|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||0.3300 - 0.3400|
|52 Week Range||0.2400 - 1.5000|
|Beta (5Y Monthly)||0.90|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
We're definitely into long term investing, but some companies are simply bad investments over any time frame. We...
The third quarter was definitely a bumpy ride for the stock market. One could call it a roller coaster -- primarily because roller coasters usually drop you off at the same spot where you got on. The S&P 500 saw gains of just under 0.5%, the Dow Jones gained 0.75% and the Nasdaq lost a bit more than 1%.Must like the rest of the market, the Best Stocks for 2019 race didn't see a lot of lasting moves. A CBD company continues to move among the top five, a cutting-edge telahealth company holds onto second, and a direct-to-consumer retailer continues its explosive growth. There's one quarter left for big moves, but it's far from anyone's game. * Are These 10 High-Yielding S&P Dividend Stocks Traps or Treasures? Without further ado, let's get into the Best Stocks for 2019, ranked from bottom to top.InvestorPlace - Stock Market News, Stock Advice & Trading Tips 10\. Syrah Resources (SYAAF)Investor: Eric FryYear-to-Date Change Through Q3: -70%Q2 Ranking: 10The story for Syrah Resources (OTCMKTS:SYAAF) went from can it be the best stock for 2019 to can it survive 2019?It looks like it will. 2020 is a bit less likely. Beyond that…well SYAAF really needs that electric vehicle revolution to come soon.The bull thesis for Syrah is that as electric vehicles become more profitable, the companies that supply the materials needed for the cars' batteries will also take off. Graphite is an often overlooked one of these materials, and Syrah owns Balama Mine, the world's highest grade graphite mine. But the prices of these battery components didn't increase as expected.In his update, Eric Fry explained:"Despite the booming market for electric vehicles worldwide, an "echo boom" in the prices of the so-called battery metals has failed to materialize. The prices of copper, cobalt, lithium, and graphite are all languishing near three-year lows. Nickel is the lone standout among the key battery metals, as its price recently hit a new five-year high.In response to the dire conditions in the graphite market, Syrah slashed production by two-thirds last month. And there is no guarantee that this deep production cut will be the last, as the price of graphite has slumped about 15% since the start of the year."Read more about SYAFF stock here. 9\. Weibo (WB)Source: testing / Shutterstock.com Investor: Kyle WoodleyYTD Change: -23%Q2 Ranking: 9Though it's up a modest 1.84% in Q3, Chinese digital company Weibo (NASDAQ:WB) hasn't turned around just yet. It was still down 23% at the end of Q3.But Investorplace's Luke Lango believes that WB has turned around and that turnaround is here to stay:"Weibo stock has been in a secular downtrend since early 2018. But, all major signs (improving fundamentals, favorable optics, and bullish technicals) imply that this downtrend is over."The biggest challenge remaining for WB -- and all Chinese stocks? The trade war. We keep hearing from the Trump Administration that a trade deal is close, but that's about as good as having no information about trade talks at all. * 7 Important IPO Stocks to Watch for the Long Run Will things improve for WB in the coming years? Almost definitely. Will they improve before the end of 2019? Probably not. 8\. Canada Goose (GOOS)Source: rblfmr / Shutterstock.com Investor: Will AshworthYTD Change: 1%Q2 Ranking: 8Canada Goose (NYSE:GOOS) had a much better Q3 than Q2, rising over 10% and bringing it back to flat returns for 2019. The turnaround was based mostly on solid double-beat earnings report that saw revenues grow 59% and earnings grow 37% year-over-year. GOOS's wholesale business also rebounded, retaking the lead over the company's DTC business.Investors were disappointed that it was just a double beat quarter, and not a double-beat-and-raise quarter, however.And Canada Goose isn't out of the woods just yet. As Investorplace's Ashworth stated:"One class-action lawsuit filed in early September suggests that Canada Goose management failed to disclose or made misleading statements about its sourcing of down and fur.While I picked