may have also attracted some attention. And anyone who follows TA / charts couldn't miss the extremely bullish chart pattern that had developed.
Based on the charts, this move is probably just beginning. But as you said, the big question is when does the suppression mechanism kick in? If gold is allowed to run up too much it could reinforce an inflationary vibe and thus work against the Fed's goals. So we'll see how long the party lasts, but so far it's been fun :o)
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Goldman - >>> Gold’s 'record march higher set to continue,' Goldman says
Yahoo Finance
by Ines Ferré·Senior
March 25, 2024
https://finance.yahoo.com/news/golds-record-march-higher-set-to-continue-goldman-says-164325765.html#:~:text=Goldman%20Sachs%20analysts%20upgraded%20their,phase%2C%20barring%20any%20geopolitical%20surprise.
Gold’s roughly 8% month-to-date rally has room to grow with the precious metal poised to hit $2,300 an ounce by year-end, according to Goldman Sachs analysts.
On Monday futures gained to trade as high as $2,182 an ounce. The precious metal is considered a safe haven during times of geopolitical tensions and when interest rates decrease. Last week, the Federal Reserve continued to signal that it would lower interest rates three times this year.
The Fed meeting “reinforced the market’s (and ours) expectations that three cuts are likely this year, lending renewed support to gold to test and surpass March’s earlier record high,” wrote a team of analysts led by Samantha Dart.
Goldman Sachs analysts upgraded their average gold price forecast for 2024 from $2,090 to $2,180 per ounce, targeting a move to $2,300 by the end of the year.
The analysts forecast gold prices in the near term will move toward another consolidation phase, barring any geopolitical surprise. However, “a substantive retracement lower will likely also be limited by resilience in physical buying channels,” wrote Dart, citing Chinese imports of the precious metal.
“Nonetheless, in the midterm we continue to hold a constructive view on gold underpinned by eventual Fed easing, which should crucially reactivate the largely dormant ETF buying,” wrote Dart.
Bullion's price increases have been disconnected from recent outflows seen in gold-related ETFs. Strategists believe investors have been rotating money into bitcoin ETFs as the token roared toward new highs earlier this month.
Central banks have been buying up gold at historic levels, helping to drive up demand over the past couple of years.
Adjusted for inflation, gold hit a record in 1980 when it hit $850 per ounce, which would equal almost $3,200 in today's dollars.
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>>> CrowdStrike Holdings -- The first high-octane AI growth stock that appeared to whet the whistles of billionaire money managers during the December-ended quarter is cybersecurity company CrowdStrike Holdings (NASDAQ: CRWD). Four highly successful billionaires added to their funds' respective stakes in CrowdStrike, including (total shares purchased in parenthesis):
https://finance.yahoo.com/news/forget-nvidia-billionaires-selling-buying-084100649.html
Jeff Yass of Susquehanna International (400,988 shares)
Jim Simons of Renaissance Technologies (97,900 shares)
David Siegel and John Overdeck of Two Sigma Investments (91,091 shares)
On a macro basis, the cybersecurity industry has the look of a surefire growth story through at least the remainder of the decade. As businesses continue shifting their data online and into the cloud, third-party providers are being relied on with frequency to protect this information from hackers.
Furthermore, cybersecurity solutions can thrive in any economic climate. A bad day for Wall Street or a rough patch for the U.S. economy doesn't mean a thing to hackers and robots looking to steal sensitive information. Since CrowdStrike is a subscription-driven company that protects end users, it's well-positioned to generate predictable cash flow no matter what's happening with the economy or stock market.
On a more company-specific basis, CrowdStrike brings clearly identifiable competitive advantages to the table for its customers and investors. The company's Falcon security platform is driven by AI and ML. Falcon is overseeing trillions of events each week, which are making it smarter and more effective at recognizing and responding to potential threats.
There are a couple of key performance indicators that demonstrate just how much pull CrowdStrike has with businesses. Even though its platform isn't the cheapest, gross retention rate has been pegged right around 98% for multiple years. Additionally, the company's net retention rate hasn't fallen below 119% in more than five years. This means the company's existing clients are spending at least 19% more on a year-over-year basis.
But the key to CrowdStrike's success has been its ability to upsell existing customers. Whereas a single-digit percentage of its clients seven years ago had purchased four or more cloud module subscriptions, 64% of its customers now have five or more cloud module subscriptions. These add-on sales have lifted its adjusted subscription gross margin to an impressive 80%!
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GE Vernova - >>> GE completes three-way split, breaking off from its storied past
Reuters
by Rajesh Kumar Singh and Abhijith Ganapavaram
April 2, 2024
https://finance.yahoo.com/news/ge-completes-three-way-split-103653223.html?.tsrc=fin-notif
CHICAGO (Reuters) -General Electric on Tuesday completed its breakup into three companies, marking the end of the 132-year-old conglomerate that was once the most valuable U.S. corporation and a global symbol of American business power.
The industrial giant's aerospace and energy businesses began trading on the New York Stock Exchange as separate entities more than a year after GE spun off its healthcare business.
GE Aerospace has retained the GE symbol. The energy unit, GE Vernova, made its debut under the ticker symbol GEV.
GE Aerospace shares were up about 2% at mid-afternoon. Vernova rose about 5%.
The breakup culminates CEO Larry Culp's efforts to turn around a company that looked all but dead due to bad investments and the 2008 financial crisis that nearly bankrupted its most profitable business, GE Capital.
When Culp, the first outsider to run GE, took the helm in 2018, the company was struggling with weak profits and a mountain of debt. Its stock had fallen nearly 80% from highs in 2000 and lost its spot in the Dow Jones Industrial Average after over a century in the blue-chip stock index. The tumult prompted GE's board to oust two of his predecessors in less than two years.
Culp's task to save the struggling conglomerate became more challenging when its lucrative jet engine business fell victim to the coronavirus pandemic as global air travel dried up. However, his focus on paying off debt by selling assets and improving cash flows by streamlining operations and cutting overhead costs ushered in a recovery.
GE has slashed more than $100 billion of debt and quadrupled its free cash flow since 2018. Its market cap has grown by about $100 billion to $192 billion.
