Take Buffett’s Advice: 5 Vanguard Funds to Buy

[Editor's note: "Take Buffett's Advice: 5 Vanguard Funds to Buy" was previously published in December 2019. It has since been updated to include the most relevant information available.]Vanguard should probably be thanking Warren Buffett.In Berkshire Hathaway's (NYSE:BRK.A, NYSE:BRK.B) 2014 shareholder letter, Buffett mentioned Vanguard funds in a big way. Specifically, he recommended that the cash left to his wife be invested 10% in short-term government bonds and 90% in a very low-cost S&P 500 index fund. Not just any index fund mind you, but a Vanguard fund in particular.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Entertainment Stocks to Buy to Escape Holiday Blues Whether it be exchange-traded funds (ETFs) or mutual funds, the Oracle of Omaha believes Vanguard funds are the way to go. With that in mind, I've put together a portfolio of two ETFs, two mutual funds and a fifth wildcard. The resulting portfolio should be appropriate for Buffett's wife -- or anyone else, for that matter. Vanguard 500 Index Fund Admiral Shares (VFIAX)Source: Casimiro PT / Shutterstock.com Allocation: 50% of Portfolio 10-Year Performance: 13.5%The goal is to keep costs to a minimum while generally sticking to Buffett's hypothesis when it comes to his wife's investments. Although Vanguard does offer commission-free ETFs, I recommend a mutual fund for the S&P 500 investment.The Vanguard 500 Index Fund Admiral Shares (MUTF:VFIAX) charges an annual expense ratio of just 0.04%, or $4 on a $10,000 investment.Your annual fees would amount to a mere $20 on a $50,000 portfolio. That's hard to beat, and Buffett knows it. The largest holdings in this fund include Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). The minimum investment is $3,000. Vanguard Mid-Cap Index Fund Admiral Shares (VIMAX)Source: Shutterstock Allocation: 20% of Portfolio 10-Year Performance: 13.1% The VFIAX covers the large-capitalization portion of the portfolio quite nicely. While Buffett might not be fond of mid-cap stocks being added to the mix, evidence suggests mid-caps outperformed large-cap stocks over a four-year period between 2009 and 2013.In fact, John Hancock published a report cautioning investors about underweighting mid-caps because of an assumption that a large-cap fund combined with a small-cap fund will do the job. That's simply not the case.Mid-cap stocks tend to provide an attractive combination of risk and reward. For this reason, I recommend the Vanguard Mid-Cap Index Fund Admiral Shares (MUTF:VIMAX), which tracks the CRSP Mid Cap Index, an index composed of stocks that fall between the top 70%-85% of investable market capitalization.They're big enough to survive an economic hit but small enough to still be growing. With an expense ratio of 0.05%, this entry on our list of Vanguard funds is giving you safety and performance in one. Top holdings include Newmont (NYSE:NEM), Centene (NYSE:CNC) and TransDigm (NYSE:TDG). Vanguard FTSE All-World ex-US Small-Cap ETF (VSS)Source: Shutterstock Allocation: 10% of Portfolio 10-Year Performance: 6.2% Although I just said mid-cap stocks are a key part of any portfolio and tend to outperform small-caps while utilizing less risk, there is always a place for small-caps in your portfolio.That's especially true when the two previous picks from Vanguard Funds are almost 100% invested in the U.S. with virtually no international exposure. For this reason, a little bit of love outside America makes total sense.My recommendation is to go with the Vanguard FTSE All-World ex-US Small-Cap ETF (NYSEARCA:VSS), a fund that tracks the performance of the FTSE Global Small Cap ex US Index, which consists of over 3,000 stocks in dozens of countries. Investing in both developed and emerging markets, the fund provides good exposure to some of the world's future stars at an annual expense ratio of just 0.12%.With such low fees, it's no wonder $6.8 billion is invested in this ETF. Vanguard Short-Term Treasury ETF (VGSH)Source: Shutterstock Allocation: 10% of Portfolio 5-Year Performance: 1.2% Buffett recommends that 10% of his wife's portfolio go to short-term government bonds. Vanguard Funds has an ETF that does exactly that.The Vanguard Short-Term Treasury ETF (NASDAQ:VGSH) invests in investment-grade U.S. government bonds with average maturities between one and three years. The risk, on a scale of one to five, is one -- meaning this Vanguard ETF is for conservative investors looking for stable share prices.And with an expense ratio of 0.05%, this ETF should give you peace of mind for your short-term needs. Vanguard Consumer Staples ETF (VDC)Source: Shutterstock Allocation: 10% of Portfolio 10-Year Performance: 12.1% On this final piece of the puzzle, I'm going defensive. The mutual fund version of the S&P 500 has less than 10% invested in consumer staples. I mean to remedy that by putting the final 10% in the Vanguard Consumer Staples ETF (NYSEARCA:VDC), a collection of 92 household names including Procter & Gamble (NYSE:PG) and Coca-Cola (NYSE:KO).Since its inception in 2004, VDC has had but one year of negative annual total returns, and that was in 2008 when it experienced a 17% decline -- 20 percentage points better than the S&P 500. When the you-know-what hits the fan, you'll be glad you own this particular low-cost ETF. It has an expense ratio of just 0.10%.It seems the "keep it simple" rule holds true, and Warren Buffett is the No. 1 follower.As of this writing, Will Ashworth did not own a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Hot Stocks Staging Huge Reversals * 7 Under-The-Radar Growth Stocks That Could Benefit New Investors * 5 Excellent High-Yield Dividend Stocks to Buy The post Take Buffett's Advice: 5 Vanguard Funds to Buy appeared first on InvestorPlace.

