Investing in Guitars? Bob Dylan’s Sold for $187,000

Have you ever considered investing in collectible guitars? Some of them sell for pretty substantial amounts.

For example, Heritage Auctions recently held an auction of entertainment memorabilia, with a lot of interesting items that were put up for sale.

A guitar that Bob Dylan personally owned, a Fender Electric XII Twelve-String electric guitar was hammered at $187,000, including buyers premium. This was the guitar that Bob Dylan played on the Blonde on Blonde sessions.

20 Cybersecurity Stocks to Choose From

Doesn’t it seem like there is a  cybersecurity attack on a company almost every day? Because hacking and cyber attacks are such a big issue, the Securities and Exchange Commission issued stronger guidelines last year to to publicly traded companies regarding cybersecurity. The Equifax issue didn’t help.

Consumers are now worried about the Dark Web, which is a concealed Internet where supposedly anyone can buy any of the four H’s: heroin, hitmen, hackers, and harlots. The big money is in the marketing of email addresses, Social Security numbers, credit card numbers and other personal data.

Fortunately, there are companies that are working hard to prevent attacks on businesses and consumers.  There are 20 publicly traded companies that are involved in cybersecurity.

One of the biggest players in the industry is California based Symantec (SYMC), a cybersecurity provider for consumer and enterprise customers, which was founded in 1982. The stock has a trailing price to earnings ratio of 85 and a forward P/E of 13. It even pays a dividend of 1.3%. It has a market cap of $14.7 billion.

Another large cybersecurity firm is Palo Alto Networks (PANW), a California based company founded in 2012. The company provides network and endpoint cybersecurity solutions. The stock trades at 48 times forward earnings, however, earnings for the past few years have been negative. The market cap is $22.8 billion.

TRIVIA: 50% OF ALL PUBLICLY TRADED CYBERSECURITY COMPANIES ARE BASED IN CALIFORNIA

Checkpoint (CHKP) is an Israeli based network security company. The stock has a trailing price to earnings ratio of 24 and a forward P/E of 20. It does not pay a dividend.

There are several other smaller security companies to choose from including Tenable Holdings, Inc. (TENB), Okta, Inc. (OKTA), Carbon Black, Inc. (CBLK), and Zscaler, Inc. (ZS)

If you aren’t sure which cyber security stock to buy, maybe you should consider a cyber security ETF.  There are a couple to choose from, the ETFMG Prime Cyber Security ETF (HACK) and the First Trust NASDAQ Cybersecurity ETF (CIBR).

For a list of about 20 cybersecurity stocks, click HERE to access the stock list page.

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

How to Get Your K-1 Tax Forms Fast

Are you tired of waiting for your K-1 tax forms to arrive in the mail? Have you ever had a K-1 get lost in the mail or be delayed by a week?

Many investors like to get their tax returns done as soon as possible. Fortunately, there is a way to get your K-1s as soon as they are done, in an electronic form (which can be printed out of course).

There are two companies that provide this service:

Tax Package Support

https://taxpackagesupport.com

This website has well over 200 limited partnerships listed with their  contact phone number and the date the K-1 was first released. You can click on the partnership that you own, create an account, and get the K-1. You can get it in the form of a pdf or through TurboTax.

Deloitte Publicly Traded Partnership K-1 Services

https://partnerdatalink.com/landing/landing.html

This site has 34 partnerships listed. Similar to the other site, you click on the partnership, create an account, and get the K-1.

Report on the Apple Annual Meeting

by Fred Fuld III

Last Friday, I attended the Apple (AAPL) Annual Meeting, held in the Steve Jobs Theater by the Apple headquarters in Cupertino, California.

All directors were approved, and other proposals with a recommendation of FOR passed, and recommendations AGAINST did not pass, with a lot of discussion about Proposal 5, True Diversity Board Policy.

After the formal part of the meeting, Tim Cook came out to speak and answer questions. He started out by saying that in 2018, revenues were $262 billion, a $22 billion or 9% increase over the previous year. Growth took place in all categories and regions, with a 1.4 billion installed base now.

iPhone

The iPhone has a 900 million installed base worldwide with revenues of $155 billion. The iPhone XR is the most popular, with the liquid retina display and the A12 biochip. It has the longest battery life of any of the phones. It has a customer satisfaction rating of 99%. Apple is “working on the last one percent.”

