Investors got a rude awakening when food-delivery company GrubHub (Nasdaq: GRUB) reported third-quarter earnings on October 28. Shares took a beating and closed the day down 43%. What in the world could have possibly happened to justify such a massive decline? Well, the short of it is that the massive growth days of the food-delivery industry are likely behind it.  For the third quarter, GrubHub generated $322 million in revenues, a 30% year-over-year increase. However, that figure fell short of analyst estimates who were on average expecting sales of $330 million. Net income of $1 million, or $0.01 per share,… Read More

Investors got a rude awakening when food-delivery company GrubHub (Nasdaq: GRUB) reported third-quarter earnings on October 28. Shares took a beating and closed the day down 43%. What in the world could have possibly happened to justify such a massive decline? Well, the short of it is that the massive growth days of the food-delivery industry are likely behind it.  For the third quarter, GrubHub generated $322 million in revenues, a 30% year-over-year increase. However, that figure fell short of analyst estimates who were on average expecting sales of $330 million. Net income of $1 million, or $0.01 per share, was a massive decrease from the $22.7 million, or $0.24 per share it reported in Q3 2018. To make matters worse, management lowered sales guidance for Q4. But that’s only part of the story… Many times, large moves to the downside in a stock’s share price based on a single quarterly earnings report is a major overreaction by Wall Street. But in GrubHub’s case, it’s an industry-wide issue.  The Most Brutally Honest Shareholder Letter You May Ever Read Before I go any further, the company released a shareholder letter that is worth a read. Not only… Read More

And just like that, the S&P 500 is back to hitting new all-time highs. This is happening thanks in large part to an accommodative Federal Reserve, who for the third time this year cut interest rates by 25 basis points on October 30. The benchmark federal funds rate now sits at 1.5% to 1.75%. #-ad_banner-#Also helping is the fact that the trade war with China has simmered. In fact, it looks like we may get a Phase 1 agreement soon. (Although I wouldn’t hold my breath. This is far from over.) And finally, third-quarter earnings have been better than expected… Read More

And just like that, the S&P 500 is back to hitting new all-time highs. This is happening thanks in large part to an accommodative Federal Reserve, who for the third time this year cut interest rates by 25 basis points on October 30. The benchmark federal funds rate now sits at 1.5% to 1.75%. #-ad_banner-#Also helping is the fact that the trade war with China has simmered. In fact, it looks like we may get a Phase 1 agreement soon. (Although I wouldn’t hold my breath. This is far from over.) And finally, third-quarter earnings have been better than expected — granted the bar was set pretty low. Going into earnings season, analysts believed that earnings for companies in the S&P 500 were set to decline 4% compared to the same period a year ago. It would have marked the first time the index reported three straight quarters of year-over-year earnings decline since Q4 2015 through Q2 2016. With more than 71% of the companies in the S&P 500 reporting actual results, 76% have reported a positive earnings surprise. As it sits now, the earnings decline is -2.7%. That’s not only better than the -4% that was expected, but it’s… Read More

I enjoy warm weather as much as the next person. But during the end of August when temperatures are hitting the high 90s and low 100s, I get tired of it… quickly. I yearn for the crisp mornings of fall and the changing of the leaves.  This year at home in the Northwest, however, it seems we skipped fall and jumped right into winter. We’ve already had snow and below-freezing temperatures. In fact, temperatures over the last month have been significantly below average.  Some might point towards El Nino or La Nina bringing about the onslaught of cold. But according… Read More

I enjoy warm weather as much as the next person. But during the end of August when temperatures are hitting the high 90s and low 100s, I get tired of it… quickly. I yearn for the crisp mornings of fall and the changing of the leaves.  This year at home in the Northwest, however, it seems we skipped fall and jumped right into winter. We’ve already had snow and below-freezing temperatures. In fact, temperatures over the last month have been significantly below average.  Some might point towards El Nino or La Nina bringing about the onslaught of cold. But according to the National Weather Service, there’s about an 85% chance that neither will be present this year. But regardless of the reasoning behind the weather events, the cold and snow reminds me to check in with some of my favorite “winter” stocks. You see, colder temperatures also bring the possibility of thicker profits for many companies that rely heavily on seasonal trends. For instance, many utility companies that provide natural gas or electricity for folks can see a spike in profits if it’s an exceptionally cold winter.  I’ve highlighted a few other companies that benefit from a cold and snowy… Read More

Believe it or not, but the first battery came about from the dissection of a frog. In 1780, Luigi Galvani was dissecting a frog affixed to a brass hook. When he touched the frog’s leg with his iron scalpel, the leg twitched. Galvani believed the energy stemmed from the frog and called it “animal electricity.” His friend and physicist Alessandro Volta thought differently. Volta thought the animal electricity was actually a result of two different metals joined together. Volta was right. After much experimentation, he invented the first true battery around 1800, called the Voltaic Pile. The voltaic pile consisted… Read More