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Morgan Stanley is paying $2,500 per customer for E-Trade. You can earn a $3,500 sign-up bonus for signing with a new broker — with one major catch

If the latest Wall Street mega-deal doesn’t make you want to switch online brokerage accounts for a lucrative sign-up bonus, maybe it should. Wall Street giant Morgan Stanley announced an agreement Thursday to pay $13 billion to acquire the online brokerage E-Trade which has 5.2 million customer accounts. “The combination will significantly increase the scale and breadth of Morgan Stanley’s Wealth Management franchise, and positions Morgan Stanley to be an industry leader in Wealth Management across all channels and wealth segments,” Morgan Stanley said in a statement.

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Alibaba Is the Best Contrarian Coronavirus Pick Now

The coronavirus from China has dominated the headlines so far this year as Beijing struggles to get a handle on its spread. The wider market has largely written it off, but Chinese stocks have seen investor sentiment drop. While it's true that the coronavirus is likely to dent China's economy and create challenges for its businesses, there are a handful of contrarian plays that make great buy-the-dip-candidates now. Alibaba (NYSE:BABA) stock is one such contrarian play that will likely pay off in the long term.Source: zhu difeng / Shutterstock.com Notably, when the firm released its earnings on Feb. 13, CEO Daniel Zhang admitted that the coronavirus presented a challenge. Zhang said the virus would, "present near-term challenges to the development of Alibaba's business across the board."Alibaba CFO Maggie Wu noted that, "The means of production in the economy has been hampered by the delayed opening of offices, factories and stores." Because of that, Wu said revenue growth would struggle in the current quarter. InvestorPlace - Stock Market News, Stock Advice & Trading TipsThere's no doubt that the current quarter is likely to be a rough one for Alibaba its Chinese peers. But the impact, at least for Alibaba, looks likely to be short term. Alibaba Stock Is a BuyMark Schild, an assistant dean at Seaton Hall University's Stillman School of Business, told InvestorPlace in an email that he believes the e-commerce segment is likely to feel the smallest impact from the coronavirus outbreak. * 10 S&P 500 Stocks to Buy Increasing Their Dividends in 2020 "As with all companies, especially Asian companies, the Coronavirus must be paid attention to, as there is little question that parts of the economy may slow down," Schild wrote. "However, retail/online shopping will most likely not be the first area to be hurt, just the opposite as fears of virus may keep people out of malls and on the computer."Schild says now that Alibaba has released its earnings report without any surprises, "the general momentum of the markets should continue to benefit BABA shareholders."Susquehanna Investment Group's Shyam Patil took a similar tone, saying that the firm's long-term growth story remains intact. He called Alibaba a "China e-commerce category killer with a large secular growth opportunity ahead." Patil gave Alibaba stock a $260 price target. That represents 20% upside from where it's trading today.Indeed, Alibaba's third-quarter results -- before the virus -- were impressive. Sales were up nearly 40% from the previous year and the nation's "Singles' Day" saw record sales. On top of that, both revenue and earnings per share topped analyst estimates.On top of that, Alibaba's cloud business showed promise as revenue rose more than 60%. So far, Alibaba's cloud business has been confined to China, but the company says it's planning to make its way overseas soon. If Alibaba's cloud arm continues with this kind of momentum, it will likely become profitable sooner than expected. Those profits would boost the firm's bottom line substantially. Alibaba Is on Sale NowThe bottom line for Alibaba stock is, if you liked it before, then you should really like it now. Alibaba shares are trading at just 3 times the firm's forecast earnings. That's well below the S&P 500 average go 19.5.While the past four years have seen Alibaba's share price more than triple, the firm still has further to fly. Morningstar noted that despite Alibaba's exponential rise, the business still has a long growth runway. As of September 2019, the firm had 693 million active buyers. That's roughly half of the nation's entire population -- that means there's plenty of room for the firm to continue expanding its e-commerce market in the years to come. Plus, Alibaba's impressive collection of customer data makes it one of the most desirable marketplaces. Morningstar's R.J. Hottovy noted that Alibaba's transition to a data-centric conglomerate has opened up a host of possibilities for future growth."We've long thought that a strong network effect allows leading e-commerce players to extend into other growth avenues, and nowhere is that more evident than Alibaba." The Future of AlibabaOver the next few months, investors should expect turbulence among Chinese stocks. However, I believe investors have digested the impact of coronavirus on the e-commerce giant and are unlikely to punish the stock next quarter. Even if they do, that makes for another great entry point for long-term investors. Alibaba looks like a great long-term bet, coronavirus or not. Laura Hoy has a Finance degree from Duquesne University and has been writing about financial markets for the past 8 years. Her work can be seen in a variety of publications including InvestorPlace, Benzinga, Yahoo Finance and CCN. As of this writing, Laura Hoy did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 S&P 500 Stocks to Buy Increasing Their Dividends in 2020 * 5 Tech Stocks Vying to Win the AR/VR Race * 7 U.S. Stocks to Buy on Coronavirus Weakness The post Alibaba Is the Best Contrarian Coronavirus Pick Now appeared first on InvestorPlace.

Bearish Bets: 2 Stocks You Should Consider Shorting This Week

Using recent actions and grades from TheStreet's Quant Ratings and layering on technical analysis of the charts of those stocks, Trifecta Stocks identifies five names each week that look bearish. While we will not be weighing in with fundamental analysis we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names. Dillard's Inc. recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings.