GOOS as my top stock of 2019, I too am concerned about the way it treats the animals used to source its down and fur. As an animal lover, I wouldn't stand for any ill-treatment of animals. The company denies its suppliers' abuse the animals that are used in sourcing materials for its parkas, etc. I've chosen to take them at their word."Whether or not these lawsuits have merits remains to be seen, but it is pretty clear that GOOS will not take the top spot this year.Especially once you take into account that the 10% gains of Q3 have been erased in the first two sessions of Q4.Read more about GOOS stock here. 7\. Viper Energy Partners (VNOM)Source: Shutterstock Investor: Neil GeorgeYTD Change: 10%Q2 Ranking: 8Viper Energy Partners (NASDAQ:VNOM) is an oil and gas play, but it's not a traditional one. Instead of producing either material or refining it, VNOM owns prime parts of the Permian Basin which it leases out to E&P companies. This should isolate VNOM from some of the volatility of the energy sector, and it has."Viper has generated a return through the first three quarters of 2019 of 10.81% -- well outpacing the traditional E&P companies' stocks.It has also been expanding its properties thanks to its affiliation with Diamondback Energy (NASDAQ:FANG) which founded the company through a drop-down of property assets to Viper back in 2014."The problem? The energy sector itself. The Energy Select Sector SPDR (NYSEARCA:XLE) was up 1.2% for the first nine months of 2019. So VNOM's investment thesis held true, but the energy sector is seriously lagging other stocks this year.This doesn't mean Viper Energy isn't a good stock or dividend play, but it does mean 2019 isn't its year. * 7 High Volatility Stocks to Buy as the Market Rebounds Read more about VNOM here. 6\. LyondellBasell (LYB)Source: Via LyondellBasellInvestor: Charles SizemoreYTD Change: 10%Q2 Ranking: 7LyondellBasell (NYSE:LYB) is a plastics, chemicals and refining company -- and that wasn't the right sector to be in this year. Furthermore, with just a 9x trailing P/E and 7x forward P/E, LYB is deep in value stock territory."With cheap valuations like these, you might assume that Lyondell had hit a rough patch. But nothing could be further from the truth. Gross margins and operating margins have trended higher for years, and revenues have been stable.The lack of investor interest in Lyondell has far less to do with company performance and far more to do with the neighborhood it's in. In a world of social media hype, a plastics, chemicals and refining company just isn't all that interesting. But as investors rotate out of the story stocks of the last decade in search of new opportunities, they're likely to give reliable dividend payers like Lyondell a closer look."LYB didn't win the Best Stocks for 2019 contest, but the stock is still worth a look - especially if you think value stocks will come back in 2020.Read more about LYB here. 5\. Amazon (AMZN)Source: Jonathan Weiss / Shutterstock.com Investor: Readers' ChoiceYTD Change: 16%Q2 Ranking: 5Readers' Choice stock Amazon (NASDAQ:AMZN) didn't have a great quarter. Though it held onto the 5th place slot, it's actually down 10% in Q3. Right now, AMZN stock isn't even beating the S&P 500 for 2019. Maybe it's time to pick a different stock for 2020?What this loss seems to come down to is that investors are growing weary of Amazon's growth without thought for profits attitude. The strategy got AMZN to $1 trillion in market cap, so it did pay off, but it looks like investors are starting to expect a more mature company."This was highlighted earlier in Q3 when AMZN missed Q2 earnings per share expectations and plummeted nearly 12% in a few sessions. That's over $100 billion in market cap erased over a miss of 35 cents per share.This plunge was despite a revenue beat, so the message investors are sending here is clear: They expect more in profits than Amazon has been delivering."Of course, the long-term narrative for Amazon is still strong, but AMZN winning the Best Stocks for 2019 at this point depends more on the leaders taking a nose dive than several hundred billion in market cap flowing into AMZN in the next three months. * 5 Stocks Under $10 Worth the Risk Read more about AMZN here. 4\. Adobe (ADBE)Source: r.classen / Shutterstock.com Investors: John