"With the successful launch of three independent, public companies now complete – today marks a historic final step in the multi-year transformation of GE," Culp said on Tuesday.
Culp, as the CEO of GE Aerospace, rang the NYSE opening bell on Tuesday, along with Vernova CEO Scott Strazik.
GE was formed in 1892 after famed inventor Thomas Alva Edison merged Edison General Electric Co with a rival. In subsequent years, it has touched all parts of life - from bringing electricity to selling appliances to financing mortgages.
After the split, it will be left with its aerospace business, which makes engines for Boeing and Airbus jets and generates more than 70% of its revenue from services.
Analysts estimate the market value of GE Aerospace at more than $100 billion after the spinoff. It is benefiting from a surge in demand for aftermarket services because jet delivery delays by Boeing and Airbus are forcing airlines to fly older planes for longer.
Last month, it forecast operating profit of about $10 billion in 2028.
"We expect GE Aerospace's engine business flywheel to spin off decades of profitable growth," Nicolas Owens, equity analyst at Morningstar, wrote in a note.
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GE Aerospace - >>> GE completes three-way split, breaking off from its storied past
Reuters
by Rajesh Kumar Singh and Abhijith Ganapavaram
April 2, 2024
https://finance.yahoo.com/news/ge-completes-three-way-split-103653223.html?.tsrc=fin-notif
CHICAGO (Reuters) -General Electric on Tuesday completed its breakup into three companies, marking the end of the 132-year-old conglomerate that was once the most valuable U.S. corporation and a global symbol of American business power.
The industrial giant's aerospace and energy businesses began trading on the New York Stock Exchange as separate entities more than a year after GE spun off its healthcare business.
GE Aerospace has retained the GE symbol. The energy unit, GE Vernova, made its debut under the ticker symbol GEV.
GE Aerospace shares were up about 2% at mid-afternoon. Vernova rose about 5%.
The breakup culminates CEO Larry Culp's efforts to turn around a company that looked all but dead due to bad investments and the 2008 financial crisis that nearly bankrupted its most profitable business, GE Capital.
When Culp, the first outsider to run GE, took the helm in 2018, the company was struggling with weak profits and a mountain of debt. Its stock had fallen nearly 80% from highs in 2000 and lost its spot in the Dow Jones Industrial Average after over a century in the blue-chip stock index. The tumult prompted GE's board to oust two of his predecessors in less than two years.
Culp's task to save the struggling conglomerate became more challenging when its lucrative jet engine business fell victim to the coronavirus pandemic as global air travel dried up. However, his focus on paying off debt by selling assets and improving cash flows by streamlining operations and cutting overhead costs ushered in a recovery.
GE has slashed more than $100 billion of debt and quadrupled its free cash flow since 2018. Its market cap has grown by about $100 billion to $192 billion.
"With the successful launch of three independent, public companies now complete – today marks a historic final step in the multi-year transformation of GE," Culp said on Tuesday.
Culp, as the CEO of GE Aerospace, rang the NYSE opening bell on Tuesday, along with Vernova CEO Scott Strazik.
GE was formed in 1892 after famed inventor Thomas Alva Edison merged Edison General Electric Co with a rival. In subsequent years, it has touched all parts of life - from bringing electricity to selling appliances to financing mortgages.
After the split, it will be left with its aerospace business, which makes engines for Boeing and Airbus jets and generates more than 70% of its revenue from services.
Analysts estimate the market value of GE Aerospace at more than $100 billion after the spinoff. It is benefiting from a surge in demand for aftermarket services because jet delivery delays by Boeing and Airbus are forcing airlines to fly older planes for longer.
Last month, it forecast operating profit of about $10 billion in 2028.
"We expect GE Aerospace's engine business flywheel to spin off decades of profitable growth," Nicolas Owens, equity analyst at Morningstar, wrote in a note.
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Ombow, With Facebook I was willing to join, but got rejected, so I figure the heck with it. One of my college friends said he's on there all the time, mostly family related stuff. I'd like to follow developments with Roger Dean's latest album cover art projects, since I collect his stuff going back to 1968, and I think other artists like Jeremy Miranda are on there also. But a lot of people are also on other sites, like Twitter, so I may look into that at some point. I-Hub tends to be mainly stock related, but it's an interesting hobby for us bored retirees :o)
Btw, that advanced keyboard you posted about a while back (KORG Pa5X), is amazing, though I see it costs almost $5000, yikes. I have a decent keyboard now, so am looking at some of these digital recording setups, which can run off a desktop computer. Something like this one would probably be plenty (see below).
Btw, if you're into record collecting at all, here's a phenomenal site to find those obscure albums (link below). They used to also have unofficial / bootlegs, but had to stop those due to flak from the record companies. You can still look up unofficial releases to get info, but not to actually buy them. But all official records can be bought / sold on the site, so for anything rare this is the place to look -
Discogs - https://www.discogs.com/artist/1826912-Roger-Dean-4?type=Credits&filter_anv=0
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HUM, UNH - >>> US health insurers slide as final Medicare payment rates fall below expectations
Reuters
4-2-24
https://www.msn.com/en-us/money/markets/us-health-insurers-slide-as-final-medicare-payment-rates-fall-below-expectations/ar-BB1kWIXt?OCID=ansmsnnews11#;
(Reuters) - Shares of U.S. health insurers tumbled between 6% and 12% on Tuesday after the final 2025 rates for Medicare Advantage (MA) payments by the government implied a cut and triggered worries about a margin squeeze.
The rates, which indicated a 0.2% fall in average payments, are unchanged from what was proposed in January, despite pressure from companies and industry groups to incorporate a late-year surge in medical care demand.
The U.S. Centers for Medicare & Medicaid Services typically raises the final reimbursement from the advanced notice.
The rates could pile more pressure on margins at insurers already struggling with high medical costs, and uncertainty around insurance claims processing due to the fallout of a hack at UnitedHealth's tech unit.
Shares of Medicare-focused insurer Humana fell the most, plunging more than 12% to a near four-year low of $308.22. UnitedHealth slumped 6.6%, while CVS Health sunk 7.7% in early trading.