FuelCell Energy Is Still a Gamble Despite New ‘Powerhouse’ Strategy

FuelCell Energy (NASDAQ:FCEL) is an interesting company but a speculative stock. The shares have been climbing out of the market's basement since last summer, on the strength of its business with utilities.Source: Kaca Skokanova/Shutterstock FCEL systems, sold under the name SureSource, help maintain baseload power and can run on biogas produced by wastewater treatment.Fuel cells work by combining hydrogen with oxygen through chemical membranes to create energy with water as the waste product. Smaller fuel cells are used to power warehouse forklifts, but FCEL is not in that business.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFuel cell companies are constantly seeking sustainable niches for a product that seems too good to be true. The problem has always been that the main source of hydrogen was natural gas, an unsustainable fossil fuel. FCEL claims it has solved that problem. The Potential Is BigAnalysts are big on fuel cells. There are lots of "hockey stick graphs" being produced. These are graphs that show a slow-growing industry or company suddenly taking off 3-5 years down the road, producing a revenue chart that looks like a hockey stick. * 10 S&P 500 Stocks to Buy Increasing Their Dividends in 2020 One of the most popular of these charts, from Grand View Research, shows fuel cells as a $33 billion market in 2027, growing at 15.5% per year. There are several types of fuel cells. Demand is expected to be driven by the rise of unconventional power sources like solar, wind and biogas.That's what FuelCell is offering in Tulare, California. Gas from water treatment that was previously burned off is now being turned into energy that runs the plant. There's a power purchase agreement with the local utility to buy the rest of the power, and a $14.4 million sale-leaseback deal to finance it. Dicey NumbersDeals like Tulare are why investors are willing to play penny poker with FCEL.The stock's market capitalization of $630 million supports trailing-year revenue of about $67.6 million, and there have never been profits. But whenever buyers come in, as they did Feb. 18, the stock draws headlines.The expectation is for rapid growth. The company's most recent earnings release, however, showed revenue of just $11 million, down 38% from a year earlier. But it arrived alongside another release touting a new strategy called "Powerhouse," with former software executive Jason Few as CEO.Few worked with management consultants Huron Consulting (NASDAQ:HURN) to turn many of its loans from Orion Energy Partners into stock, then closed a new $200 million lending facility with Orion. This should provide stability, as the company burned $40 million in cash in the fiscal year ending last October. The Bottom Line on FCEL StockAll this creative financing worries InvestorPlace's Thomas Niel, who warns it could limit the stock's growth opportunities.That's not an unusual take. Usually, when InvestorPlace writers look at FCEL, we turn our thumbs down on it.Vince Martin put an optimistic headline on a recent story that nevertheless warned about past failures. Tom Taulli reminded readers that this was a 20-cent stock last June. He suggested those who got in then get out now.Will Ashworth looked at FCEL in February and preferred Bloom Energy (NYSE:BE). David Moadel said you should avoid FCEL even if you're bullish on renewable energy.My own view remains what it was in January. FuelCell needs to show some big orders from utilities before I'm going to believe the Powerhouse strategy is going to work. I'm willing to forego speculative gains to buy into a sustainable business. I'm willing to wait for it.Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of the environmental thriller Bridget O'Flynn and the Bear, available at the Amazon Kindle store. Follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this story. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 S&P 500 Stocks to Buy Increasing Their Dividends in 2020 * 5 Tech Stocks Vying to Win the AR/VR Race * 7 U.S. Stocks to Buy on Coronavirus Weakness The post FuelCell Energy Is Still a Gamble Despite New 'Powerhouse' Strategy appeared first on InvestorPlace.

