Category: General

1 No-Brainer Gaming Stock For 2023

Posted on by The MarketClub Team

After witnessing unprecedented growth during the pandemic, videogame publishers are witnessing a reversion to the mean with a reversal to pre-pandemic lifestyles amid macroeconomic uncertainties driven by inflation and increased borrowing costs due to interest-rate hikes.

However, despite the softened demand in the broader industry, incumbents, like Activision Blizzard, Inc (ATVI), have cornered pockets of growth with proven blockbusters such as Call of Duty, World of Warcraft, and Candy Crush commanding a greater share of gamers’ pinched pockets.

The gaming giant looks to merge with Microsoft Corporation (MSFT) this year. It reported record net bookings for the holiday quarter and 2022, exceeding analysts’ expectations.

With continued investment in growing its development teams, robust product pipeline, live game opportunity, and ongoing focus on operational discipline, ATVI seems on course for another year of outperformance.

Could Generative AI rekindle the market’s ebbed interest in the metaverse?

View Results

Loading ... Loading ...

ATVI has dipped marginally over the past month to close the last trading session at $76.25. The stock is trading above its 50-day moving average of $76.10 and almost at par with its 200-day moving average of $76.40, indicating an uptrend.

Here is what may help the stock maintain its performance in the near term. Continue reading "1 No-Brainer Gaming Stock For 2023" →

2 High-Dividend Stocks and How to Trade Them

Posted on by The MarketClub Team

Dividend investing has always been a great strategy to ensure a steady income generation irrespective of a stock's price movement.

Dividend-paying companies are mostly stable, profit-earning companies and these stocks are especially popular among those in or nearing retirement.

Of course, who doesn’t like having a little extra cash on hand? In fact, owning dividend stocks can help ensure returns from two sources, income from dividends and from share price appreciation.

So, in basic terms, a dividend is a payment made by a company to its shareholders. Mostly the dividend is quarterly, with the board of directors deciding the exact timing of the dividend and the size, which is primarily determined based on the company’s earnings and cash position.

Types Of Dividends

Cash dividends: This is the most common way companies pay dividends. The cash is directly paid into the shareholder’s account.

Stock dividends: Companies pay investors additional shares of stock instead of distributing any cash.

Dividend reinvestment program (DRIP): In this program, investors can choose to reinvest dividends received back into the company’s stock, often at a discount.

Special dividends: A company might offer a special dividend, which is a non-recurring distribution.

Preferred dividends: Preferred stock is a type of stock that functions less like a stock and more like a bond. Dividends on preferred stock are generally fixed, unlike dividends on common stocks.

How Do Dividend Stocks Work?

So, to receive dividends on a stock, you simply need to own shares of the company, and the cash will automatically be deposited into your account when the dividend is paid. Typically, companies pay dividends to share the firm’s profits with its shareholders. Continue reading "2 High-Dividend Stocks and How to Trade Them" →

Investors: Beware the Ides of March!

Posted on by The INO.com Team

Please enjoy this updated version of weekly commentary from the Reitmeister Total Return newsletter. Steve Reitmeister is the CEO of StockNews.com and Editor of the Reitmeister Total Return.

Click Here to learn more about Reitmeister Total Return

January offered a rip roaring start for stock investors. The +6.2% result for S&P 500 (SPY) barely scratches the surface on how Risk On the month was versus the generous gains for many of 2022’s most beaten down growth stocks.

The party continued when the calendar first flipped to February. But then investors got served a series of far too hot inflation reports that reminded them the Fed’s fight was far from over. From there stocks headed lower with a -5% drop from the February peak to the current valley.

This sets up for a very interesting month of March with many potential catalysts on the calendar that could have stocks racing higher again… or more likely breaking back into bearish territory.

Let’s dig in deeper on the current market landscape to get our portfolios ready for what lies ahead.