The steep losses also dragged down the blue-chip Dow index and the benchmark S&P 500 in morning trading. [.N]
The "less-than-favorable rate updates, which coupled with the potentially clouded claims development in light of the Change Health cyberattack ... may put the once-golden Medicare Advantage market in somewhat less favorable standing," said Citi analyst Jason Cassorla.
The CMS, in a final notice published on Monday, said it had not observed higher demand for medical care during the fourth quarter of 2023, in sharp contrast to recent comments from insurers such as Humana and UnitedHealth.
The closely watched proposal determines how much insurers can charge for monthly premiums, plan benefits they offer and, ultimately, their profits.
The high costs, coupled with low rates, put pressure on insurers to cut the number of benefits they cover, said BoFA Securities analyst Kevin Fischbeck in a note.
"The amount of benefit cuts needed could begin to weigh on the perceived value of Medicare Advantage," he said.
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HUM, UNH - >>> US health insurers slide as final Medicare payment rates fall below expectations
Reuters
4-2-24
https://www.msn.com/en-us/money/markets/us-health-insurers-slide-as-final-medicare-payment-rates-fall-below-expectations/ar-BB1kWIXt?OCID=ansmsnnews11#;
(Reuters) - Shares of U.S. health insurers tumbled between 6% and 12% on Tuesday after the final 2025 rates for Medicare Advantage (MA) payments by the government implied a cut and triggered worries about a margin squeeze.
The rates, which indicated a 0.2% fall in average payments, are unchanged from what was proposed in January, despite pressure from companies and industry groups to incorporate a late-year surge in medical care demand.
The U.S. Centers for Medicare & Medicaid Services typically raises the final reimbursement from the advanced notice.
The rates could pile more pressure on margins at insurers already struggling with high medical costs, and uncertainty around insurance claims processing due to the fallout of a hack at UnitedHealth's tech unit.
Shares of Medicare-focused insurer Humana fell the most, plunging more than 12% to a near four-year low of $308.22. UnitedHealth slumped 6.6%, while CVS Health sunk 7.7% in early trading.
The steep losses also dragged down the blue-chip Dow index and the benchmark S&P 500 in morning trading. [.N]
The "less-than-favorable rate updates, which coupled with the potentially clouded claims development in light of the Change Health cyberattack ... may put the once-golden Medicare Advantage market in somewhat less favorable standing," said Citi analyst Jason Cassorla.
The CMS, in a final notice published on Monday, said it had not observed higher demand for medical care during the fourth quarter of 2023, in sharp contrast to recent comments from insurers such as Humana and UnitedHealth.
The closely watched proposal determines how much insurers can charge for monthly premiums, plan benefits they offer and, ultimately, their profits.
The high costs, coupled with low rates, put pressure on insurers to cut the number of benefits they cover, said BoFA Securities analyst Kevin Fischbeck in a note.
"The amount of benefit cuts needed could begin to weigh on the perceived value of Medicare Advantage," he said.
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Bigworld, Concerning the bridge related events, I doubt there's anything nefarious there (a guess), but a few years ago when all those food related building were burning / blowing up, that did seem suspicious. Not sure what was actually going on there though, and now that the internet is so censored, it's a lot more difficult to find out.
Fwiw, I don't even bother trying to find out anymore since you have to either go to sites like Rumble, or else to blogger type sites. Bloggers usually know little / nothing, and Rumble is a Peter Thiel company (intel community), and I figure his site is mainly to identify dissidents for future action (roundups, etc). That notion may sound extreme, but look at what happened to those Jan 6 people who thought they were merely going to a political protest rally, and are now in prison for up to 20 years.
Anyway, best to just chill out imo, since anything we do isn't going to make much difference anyway. Sounds defeatist, but no sense ending up like those Jan 6 guys. Anyone who was dumb enough to fall for that Q-Anon stuff deserves what they get. Or that would at least be the Darwinian way to look at it.
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Bigworld, Nice day for the metals. It seems like the miners are lagging, but hopefully they catch up soon. With gold's big breakout, the general rule is that the longer it takes for a chart pattern to form, the more dramatic and prolonged can be the ultimate breakout. If that's the case with gold (12 years to form the cup + handle), we could be in for quite a bull market. Silver also moving, now over 26 :o)
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Ombow, I think it depends on when you originally signed up on FB. I've heard that years ago it was a lot more lax. I tried to sign up right at the peak of the 'ban conservatives' hysteria, but they may have relaxed things since then. I think most of these sites make a good chunk of their money from selling the data gleaned from the site's visitors. Most likely Facebook was originally setup with the goal of accumulating facial scanning data (hence the name 'Face book'). Much of the web infrastructure like Google was originally funded by outfits like In-Q-Tel, which is an arm of the CIA -
https://en.wikipedia.org/wiki/In-Q-Tel
>>> In-Q-Tel (IQT), formerly Peleus and In-Q-It, is an American not-for-profit venture capital firm based in Arlington, Virginia. It invests in companies to keep the Central Intelligence Agency, and other intelligence agencies, equipped with the latest in information technology in support of United States intelligence capability.[2] The name "In-Q-Tel" is an intentional reference to Q, the fictional inventor who supplies technology to James Bond.[5]
History
Originally named Peleus and known as In-Q-It, In-Q-Tel was founded by Norm Augustine, a former CEO of Lockheed Martin, and by Gilman Louie, who was In-Q-Tel's first CEO.[2][5][6] In-Q-Tel's mission is to identify and invest in companies developing cutting-edge technologies that serve United States national security interests. According to the Washington post, In-Q-Tel started as the idea of then CIA director George Tenet. Congress approved funding for In-Q-Tel, which was increased in later years.[7] Origins of the corporation can also be traced to Ruth A. David, who headed the Central Intelligence Agency Directorate of Science & Technology in the 1990s and promoted the importance of rapidly advancing information technology for the CIA.[5] In-Q-Tel now engages with entrepreneurs, growth companies, researchers, and venture capitalists to deliver technologies that provide superior capabilities for the CIA, DIA, NGA, and the wider intelligence community.[8] In-Q-Tel concentrates on three broad commercial technology areas: software, infrastructure and materials sciences.