3 Monster Growth Stocks Primed for Further Gains

When it comes down to it, investors are focused on a single factor: a stock’s ability to deliver returns. As Wall Street observers gauge the strength of a particular investment opportunity, often, they will filter out the noise and instead, concentrate their attention on its long-term growth prospects. We are referring to whether or not a name can achieve sustainable growth over the long haul, handsomely rewarding investors in the years to come.So, with this goal in mind, what’s the first step for investors ready to get down to business? It’s narrowing down the multitude of tickers traded in the public market to a select few that represent the pick of the bunch. To make it into this exclusive group, these names should not only have strong long-term growth narratives, but also the analyst community’s support.Setting out on our own search, we used TipRanks’ Stock Screener tool to pinpoint 3 stocks that have earned “Strong Buy” consensus ratings from the analysts and boast substantial upside potential from current levels.Let’s get started.Selecta Biosciences (SELB)Selecta Biosciences believes that its ImmTOR immune tolerance platform can help patients fight rare diseases. Currently, biologic drugs can trigger neutralizing antibodies (NAbs) that work against the therapy, but ImmTOR technology allows for immune tolerance of the therapy. With this biotech already having gained 107% over the last twelve months, investors want to know if there’s more fuel left in the tank.According to Mizuho Securities analyst Difei Yang, the answer is yes. She highlights the COMPARE trial as being the driving force behind her bullish thesis. The Phase 2 clinical trial is evaluating its lead candidate, SEL-212, in patients with chronic refractory gout, specifically looking at its efficacy in resolving symptoms like flares and gouty arthritis. Based on earlier clinical data, a combined therapy of ImmTOR and pegadricase, the current uricase therapy approved by the FDA, was able to reduce the occurrence of gout flares. As a result, the data allowed SEL-212 to proceed to a head-to-head COMPARE trial, the enrollment of which was completed back in December.Yang argues that the “encouraging” interim data increases the therapy’s likelihood of FDA approval. When looking at the big picture, she is optimistic about the platform as it may lead to a re-dosing of gene therapy. Additionally, she points out that the company was able to cut its financing overhang.Given Yang’s high hopes for SELB, it makes sense that she stayed with the bulls. Not only did she maintain a Buy rating, but she also bumped up the price target from $4 to $7. This new target conveys her confidence in the biotech’s ability to climb 66% higher over the next year. (To watch Yang’s track record, click here)What does the rest of the Street have to say? As it turns out, when it comes to SELB, other analysts are also on board. With 5 Buy ratings assigned in the last three months compared to no Holds or Sells, the word on the Street is that the stock is a Strong Buy. Not to mention the $8.67 average price target puts the potential twelve-month gain at 105%. (See Selecta stock analysis on TipRanks) Ocular Therapeutix (OCUL)This biopharma uses a hydrogel platform to develop innovative treatments for various eye diseases. While its DEXTENZA insert has received FDA approval for the treatment of inflammation and pain following ophthalmic surgery, analysts point to its development pipeline as being capable of driving further growth on top of its already posted 57% one-year rise.On February 7, the company released data from the Phase 1 clinical trial for its OTX-TIC candidate at the Glaucoma 360 conference in San Francisco. The trial is studying the long acting travoprost intracameral implant’s ability to reduce intraocular pressure (IOP) in patients with primary open angle glaucoma or ocular hypertension.The data readout was a major positive for the company, as the candidate was not only able to lower IOP levels very fast, but it also sustained these reduced levels for significant periods of time, 18 months in one case. Adding to the good news, OTX-TIC was found to be well tolerated and safe, with no serious adverse events reported. It should also be noted that OCUL has kicked off the third and fourth cohort enrollment for the Phase 1 trial, and it will continue to monitor the first two cohorts long-term.This trial outcome has certainly impressed Wall Street analysts, namely Yi Chen of H.C. Wainwright. Thanks to the positive data announced so far, the five-star analyst argues that the candidate is more likely to receive approval from the FDA, increasing the pobability from 20% to 30%. To this end, Chen boosted the price target by $2 in addition to reiterating his Buy recommendation. At $8, the new target implies that shares could surge 42% over the next year. (To watch Chen’s track record, click here)Like the H.C. Wainwright analyst, Piper Sandler’s Joseph Catanzaro believes that the data was promising enough to warrant a price target increase. Along with his Overweight rating, the four-star analyst lifted the price target from $5.50 to $7. (To watch Catanzaro’s track record, click here)When looking at other analyst activity, it has been relatively quiet as only one other analyst has published a recent review. That being said, the call was also bullish, making the consensus rating a Strong Buy. Given the $7.33 average price target, a 30% twelve-month gain could be in the cards. (See Ocular Therapeutix stock analysis on TipRanks) Lithia Motors (LAD)Switching gears now, we move on to Lithia Motors, one of the largest car retailers in the U.S. While the name has taken some heat recently, several analysts still see more growth in store for the company, which has already posted a 46% twelve-month gain.In 2019, Lithia became the broadest coast-to-coast car retail network after it expanded its reach to include 92% of the U.S. Currently, the company’s physical network is comprised of 189 stores located across the U.S., with 21 brands of vehicles being represented in California alone.That being said, the auto retailer isn’t finished growing just yet. Last week, Lithia announced that it had acquired two Lexus stores in Sacramento and Roseville, California. According to statements from President and CEO Bryan DeBoer, these two locations could see revenue reach $160 million.Craig-Hallum analyst Ryan Sigdahl doesn’t dispute the fact that the temporary pressure on margins caused him to assume a lower premium to comps. He does remind investors, though, that overall, the company’s most recent quarter was solid. During the quarter, Lithia Motors was able to generate “strong” 7% year-over-year same-store sales growth in a slowing SAAR environment as a result of strength in its used vehicle business. Additionally, the analyst argues that the reason its profits took a hit was its integration of recent acquisitions and its efforts to position itself for a “banner year of growth”.In line with his optimistic approach, Sigdahl tells investors that the recent weakness presents an attractive entry-point. Along with his Buy rating, though, the analyst did reduce the price target from $200 to $170. However, the target still leaves room for a possible twelve-month gain of 31%. (To watch Sigdahl’s track record, click here)Looking at the consensus breakdown, it appears that other Wall Street pros are on the same page. As 100% of the analysts that have issued a recent recommendation see the stock as a Buy, the message is clear: LAD is a Strong Buy. On top of this, the $168 average price target suggests 30% upside potential. (See Lithia Motors stock analysis on TipRanks)

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Will Nokia Stock Rebound in 2020? 4 Things Investors Should Know

