How to Invest in Bitcoin Using Stocks

Over the past few months there has been an increased wave of euphoria surrounding cryptocurrencies, the most notable of which is Bitcoin. Cryptocurrency is simply a digital currency which can be exchanged and traded as each transaction is encrypted and then verified independently of any centralized system or bank.

Bitcoin had first appeared in 2008 and is attributed to an individual known as Satoshi Nakamoto. Because of the lack of requirement for a third party system to verify the transaction, it has become a fast and easy way to exchange currency. There is one key technological innovation behind the advent of the Bitcoin frenzy and it’s known as the blockchain.

Blockchain Technology

For a large portion of recent history, businesses and people have relied on an intermediary to ensure that there is a level of trust incorporated into the transaction process. This includes authenticating the transactions and keeping a record of the transaction history. The blockchain technology is simply a distributed ledger (or database) that tracks and verifies all digital transactions. When a transaction occurs, it is grouped together in a “block” with other transactions that have occurred on the network within a short period of time. These transactions are then validated.

The validation of each transaction occurs when a miner is able to utilize a high powered computer to solve a complex problem. Each transaction is encrypted, thus when the computer is able to solve the problem the transaction becomes decrypted and verified. Each time a transaction is verified it will result in a “reward” to a miner, (often in the form of a cryptocurrency such as Bitcoin) timestamp when the transaction occurred, and add it to a linear chain in a chronological order. This is the blockchain. When this is complete, the ledger is updated and copied across all of the networks to ensure that the latest ledger is always being used to verify each block.

Future Impact

The impact that the blockchain technology could have is astounding. The elimination for the need of a third party to verify the transaction removes the need for intermediaries. This could pose a threat to portions of the government, banks, financial institutions, and other companies focused on handling financial transactions. The positive effect, however, that this technology could have on business efficiency on a global scale is enormous. A decentralized currency and financial system could help eliminate barriers that currently limit the way that many small businesses grow their consumer base. Since the blockchain technology is still in its infancy, there are many further applications that have not been explored yet. In the meantime, if you want a piece of the action there are a few ways in which you can be a part of this new wave of technology.

Cryptocurrency and How to Own It

For many new investors the best way to be a part of the action is to simply own some cryptocurrency, the most popular being Bitcoin. One of the most common platforms to purchase and trade Bitcoin is Coindesk. An account can easily be created where the cryptocurrency can be purchased and then sold at a later time.

There are other alternate coins that can be purchased through other cryptocurrency exchanges across the globe, such as Ethereum, and LiteCoin. And for those that are more tech savvy, purchasing equipment and hardware to mine cryptocurrency may be a desirable option. While it has become increasingly difficult to successfully verify a Bitcoin transaction, there are many alternate coins that can also be mined to produce a reward.

Bitcoin Stocks

For investors who prefer to invest in stocks, there are actually over a dozen publicly traded companies that are involved in Bitcoin and blockchain technology in a significant way. Some of these stocks are semiconductor companies, which benefit from the mining of cryptocurrency. Some are blockchain startups. And there is one Bitcoin closed end fund. Keep in mind that some of these stocks are extremely low cap and therefore extremely speculative. Here at WStNN, we have provided a free list of these stocks, that can be accessed here.

The new craze regarding Bitcoin actually has some pretty substantial technology supporting it. And while for now it may just seem like the next Tulip Bulb Mania, the blockchain technology may transform the future of global commerce.

 

Top Halloween Stocks

Have you bought your Halloween candy yet for the trick-or-treaters? If not, you better get going, so that you can support the candy companies. Other industries can also benefit from Halloween stocks.

Of course, the biggest beneficiaries of Halloween are the producers of sweets. Hershey Foods (HSY) is one of the largest chocolate and confectionery companies in the world, known for its Hershey Kisses and Hershey Bars. The stock has a forward price to earnings ratio of 21, and a yield of 2.3%.

Tootsie Roll Industries (TR) has various candy brands for trick-or-treaters including Tootsie Rolls, Tootsie Roll Pops, Caramel Apple Pops, Charms, Blow-Pops, Blue Razz, Zip-A-Dee Pops, Cella’s, Mason Dots, Mason Crows, Junior Mint, Charleston Chew, Sugar Daddys, and Sugar Babies. The stock has a P/E of 35 and a yield of 0.9%.

Watching scary movies is another popular event on Halloween. Netflix (NFLX), the huge provider of videos in the US, has an extensive selection of scary movies in its collection of titles. The stock trades as 114 times forward earnings. It does not pay a dividend.