Former CIA director George Tenet said,
We [the CIA] decided to use our limited dollars to leverage technology developed elsewhere. In 1999 we chartered ... In-Q-Tel. ... While we pay the bills, In-Q-Tel is independent of CIA. CIA identifies pressing problems, and In-Q-Tel provides the technology to address them. The In-Q-Tel alliance has put the Agency back at the leading edge of technology ... This ... collaboration ... enabled CIA to take advantage of the technology that Las Vegas uses to identify corrupt card players and apply it to link analysis for terrorists [cf. the parallel data-mining effort by the SOCOM-DIA operation Able Danger], and to adapt the technology that online booksellers use and convert it to scour millions of pages of documents looking for unexpected results.[9]
In-Q-Tel sold 5,636 shares of Google, worth over US$2.2 million, on November 15, 2005.[10] The shares were a result of Google's acquisition of Keyhole, Inc, the CIA-funded satellite mapping software now known as Google Earth.[11]
In August 2006, In-Q-Tel reviewed more than 5,800 business plans and invested approximately $150M in more than 90 companies.[2][12]
As of 2016, In-Q-Tel listed 325 investments, but more than 100 were kept secret, according to the Washington Post. The absence of disclosure can be due to national security concerns or simply because a startup company doesn’t want its financial ties to intelligence publicized.[7]
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Derf, >> low angst = low results <<
I'm finding the opposite - the lower the angst, the better the results. And also - the less trading, the better the results.
I guess the bottom line is finding the right formula that works for you. Some are heavy sleepers, some are nervous nellies, some can trade, while others lose their shirts trying to trade. So whatever works :o)
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Derf, >> get up in the morning to watch a half share <<
For me that's the whole idea --> low angst :o)
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Bigworld, Probably better to cool it with the house work, travel, etc, since all that vigorous activity may have played a role in the failure of the knee last year. Who knows, but best to err on the side of caution, one would think, and just hire people to do the lawn, deck work, etc.
Also, waiting until June to get the new knee in, that's a long time. But on the other hand, the highest risk of another bacteremia is probably after the 2nd surgery, so putting it off might be better from that standpoint (?) Anyway, good luck, but logic says it's probably better to not overdo things too much. In retirement there are advantages to having a low maintenance condo, as opposed to owning the 'Ponderosa ranch'.
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Derf, >> NVDA <<
Chart-wise, it looks like the 50 MA should reach 800 before long, so that might be a decent entry point if the stock gets there. But for the longer term it probably doesn't matter that much.
With NVDA I have a whopping 1/2 shares lol. But I like these tiny positions since it makes it easy to buy / hold and not worry about it. I figure with stocks, the big money is made by buying quality and holding LT / forever. Of course that sounds good in theory, but we'll see what happens when we get another crash / crisis, which will happen at some point.
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Ombow, >> FB <<
I tried signing up for Facebook a few years ago, but didn't want to give them the required ID type face photo, so gave something else and they rejected it and then rejected a 2nd attempt, so I figured forget it. This was right after all the big social media sites started their big censorship drive, kicking off conservatives, etc. Facebook wanted a driver's license type face photo, obviously for their vast face scanning data base.
Anyway, I hear FB is otherwise a fun social media site, but I've never really been able to check it out. I have some college friends on there, and am also a fan of the artist Roger Dean who is on FB, but the site rejected me. But I never liked that douchebag Zuckerberg anyway lol..
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Derf, With SMCI, it looks like support at the rising 50 MA. I figure it's a logical longer term buy / hold, but am only holding the 'free' shares from the previous double. Looks like the chart is pretty much tracking NVDA. I'm figuring on holding these longer term, but only small positions.
It's actually good to see the market consolidating. Europe really needed it, based on the German chart and the Euro Stoxx 50 futures charts. Both had spiked for 2-3 months without a real pullback. Unlike here, Europe's economy has been weak / recession, so they are lowering % rates before the US Fed does.
Looking at Fed policy, they are guiding for 3 rate cuts this year, so Jim Rickards is predicting July, Nov, and Dec. He says Oct is out since it's too close to the election, and July may be more likely than June since the Fed isn't in much hurry with the US economy so resilient, and July will give an extra month of inflation data. Sounds logical, and Fed easing should give an underlying tailwind, and help offset other uncertainties, geopolitical and the election. Always something to worry about though.. For Fed policy guidance, check out the Nick Timiroas (WSJ) headlines periodically, since he's the designated Fed leaker to Wall Street -
https://www.wsj.com/news/author/nick-timiraos
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Derf, Yes, looks like the strength in SCCO continues. I missed the boat on copper, but did pick up a little RIO, along with several nuclear related ETFs (URA and NLR), albeit tiny positions. I'm thinking of these as longer term buy / holds, and they have nice dividends. A little late with NLR though. I had some last Fall but unfortunately decided to exit. NLR holds a number of smaller nuclear utilities that have been on a tear. But even after the runup, I figure a small LT investment will at least give some exposure to the sector.
Gold continues it's breakout from that 12 year cup + handle, and it looks like silver may be starting to join in.
With copper, using the futures chart as a guide, it looks like there could be another ~ 10% upside before it reaches the resistance levels ~ 4.5. Just a guess though, and these commodities are unpredictable. But since the Chinese decision to cut production was reportedly a key factor that ignited the current copper move, maybe it has further to go, but tough to say. I figure it's better to go with longer term trends, but copper also has that aspect, with the global 'electric everything' paradigm. I missed the boat with SCCO, so maybe on a pullback. But as a shorter term trade, nice going :o)
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Bar, I'll respond over here since I'm still limited to 1 post / day on the Awesome Stocks board, due to past transgressions. Too many 'political posts' they said. Btw, they also said I could post the political stuff IF it was a premium board, and IF I become a paid subscriber to I-Hub, lol. So I guess as in most other aspects of life --> 'money talks', or in this case money gets to talk..