It's been a rough year for the Finnish telecommunications company Nokia (NYSE:NOK). In 2019, NOK stock lost roughly 35% of its value due to the company's disappointing revenue guidance.Source: RistoH / Shutterstock.com Nokia also suspended its dividend so it could focus more on investing in 5G networks. That was probably the right decision from a business perspective, but it made the shares less attractive to investors.Things are looking tenuous for NOK stock right now, but all hope is not lost. The company is still considered a strong buy on Wall Street and there is hope that the shares could rebound in 2020.InvestorPlace - Stock Market News, Stock Advice & Trading TipsListed below are four things that are going well for Nokia stock: 1\. Nokia Could Benefit From the Backlash Against HuaweiOne of the biggest things Nokia has going for it right now is the backlash against the Chinese technology company Huawei. Huawei is one of Nokia's biggest competitors in the 5G space. * 10 S&P 500 Stocks to Buy Increasing Their Dividends in 2020 The U.S. claims that Huawei is a security threat and that its equipment could be used by the Chinese government to spy on citizens. For that reason, the Trump administration has been pressuring other countries to ban Huawei from developing their 5G networks.No American company directly competes with Huawei, leading U.S. Attorney General William Barr to recommend that the government consider taking a stake in the Chinese company's competitors, including Nokia. His theory is that investing in Nokia would prevent Huawei from dominating 5G.The U.S. probably won't buy a stake in Nokia, but the negative sentiment toward Huawei could still benefit Nokia in the long run. 2\. Nokia Is Reshuffling Its LeadershipNokia recently announced that it's reshuffling its leadership team and eliminating its chief information officer position. These responsibilities have been absorbed by the company's chief digital officer.According to Nokia's management, combining the two positions will streamline operations and make it easier for the company to roll out new initiatives. And Nokia plans to continue to find ways to improve its overall efficiency. 3\. The Company's Q4 Results Beat the Average EstimatesWall Street is feeling more optimistic about Nokia after it released a positive Q4 earnings report this month. Nokia beat analysts' average revenue and earnings estimates and delivered upbeat guidance for 2020.That came as a pleasant surprise for investors, who were disappointed by the company's Q3 results. In October, Nokia cut its earnings outlook for the rest of the year. Its Q4 earnings beat came as a result of the company's cost-cutting measures and strategic initiatives. 4\. Nokia Has Landed Several Large 5G DealsNokia has a real opportunity available when it comes to the growing demand for 5G. In 2019, the company signed deals with global providers to introduce 5G networks across Australia, New Zealand, Egypt, Saudi Arabia, Norway, Switzerland, and South Africa.But the company will continue to face challenges. Nokia is not immune to the trade war between the U.S. and China. And the company's revenue has declined considerably over the past couple of years.That being said, if Nokia can find a way to capitalize on the 5G opportunity, a turnaround could be in store for the company. And the company's low share price could provide an attractive entry point for new investors.As of this writing, Jamie Johnson did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 S&P 500 Stocks to Buy Increasing Their Dividends in 2020 * 5 Tech Stocks Vying to Win the AR/VR Race * 7 U.S. Stocks to Buy on Coronavirus Weakness The post Will Nokia Stock Rebound in 2020? 4 Things Investors Should Know appeared first on InvestorPlace.

3 Marijuana Stocks Poised to Lead a Sector Rebound

As the Canadian cannabis market continues to fail to meet sales projections, the licensed producers (LPs) with the best balance sheets are poised to lead a market rebound. With both Aurora Cannabis and Tilray implementing restructurings, the industry could see a void in certain markets providing opportunities for companies with the ability to fund growth initiatives.Based on the Aurora restructuring, the company is exiting several international markets along with shifting a focus to a value brand. Along with cutting cultivation goals from close to 700,000 kg to only 150,000 kg, the company plans to strip out over C$60 million in quarterly operating expenses. The disruption from removing so many expenses should leave some voids in the market allowing opportunistic moves by companies with the ability to continue investing.In a smaller manner, Tilray is cutting 10% of their workforce. The company hasn’t detailed their plans regarding exiting any businesses, but a business the size of Tilray cutting 140 employees will leave an inevitable void. The move will allow a better funded business to capture more market share as the job functions of the exiting employees aren’t fully absorbed within the smaller workforce.We’ve delved into these three Canadian companies poised to lead a market rebound as other companies restructure and focus on survival:Aphria (APHA)Aphria remains the best value in the sector combined with having the catalysts of their new facility ramping up production. The stock is down to only $4.20 now offering only a $1.12 billion market valuation.The company recently reported FQ2 revenues of C$120.6 million along with positive EBITDA. The cannabis business only accounts for C$33.7 million in quarterly revenues, but the business is poised to jump due to the Aphria Diamond facility increasing production capacity to 255,000 kg annually from a previous level of only 115,000 kg.Aphria forecast revenues reaching C$600 million in FY20 leading to a near C$50 million boost per quarter for the 2H of the year. The big forecast includes adjusted EBITDA in the C$40 million range.The Canadian cannabis company recently raised C$80 million secured by the new cultivation facility pushing the cash balance to nearly C$500 million at the end of November. In January, Aphria raised another C$100 million from an institutional investor to provide additional capital for international expansion and working capital.Due to the additional cultivation capacity, Aphria has a major catalyst to boost the company from existing levels. The stock has the better potential for substantial gains on a turnaround due to their leading financial position and low valuation.The word on the Street rings largely bullish on this cannabis player, with TipRanks analytics demonstrating APHA as a Moderate Buy. Out of 6 analysts tracked in the last 3 months, 4 are bullish on Aphria stock, while 2 remain sidelined. With a return potential of over 60%, the stock's consensus price target stands at $6.83. (See Aphria stock analysis at TipRanks)Cronos Group (CRON)Cronos is the one company with the cash balance that hasn’t aggressively spent the balance as of yet. The cannabis company ended the September quarter with a cash balance of $2.0 billion from the investment by Altria Group all the way back in 2018.Analysts only forecast 2020 revenues reaching $118 million due to the lack of investments in cultivation facilities so far with the focus more on building global operations, CBD products and Cannabis 2.0 products. The company has an asset-light strategy with a focus on buying cannabis derived products from third parties to be branded under Cronos brands. The biggest issue for the stock is the strategy has been light on products.Investors should see Cronos as the most likely acquirer of beaten down assets, especially any strong cannabis brands that don’t have the capital to remain in business or expand. In this manner, the company is likely to lead the market turnaround via consolidation.A few timely deals to remove a couple of competitors from the Canadian cannabis market could do wonders for removing capacity and pricing pressure from the sector. Cronos can easily spend $500 million to $1 billion without damaging their capital position and ability to invest in growing the existing businesses while boosting their revenue streams.Based on the above factors, Wall Street also has high hopes for CRON. As 3 Buy ratings were assigned in the last three months compared to no Holds or Sells, the consensus is a ‘Strong Buy.’ To top it all off, its $10.29 average price target puts the potential twelve-month gain at a whopping 43%. (See Cronos stock analysis at TipRanks)Canopy Growth (CGC)The largest valued cannabis stock remains Canopy Growth. The company has the cash and backing from Constellation Brands to lead in any sector rebound.For the just reported quarter, Canopy generated December revenues of C$123.8 million for 49% growth over last year due to European acquisitions in the CBD space. The company is now double the size of Aurora and, prior to any reorganization, is spending C$150.3 million on operating expenses or at least three times the reduced base of Aurora.New CEO David Klein discussed some general plans to reorganize the business, but investors shouldn’t expect the scale of the others. Clearly, Canopy needs to cut the C$91.7 million quarterly EBITDA loss in order for the market to have confidence in their sector leadership in the future.The company can reduce the EBITDA loss via revenue growth and higher margins, but some additional constraints on operating expenses would go a long way to reduce any fears of out of control losses. Canopy has a C$2.3 billion cash balance remaining from the Constellation Brands investment allowing for continued investment in international markets and Cannabis 2.0 products. The large cash balance allows the new CEO to continue investing while shutting some smaller segments not generating strong margins and burning cash.The biggest issue for the stock is the $8 billion market valuation. The stock trades at 14x FY21 revenue estimates of ~$550 million. The stock will rebound on any cannabis turnaround, but investors shouldn’t expect massive gains due to the large cap status of Canopy.To find good ideas for cannabis stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclosure: No position.