 

A major producer of scary movies is Lions Gate Entertainment (LGF.A), which has made such films as American Psycho, Ginger Snaps, Route 666, The Devil’s Rejects, House of the Dead 2, Saw VI, See No Evil, Hostel: Part II, My Bloody Valentine 3D and many others. Lionsgate has a price to earnings ratio of 34.

 

Hopefully, your Halloween stocks become treats and not tricks.

Disclosure: Author didn’t own any of the above at the time the article was written.

Stocks Going Ex Dividend the Third Week of October

Here is our latest update on the stock trading technique called ‘Buying Dividends,’ also commonly referred to as ‘Dividend Capture.’ This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend.

This technique generally works only in bull markets, and can work in flat or choppy markets, but you need to avoid the technique during bear markets. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can’t sell the stock until after the ex date.

The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend in the near future. The list contains many dividend paying companies, lots with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the quarterly dividend amount, and annual yield.

Saul Centers, Inc. (BFS) 10/16/2017 0.51 3.11%
Mexico Fund, Inc. (MXF) 10/16/2017 0.13 3.13%
Argan, Inc. (AGX) 10/19/2017 1 1.06%
Pentair plc. (PNR) 10/19/2017 0.345 1.97%
Hormel Foods Corporation (HRL) 10/20/2017 0.17 2.06%

The additional ex-dividend stocks can be found here at wstnn.com. (If you have been to the website before, and the latest link doesn’t show up, you may have to empty your cache.) If you like dividend stocks, you should check out some of the other high yield stock lists at WallStreetNewsNetwork.com or WStNN.com. Most of the lists are free.

Dividend definitions: Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Monthly Dividend Stock List

Record date: the day when you must be on the company’s books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks at two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don’t forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written.

 

Buying Stocks Below Their Cash Value

Do you think a return of 56% over a period of less than two years is pretty good? How about 115%? Those are the actual returns of stocks that you could have bought less than two years ago that were selling for less than the cash per share.

What is cash per share?

In simple terms, cash per share is the amount of cash the company has sitting in the banks divided by the number of shares. So if the company has little or no debt, and you can buy the stock below the amount of cash per share, you are getting a bargain. If the company went out of business today and all the inventory and equipment and all other assets were totally worthless, you would still make a profit because the cash you would receive for each share would exceed the price you paid.

Real Life Examples of Stocks that were Selling Below Cash

Let’s get back to those real life examples mentioned in the first paragraph of this article. MEI Pharma (MEIP) is an oncology company focused on the clinical development of therapeutics to treat cancer. Back in November of 2015, the stock was selling for 1.64, yet it had cash per share of 1.70, providing a discount to investors of 3.5% to the cash. Since that time, the stock has risen to 2.57, a gain of 56.71%. Not a bad investment for less than a couple years. Then there is Support.com (SPRT), a provider of cloud-based software and services. In November 2015, it was trading at 1.09, with cash per share of 1.25, a 12.8% discount to cash. The stock is now trading for 2.35, a spectacular gain of 115.6%.

But what about companies that have a reverse split?

This is a great question. Let’s look at bebe (BEBE), the women’s clothing company, over the same time frame as the previously mentioned stocks. It was trading at a 22.6% discount to cash. Back then, the stock was trading at 0.41 per share, but the company had a 10 for 1 reverse split in December of 2016. What this meant was that for every 10 shares that you own prior to the split, you would now only have one share. So the effective cost basis of the original purchase price would be 4.10. The stock is now at 5.48, giving investors a 33.66% return. (To clarify this, assume you buy 1,000 shares at 41 cents, for a total cost of $410. The reverse split takes place, you now only have 100 shares at 5.48 or $548 total value, a gain of over 33%.)

Does the stock need to trade at a huge discount to make money?

Absolutely not. Here is a great example. GenCorp Industries (GENC) traded at a 0.1% discount to cash, actually one penny below the cash per share. The stock has gone from 10.18 to 17.95 a share, a very decent gain. But that’s not all. The stock declared a 3 for 2 stock split (what I call a “good stock split”) in July of 2016, which was effectively a 50% stock dividend. In other words, one and a half shares for every one share that you own. So the true gain on this stock from November 2015 is an incredible 76.33%.