You are 100% right about the wisdom of sticking to conservative stocks and broad indexes with the bulk of one's stock allocation. Other less conservative areas might have a limited place, but in very small amounts. I have most of the stock allocation in the S+P 500, and the individual stock portion is spread among a lot of conservative stocks with nice long term charts. Only a couple stocks with limited track records, but tiny positions ($350 / stock limit), and these are meant to be LT buy / holds, not for trading.
Anyway, with the Aerospace sector, it's fun to follow out of general interest. I come from an aviation family via my dad, and grew up around airplanes. We had a Cessna Skylane 182, and travelled all over the country, Grand Canyon, Tetons, etc. But truth be told, pilots tend to have a few loose screws lol -
Bar, While it's tough to pick the winning companies, the broader technology seems like a winner. I figure the best technologies will be acquired by larger players, as in other tech areas, so it will be 'Darwinian'.
Investment-wise, I currently only have the broad Aviation / Defense ETF (PPA), and a few stocks with aerospace exposure - Curtiss-Wright (CW) and Transdigm (TDG), but small positions (link below). Those I picked mainly based on their nice long term charts, so it was fairly easy. But these small newer companies would require a lot of research and knowledge, so then you are into 'Buffett territory' :o) Actually Buffett's purchase of Precision Castparts does have a sizable aerospace exposure. So even the 'Oracle' has ventured into aerospace, though he now believes he overpaid for that acquisition.
But probably best to avoid aerospace in general. My dad was in aerospace as an engineer, and he almost always avoided investing in the sector, and especially the airline stocks. Buffett learned that the hard way with his brief but disastrous foray into the airline sector a few years ago. While there was no way to predict the arrival of Covid, it's probably safe to say he'll go back to avoiding the sector like the plague :o)
Aerospace Sector -
https://investorshub.advfn.com/Aerospace-Sector-36968
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Bigworld, >> EV Revolution is falling apart <<
From the globalist perspective, a key goal with 'electric everything' is behavioral control. They can just switch off an EV remotely, and thus make a person's freedom of movement dependent upon their behavior. Pretty simple, but this will soon be redundant overkill since with the CBDC they can just switch off our use of money. So CBDC is the ultimate in behavioral control - get out of line and you can't do anything.
This type system has been rolled out in China in recent years - a CBDC combined with a 'Social Credit Score' system. Every behavior is ranked, and if your score drops too low they progressively remove your ability to travel, buy things, etc. It's the most efficient behavioral control mechanism imaginable, and all made possible by high technology. The Chinese type system is coming here, basically Orwell's 1984 on steroids. So the domestic control realm is basically 'in the bag'. They just need to keep us sheeple distracted / divided for a few more years until the CBDC is in place.
The big problem the US / West globalists are facing is international --> how to derail the rise of China-Russia-BRICS. They recently made progress in slowing BRICS expansion by getting Argentina and Saudi Arabia to back away from joining, at least for now. But this is the key 'battle field' that will determine who dominates the planet.
Imo, if the US/West continue with only the 'stick' (sanctions, de-SWIFTING', war), they will likely fail. The key appeal of BRICS expansion is coming from the 'carrot' side, with China-Russia helping emerging countries build infrastructure, power systems, ports, roads, etc. That's the main appeal of joining BRICS, and to win --> the US / West need to lay off the stick, and go more with the carrot. All stick will only drive emerging countries further into the arms of BRICS.
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Derf, I updated the I-Box section of this board to show the dividend stocks in descending order, with the highest divs at the top. I usually wouldn't go after much over 5%, but the pipeline stocks (ENB, TRP) and miners (RIO, URA) seem like decent long term buy / holds, and 6-7% or higher is very tempting. But as usual, I only have small positions..
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Eviation - It looks like electric aircraft could be the future, at least for shorter haul flights under 500 miles. Here's one from the company Eviation (video below). I remember seeing the prototype for this in the news when they had it at the annual Paris Air Show (2019). Eviation began as an Israeli startup, and is now majority owned by the Clermont Group, a Singapore conglomerate, and they have $5 bil in orders. Improved battery technology will be the key to getting longer haul aircraft with bigger payloads -
Check out this long list of electric aircraft at various stages of development -
https://en.wikipedia.org/wiki/List_of_electric_aircraft
Eviation - It looks like electric aircraft could be the future, at least for shorter haul flights under 500 miles. Here's one from the company Eviation (video below). I remember seeing the prototype for this in the news when they had it at the annual Paris Air Show (2019). Eviation began as an Israeli startup, and is now majority owned by the Clermont Group, a Singapore conglomerate, and they have $5 bil in orders. Improved battery technology will be the key to getting longer haul aircraft with bigger payloads -
Check out this long list of electric aircraft at various stages of development -
https://en.wikipedia.org/wiki/List_of_electric_aircraft
Bar, It looks like electric aircraft could be the future, at least for shorter haul flights under 500 miles. Here's one from the company Eviation (video below). I remember seeing the prototype for this in the news when they had it at the annual Paris Air Show (2019). Eviation began as an Israeli startup, and is now majority owned by the Clermont Group, a Singapore conglomerate, and they have $5 bil in orders. Improved battery technology will be the key to getting longer haul aircraft with bigger payloads -
Check out this long list of electric aircraft at various stages of development -
https://en.wikipedia.org/wiki/List_of_electric_aircraft
Bigworld, I assume the knee analysis went well? Any timeline updates for the 2nd procedure? I can imagine you are more than ready to get back to relative normalcy :o)
My sister had her knee done Jan, and the range of motion is much improved after PT twice / week. But in March they found a blood clot in the calf, so --> Eliquis for 3 months.
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Bigworld, Here are some dividend ideas (link below). The list is in descending order, with the highest divs at the top. In the pipeline sector are TRP and ENB, and in miners I recently picked up a little RIO, and also URA and NLR in the nuclear related sector. Also lots of REITs with high divs, some utilities and others -
https://investorshub.advfn.com/Dividend-Stocks-28771
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Hershey - >>> Sweet never goes out of style.
https://finance.yahoo.com/news/2-magnificent-stocks-buy-now-120000628.html
Hershey is on a completely different end of the spectrum. It makes chocolate and salty snacks. It's not a complex business model, but that can be good.