Market Commentary

The best way to set the backdrop for the February sell off is by reminding everyone of this equation:

Higher Rates on the Way (5%+)

+

Higher Rates in Place til at Least End of 2023

+

6-12 months of lagged economic impact

+

Already weak economic readings

=

Fertile soil to create recession and thus extension of the bear market with lower lows on the way. Continue reading "Investors: Beware the Ides of March!" →

Why Warren Buffett Just Made a Huge Mistake

Posted on by The INO.com Team

Editor’s Note: Our experts here at INO.com cover a lot of investing topics and great stocks every week. To help you make sense of it all, every Wednesday we’re going to pick one of those stocks and use Magnifi Personal to compare it with its peers or competitors. Here we go…

Sometime in the third quarter of last year, legendary investor Warren Buffett’s Berkshire Hathaway Inc. (BRK-A) took a $4 billion stake in Taiwan Semiconductor Manufacturing Co. Ltd. (TSM), the Taiwanese contract chipmaker.

With TSM being the world’s largest and most valuable semiconductor fabricator with chips in most high-tech equipment the world over, and with Warren Buffett’s reputation for making extremely savvy investments, lots of people took notice.

But just a few months later, Buffett seems to have said “never mind” and sold more than 85% of his stake.

We have no insight into Buffett’s thinking, but it does seem odd for a buy-and-hold value investor to sell a great company that is so cheap. TSM is a well-run business with wide competitive moats and big profits. Yet, the stock is at a discount to its peers, at 17 times forward earnings.

By comparison, its rival Intel Corp. (INTC) — thanks to its crashing profits — has a price-to-earnings ratio (p/e) in excess of 60 times. And the company just slashed its dividend.

So, we thought it would be interesting to compare TSM to INTC using the Magnifi Personal compare function. Comparing two or more stocks has never been easier than with Magnifi Personal. All you had to do was type “Compare TSM and INTC” and Magnifi Personal showed us this:

Compare TSM and INTC

This is an example of a response using Magnifi Personal. This image is not a recommendation or individual advice. Please see bottom disclaimer for additional information, including INO.com’s relationship with Magnifi. Continue reading "Why Warren Buffett Just Made a Huge Mistake" →

3 Stocks You Can't Go Wrong With

Posted on by The MarketClub Team

The stock market started the year on a positive note after a year filled with macroeconomic and geopolitical challenges.

The rally was driven by the Federal Reserve’s smallest rate increase since the beginning of the monetary policy tightening in March 2022 and Fed Chair Jerome Powell’s acknowledgment that inflation was showing encouraging signs.

However, investor sentiment has taken a hit lately as minutes from the central bank’s monetary policy meeting indicated that the rate hikes will not end anytime soon. The Fed officials believe interest rates need to increase and stay elevated until inflation reaches 2%.

The officials’ resolve was backed by the 0.6% sequential and 5.4% year-over-year rise in the Personal Consumption Expenditure (PCE) and the hotter-than-expected jobs report. The market expects the Fed to raise the fund rate beyond 5% this year.

However, JPMorgan CEO Jamie Dimon believes a soft landing is “still possible.” Goldman Sachs believes the chances of the American economy slipping into a recession are now just 25%, down from its previous estimate of 35%. Moreover, President Joe Biden recently said he believes the U.S. economy will not fall into a recession this year or next.

Given this backdrop, it could be wise to make the most of the strong uptrend in fundamentally strong stocks, The Hershey Company (HSY), Acuity Brands, Inc. (AYI), and Flowers Foods, Inc. (FLO).

The Hershey Company (HSY)

HSY engages in the manufacture and sale of confectionery products and pantry items. The company operates through three segments: North America Confectionery, North America Salty Snacks, and International.

It offers chocolate and non-chocolate confectionery products; gum and mint refreshment products, including mints, chewing gums, and bubble gums; pantry items, baking ingredients, toppings, beverages, and sundae syrups; and snack items. Continue reading "3 Stocks You Can't Go Wrong With" →