Jagerson and Wade HansenYTD Change: 22%Q2 Ranking: 4Despite holding onto 4th place, Adobe (NASDAQ:ADBE) didn't have the best Q3. It fell 8%. But one bad quarter isn't much in the scheme of things for a stock like ADBE. Adobe produces industry leading products and was one of the first companies to capitalize on the new software subscription revenue model.Can ADBE rebound from its Q3 losses and take the top spot in the Best Stocks for 2019 contest? That remains to be seen.Read more about ADBE here. 3\. Charlotte's Web Holdings (CWBHF)Source: Shutterstock Investor: Matt McCallYTD Change: 25%Q2 Ranking: 3For a third place stock, Charlotte's Web (OTCMKTS:CWBHF) has a better shot than you might think of winning the Best Stocks for 2019. One reason is that Charlotte's Web is in the very volatile pot sector. Who could forget the day Tilray (NASDAQ:TLRY) ran up to $300 from $230 and back to $150 in a single trading session? I'm not saying Charlotte's Web - or the 2019 pot sector - is nearly that volatile, but a run of 40% over three months is certainly possible.Another reason a win is still possible is Charlotte's Web's size. Other than SYAAF, CWBHF is the only one of our stocks sporting a sub-$1 billion market cap, that means less investor money is needed to move the needle. For today's $675 million market cap to hit 60% gains for the year, only about $200 million would needed to be invested in the company.We only check in with the Best Stocks once a quarter, but CWBHF has topped 100% gains twice in 2019, the last time being Aug. 5. It's as if we're just getting snapshots of a race, and that works just fine for a lot of stocks, but most stocks are much steadier than Charlotte's Web. Will the next snapshot happen on a day when Charlotte's Web has once again sprinted into first place before being overtaken again by a steadier runner? We'll have to see.Matt McCall pointed out that Charlotte's Web is well-positioned for this growth even among pot stocks:"Charlotte's Web remains one of a handful of cannabis companies that is able to turn a profit. That's huge. CWBHF is expected to earn $0.19 per share this year, followed by $0.69 in 2020 and up to $1.07 by 2021.…The stock is undervalued based on both earnings and revenue forecasts. Using the 2021 numbers, which is less than two years from now, CWBHF stock trades with P/E ratio of 14.3 and a price-to-sales of 1.67.Stocks that are in high-growth sectors such as cannabis and CBD should (and typically do) trade at valuations higher than the overall market. A P/E ratio between 40 and 50 for Charlotte's Web would be in-line with other high-growth stocks."In my opinion, Charlotte's Web has a higher chance to take the top spot than even the next stock on the list. * 7 Stocks the Insiders Are Buying on Sale Read more about CWBHF here. 2\. Teladoc (TDOC)Source: Shutterstock Investor: Jason MoserYTD Change: 37%Q2 Ranking: 2Teledoc (NYSE:TDOC) has had its ups and downs in 2019 to be sure, but the moves haven't been nearly as wild as the ones in Charlotte's Web stock. As a result, TDOC is up a very respectable 37% as of the end of Q3.Teladoc is the undisputed leader in the telehealth space. It's a company that makes it possible to seek medical attention, virtually without having to travel to a doctor's appointment. As more services and industries become digital in some way and the U.S. cries out for healthcare reform, a company at the intersection of these two things stands to profit big.And its growth is going well. As The Motley Fool's Jason Moser pointed out:"TDOC stock's second-quarter results showed us the business remains on track. There were a couple of leadership additions with Mala Murthy coming on as CFO and David Sides as COO… TDOC's revenue for the quarter came in just over $130 million -representing 24% organic growth."Moser also pointed out upcoming catalysts for TDOC:"Medicare Advantage will be a nice catalyst in the coming years as it will open them up to an opportunity as large as 20 million additional members.It also sounds like the CVS (NYSE:CVS) partnership continues to develop nicely. There was plenty of positive language on the earnings call regarding the relationship building with CVS and Aetna. Minute Clinics have expanded to 8 additional states, and the Aetna acquisition has stoked the HealthHub concept …In