It's the brand that makes Hershey special. There are other confectionary companies on the market, but Hershey's name goes back over a century and its brands are routinely among Americans' favorites year-round. Who doesn't love a Hershey bar, Kit Kat, Twizzlers, Heath Bar, Jolly Rancher hard candies, or a Reese's peanut butter cup?
The company's popularity means it gets prime shelf space at points of sale, much like Coca-Cola and PepsiCo do in the beverage industry. Hershey has an estimated 24% of the U.S. confectionary market, an impressive figure considering any company can make chocolate bars. It's the brand that makes the magic.
That translates to financials, too. Hershey is a simple and highly profitable business that earns an impressive 22% return on invested capital. That means that when Hershey pumps a dollar into its business, it gets $1.22 back. This signals that Hershey has pricing power, which is helping the company deal with a surge in cocoa prices that threatens to pressure its profit margins.
While that's bad news for the company, it's creating an opportunity for long-term investors. Shares have fallen to a price-to-earnings ratio of 20, below the company's long-term average.
Over time, it should adapt to the higher cocoa prices, and there's a good chance the shortage will end and prices will normalize again. In other words, use a short-term problem to buy this excellent stock and enjoy the following years of dividends and price appreciation.
<<<
---
Hershey - >>> Sweet never goes out of style.
https://finance.yahoo.com/news/2-magnificent-stocks-buy-now-120000628.html
Hershey is on a completely different end of the spectrum. It makes chocolate and salty snacks. It's not a complex business model, but that can be good.
It's the brand that makes Hershey special. There are other confectionary companies on the market, but Hershey's name goes back over a century and its brands are routinely among Americans' favorites year-round. Who doesn't love a Hershey bar, Kit Kat, Twizzlers, Heath Bar, Jolly Rancher hard candies, or a Reese's peanut butter cup?
The company's popularity means it gets prime shelf space at points of sale, much like Coca-Cola and PepsiCo do in the beverage industry. Hershey has an estimated 24% of the U.S. confectionary market, an impressive figure considering any company can make chocolate bars. It's the brand that makes the magic.
That translates to financials, too. Hershey is a simple and highly profitable business that earns an impressive 22% return on invested capital. That means that when Hershey pumps a dollar into its business, it gets $1.22 back. This signals that Hershey has pricing power, which is helping the company deal with a surge in cocoa prices that threatens to pressure its profit margins.
While that's bad news for the company, it's creating an opportunity for long-term investors. Shares have fallen to a price-to-earnings ratio of 20, below the company's long-term average.
Over time, it should adapt to the higher cocoa prices, and there's a good chance the shortage will end and prices will normalize again. In other words, use a short-term problem to buy this excellent stock and enjoy the following years of dividends and price appreciation.
<<<
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NEE - >>> 1 Incredibly Cheap Dividend Growth Stock to Buy Now
by Reuben Gregg Brewer
Motley Fool
Mar 30, 2024,
https://finance.yahoo.com/news/1-incredibly-cheap-dividend-growth-100000971.html
NextEra Energy (NYSE: NEE) isn't your typical utility stock because its business contains two very different divisions. One provides a strong foundation, and the other provides rapid growth.
The combination has made NextEra Energy a dividend growth standout in the typically slow-growth utility sector. Here's what you need to know about NextEra and why this dividend growth stock is so attractive right now.
NextEra Energy is historically cheap
NextEra Energy's dividend yield is around 3.3% today. That's a touch below the industry average of 3.5%, using the Vanguard Utilities ETF as a proxy.
But NextEra is usually afforded a premium to its peers (more on this below). That 3.3% dividend yield just happens to be near the company's highest levels over the past decade, suggesting that the stock is on sale.
Adding to the allure, NextEra Energy has increased its dividend annually for 29 consecutive years. So there's a very real commitment to returning value to shareholders via reliable dividend growth.
But that brings up the key metric in this story: NextEra Energy's dividend has grown at an annualized rate of 10% over the past decade. That is why the stock is afforded a premium price since half that rate would be considered very good in the utility sector.
Put simply, NextEra Energy is a dividend growth machine and looks cheap today. But why? Perhaps something has changed.
NextEra is still projecting big dividend growth ahead
The truth is that something material has changed in the utility sector. Interest rates have risen dramatically over the past couple of years, and that will make it more expensive for utilities to operate their businesses.
Don't get too caught up in that -- NextEra Energy is projecting 10% dividend growth through at least 2026. There are some important facts to know here.
First, NextEra Energy is two businesses in one. The core operation -- about 70% of the company -- is its regulated utility operation. This division largely consists of Florida Power & Light, one of the largest utilities in the United States, which has long benefited from net migration to the Sunshine State. More customers mean more revenue, and the customer trends are not likely to change anytime soon.
As for higher costs, regulators are likely to consider rising interest rates when they contemplate NextEra Energy's requests for rate increases and capital-spending approvals. Maybe there'll be a short-term effect, but in the long term, higher rates shouldn't materially alter the dynamics.
The remaining 30% of NextEra Energy's business is its fast-growing renewable-power operation. The contracts it signs here are market-based, so they, too, will adjust along with interest rates.
But the real story is growth, with NextEra Energy hoping to roughly double its energy capacity in this division by 2026. In other words, more growth is the expected outcome, and that should further support the strong dividend growth that management is projecting.
The big picture is that, despite rising interest rates, NextEra Energy doesn't see much changing in its long-term prospects. That's opening up an opportunity for dividend growth investors to buy this dividend growth gem while it appears to be on the sale rack.
A unique buying opportunity
NextEra Energy isn't going to be for every investor. If you're seeking high-yield stocks, for example, you should probably keep looking.
But if you're a dividend growth investor or even a growth and income investor, NextEra Energy looks like a very attractive option today. It's not your typical utility, for sure -- but that's exactly why you should find the company and its 10% dividend growth rate so alluring.