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The Wait for China to Shake Off Virus Nears Key Moment: Eco Week

(Bloomberg) -- Global economists are continuing to grapple with a new and unexpected threat to economic growth, leaving them scrambling to assess how quickly commerce can recover from the impact of the coronavirus.Research by Bloomberg Economics shows China is slowly getting back to work, with the economy running at 50%-60% capacity in the week to Feb. 21 and forecast to jump from Feb. 24. Still, the spread of the virus is starting to ripple into supply chains across the world, and showing up in data across Asia and Europe.In more conventional economic matters, policy makers from the U.K., Canada, Europe and the U.S. give speeches that may give clues into their view of the global outlook, while the world’s biggest economy publishes personal spending data.Here’s what happened last week and below is our weekly wrap of what else is going on in the world economy this week.AsiaAs the coronavirus’s spread continues to overshadow the region, China will release PMI data on Saturday that will give the first official read on how badly the world’s second-largest has been hit. South Korea’s central bank will meet to set policy on Thursday. Governor Lee Ju-yeol has warned the coronavirus outbreak could have a negative impact on the economy, but downplayed growing speculation the bank was preparing to cut interest rates.South Korea GDP, BOK Rate During SARS, MERSPresident Donald Trump is scheduled to travel to India from Monday to meet Prime Minister Narendra Modi. The White House has downplayed speculation that the leaders will make progress on a planned trade deal. India also publishes fourth-quarter GDP data on Friday.For more, read Bloomberg Economics’ full Week Ahead for AsiaEurope, Middle East and AfricaWith the fallout from the coronavirus very much on policy makers’ minds, European Central Bank President Christine Lagarde and more than half a dozen Governing Council members are scheduled to speak. ECB Chief Economist Philip Lane told Bloomberg Television on last week that he expects the euro-area economy to bounce back from the outbreak and economic sentiment data for Germany on Monday and for the region on Thursday will show if it has left its mark on confidence. German inflation and unemployment data round off the week and Jens Weidmann presents the Bundesbank’s annual report.In the U.K., its a quiet week for data, with confidence and housing reports the most prominent. Meanwhile BOE officials Andy Haldane and Jon Cunliffe are due to speak. Hungary’s central bank holds rate-setting meeting on Tuesday. It’s a meeting to watch as policy makers hinted they may use all tools: while a change in rates is unlikely, the post-decision statement may hint at the end of the ultra-dovish era.Slowing inflation and a strengthening currency are putting pressure on the Bank of Israel to take a move dovish stance, but solid economic growth in the fourth quarter means the central bank is likely to hold interest rates again on Monday. South African Finance Minister Tito Mboweni budget’s on Wednesday could be key in determining whether Moody’s Investors Service downgrades the nation’s debt to junk status next month.Also on Wednesday, Botswana’s central bank could cut interest rates again to boost slowing economic growth. While inflation in Mozambique is still low and the IMF has said there is room to cut, the metical has weakened to the lowest level against the dollar since 2017, which means the central bank may continue to hold rates on Thursday.For more, read Bloomberg Economics’ full Week Ahead for EMEAU.S. and CanadaOn Tuesday, Federal Reserve Vice Chairman Richard Clarida discusses the outlook for interest rates and the economy at a conference in Washington, where speakers will also include IMF chief economist Gita Gopinath and Cleveland Fed President Loretta Mester. Later in the week, reports on consumer spending and durable-goods orders are expected to show the U.S. economy off to a modest start to 2020, while the Fed’s preferred inflation gauge may have accelerated to the fastest pace in a year.Canadian fourth-quarter GDP data out on Friday will show the extent of the Canadian economy’s slowdown at the end of last year, and whether the nation’s expansion has any momentum at all going into 2020. Earlier in the week, Bank of Canada Deputy Governor Tim Lane gives a speech on digital currencies.For more, read Bloomberg Economics full Week Ahead for the U.S.Latin AmericaMexico takes center stage in Latin America this coming week with Brazil and Argentina celebrating the Carnival holiday through midweek. Monday’s bi-weekly consumer price report is followed a day later by the final reading on fourth-quarter gross domestic product, which should affirm that the economy in 2019 posted its worst performance in a decade.On Wednesday, the central bank’s quarterly inflation report updates official forecasts for all manner of economic indicators. Capping the week, the minutes of Banxico’s last meeting published Friday will likely cement bets that a sixth straight interest-rate cut is in the offing when policy makers meet next month.For more, read Bloomberg Economics’ full Week Ahead for Latin America\--With assistance from Theophilos Argitis, Scott Lanman, Robert Jameson, Rene Vollgraaff, Malcolm Scott, Brendan Murray and Andrea Dudik.To contact the reporter on this story: David Goodman in London at dgoodman28@bloomberg.netTo contact the editors responsible for this story: Simon Kennedy at skennedy4@bloomberg.net, Zoe SchneeweissFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

I’m 40, will get a pension and have $60,000 saved for retirement. Should I borrow from it to pay off $17,500 in credit card debt?