fact CVS plans to have 1,500 HealthHUB locations operating by the end of 2021."Will any of these catalysts hit in time for the end of 2019? That remains to be seen.Read more about TDOC here. 1\. Lululemon (LULU)Source: Richard Frazier / Shutterstock.com Investor: Louis NavellierYTD Change: 58%Q2 Ranking: 1And finally, Lululemon (NASDAQ:LULU) holds onto the top spot for the second consecutive quarter, and no one else really came close. LULU closed out Q3 a whopping 21 percentage points ahead of TDOC.Louis Navellier of Growth Investor attributes Lululemon's success to two things: being an entirely direct-to-consumer company and smart management.The first allows LULU to control costs and quality and keep close track of what customers want. LULU keeps production costs down and can release new products strategically in a way that won't leave them sitting on shelves. This lets LULU "charge a premium for quality products that are in limited supply.""The second force that keeps LULU stock chugging along is the company's smart management. The key to success here is that its management has known how to time Lululemon's growth.Lululemon hung back as its popularity grew, choosing to focus on building out its yoga business into the women's athleisure force it is today. Thanks to this, it was able to grow its reputation in a much more profitable way than simply flooding the market with stores and products. That cachet with its target market (and, thus, staying power) is a big reason I named it as my pick for the InvestorPlace Best Stocks of 2019 contest.And now, as it enters the men's space, analysts are drooling over the potential."So will LULU keep it's lead through the end of Q4 and win the whole thing? It seems likely, but nothing in the market is certain so I'm not betting against the other front runners either.Read more about LULU here.As of this writing, Regina Borsellino held no positions in the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best ETFs for 2019: The Race Is a Little More Gnarly Now * 7 Next-Generation Healthcare Stocks to Buy * Are These 10 High-Yielding S&P Dividend Stocks Traps or Treasures? The post Best Stocks for 2019: Q3 Was a Roller Coaster appeared first on InvestorPlace.
Australian graphite miner Syrah Resources Ltd on Tuesday said it would slash fourth-quarter output, sending shares plunging more than 40%, as cuts in Chinese electric vehicles subsidies hurt demand for batteries using the material. Syrah said it would reduce production in October-December to about 5,000 tonnes per month. It previously said fourth-quarter 2018 natural graphite output was 33,000 tonnes, sourced from its sole facility producing the material at Balama in Mozambique.
The second quarter of 2019 has ended and that means we're at the halfway point in the Best Stocks for 2019 contest.Over the last three months, trade-war headlines and Federal Trade Commission announcements kept the markets interesting to say the least. But the S&P 500 and Dow are making new all-time highs, and the Nasdaq is close to doing the same.In the Best Stocks contest, we had wild swings as marijuana stocks briefly fell out of favor and the trade war hit some stocks more than others. While the stock that finished in first place clearly broke away from the pack, the race was tight between second and fifth places.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 A-Rated Stocks to Buy for the Rest of 2019 So without further ado, let's take a look at how each of the Best Stocks' competitors did in Q2. Syrah Resources (SYAAF)Investor: Eric Fry Year-to-Date Change Through Q2: -40%Syrah Resources (OTCMKTS:SYAAF) is an all-in bet on the electric vehicle revolution -- and revolution hasn't come just yet. No matter which auto company ends up dominant and which battery they use, the anode on these batteries must be graphite. And SYAAF holds the largest graphite mine in the world.Right now, however, Syrah is cash flow-negative and the current demand for graphite isn't enough to drive it.But Eric Fry points out two positives:* "Syrah has been narrowing its operating losses, mostly by mining its graphite more efficiently … Quarterly cash-flow from operations has improved from a low of -$41 million in September 2016 to -$8 million in the most recent quarter. But a minus sign is still not a plus sign.