Friday 4 Play: The “Bourbon Bounty” Version
Right this moment, Nice Ones, we’re speaking bourbon and choices — two of my favourite issues. You knew it needed to occur in the end…
As most of you recognize, I fancy myself a little bit of a bourbon connoisseur. I additionally began my monetary profession within the choices market. Surprisingly, the 2 go hand in hand relatively nicely … as you’ll see in only a minute.
First, let’s get to what kicked off at this time’s dialogue. Nice One Tony T. wrote in yesterday:
I’ve 5 bottles of Elmer T. Lee. What do I do with them? Drink or promote? Thanks to your enter.
Tony, thanks for writing in! And that’s some high-quality bourbon you’ve there. In the event you purchased it close to the retail worth of about $40 per bottle … you’ve some appreciable potential.
You see, round these elements, Elmer T. Lee could be very exhausting to search out at retail. Now, I don’t know what the aftermarket seems to be like in your neck of the woods, however in Northern Kentucky, it usually sells for between $300 and $500 per bottle.
Since we’re speaking investments right here, that’s a possible 1,150% acquire!
However in case you nonetheless doubt bourbon’s funding potential, simply hearken to what my pal and colleague Ted Bauman, editor of The Bauman Letter, has to say:
The factor that makes bourbon so fascinating as a collectible is that there are two methods you’ll be able to play it. You possibly can make investments the normal means within the completed product, the way in which you’ll with stamps or artwork, and anticipate it to understand.
For instance, a bottle of Previous Rip van Winkle 25-year-old bourbon that bought for $1,800 not too way back is at the moment retails in america for as a lot as $25,000.
The opposite means is to spend money on barrels of “white canine,” which is mainly corn moonshine, that are aged to provide Kentucky bourbon. You possibly can even buy bourbon bonds to do this. So, I’d say in case you’re an investor, bourbon is for lots extra than simply consuming.
My confession right here is that the $1,800 bottle of Rip van Winkle instance comes from yours really.
I had an opportunity to snap up a bottle at that retail worth just a few weeks earlier than Christmas. I handed as a result of my lizard mind couldn’t justify almost two grand for Rip … and my spouse insisted that I already had a brand-new bottle of bourbon at residence (Weller Vintage 107, for the curious).
I might’ve had a 1,300% return on that bottle of Rip. I would’ve had to drive to D.C. to do it, however … rattling. Missed alternative.
Who am I kidding? Everyone knows I might’ve simply drank it. Aye, there’s rub, proper Tony? To drink or to not drink? That’s the query. My finest reply for you hinges on whether or not you want consuming Elmer T. Lee bourbon or not.
In the event you don’t like consuming it, the selection is obvious: Promote the whole thing. You’ll clearly benefit from the returns greater than the bourbon.
However, in case you get pleasure from consuming it, perhaps save one for private use and promote the remainder? You possibly can at all times use the proceeds to purchase extra and repeat the method. (Or perhaps even ship one to your favourite monetary e-zine author?)
My level is that bourbon is greater than only a refreshing beverage. In the proper market, it might probably provide the identical sort of lofty returns that choices present. Sure, there’s a excessive danger concerned that you simply won’t get the return you need, relying on the place and once you attempt to promote. However the potential is there.
You don’t wish to get me began on a full-blown choices rant proper now — we do have shares to cowl right here, you recognize — however you’ll be able to time-jump again to our deep dive on the options market right here!
And like bourbon, you want a information when investing in choices … otherwise you’ll get burned and miss alternatives … silly Rip van Winkle. With choices buying and selling, similar to bourbon investing, the key is getting older — erm, timing. Simply ask Ted Bauman! (Once more.)
For the previous two years, Ted’s labored on a particular venture: a brand new buying and selling system that goals that can assist you make extra revenue in every commerce than the S&P 500 has within the final 5 years. In truth, Ted’s closed out six winners since mid-November, with zero dropping trades.
Proper now, you’ll uncover how this method works and the way Ted tracked down “the No. 1 dealer on Wall Avenue” to assist him construct it. Don’t miss out — click here now!
And now for one thing fully totally different, right here’s your Friday 4 Play:
No. 1: The MicroStrategy Crypto Correlation
Whereas we’re speaking about off-the-wall funding concepts, have you ever seen MicroStrategy (Nasdaq: MSTR) currently?
Final 12 months, the corporate purchased $1 billion value of bitcoin (BTC) and, ever since, MSTR has traded in close to lockstep with the favored digital forex — as you’ll be able to see from the chart I conveniently included.
With bitcoin hitting new all-time highs north of $40,000, MicroStrategy turned its $1 billion funding into more than $2.9 billion. Sounds extra like a macro technique to me. Am I proper? (Get it macro … micro? No matter…)
Anyway, MicroStrategy focuses on enterprise information analytics software program and providers. In different phrases, it crunches gobs and gobs of information. That’s a profitable enterprise in its personal proper, however traders fully threw that concept out the window.
MSTR is now mainly a proxy funding for bitcoin. So, in case you ever needed to purchase bitcoin as an funding however weren’t in a position to in your specific buying and selling platform or have been simply too unsure about bitcoin generally, MSTR is your pathway to digital rewards.
Or you would simply hearken to what Banyan Hill guru Ian King has to say on the subject!
In the event you missed out in your likelihood to see Ian’s Subsequent Wave Crypto Fortunes the primary time round, pay attention up. On this particular occasion, Ian King will present you how one can play this new crypto growth to doubtlessly multiply your cash 12 occasions in simply the subsequent 12 months.