Is it a good idea to borrow from your 457(b) plan to pay off credit card debt? You’re not alone in your struggle with credit card debt: More than half (55%) of U.S. adults who have credit cards say they also have debt, a survey from CNBC and Morning Consult revealed in 2019. Having that credit card debt can take an emotional toll, too: Six in 10 people with credit card debt say they find it stressful, one survey revealed. So should you rush to pay it off with your retirement funds?

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Analysts: These 3 Tech Stocks Won’t Stay Under-the-Radar for Long

It’s no secret that the markets had a great year in 2019. The S&P 500 rose 29% by year’s end, and the NASDAQ, with its heavy emphasis on tech stocks, performed even better, growing 35% for the year. In a curious demonstration of uneven gains, just two companies – Apple and Microsoft – accounted for 15% of the S&P’s total annual gains.Are the good times over, though? The markets appear to be slowing so far this year, and analysts are predicting only a 3% to 5% gain by the end of 2020. Headwinds are forming, as the coronavirus outbreak impinges on trade and travel patterns in Asia as well as a growing list of other regions. The impact has been particularly felt in the tech sector, where companies generally have more exposure to China.But this doesn’t mean that investors should steer clear of tech. There are still plenty of Buy-rated choices available – if you’re willing to look a little deeper. We’ve used the Stock Screener tool from TipRanks to pull up three such stocks, small-cap companies with upside potential in excess of 20%. Here are the results.Allot, Ltd. (ALLT)We’ll start with Allot, a cloud computing company focused on network intelligence and security solutions. The company’s products include security as a service (SECaaS), DOS protection, and network intelligence and traffic management. Allot is a fast-growing company in the cloud software niche, as shown by the recently reported Q4 2019 results.The company reported Q4 revenue grew 14% year-over-year to reach $30.6 million, with annual revenues of $110.1 million reflecting a 15% increase. Like many small-cap tech companies, Allot reported a net loss per share in the quarter, of 5 cents. This didn’t scare off investors as the stock is up 41% so far this year.Looking ahead, Allot is confident in its ability to drive continued growth. Management reported a bookings backlog worth $138 million – a sign that customer interest remains strong. Projecting the backlog will lend itself to future sales, the company guides for 2020 revenue in the range of $135 million to $140 million.Covering this stock for Needham, 5-star analyst Alex Henderson has given ALLT a Buy rating and a rare double price target increase this month. He initially raised his target from $9.50 to $11.50, but has since lifted it to $15. In total, that’s a 58% increase in his outlook for the stock, and suggests a 26% upside potential. (To watch Henderson’s track record, click here)Supporting his stance, Henderson says, “We… forecast accelerating revenue growth in 2020, and believe that it needs to sustain its pace of subscription wins after the stock nearly doubled over the past 18 months. Allot Communications should succeed given its robust pipeline of leads and the adoption intent of its customers regarding its Security subscription businesses.”As a smaller tech company, with a market cap of $410.5 million, ALLT shares have escaped intense scrutiny from Wall Street’s analysts. The review by Henderson is currently the only one in the TipRanks database – but it does indicate a clear path forward for the stock. (See Allot stock analysis on TipRanks) Akoustis Technologies, Inc. (AKTS)Next on today’s list is Akoustis, a provider of the crystal-based piezoelectric components of bulk acoustic wave (BAW) filters commonly used in mobile wireless devices, including smartphones. It’s a specialty niche, but a profitable one, and AKTS saw share gains of 61% in 2019.Following up on its fiscal Q1 moves, Akoustis realized over $32 million in net cash from a common stock issuance. The success of the stock sale gives the company a healthy balance sheet moving forward, important as total revenues, while in line with guidance, were flat sequentially. The net loss per share in the quarter was 21 cents, which was less severe than the 24 cents expected. AKTS shares are up 12% since the earnings release.Sujeeva De Silva, 5-star analyst with Roth Capital, is bullish on AKTS. He writes, “[We are] encouraged by initial volume orders from infrastructure customers, and expect infrastructure customer ramp to commence in the June quarter with WiFi customer ramps starting in the September quarter. The company's revenue guidance reflects expectation for volume filter revenue ramp in the mid-to-late CY20 timeframe…”In line with his optimistic outlook, De Silva puts a Buy rating on the stock, along with a $10 price target. His target suggests a 25% upside potential. (To watch De Silva’s track record, click here)AKTS shares have 5 recent reviews, breaking down as 4 Buys and 1 Hold, giving the stock a Strong Buy consensus rating. The average price target, $10, matches De Silva’s, indicating that the stock has room for 25% growth in the near future. (See Akoustis price targets and analyst ratings on TipRanks) nLight, Inc. (LASR)Our final stock is an interesting player in the industrial laser industry. nLight produces lasers for high-tech manufacturing industries. Its products include fiber-optic lasers, diode systems, single emitters, and diode laser stacks. The company has a world-wide sales base, with customers in the semiconductor, materials processing, electronics, medical, and military sectors.LASR shares are down since last week, when the company reported a fourth quarter earnings loss and revenue beat. At the bottom line, the EPS net loss was 6 cents. On the top line, however, revenues beat the forecast by 12% and came in at $42.9 million. On the downside, the revenue number was a slip of 7.1% year-over-year. LASR shares are down 12% so far in 2020.Reviewing the stock for Stifel Nicolaus, 4-star analyst John Marchetti writes, “[We] expect the company to return to double-digit revenue growth following a challenging 2019. [I]ndustry fundamentals and new product introductions provide a more constructive outlook. We believe nLight's focus on higher-powered lasers, programmability, and new market applications should provide a strong base to return to growth…”Marchetti gives the stock a Buy recommendation, and raised his price target from $21 to $26, implying an upside potential here of 45%. (To watch Marchetti’s track record, click here)nLight has received 4 Buy ratings and 1 Hold, giving the stock a Strong Buy consensus view. The average price target, $24.75, indicates room for a robust 38% premium from the current share price of $17.89. (See nLight stock-price forecast on TipRanks) To find good ideas for tech stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