Service

The services business had $31 billion in revenues. They expect it to double by 2020.

App Store

The app store is doing well. $120 billion has been paid to developers. Amazing since in 2008, this market didn’t even exist.

Apple Pay

Apple Pay is in 29 markets, with a doubling of usage, and 350 million subscriptions. A new iPad is being released this month. It measures 9.7 inches, with a target audience of the education market. It is priced at $299. There are two new models of the iPad Pro.

The Mac has had an all-time record year.

Wearables

The wearables, which includes the Apple Watch and the AirPods, grew 50% last year.

Investments

$14 billion was spent on R&D last year, and 18 companies were purchased.

Apple is investing across the US, spending $1 billion in Austin, Texas for more work space, along with Culver City, Portland, San Diego, New York, and Pittsburgh.

Dividends

The company is committed to increasing dividends annually, and they are currently double what they were when they first started paying.

Values

They are now using 100% renewable energy around the world.

The company is partnering with Malala Fund, which seeks to secure education for girls around the world. It is also involved with the Everyone Can Code curriculum for students beginning in 3rd grade for kids to easily learn coding. The curriculum is also being accepted in community colleges. The company is also involved with the Everyone Can Create program , which integrates creativity with math and science.

Health

Cook sees the health area as a major opportunity for growth. The company is working with the Veteran’s Administration to get patient records on the iPhone. The Apple Watch is expanding its use in wellness and health.

Apple’s goal is to have all future products use recycled substances.

Tim Cook

Tim Cook’s final comments about hiring, politics, and privacy:

Apple hires based on “skills, capabilities, and contributions”

“We’re capitalists”

“We believe in privacy”

No PACs

“We don’t donate one penny to political campaigns”

“Privacy is the most important issue of the century. We view it as a human right.”

“I’m a free market guy but we’re going for regulation” regarding privacy

“Everyone should have dual factor authentication”

Tailored Wealth Management

by Fred Fuld III

The book, Tailored Wealth Management: Exploring the Cause and Effect of Financial Success by Niall J. Gannon is a guide for those who are interested in increasing their wealth, especially young people who can get a significant mathematical head start.

One of the most interesting chapters was Chapter 2 Average Americans: Stories of “Ordinary” Success, where Gannon gives real life examples of those who started with moderate incomes, such as a janitor, and eventually became multi-millionaires.

Chapter 6 covers the factors that can reduce wealth, and what you can do to avoid those factors.

The book has extensive easy-to-understand tables and graphs as backups for the many theories and recommendations that are discussed in the book.

I recommend Tailored Wealth Management to investors, especially young investors, who are looking to grow their net worth  and achieve their financial goals.

Stocks Going Ex Dividend in March 2019

by Fred Fuld III

The following is a short list of some of the many stocks going ex dividend during the next month.

Many traders and investors use the stock trading technique called ‘Buying Dividends,’ also commonly referred to as ‘Dividend Capture.’ This is the strategy 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 in bull markets and flat or choppy markets, but you need to avoid the strategy 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 many with yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the periodic dividend amount, and annual yield.

Rocky Mountain Chocolate Factory, Inc. (RMCF) 3/4/2019 0.12 5.55%
Southwest Airlines Company (LUV) 3/5/2019 0.16 1.10%
QUALCOMM Incorporated (QCOM) 3/6/2019 0.62 4.81%
Kimberly-Clark Corporation (KMB) 3/7/2019 1.03 3.53%
Dunkin’ Brands Group, Inc. (DNKN) 3/8/2019 0.38 2.15%
Bed Bath & Beyond Inc. (BBBY) 3/14/2019 0.16 3.94%
Nasdaq, Inc. (NDAQ) 3/14/2019 0.44 2.02%
Las Vegas Sands Corp. (LVS) 3/19/2019 0.77 5.19%
Portland General Electric Company (POR) 3/22/2019 0.363 2.97%
Franklin Resources, Inc. (BEN) 3/28/2019 0.26 3.28%
Wolverine World Wide, Inc. (WWW) 3/29/2019 0.10 1.04%

The additional ex-dividend stocks can be found HERE . (If you have been to the page 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 HERE . 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.