<<<
---
NEE - >>> 1 Incredibly Cheap Dividend Growth Stock to Buy Now
by Reuben Gregg Brewer
Motley Fool
Mar 30, 2024,
https://finance.yahoo.com/news/1-incredibly-cheap-dividend-growth-100000971.html
NextEra Energy (NYSE: NEE) isn't your typical utility stock because its business contains two very different divisions. One provides a strong foundation, and the other provides rapid growth.
The combination has made NextEra Energy a dividend growth standout in the typically slow-growth utility sector. Here's what you need to know about NextEra and why this dividend growth stock is so attractive right now.
NextEra Energy is historically cheap
NextEra Energy's dividend yield is around 3.3% today. That's a touch below the industry average of 3.5%, using the Vanguard Utilities ETF as a proxy.
But NextEra is usually afforded a premium to its peers (more on this below). That 3.3% dividend yield just happens to be near the company's highest levels over the past decade, suggesting that the stock is on sale.
Adding to the allure, NextEra Energy has increased its dividend annually for 29 consecutive years. So there's a very real commitment to returning value to shareholders via reliable dividend growth.
But that brings up the key metric in this story: NextEra Energy's dividend has grown at an annualized rate of 10% over the past decade. That is why the stock is afforded a premium price since half that rate would be considered very good in the utility sector.
Put simply, NextEra Energy is a dividend growth machine and looks cheap today. But why? Perhaps something has changed.
NextEra is still projecting big dividend growth ahead
The truth is that something material has changed in the utility sector. Interest rates have risen dramatically over the past couple of years, and that will make it more expensive for utilities to operate their businesses.
Don't get too caught up in that -- NextEra Energy is projecting 10% dividend growth through at least 2026. There are some important facts to know here.
First, NextEra Energy is two businesses in one. The core operation -- about 70% of the company -- is its regulated utility operation. This division largely consists of Florida Power & Light, one of the largest utilities in the United States, which has long benefited from net migration to the Sunshine State. More customers mean more revenue, and the customer trends are not likely to change anytime soon.
As for higher costs, regulators are likely to consider rising interest rates when they contemplate NextEra Energy's requests for rate increases and capital-spending approvals. Maybe there'll be a short-term effect, but in the long term, higher rates shouldn't materially alter the dynamics.
The remaining 30% of NextEra Energy's business is its fast-growing renewable-power operation. The contracts it signs here are market-based, so they, too, will adjust along with interest rates.
But the real story is growth, with NextEra Energy hoping to roughly double its energy capacity in this division by 2026. In other words, more growth is the expected outcome, and that should further support the strong dividend growth that management is projecting.
The big picture is that, despite rising interest rates, NextEra Energy doesn't see much changing in its long-term prospects. That's opening up an opportunity for dividend growth investors to buy this dividend growth gem while it appears to be on the sale rack.
A unique buying opportunity
NextEra Energy isn't going to be for every investor. If you're seeking high-yield stocks, for example, you should probably keep looking.
But if you're a dividend growth investor or even a growth and income investor, NextEra Energy looks like a very attractive option today. It's not your typical utility, for sure -- but that's exactly why you should find the company and its 10% dividend growth rate so alluring.
<<<
---
NEE - >>> 1 Incredibly Cheap Dividend Growth Stock to Buy Now
by Reuben Gregg Brewer
Motley Fool
Mar 30, 2024,
https://finance.yahoo.com/news/1-incredibly-cheap-dividend-growth-100000971.html
NextEra Energy (NYSE: NEE) isn't your typical utility stock because its business contains two very different divisions. One provides a strong foundation, and the other provides rapid growth.
The combination has made NextEra Energy a dividend growth standout in the typically slow-growth utility sector. Here's what you need to know about NextEra and why this dividend growth stock is so attractive right now.
NextEra Energy is historically cheap
NextEra Energy's dividend yield is around 3.3% today. That's a touch below the industry average of 3.5%, using the Vanguard Utilities ETF as a proxy.
But NextEra is usually afforded a premium to its peers (more on this below). That 3.3% dividend yield just happens to be near the company's highest levels over the past decade, suggesting that the stock is on sale.
Adding to the allure, NextEra Energy has increased its dividend annually for 29 consecutive years. So there's a very real commitment to returning value to shareholders via reliable dividend growth.
But that brings up the key metric in this story: NextEra Energy's dividend has grown at an annualized rate of 10% over the past decade. That is why the stock is afforded a premium price since half that rate would be considered very good in the utility sector.
Put simply, NextEra Energy is a dividend growth machine and looks cheap today. But why? Perhaps something has changed.
NextEra is still projecting big dividend growth ahead
The truth is that something material has changed in the utility sector. Interest rates have risen dramatically over the past couple of years, and that will make it more expensive for utilities to operate their businesses.
Don't get too caught up in that -- NextEra Energy is projecting 10% dividend growth through at least 2026. There are some important facts to know here.
First, NextEra Energy is two businesses in one. The core operation -- about 70% of the company -- is its regulated utility operation. This division largely consists of Florida Power & Light, one of the largest utilities in the United States, which has long benefited from net migration to the Sunshine State. More customers mean more revenue, and the customer trends are not likely to change anytime soon.
As for higher costs, regulators are likely to consider rising interest rates when they contemplate NextEra Energy's requests for rate increases and capital-spending approvals. Maybe there'll be a short-term effect, but in the long term, higher rates shouldn't materially alter the dynamics.
The remaining 30% of NextEra Energy's business is its fast-growing renewable-power operation. The contracts it signs here are market-based, so they, too, will adjust along with interest rates.
But the real story is growth, with NextEra Energy hoping to roughly double its energy capacity in this division by 2026. In other words, more growth is the expected outcome, and that should further support the strong dividend growth that management is projecting.
The big picture is that, despite rising interest rates, NextEra Energy doesn't see much changing in its long-term prospects. That's opening up an opportunity for dividend growth investors to buy this dividend growth gem while it appears to be on the sale rack.
A unique buying opportunity
NextEra Energy isn't going to be for every investor. If you're seeking high-yield stocks, for example, you should probably keep looking.