4 Top Stock Trades for Monday: WORK, GLD, DE, DBX

Stocks are under pressure on Friday, falling as coronavirus worries continue to weigh on equities and drive up safe-haven plays. That said, here's a look at some top stock trades for next week. Top Stock Trades for Tomorrow No. 1: Slack (WORK) Click to Enlarge Source: Chart courtesy of StockCharts.comSlack (NYSE:WORK) is up more than 2% on the day, despite jumping more than 6% in pre-market trading on reports that Uber (NYSE:UBER) will move all of its employees onto the platform. WORK has had momentum after similar reports of IBM (NYSE:IBM) doing the same thing earlier this month.Slack's rally drew in sellers on Friday, but the stock is still looking better overall. Earlier this month, Slack broke out over the 100-day moving average, then held this mark as support on a pullback.InvestorPlace - Stock Market News, Stock Advice & Trading TipsA few days later, it pushed above the $26 IPO price. Now, investors want to see it hold up above the $26 to $27 area. Above keeps Friday's high of day and $30-plus on the table. * 10 S&P 500 Stocks to Buy Increasing Their Dividends in 2020 Below this area and the 20-day moving average, though, and the 50-day and 100-day moving averages are on the table, with both near $23. Top Stock Trades for Tomorrow No. 2: Gold ETF (GLD) Click to Enlarge Source: Chart courtesy of StockCharts.comThe SPDR Gold Trust ETF (NYSEARCA:GLD) remains red hot, as investors continue the flight-to-safety trade even as equities have done well the last few months.With Friday's gap up, the GLD is hitting new 52-week highs, while sporting an overbought condition on the relative strength index (RSI). The move caps six straight sessions with a gain, as GLD broke out over $150 this week.Just because shares are overbought, doesn't mean the stock can't run higher possibly to $160. However, investors may prefer to wait for a dip. Preferably, a drop down to the $150 breakout mark will be met with support -- a strong sign that bulls are still in control.It would also be attractive to see the 20-day moving average hold as support. Below both measures puts the 50-day moving average on the table. Top Stock Trades for Tomorrow No. 3: Deere (DE) Click to Enlarge Source: Chart courtesy of StockCharts.comShares of Deere (NYSE:DE) are hitting new annual highs on Friday, after surprisingly better-than-expected quarterly results. The stock is pushing through recent resistance near $177, but struggling to hold its gains above this mark.Above resistance puts a move up to $185-plus on the table. However, failure to close over resistance keeps downside levels in the realm of possibilities too.That would first put the 10-week moving average on the table near $172, followed by a slightly deeper dip down to the $161 to $163 area. There, Deere will find the 50-week moving average and uptrend support (blue line).After such a favorable reaction to earnings, I wouldn't normally look for such a pullback. But when considering current resistance along with the possibility of a larger market correction, these downside marks become possible. * 3 Wild Stocks To Wrangle In This Bullish Market Overall, just stay open-minded and flexible. Let price be the guide, not opinion. Top Stock Trades for Tomorrow No. 4: Dropbox (DBX) Click to Enlarge Source: Chart courtesy of StockCharts.comBucking the trend on Friday is Dropbox (NASDAQ:DBX), which is up 23% at one point after reporting earnings.The charts for this one are really interesting. With the move, shares are ripping through the 20-week moving average -- which roughly translates to the 100-day moving average. This measure has been resistance for several months now, stymieing each rally in DBX stock.Furthermore, the stock burst through the 50-week moving average and long-term downtrend resistance (blue line). One measure many investors are surely not considering is the newly established 100-week moving average, which just came into play at $23.76. Guess what Friday's high is so far? DBX came within 4 cents of that mark.On the upside, the 100-week moving average is now the mark to clear for more upside. If it can, $26 is on the table. On the downside, though, see that $20 to $21 holds as support. $21 is the IPO price for Dropbox, while this area also marks the 50-week moving average and backside of prior downtrend resistance.The chart for DBX is my favorite from this week, purely from a technical perspective. However, that doesn't mean it's the best buy or anything like that. Just pure technicals that make it a fun one to study.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 S&P 500 Stocks to Buy Increasing Their Dividends in 2020 * 5 Tech Stocks Vying to Win the AR/VR Race * 7 U.S. Stocks to Buy on Coronavirus Weakness The post 4 Top Stock Trades for Monday: WORK, GLD, DE, DBX appeared first on InvestorPlace.

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‘Overprotected’ investors could get stung in the next recession, warns top Barclays strategist

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Avoid the Social Security Tax Trap

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