There are several private and public companies that are focusing on the future of transportation, ranging from Ford and GM to Mercedez Benz and many others who are working hard to have a say in the shaping of the future. Investing in many of such companies will be a speculative bet. No one can predict when such futuristic vision may get materialized in our day to day life. For us - the intelligent investors - it is only wise to pick the companies that, if their autonomous aspiration does not pan out, are still well-operated and benefit from a growing market. As a wise man once said, even the best of investors need to leave room for safety in their investment decisions.
That's it for this week's edition of the Stock Card Weekly. Don't forget to visit all Stock Cards tab to get to know the newly published Stock Cards. Also, more than 60 Stock Cards are in the queue and will be published in the next few days. You can request a Stock Card for the stocks on your radar.
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Say hello to Take-Two Interactive. The video game company is already a titan in the industry. It is also a cornerstone of the emerging $5 Billion eSports industry, along with Activision Blizzards and Electronic Arts. Take-Two Interactive recently partnered with the NBA to roll-out the NBA 2K eSports league. And, it is going head-to-head with Electronic Arts FIFA tournaments with its own version of the Major League Soccer tournament, leading up to the World Cup in 2018. Come along and check out our futuristic investment theme, and get to know why we picked up this amazingly well-run company for our real-money portfolio.
A Few Of Other Stocks On Our Radar:
This week we have been feeling the love! Stock Card requests have been pouring in from many of you who have joined us after Stock Card got featured on Product Hunt. We highly recommend you to take a look at All Stock Cards tab to see more than 50 newly published Stock Cards, and we are still not done. Another 50 Stock Cards are in the quality control queue and coming live in the next few days. If you are among those who have submitted a request and haven't received it yet, be assured. The email with Good News title is on its way to tell you that your Stock Card has been published.
These new generation of pharmaceutical companies are fascinating to watch. However, they have one more common characteristic. They often have no revenue. No revenue, no profit, and no free cash flow! How does one evaluate such companies? How does an intelligent investor pick an investment when there is no revenue to go by?
While these companies have no revenue, the good ones are smart enough not to pick any debt, and establish tight research or distribution partnerships with bigger industry players. This week I picked Editas Medicine Inc, CRISPR Therapeutics AG, and Alnylam Pharmaceuticals Inc for the Future of Health portfolio. All three are at the forefront of the surreal gene therapy and editing technology and have the cash and relationships required to commercialize their drugs. They are also well-advanced into their drug development process, which means there is a high likelihood that their drugs get the required approval and go into the market.
These are the types of investment that can bring big smiles to our faces in a few years from now. We are talking about 2X, 3X,... higher return than the overall market (Similar to 288% return that Juno Therapeutics generated for the Future of Health theme). However, they can break our hearts into pieces too. Knowing that there is no revenue should tell you how risky these investments are. Lack of revenue and dependency on the success of their clinical trials means extreme volatility in the short-term.
If you decided to invest in them alongside me, first read the following sentences loudly: "I'm okay with taking risks, as long as it is informed by unbiased facts. I understand I may lose all of the money I'm investing in these companies. If that happens, I am clear as to why!" If you nodded as you read the sentences loudly, you are my kinda crowd. Come along, and let's get to know these mighty companies better.
A Few Of Other Stocks On Our Radar:
Thanks, Jeffrey Leichenger, Mohammed Essakali, Bob Higgins, Ugach Sahaj, Mike Stringer, Kurt S., Zac Feltoon, Kris Touges, Alberto Castillo, Michael O'Boyle, Dharmin Shah, and many other members of our intelligent investors' community for this week's Stock Card requests. You can see the recently published Stock Cards by going to All Stock Cards tab, and look for "new" ribbons on the top-right corner of the Stock Cards.
Alright, that's all we have for you on this edition of Stock Card Weekly. If you liked reading this newsletter, forward it to a friend or two. It's good karma to share knowledge and intelligence! It also makes you look cool! Forward it now!
Hey folks, I always wonder how many of you keep a watchlist! And, if you do keep one, how many stocks are on your watchlist?
Most people I've spoken to assume that investors keep a variety of stocks on their watchlist to gradually invest in them. While a watchlist can be used the same way you use a grocery shopping list to avoid forgetting the items you need, there are two magical ways to use a watchlist. One watchlist for the time when the market is going up and then another one for when it goes south.
When the market goes up:
When the market is growing, the most challenging task is to eliminate faux-winners. A faux-winner is a company operating in an organically growing market but doesn't have a strong operational foundation. A watchlist is like an internship for your portfolio. You add a stock to your watchlist to give it a chance to prove it is more than just a company with growing sales and to earn a spot in your portfolio.
This week, I added the following few stocks to my portfolio internship (ahem... watchlist):
When the market goes down:
When the stock market crashes, a watchlist keeps the emotions in line. While most people panic in such times, the majority of the more experienced investors get excited. Maybe too excited and start buying anything and everything in the hope to buy things low and sell them high later. But not all companies will survive a market crash. Only a small portion of investors who have put together a watchlist of well-operated companies will get out of a market crash prosperously. By keeping a watchlist of well-operated companies, the investors will be able to seize the opportunity of a crash and pick only strong companies at much lower prices. A robust watchlist is where master investors set their path aside from the newcomers.
You can create a watchlist on StockCard.io's MyPortfolio tab to feel the power of having a watchlist at good times and bad! Check it out!
A Few Of Other Stocks On Our Radar:
Thanks, Alex Bush, Gloria Cox, Manson See, Michael Dickson, Jeffrey Leichenger, Anand Dandekar, and the members of our intelligent investors' community for this week's Stock Card requests. Join these intelligent investors, and request a Stock Card sometime next week and submit a request.
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