But if you're a dividend growth investor or even a growth and income investor, NextEra Energy looks like a very attractive option today. It's not your typical utility, for sure -- but that's exactly why you should find the company and its 10% dividend growth rate so alluring.
<<<
---
>>> Innovative Industrial Properties (NYSE: IIPR) is something of a unicorn in the world of marijuana stocks because it doesn't actually grow and sell pot. Instead, the company operates as a real estate investment trust (REIT).
https://finance.yahoo.com/news/bull-market-2-spectacular-growth-125000070.html
Innovative Industrial Properties acquires cultivation facilities, distribution centers, and other related real estate from state-licensed cannabis operators. It then rents these facilities back to the operators via long-term arrangements.
This model provides recurring rental income for Innovative Industrial Properties and offers more efficiency for the operators by letting them focus on the business of growing and selling marijuana.
It's important to note that the REIT only rents to operators in the medical cannabis business, which is more regulated and enjoys much broader legalization nationwide than the recreational use market. At the time of this writing, about 90% of Innovative Industrial Properties' portfolio was rented out to multi-state operators (MSOs), and around 60% of its tenants are publicly traded companies.
In 2023, the company reported revenue of $310 million and net income of $164 million. Those two figures rose 12% and 5%, respectively, from 2022. Adjusted funds from operations -- an important measure of REIT performance -- for the year totaled $257 million, up 10% from the prior year.
As of the end of the year, the REIT had 108 properties in 19 states. Currently, 95.8% of its operating portfolio is rented via triple net leases, where the tenant pays most of the costs associated with maintaining the property in addition to rent.
Another stellar figure is the rental collection rate, which stood at 100% as of February. The company also has a superior yield and track record of raising its dividend over time. Its current yield of 7% is considerably higher than the average stock trading on the S&P 500 (1.3%), and its dividend has risen 300% over the trailing-five-year period.
The cannabis market can be a risky place to put cash, at least until there is some measure of uniform legislation on a federal level. That said, the medical cannabis niche represents a vast and growing addressable market.
Innovative Industrial Properties operates an unusual model within this industry that lends itself to steady, recurring returns for the business and its shareholders. Investors might want to consider getting a slice of the action.
<<<
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>>> Innovative Industrial Properties (NYSE: IIPR) is something of a unicorn in the world of marijuana stocks because it doesn't actually grow and sell pot. Instead, the company operates as a real estate investment trust (REIT).
https://finance.yahoo.com/news/bull-market-2-spectacular-growth-125000070.html
Innovative Industrial Properties acquires cultivation facilities, distribution centers, and other related real estate from state-licensed cannabis operators. It then rents these facilities back to the operators via long-term arrangements.
This model provides recurring rental income for Innovative Industrial Properties and offers more efficiency for the operators by letting them focus on the business of growing and selling marijuana.
It's important to note that the REIT only rents to operators in the medical cannabis business, which is more regulated and enjoys much broader legalization nationwide than the recreational use market. At the time of this writing, about 90% of Innovative Industrial Properties' portfolio was rented out to multi-state operators (MSOs), and around 60% of its tenants are publicly traded companies.
In 2023, the company reported revenue of $310 million and net income of $164 million. Those two figures rose 12% and 5%, respectively, from 2022. Adjusted funds from operations -- an important measure of REIT performance -- for the year totaled $257 million, up 10% from the prior year.
As of the end of the year, the REIT had 108 properties in 19 states. Currently, 95.8% of its operating portfolio is rented via triple net leases, where the tenant pays most of the costs associated with maintaining the property in addition to rent.
Another stellar figure is the rental collection rate, which stood at 100% as of February. The company also has a superior yield and track record of raising its dividend over time. Its current yield of 7% is considerably higher than the average stock trading on the S&P 500 (1.3%), and its dividend has risen 300% over the trailing-five-year period.
The cannabis market can be a risky place to put cash, at least until there is some measure of uniform legislation on a federal level. That said, the medical cannabis niche represents a vast and growing addressable market.
Innovative Industrial Properties operates an unusual model within this industry that lends itself to steady, recurring returns for the business and its shareholders. Investors might want to consider getting a slice of the action.
<<<
---
>>> Innovative Industrial Properties (NYSE: IIPR) is something of a unicorn in the world of marijuana stocks because it doesn't actually grow and sell pot. Instead, the company operates as a real estate investment trust (REIT).
https://finance.yahoo.com/news/bull-market-2-spectacular-growth-125000070.html
Innovative Industrial Properties acquires cultivation facilities, distribution centers, and other related real estate from state-licensed cannabis operators. It then rents these facilities back to the operators via long-term arrangements.
This model provides recurring rental income for Innovative Industrial Properties and offers more efficiency for the operators by letting them focus on the business of growing and selling marijuana.
It's important to note that the REIT only rents to operators in the medical cannabis business, which is more regulated and enjoys much broader legalization nationwide than the recreational use market. At the time of this writing, about 90% of Innovative Industrial Properties' portfolio was rented out to multi-state operators (MSOs), and around 60% of its tenants are publicly traded companies.
In 2023, the company reported revenue of $310 million and net income of $164 million. Those two figures rose 12% and 5%, respectively, from 2022. Adjusted funds from operations -- an important measure of REIT performance -- for the year totaled $257 million, up 10% from the prior year.
As of the end of the year, the REIT had 108 properties in 19 states. Currently, 95.8% of its operating portfolio is rented via triple net leases, where the tenant pays most of the costs associated with maintaining the property in addition to rent.
Another stellar figure is the rental collection rate, which stood at 100% as of February. The company also has a superior yield and track record of raising its dividend over time. Its current yield of 7% is considerably higher than the average stock trading on the S&P 500 (1.3%), and its dividend has risen 300% over the trailing-five-year period.
The cannabis market can be a risky place to put cash, at least until there is some measure of uniform legislation on a federal level. That said, the medical cannabis niche represents a vast and growing addressable market.
Innovative Industrial Properties operates an unusual model within this industry that lends itself to steady, recurring returns for the business and its shareholders. Investors might want to consider getting a slice of the action.
<<<
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