Believe it or not, but the first battery came about from the dissection of a frog. In 1780, Luigi Galvani was dissecting a frog affixed to a brass hook. When he touched the frog’s leg with his iron scalpel, the leg twitched. Galvani believed the energy stemmed from the frog and called it “animal electricity.” His friend and physicist Alessandro Volta thought differently. Volta thought the animal electricity was actually a result of two different metals joined together. Volta was right. After much experimentation, he invented the first true battery around 1800, called the Voltaic Pile. The voltaic pile consisted of pairs of copper and zinc discs piled on top of each other, separated by a layer of cloth or cardboard soaked in brine. The device pile produced a continuous stream of electricity, albeit only an hour’s worth at best. Still, it was a major leap forward that launched a rapid evolution in batteries.  Today, alkaline batteries are what you’ll usually find when you purchase a pack of AA or AAA batteries. Alkaline batteries are still in high demand, but there’s been a major shift towards lithium. In fact, we have good reason to believe that lithium batteries are the… Read More

The big tobacco companies are always in the crosshairs of regulators. That’s certainly no secret. But new scrutiny has come in the form of worries about deaths related to “vaping,” and the numbers of teens who are using electronic cigarettes in general. As it turns out, this could create an opening for a little-known company that may hold the key to a lot of problems the tobacco industry is facing. I’ll get to that in a moment. But first, some background… The ‘Vaping’ Crisis, Explained #-ad_banner-#If you’re not familiar with vaping, here’s how I described it in a recent article:… Read More

The big tobacco companies are always in the crosshairs of regulators. That’s certainly no secret. But new scrutiny has come in the form of worries about deaths related to “vaping,” and the numbers of teens who are using electronic cigarettes in general. As it turns out, this could create an opening for a little-known company that may hold the key to a lot of problems the tobacco industry is facing. I’ll get to that in a moment. But first, some background… The ‘Vaping’ Crisis, Explained #-ad_banner-#If you’re not familiar with vaping, here’s how I described it in a recent article: … vaping is the use of a small battery-powered device called an electronic pen, or e-cigarette. This e-cigarette heats nicotine (extracted from tobacco), flavorings and other chemicals to create a water vapor that is inhaled. The tobacco itself doesn’t ignite as it does with a traditional cigarette. So, there’s no smoke, just water vapor containing nicotine. Vape pens are also used to smoke marijuana. As I stated in that article, the whole goal of e-cigarettes was to help adult smokers transition away from traditional cigarettes and offer a less toxic alternative. The problem: vaping has also become popular… Read More

I’m not sure what it is about October, but it has historically been a spooky month for investors. The haunting traces back to the Wall Street Crash of 1929, a four-day collapse of stock prices that began on October 24. The Dow Jones Industrial Average dropped 25%, making it the worst such decline in U.S. history. Another notable plunge took place in late October 1987, known as Black Monday. The Dow dropped just over 22% — making it the largest one-day stock market decline in history.  Then there was the tumultuous 2008 market crash. The first big drop in the… Read More

I’m not sure what it is about October, but it has historically been a spooky month for investors. The haunting traces back to the Wall Street Crash of 1929, a four-day collapse of stock prices that began on October 24. The Dow Jones Industrial Average dropped 25%, making it the worst such decline in U.S. history. Another notable plunge took place in late October 1987, known as Black Monday. The Dow dropped just over 22% — making it the largest one-day stock market decline in history.  Then there was the tumultuous 2008 market crash. The first big drop in the Dow took place on September 29, 2008, when it shed more than 777 points. It fell by another 733 points on October 15. And just last year you may recall that the market peaked at the end of September. A fourth-quarter slide began in October, which ultimately  set stocks back about 14% through December. With events like these, it’s easy to see why the month of October carries a negative connotation. In truth, though, outside of these major declines, the month has historically been a good one for markets. In fact, according to the Stock Trader’s Almanac, October is the… Read More

As he stepped through my front door, he blew a big puff of smoke and tucked the vape pen into his pocket. I kept quiet, as I was in the middle of working through some remaining remodeling logistics. But I wasn’t happy about what I just saw. I later told my contractor that I did not want to see another person vape or smoke in my house. Plain and simple, vaping irritates me in much the same way that many people are irritated by the smoking of cigarettes. Maybe it has something to do with seeing kids in the parking… Read More