Cosmetics Stocks are Looking Good

by Fred Fuld III

Did you happen to see what Coty (COTY) did during last several days? You could have bought the stock last week for a little above $7 per share. By Tuesday of this week, the stock jumped to over 11 per share, and increase of over 50%! Not a bad return for just a few days. Of course, it helped that Coty reported better than expected earnings of $0.24 per share versus an estimate of $0.222.

Coty is the New York City based beauty products company, that sells such brands as Burberry, Calvin Klein, Cavalli, Chloe, Davidoff, Escada, Gucci, Hugo Boss, Jil Sander, Joop!, Lacoste, Marc Jacobs, Miu Miu, philosophy, Stella McCartney, and Tiffany & Co. The stock trades at 18 times forward earnings and pays a very beautiful yield of 4.5%.

Just look through any women’s magazines and you will notice that the cosmetics, makeup, and skincare industry is tremendous. You will probably see 16 pages of ads, mostly for beauty products, before you even get to the table of contents.

Estee Lauder Companies Inc. (EL) has various brands including Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, American Beauty, and Bobbi Brown. The forward P/E ratio is 33 and the yield on the stock is 1.1%. Unfortunately the price sales ratio is a bit high at 4.04. However, diluted earnings per share for the latest quarter were $1.55 per share, up from $0.33 per share a year ago.

Avon Products Inc. (AVP) is a well known network marketing company which sells cosmetics, fragrances, skin care, and toiletries, along with various other products. They recently reported that their first-quarter profits nearly tripled. Avon’s forward P/E ratio is 37. It does not pay a dividend.

Revlon Inc. (REV) sells cosmetics, skincare products, perfume, and other personal care products through mass volume retailers, pharmacies, supermarkets, and department stores. The stock trades at 15.5 times forward earnings, and does not pay a dividend.

L’Oreal Co. ADR (LRLCY), based in Paris, France, is the largest cosmetics company in the world. The company markets such brands as PureOlogy Research, Redken, Lancôme, Yves Saint Laurent Beauté, Giorgio Armani Beauty, Ralph Lauren Fragrances, Maybelline, and numerous others. It has a forward P/E of 29 and a pretty decent yield of 1.7%.

Shiseido Co. Ltd. (SSDOY), based in Japan, is the oldest cosmetics company in the world, founded in 1872. Their products include Pureness, The Skincare, Benefiance, Bio-Performance, Suncare, and White Lucent. The stock trades at 30 times forward earnings and pays a small dividend of 0.5%.

The large conglomerates, such as Unilever NV (UN) and Procter & Gamble Co. (PG), have been excluded, as cosmetics only make up a small portion of their revenues.

Maybe some of these cosmetic stocks can make your portfolio looking a bit more attractive.

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

How to Invest in Valentine’s Day

by Fred Fuld III

There are just a couple days left to shop for Valentine’s Day. Why not give your loved one a Valentines stock, instead of one of the typical ones. The Valentines stocks include those that sell chocolate, jewelry, greeting cards, and gift wrap.

Here is a stock that is not very well know but very gift oriented. CSS Industries Inc. (CSS) markets gift wrap, gift bags, boxed greeting cards, gift tags, tissue paper, decorations, and decorative ribbons and bows. The stock trades at 7.8 times forward earnings, and pays a generous forward dividend yield of about 10%.

red rose

Flowers are always popular. 1-800-Flowers.com Inc. (FLWS) is the largest publicly traded company of flowers, plus it markets cakes, cookies, candy, wines, gift baskets, and other goodies for your valentine. The stock trades at 45.9 times forward earnings, and a price to sales ratio of 0.93.

chocolate candy

 Unless they have an allergy, all valentines like chocolate. The Rocky Mountain Chocolate Factory Inc. (RMCF), based in Durango, Colorado produces and sells various types of chocolate candy including caramels, creams, mints, and truffles. The company was founded in 1981, has over 300 franchise locations. The price to earnings ratio is 21.2. Rocky Mountain pays a very tasty dividend yield of 5.5%.

What valentine doesn’t like jewelry? Something like a Platinum Pear Cut Emerald And Round Diamond Pendant would make a nice gift. The price is only $120,443 and is available through Amazon (AMZN).