The crypto growth is a lot larger than simply bitcoin. Click here to hear it from the crypto king himself!
No. 2: Print on DDDemand
Are you able to scent it? Are you able to scent what the Rock … wait. No, that’s the faint whiffs of earnings season drifting on the breeze!
The purveyor of printers, 3D Methods, went on a press release rampage yesterday, first asserting it had bought off its Cimatron and GibbsCAM software program companies.
The corporate additionally reported preliminary quarterly information, notably a 20% income rise throughout its segments on the quarter.
Then, 3D Methods paid off a few of its excellent debt and known as it a day. The market, nevertheless, mentioned “nay nay” and despatched DDD hovering over 121% earlier than the rally rolled again some. To not be outdone, the inventory went on to surge one other 38% at this time … earlier than traders obtained sensible, took the cash and ran.
Total, the Avenue celebrated how 3D Methods continues its plans to streamline enterprise: reorganize into less complicated well being care and industrial divisions, trim off the fats (software program, on this case) and bingo bongo, you’re 3D printing like there’s no tomorrow.
I sense a “however” coming, Mr. Nice Stuff.
That is all large information, however is it “rally over 150% in two days” sort of information?
If we have been a barely totally different publication, I’d inform you to quick the ever-loving heck out of DDD proper now (at the very least short-term). However we play issues a bit extra conservatively round right here, imagine it or not.
In the event you’re serious about 3D printing for the long term — and DDD is in your watchlist — you may wish to anticipate at this time’s rally to ease up some earlier than you take part. Revenue-taking time already started.
No. 3: Mulling Micron
It’s been fairly an exhilarating week for Micron.
The inventory was double upgraded on Tuesday from sell to buy at Citigroup, which set a $100 worth goal. What’s extra, each Deutsche Financial institution and RBC lifted their worth targets forward of this morning’s quarterly earnings report.
And boy, did Micron live up to the hype. The corporate’s fiscal first-quarter report was a beat and lift, with earnings of $0.78 per share on income of $5.77 billion, crushing Wall Avenue’s expectations.
What’s extra, Micron put current-quarter earnings and income steering above the consensus estimates.
The icing on the cake was Micron’s expectations that DRAM and NAND reminiscence chip costs are firming up and will see robust development by 2023. In layman’s phrases, these little reminiscence chip thingies in your smartphones will get dearer, and that’s good for Micron.
Possibly not so good to your pockets in case you’re shopping for a brand new cellphone within the subsequent 12 months or so, although.
What’s good for Micron’s backside line is sweet for traders, and MU shortly surged greater than 4% following the report. However evidently a bit of bullish fatigue seeped into MU late in at this time’s session.
Revenue-taking settled in after this week’s run increased, and MU completed nicely off at this time’s highs. After a double improve and three worth goal hikes, what’d you anticipate?
Nonetheless, as soon as traders digest this week’s flood of bullish information, MU ought to resume increased, and a break above $80 might ship the inventory again to all-time excessive territory close to $100.
No. 4: An Apple a Hyundai Retains the Vehicles Away?
Identify a greater duo than the Wall Avenue rumor mill and people anonymous, notorious “individuals with data of the efforts.” I’ll wait.
Right this moment, carmaker Hyundai introduced that it was in early talks with Apple (Nasdaq: AAPL) to potentially work together on an electric vehicle (EV).
It’s Hyundai’s greatest buying and selling day since 1988 — at the very least on its residence Korea change. The corporate trades over-the-counter right here as HYMTF, and people shares have been up 30% at this time.
The information comes from Korea Financial Every day, which wrote that Apple recommended the tie-up, and Hyundai Motor was reviewing the phrases. Allegedly, the collab would function each battery improvement and precise EV manufacturing.
Now, that is all good and dandy, however Hyundai has already backpedaled on the news, as a substitute claiming that it “obtained requests for potential cooperation from a lot of corporations.”
Personally, I wouldn’t be stunned if the HyundApple chimera ever got here to fruition. Killer tech is popping out of South Korea proper now: 5G, hydrogen energy, photo voltaic power, semiconductors and no matter else have you ever. It’d make sense for South Korea’s main carmaker to strike a cope with Apple to innovate within the EV area.
For what it’s value, Hyundai is the subsequent Toyota (NYSE: TM), for my part. Whereas Volkswagen and its high-shinin’ Audis is likely to be extra of a “model match” for Apple’s market, Hyundai’s shortly catching as much as the highest tier automakers, and this may very well be a significant deal if it doesn’t dissipate within the meantime.
The iCar that y’all derided and delighted over in our inbox received’t be prepared for these extremely keen early adopters anytime quickly. These “individuals with data of the efforts” have mentioned that Apple will take at the very least a half decade to launch a self-driving EV — with the unique report spit-balling a 2027 launch.
Apple isn’t hurrying this one, and these rumors may fall by means of after the massive publicity blow-up. You understand how a lot Apple, like Gandalf, likes to maintain its secrets and techniques till the newsworthy second is true.
Nice Stuff: Black Canine, White Canine
You made it! First week of the brand new 12 months, within the books. Now, you go on and let me know within the inbox how late is “means too late” to be saying “completely happy new 12 months!”
Or, you would hit us with one thing a bit extra fascinating … reminiscent of what you consider investing in bourbon, buying and selling choices, shopping for bitcoin or the oft-rumored Apple Auto.
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Editor, Nice Stuff