Like most investors, one of your top goals has been to enjoy financial freedom at whatever age you choose. So, it stands to reason that your money should ideally generate above-market returns with below market risk.
Truth is — if you really want to become a better investor then you need to be looking at where the smart money is heading. You need to understand what is truly driving the markets and how you can take advantage of these moves as – and before – they hit the mainstream.
That’s how the long-term wealth can be found.
In fact, we’ve uncovered seven stocks that should have a place in your portfolio immediately.
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Hot Stock No. 1 – Adverum Biotechnologies (ADVM)
Adverum Biotechnologies is a clinical-stage gene therapy company that develops gene therapy product candidates to treat ocular and rare diseases. Its pipeline of product candidates includes ADVM-022, an adeno-associated virus (AAV). 7m8-aflibercept for the treatment of wet age-related macular degeneration; ADVM-043, an investigational gene therapy candidate for the treatment of alpha-1 antitrypsin deficiency; and ADVM-053, a preclinical gene therapy product candidate for the treatment of hereditary angioedema.
Wet AMD is a leading cause of vision loss in patients over 60 years of age, with a prevalence of approximately 1.2 million individuals in the U.S. and 3 million worldwide. The incidence of new cases of wet AMD in the U.S. is approximately 150,000 to 200,000 annually, and this number is expected to grow significantly as the country’s population ages, says the company.
“The current standard-of-care therapy for wet AMD is anti-VEGF [anti-vascular endothelial growth factor] intravitreal injections. These are effective but typically require long-term eye injections every 4-8 weeks in order to maintain vision. Compliance with this regimen can be difficult for patients, caregivers, and healthcare systems, leading to undertreatment and resulting in loss of vision.”
In addition, the company points out that the single “largest unmet clinical need for these patients is for a long-lasting anti-VEGF treatment,” said Szilárd Kiss, M.D., retinal specialist. “These data on ADVM-022 are compelling, as they demonstrate for the first time that a one-time gene therapy delivered by intravitreal injection has the potential to provide sustained efficacy and transform the treatment paradigm for patients with wet AMD.”
Hot Stock No. 2 – Digital Turbine (APPS)
Digital Turbine provides media and mobile communication solutions for mobile operators, application developers, device original equipment manufacturers, and other third parties worldwide. The company offers Ignite, a mobile application management software to control, manage, and monetize the applications that are installed on mobile devices and professional services directly related to the ignite platform.
What we like most about APPS has been its ability to hit higher highs since November 2018.
However, we still believe the stock has a considerable amount of wind at its sails, and could move to $30 with patience.
“Our ability to simultaneously drive strong growth on both the top and bottom lines demonstrate the market momentum and inherent operating leverage of our business. Spearheaded by growing partner adoption of our leading mobile platform and robust worldwide demand from advertisers, we achieved strong financial results, generating more than $4.5 million in Adjusted EBITDA and $5.7 million in free cash flow during the quarter.”
“As a result of this performance, we exited the September quarter with more than $25 million in cash on our debt-free balance sheet. We believe that the results reported today are further demonstration that we have successfully developed an attractive, highly scalable, and profitable platform business,” said CEO Bill Stone.
Hot Stock No. 3 – Marvell Technology (MRVL)
Marvell Technology designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits. It offers a range of storage products, including hard disk drive (HDD) and solid-state drive controllers.
MRVL has already run up substantially.
However, we believe there’s further room to run, as it gets caught up in the 5G boom.
“Our design win momentum continues in 5G, and we recently announced a significant long-term partnership with Samsung to deliver multiple generations of embedded processors and baseband processors for both LTE and 5G base stations. We expect shipments of our 5G products to start to ramp toward the end of the fiscal year 2020 and continue to grow rapidly into fiscal 2021 and beyond,” said company CEO Matthew Murphy.
The stock was also just upgraded to outperform from market perform at Wells Fargo. The price target was also increased to $32 from $25.
Hot Stock No. 4 – Inseego Corporation (INSG)
Inseego Corporation engages in the design and development of mobile, Internet of Things (IoT), and cloud solutions for large enterprise verticals, service providers, and small and medium-sized businesses worldwide. The company provides wireless 3G, 4G, and 5G hardware products that address various markets, including fleet and commercial telematics, aftermarket telematics, smart city infrastructure management, remote monitoring and control, wireless surveillance systems, security and connected home and fixed wireless access, and mobile broadband devices.
Its products include 4G and 5G mobile hotspots, wireless gateways and routers for IoT applications, 1Gigabit speed 4G LTE hotspots and USB modems, integrated telematics, and mobile tracking hardware devices that are supported by applications software and cloud services.
INSG is another great way to capitalize on 5G – a market that could usher in a $12 trillion opportunity for investors. “We’re not just imagining what 5G can do tomorrow; we’re delivering on what 5G can do today. That’s why over 50 global service providers, as well as OEMs and enterprise customers have engaged Inseego to bring innovative 5G mobile, fixed wireless and IoT solutions to market,” says Chairman and CEO Dan Mondor.
Hot Stock No. 5 – Twitter Inc. (TWTR)
Twitter Inc. operates as a platform for public self-expression and conversation in real time. The company offers various products and services, including Twitter, a platform that allows users to consume, create, distribute, and discover content; and Periscope, a mobile application that enables user to broadcast and watch video live with others.
The stock slumped in late 2019 thanks to two technical bugs that limited its ability to target users or share data with advertisers. That forced advertisers to cut back on spending, which then impacted Twitter earnings. However, we believe that news has been priced in – and there’s growth. Year over year, it’s added 21 million new users as of late 2019, which gave the company 145 million daily average users (DAUs).
Hot Stock No. 6 – Roku Inc. (ROKU)
Roku, Inc. operates a TV streaming platform. The company operates in two segments, Player and Platform. Its platform allows users to search, discover, and access approximately 500,000 movies and TV episodes, as well as live sports, music, news, and others. It also provides advertising products, including videos ads, interactive video ads, audience development promotions, and brand sponsorships; and manufactures, sells, and licenses TVs under the Roku TV name.
A year ago, we mentioned this was an opportunity at $42.67. It’s now up to $146 – and is still a good and cheap stock, in our opinion. Especially with consumers clamoring for streaming.
According to Colling Media nearly 20% of its survey canceled cable television between June and July 2019. Meanwhile, 39% subscribed to streaming services over the same time frame. “It’s easy to think the cord-cutting trend might have slowed down, but our research shows an incredible number of consumers continue to move on from cable and dish services,” says Brian Colling, CEO of Colling Media.
“People are choosing streaming entertainment services for the same reason they swapped out home phones for cell phones. Mobile, on-demand, and customized choices triumph every time.”
Hot Stock No.7 — ProShares Ultra VIX Short-Term Futures ETF (UVXY)
As volatility ticks higher with the trade war, ETFs such as the UVXY could run even higher from a current low of $16 a share. . The ETF was designed to match two times (2x) the daily performance of the S&P 500 VIX Short-Term Futures Index.
There is plenty of volatility ahead in 2020. Not only will be still haggle over trade war negotiations, but the 2020 presidential could create sizable bouts of volatility. For example, prior to the 2012 Trump v. Clinton election, the VIX exploded from 12 to 22.