* SYAAF is in the process of issuing new debt and equity to raise an additional $78 million. But this new cash isn't coming cheap. In order to attract these funds, the company is issuing stock at 56 cents a share -- a steep 20% discount to where the stock was trading before the company announced this financing."However, the stock has one thing going for it in this contest. As of this writing, SYAAF trades at just 61 cents and has a market cap of $213 million. And the best stocks for 2019 contest counts percent gained. That means less is needed to move the needle here than with other stocks on this list -- namely the Reader's Choice.Read more about SYAAF from Eric Fry here. Weibo (WB)Source: Shutterstock Investor: Kyle WoodleyYTD Change: -28%Those who follow the markets even casually won't need an explanation for a nearly 35% drop in a Chinese stock over the last three months. Of course it was the trade war.Weibo (NASDAQ:WB), the Chinese microblogging platform, has little to do with trade between the U.S. and China. But it has been caught in the crossfire nonetheless.As Investorplace's Luke Lango writes:"Broadly speaking, Weibo is China's Twitter (NYSE:TWTR). But, Wiebo has more users than Twitter, is more profitable than Twitter, and is growing more quickly than Twitter. Despite all that, Weibo has a market cap about half that of Twitter. Why? ARPU rates. Weibo monetizes its users less than Twitter. This is just a time issue."WB's growth -- particularly when it comes to digital ads -- has stalled out as a result of the macro concerns surrounding the Chinese economy, largely as a result of the trade war.Weibo reported earnings of 56 cents and revenues of $399 million for the first quarter, both beating expectations and showing large amounts of growth from the year-ago quarter. But WB fell on lowered Q2 guidance. * The 7 Top Small-Cap Stocks Of 2019 So WB stock's outlook for the second half largely depends on the trade war. If it continues, the stock will likely stall out, but if an agreement is finally reached, look for a nice pop in the price. Canada Goose (GOOS)Source: Shutterstock Investor: Will AshworthYTD Change: -11%Canada Goose (NYSE:GOOS) had posted at 10% YTD gain by the end of Q1, and it has now swung just as far in the opposite direction. The main culprit? A May 29 earnings report that showed the clothing brand's explosive growth is finally slowing.But InvestorPlace's Will Ashworth thinks that this slowing growth is not only okay, it's inevitable:"Canada Goose, like all growth stocks, is moving through a transitional period, where it goes from the 'It' brand to something more sustainable with the corporate infrastructure in place to meet the increased demand. "With the shock of slowing growth already priced into GOOS stock, the second half should hold more gains as margins improve and the company's expansion into China continues to take hold.Read more about GOOS from Will Ashworth here. LyondellBasell (LYB)Source: Via LyondellBasellInvestor: Charles SizemoreYTD Change: 3.7%LyondellBasell (NYSE:LYB) has jumped from 9th place to 7th over the course of Q2. With a gain of just 3.7% YTD, this just goes to show the current volatility of the market. So what happened for LYB this quarter?First, and best for LYB stock price, LyondellBasell walked away from a merger with Brazilian chemical company Braskem in early June. Shares ripped higher on the news. LYB shares hit a multi-year low on May 31, and gained 16% in the month of June.Is there more growth ahead for LYB? It's a plastics company, so it's rightfully under increased scrutiny and regulation when it comes to environmental impact. But Sizemore believes LYB is positioning itself well for a more environmentally conscious world:"LYB is not quietly waiting for its business to be regulated into extinction. The company recently announced a partnership with Finnish refiner Neste to begin commercial-scale production of bio-based plastic from renewable materials, and the company has numerous other green initiatives. Environmentalists may never love the company. But LYB is giving fewer reasons to hate it with every passing day." * 7 Value Stocks to Buy for the Second Half LyondellBassell also has a dividend payout of 4.8%. The higher yield is at least partially attributable to stock price, the company