As he stepped through my front door, he blew a big puff of smoke and tucked the vape pen into his pocket. I kept quiet, as I was in the middle of working through some remaining remodeling logistics. But I wasn’t happy about what I just saw. I later told my contractor that I did not want to see another person vape or smoke in my house. Plain and simple, vaping irritates me in much the same way that many people are irritated by the smoking of cigarettes. Maybe it has something to do with seeing kids in the parking lot hitting their vape pen and blowing a big plume in the air, thinking it makes them look cool. In case you’re not familiar, vaping is the use of a small battery-powered device called an electronic pen, or e-cigarette. This e-cigarette heats nicotine (extracted from tobacco), flavorings and other chemicals to create a water vapor that is inhaled. The tobacco itself doesn’t ignite as it does with a traditional cigarette. So, there’s no smoke, just water vapor containing nicotine. Vape pens are also used to smoke marijuana. E-cigarettes have taken the smoking world by storm, ballooning into a multibillion-dollar industry.  —Recommended… Read More

We’ve been on a roll over at Maximum Profit lately.  Our system has identified a string of winners that my subscribers and I have been able to buy at just the right time as momentum carries the stock higher — while getting out before the tide washes out.  A significant chunk of our winners has come from the tech space to be more specific, with gains of 39% on CyberArk Software (Nasdaq: CYBR), 66% on Roku (Nasdaq: ROKU), and 89% on Shopify (Nasdaq: SHOP). This makes sense, of course. Tech has been one of the hottest sectors during this entire… Read More

We’ve been on a roll over at Maximum Profit lately.  Our system has identified a string of winners that my subscribers and I have been able to buy at just the right time as momentum carries the stock higher — while getting out before the tide washes out.  A significant chunk of our winners has come from the tech space to be more specific, with gains of 39% on CyberArk Software (Nasdaq: CYBR), 66% on Roku (Nasdaq: ROKU), and 89% on Shopify (Nasdaq: SHOP). This makes sense, of course. Tech has been one of the hottest sectors during this entire bull market. And if all goes according to plan, we’ll add another to the list in short order… Our Next Big Winner… Before companies can launch a new product, or even keep producing existing products, they need to continually test their design and optimization. After all, a failed product could cripple a company. But with technology rapidly changing, it would cost firms billions to continually update their testing and design equipment and software.  That’s why most firms work with a company like Keysight Technologies (NYSE: KEYS). #-ad_banner-#Keysight has been in the electronic measurement business since 1939. It offers electronic… Read More

Ever thought about getting solar panels installed on your roof?  If you’ve ever been interested in seeing what it might cost, or what the payoff would be to install solar on your home, check out Google’s Project Sunroof. Simply enter your address and it will tell you what it will cost to install solar and what the payoff over time would be. It also shows a google map of your house and how much sunlight it receives. Pretty cool, right? I came across this nifty little tool when researching a company in the solar energy space… Read More

Ever thought about getting solar panels installed on your roof?  If you’ve ever been interested in seeing what it might cost, or what the payoff would be to install solar on your home, check out Google’s Project Sunroof. Simply enter your address and it will tell you what it will cost to install solar and what the payoff over time would be. It also shows a google map of your house and how much sunlight it receives. Pretty cool, right? I came across this nifty little tool when researching a company in the solar energy space back in April. My subscribers and I ended up adding it to our portfolio thanks to an even better tool: the Maximum Profit system. Bringing Solar To The Masses The company in question, Enphase Energy (Nasdaq: ENPH) plays an important role in the solar process. In short, they will help you manage, convert and store the energy that those panels collect from the sun. The company’s aim is to help advance the worldwide potential of renewable energy. Over the years, solar power has become a more viable option as the technology has improved, which in turn has lowered the… Read More

Next time you’re walking on the beach, think about the sand beneath your feet, and how much it’s changed our world. The most common constituent of sand is silica, which is an oxide of silicon, and silicon is a crucial component in microelectronics and computer chips. Hence the name “Silicon Valley.” Before silicon, components of computer chips were made from germanium, an element from the carbon group that is chemically akin to tin. But then along came Gordon Moore, the co-founder of Fairchild Semiconductor and a former CEO of Intel (Nasdaq: INTC).  —Recommended Link— One Teacher… Read More

Next time you’re walking on the beach, think about the sand beneath your feet, and how much it’s changed our world. The most common constituent of sand is silica, which is an oxide of silicon, and silicon is a crucial component in microelectronics and computer chips. Hence the name “Silicon Valley.” Before silicon, components of computer chips were made from germanium, an element from the carbon group that is chemically akin to tin. But then along came Gordon Moore, the co-founder of Fairchild Semiconductor and a former CEO of Intel (Nasdaq: INTC).  —Recommended Link— One Teacher In South Carolina Just Collected a $4,416 Check It was even approved by the government. And no, he’s not on disability, and he’s not collecting Social Security. Instead, He’s using this 1 weird trick to collect easy payouts with little to no risk. The good news is that you can use it too. Get the details on this safe, easy method for collecting extra cash right here. Moore, who in 1965 famously described a doubling every year in the number of components per integrated circuit (“Moore’s Law”), believed there was a better material, one that… Read More