Risks of Buying Below Cash Stocks

  • Possibility that the company is what we used to call the “walking dead” and what we now call “zombies”. These are companies that will continue to stumble along, never really grow but never go out of business, and they’ll just hold on to all their cash
  • Possibility that management may spend the company’s cash like a drunken sailor.
  • For biotech companies, the possibility that they will burn all their cash before they come out with an FDA approved drug

Advantages of Buying Below Cash Stocks

  • Provides a downside cushion for the stock price
  • In the event of bankruptcy or liquidation, excellent chance of getting back more money than your investment
  • Provides the company with a solid balance sheet -they can easily make payroll, buy new equipment, make acquisitions, without having to borrow

But the stock market is trading at lofty levels

Are there still stocks that can be purchased for less than cash per share? Yes, there are actually over 20 different companies with stock prices below cash per share with little or no debt. Here is just one example. The Rubicon Project (RUBI), is a Los Angeles based technology and software company. The stock recently closed at 3.70 per share, but has cash per share of 6.47, providing a discount to cash of 42.81%. The company is currently generating negative earnings, but has a very favorable price to sales ratio of 0.78 (a number below 1 is good, a number above 2 is not so good), and an excellent price to book of 0.65. Revenues have increased every year since 2012 and for the latest fiscal year, revenues jumped by about 12%. The company is debt free.

So what are some other companies selling below cash?

WStNN.com has come up with a list of almost two dozen companies that are currently trading below their cash per share, and have little or no debt. If you are interested in getting this list, just subscribe to our newsletter. We will be emailing the list in an Excel format to all subscribers who have subscribed by 11:59 pm on Friday, October 13. The list, which will be sent out the following day, will provide the following:

  • Company name
  • Stock ticker symbol
  • Country where the company is based
  • Price per share
  • Cash per share
  • Percentage discount to cash
  • Debt, if any

However, you must subscribe by October 13 in order to get this free list. The reason why we have this short timeframe is that the information may become stale a month from now, and we want you to get timely information.

What’s the Cost to Subscribe? Nothing!!!

We charge nothing for our WStNN/Stockerblog newsletter. It is sent out between two to four times a month, so we won’t spam you, we won’t overload your mailbox every day, and we don’t sell or give away our list. (Some clown actually called me about a revenue split for selling newsletters, and he said all I had to do was give him my email list and they would take care of everything. Yeah right!)

How to Get the Below Cash Stock List for Free

Just fill in the box below. We don’t ask for a credit card number, we don’t need your phone number, and you don’t have to give us your street address.  Once you submit, you will need to check your email account for a confirmation. You may need to click on the link confirming that you want to subscribe.

By the way, if you are already a subscriber, you don’t need to re-subscribe. Just remember, new subscribers need to subscribe by 11:59 pm on Friday, October 13. The list will be sent out the following day.

Thanks for subscribing and happy investing!

Interview with Tim McGraw CEO of Cannabis Real Estate Company Canna-Hub

The following informative interview was provided by Tim McGraw, CEO of Canna-Hub, a California-based real estate development and property management Company for the cannabis industry. He is an experienced commercial real estate developer who has also designed and built cannabis specific facilities in several states and abroad, and has overseen cultivation, manufacturing, distribution and security of the largest cannabis operation in Illinois.

The discussion includes the following:

  • The changes to the marijuana laws in California on January 1
  • The growth of the marijuana industry
  • The best areas in California for cannabis real estate
  • Investing in a dispensary  versus growing and cultivation
  • Regulations involved in various aspects of the cannabis business
  • The viability of owning a warehouse and leasing it to a marijuana grower
  • Dealing with cities and counties

To stream the interview, click:

HERE

You can download as an mp3 by right-clicking here and choosing “save as.”

More information about Canna-Hub can be found at

http://canna-hub.com

 

All opinions are those of the interviewee, and do not represent the opinions of this website or the interviewer. Neither this website nor the interviewer nor the interviewee are rendering tax, legal, or investment advice in this interview. No solicitations of investments are expressed or implied. All information is provided for education and general information only, believed to be reliable, but not guaranteed.

Stocks Going Ex Dividend the Second Week of October

Here is our latest update on the stock trading technique called ‘Buying Dividends,’ also commonly referred to as ‘Dividend Capture.’ This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend.

This technique generally works only in bull markets, and can work in flat or choppy markets, but you need to avoid the technique during bear markets. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can’t sell the stock until after the ex date.

The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend in the near future. The list contains many dividend paying companies, lots with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the quarterly dividend amount, and annual yield.

Oracle Corporation (ORCL) 10/10/2017 0.19 1.39%
Abbott Laboratories (ABT) 10/12/2017 0.265 1.92%
Foot Locker, Inc. (FL) 10/12/2017 0.31 3.40%
Owens Corning Inc (OC) 10/13/2017 0.2 1.00%

The additional ex-dividend stocks can be found here at wstnn.com. (If you have been to the website before, and the latest link doesn’t show up, you may have to empty your cache.) If you like dividend stocks, you should check out some of the other high yield stock lists at WallStreetNewsNetwork.com or WStNN.com. Most of the lists are free.

Dividend definitions: Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Monthly Dividend Stock List

Record date: the day when you must be on the company’s books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks at two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don’t forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written.