has steadily increased its dividend since its introduction seven years ago and still has a low payout ratio of just 36%.Read more about LYB from Charles Sizemore here. Viper Energy Partners (VNOM)Source: Shutterstock Investor: Neil GeorgeYTD Change: 21%Petroleum-company landlord Viper Energy Partners (NASDAQ:VNOM) has fallen from third place to sixth over Q2. This isn't great. But since VNOM is a property holder, not directly a petroleum producer, it misses a lot of highs and lows of the industry.Consider Diamondback Energy (NASDAQ:FANG), which originally set up the company. It's stock chart for the year looks more like a rollercoaster than most stocks described as such -- and it's only up 16% in the first half. If you're looking for a thrill ride, go with a more traditional petroleum play, but if you're looking for an investment, VNOM is safer, albeit less exciting. Neil George writes:"Petroleum prices never, ever keep going in one direction for long. There is a constant flow of supply and demand estimates and news and analysis that send prices for crude oil and natural gas up or down day by day and week by week … So, zero or infinity pricing just isn't in the cards for petroleum products. Rather than placing bets on oil soaring or plummeting, I've focused primarily for the longer-term on companies that go about their businesses whether crude oil prices are popping or dropping".George also points out that at current prices, VNOM is cheap. It trades at just 2.37 book value. VNOM also has a dividend yield just below 5%, which is incredible for a stock that's doubled in value since just June 2017.VNOM may have fallen this quarter, but it definitely still has the potential to take the crown.Read more about VNOM from Neil George here. Amazon (AMZN)Source: Shutterstock Investor: Readers' ChoiceYTD Change: 29%Readers' Choice stock Amazon (NASDAQ:AMZN) waned in the last few days of Q2. When I wrote the update on June 26, the e-commerce giant was a hair's breadth from second place, but it ultimately finished the first half in fifth. That just shows the close nature of the Best Stocks for 2019 contest.Readers don't need to wonder if Amazon has more to come in 2019. It's Amazon, of course it does. Next week, Amazon has its now two-day long Prime Day. Last year, AMZN sold $1 billion worth of profits in 36 hours with a site outage.Furthermore, the company's famous two-day Prime shipping is being cut to one day. The initial cost will hit Amazon's profit in the Q2 report, but the move should further establish dominance for the company over Walmart (NYSE:WMT), Target (NYSE:TGT) and other traditional brick-and-mortar retailers.Of course the threat of government regulation looms large, especially when President Donald Trump targets Amazon by name at random. But will the current government manage to enact any regulation in the next two quarters? How efficiently has the current administration accomplished other pet projects for the president? * 7 Retail Stocks to Buy That Are Down in 2019 Regardless of whether regulation comes this year, next year, or in a future presidential administration, the back half of 2019 is unlikely to be boring for AMZN stock.Read more about Reader's Choice AMZN here. Adobe (ADBE)Source: Shutterstock Investors: John Jagerson and Wade HansenYTD Change: 33%After holding the second spot for some time, software company Adobe (NASDAQ:ADBE) finished the quarter in fourth. John Jagerson and Wade Hansen still believe ADBE stock is undervalued based on its fundamentals.Over the past few years, Adobe has been shifting most of its software to a subscription model, which has done wonders for ADBE's top and bottom lines. But as John and Wade said:"Revenue and EPS have been rising with the stock's price, but its earnings multiple remains near historical lows … The point behind a value-price comparison like this is to determine if investors are paying more, or less, for each dollar of earnings than they have in the past. Because growth is still strong, paying less for the stock now indicates the likely probability that the shares are still undervalued."This means there's likely more growth ahead for ADBE stock. But will it be enough to beat out the competition?Read more about ADBE from John and Wade here. Teladoc (TDOC)Source: MayApps207 via WikiMedia Investor: