As many commodity prices – being economically sensitive resources – have dropped massively over the last months (and even more so over the last weeks) as well as a recession being expected by the consensus, the question is whether equities of commodity producers in general are about to crash. At least this was the procedure during the last Great Recession of 2008–2009. However, this is too simplified, completely ignoring history.Continue reading
What you should know about the SVB collapse – my premium members were warned
As I am publishing this Weekly, already a week has passed after the collapse of not just one bank dealing with startups – that was the 16th largest bank in the US – but indeed three banks. After emotions calmed down a bit, we can have a look at what went wrong and what you should be aware of. My Premium Members already knew about the risks “hidden” on the balance sheets of banks, as I’ve closed an investment case on a profit a month ago due to these risks. And no, this is not a buy-the-dip occasion!Continue reading
Big Pharma to destroy shareholder value? + new research report for Premium Members
Stocks of big pharmaceutical companies have been core holdings in many portfolios for as long as I can remember, probably even beyond that. The reasons are crystal-clear: an ever aging population, more chronic diseases also among younger generations, stable to slightly rising demand throughout the business cycle, relative price stability of those stocks and reliable dividends. What’s not to like?Continue reading
Megatrend of this decade: Dividend cuts + an update to my most popular article so far
Even though I know that I certainly won’t make many new friends with this article, especially not from the ranks of dividend investors, it is a duty for me to address this topic. I also think, it’s no coincidence that my most popular article to date has been about looming dividend cuts. Simply put, it’s too important to be ignored.Continue reading
Will strategic resources be nationalized?
An important, but surprisingly little commented upon, news story prompted me to think about this very critical topic. Since most commonly known mining stocks often have no small exposure to emerging markets, I decided to dig a little deeper for my readers. I also take a look at some individual stocks and present two ideas with “pure-play Tier 1” exposure to gold and silver.Continue reading
A king is falling – why Altria’s butt is burnt down
Altria is a stock from the illustrious circle of the “dividend kings”. It is even so special that it has actually raised its dividend more than once a year over the past half century – 57 increases over 53 consecutive years. However, the last few years have been disappointing in operational terms. Recent results, in particular, have shown the direction this company is likely to take. There are still a few puffs left, but don’t be surprised by the impending dividend cut at this darling of many dividend investors.Continue reading
Dividend Investing – high yield or high growth?
A never ending discussion in the field of dividend investing is whether you go for high yielding stocks or dividend growth stocks. Recently, I had a few discussions on Twitter about this topic. Because it is a question many investors have – amateurs and experienced investors alike – I decided to write a Weekly to compare both strategies.Continue reading
Beware the next hype – Helium Producers
In recent months, I’ve been reading more and more about a hot new topic: helium production. Helium is an essential gas in medical as well as industrial applications. The key message being spread is that this so far opaque market is about to become more transparent, as many small exploration companies seem to be embarking on promising projects. Is this really the next sector you should bet on, or is it too much hot air that will deflate, bringing headaches like too much inhaled helium?Continue reading
Will Deutsche Bahn (DB) finally be broken up? + new research report!
In the past, this question was a no-go. On several occasions, speculation about at least a sale of non-core business units was put on the table, but quickly buried again. Over time Deutsche Bahn has accumulated so much debt that its barely profitable core operations cannot handle these obligations. An eternal zombie existence on government life support is not a viable solution. And then there is the ambitious investment offensive to modernize and expand the existing rail infrastructure. Is it finally time to break up Deutsche Bahn?Continue reading
Is NuScale Power Corp. (SMR) a sure bet on next-gen atomic reactors?
A few weeks ago, I wrote about the overall investment environment of uranium. I concluded from a top-level perspective, that due to a stressed supply-demand situation, higher prices likely are more a question of “when”, not “if”. After publication, one of my readers and Premium Members wrote to me about a certain company that could benefit from the plan to not only build more, but also smaller, next generation nuclear reactors. I have put this idea under the microscope.Continue reading