Tiffany (TIF), founded in 1837, is one of the largest jewelry companies in the world, with over 60 U.S. stores and numerous international locations. The stock trades at 16.8 times forward earnings. This stock also pays a dividend, with a decent yield of 2.5%.

 For more stocks that could increase sales from the Valentine experience, such as candy and chocolate stocks, check out the free lists here at WSTNN.com.

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

Dirty Words on Wall Street

by Fred Fuld III

It may be hard to believe, but some of the filings that public companies make to the Securities and Exchange Commission actually contain some dirty words. Occasionally, you may find an “F bomb” or an “S bomb” in one of these documents.

Sometimes the word is a typo, sometimes it is quoting from a conversation, and some times the company really means to say it.

The “F” Bomb

EX-10.8 of 10-Q for Grand Canyon Education Inc. (LOPE) has a list of derogatory domain names that it “purchased as a protective measure.”

This one for City National Bancshares looks like it may be the job of a hacker or maybe an attorney who thought he was sending a text to someone at the time.

Dirty quote in SEC filing

Here is an example of a filing with a quote of “such blasphemy” that someone  said that appears in the Chapman Capital Schedule 13 D from several years ago.

Dirty word SEC filing

The “S” Bomb

A more recent example is Shopify (SHOP). On its Exhibit 1.1 for the Form 40-F [2016 Annual InformationForm], the “S” word is shown in the Culture & Employees section.

Shopify

LendingClub (LC) has what appears to be a typo for an occupation on its Form 424B3. Doesn’t sound like a job anyone would want.

LendingClub

These are just a few examples. If you have a lot of free time on your hands, I’m sure you can find more.

Cruising for Cruise Stocks

by Fred Fuld III

January through March is generally the busiest time of the year for reservations on cruise lines, since it is the best time of year for vacationers to plan their spring and summer cruise vacations. And if you are a shareholder, you can get lots of complementary onboard credits.

There are just a few opportunities to climb on board with cruise stocks. Hopefully they won’t sink or experience choppiness, but will be smooth sailing for investors. Here they are:

Carnival Corp. (CCL)

Carnival is one of the largest cruise and vacation companies in the world. Their cruise lines which operate out of North America, the United Kingdom, Germany and Italy, include Carnival Cruise Lines, Holland America Line, Princess Cruises, Seabourn Cruise Line and Windstar Cruises in North America; AIDA in Germany; Costa Cruises in southern Europe; P&O Cruises, Cunard Line, Ocean Village and Swan Hellenic in the United Kingdom; and P&O Cruises in Australia. They are headquartered in Miami, Florida and London, England. The stock trades at 12.9 times trailing earnings and 11.5 times forward earnings. It pays a decent yield of 3.55%.

Carnival plc (CUK)

This is the ADR for the Carnival stock which trades on the London Exchange. An explanation is necessary. Carnival Corporation & Carnival plc operates under a dual listed company structure in which Carnival Corporation and Carnival plc operate as a single economic entity through contractual agreements between each of their own separate legal entities. Shareholders of both Carnival Corporation and Carnival plc have the same voting participation and economic interest but their shares are listed on different stock exchanges and are not fungible. [Is this as clear as dirty water?]

Carnival Corporation common stock is traded on the New York Stock Exchange under the symbol CCL. Carnival plc is traded on the London Stock Exchange under the symbol CCL and as an ADS on the New York Stock Exchange under the symbol CUK.

Carnival is the only company in the world to be included in both the S& P 500 index in the US and the FTSE 100 index in the UK. If you look at the graphs for the Corp. and the plc stocks, they match almost perfectly

Royal Caribbean Cruises Ltd. (RCL)

This company owns Royal Caribbean International and Celebrity Cruises. It also owns Pullmantur S.A., which has ships in Europe and Latin America. The company also offers land tour vacations in Alaska, Canada and Europe. It is headquartered in Miami, Florida. The stock has a trailing P/E 13.4 and a forward P/E or 11.3. It has a yield of 2.5%.

Norwegian Cruise Line (NCLH)

This company operates the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. The stock trades at 12.2 times trailing earnings and 9.5 times forward earnings.

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