Jason MoserYTD Change: 40%Teladoc (NYSE:TDOC) made a last-minute sprint for third place as the first half drew to a close. TDOC rallied 10% in the last three sessions of June, winning the tight race for third among ADBE and AMZN.Teladoc reported some great Q1 earnings and crossed 1 million doctor's visits for the first time, despite a weaker flu season. This company specializes in telehealth, or remote doctors' visits and other healthcare services. This places it at the forefront of the evolving healthcare industry, and its explosive growth shows that."The business is still unprofitable but what else is new? Profitability will come in time and management reiterates that the company will be cash flow positive for the first time in 2019 so we'll hold them to that target," wrote Jason Moser of The Motley Fool. * 10 Best S&P 500 Stocks to Buy For the Rest of 2019 TDOC has a growing business and investors are excited about it. Moser also anticipates additional partnerships with more traditional healthcare companies to be announced in the remainder of the year, meaning there's likely share price growth ahead as well.Read more about TDOC from Jason Moser here. Lululemon (LULU)Source: Shutterstock Investor: Louis NavellierYTD Change: 52%In Q2, the race was close … for second place. Lululemon (NASDAQ:LULU) was previously in first.The athleisure company, which Louis Navallier called "the North Star of retail clothing stocks," reported a remarkable double-beat-and-raise Q1 that showed the company is still growing -- and fast. The company also reported same-store sales of 14% compared to the expected 11.6%.Navellier cautioned that the ongoing trade war could lead to disappointing Q2 earnings for LULU, but also talked about many upcoming growth areas for the company:"LULU is now in expansion mode. It has built out its e-commerce business and is expanding its brick and mortar presence.Along with that expansion Lululemon has begun to offer yoga classes in some stores. It also keeps a tight rein on its brand, so it has complete control of its margins. This is one of the secrets of its success.Lululemon has even expanded its brand to include men's and children's lines as well. It has also launched a membership program that's still in beta testing, and just this week announced that it's going to begin a line of personal care products with Sephora."Can LULU reclaim the top spot? Definitely.Read more about LULU from Louis Navellier here. Charlotte's Web Holdings (CWBHF)Investor: Matt McCallYTD Change: 71%A 71% gain for a stock at the halfway point doesn't seem disappointing -- unless the stock was up 81% at the end of Q1. This is the case for Charlotte's Web holdings (OTCMKTS:CWBHF). But, as Matt McCall wrote, marijuana isn't just the hot sector of the moment, it's a sector at the beginning of a long-term growth narrative."Interest in sectors and asset classes ebbs and flows, and because the marijuana industry has been flying so high in recent months, we were overdue for a short-term correction.We're seeing that now. But don't make the same mistake a lot of people are making. Don't sell your holdings because some idiot tells you 'the marijuana bubble has popped.'Instead, focus on the long-term picture."A number of things happened in Q2 that should help CWBHF in Q3. The company named a new CEO, Adrienne Elsner, a former Kellog's (NYSE:K) executive. As McCall pointed out, her former position will help Charlotte's Web focus more on branding going forward. In Canada, CWBHF is now trading on the Toronto Stock Exchange. The next stop is the Nasdaq or New York Stock Exchange.In the days since Q2 ended, CWBHF has already reclaimed the top slot, meaning this is definitely one to watch for the rest of the year.Read more about CWBHF from Matt McCall here.As of this writing, Regina Borsellino held no positions in the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 A-Rated Stocks to Buy for the Rest of 2019 * 7 Education Stocks to Buy for the Future of Academia * 5 Stocks to Buy as You Rebalance Your Portfolio The post 10 Best Stocks for 2019: A Volatile First Half appeared first on InvestorPlace.
Editor's note: This article is part of InvestorPlace.com's Best Stocks for 2019 contest. Eric Fry's pick for the contest is Syrah Resources (OTCMKTS:SYAAF).If Syrah Resources Ltd. (OTCMKTS:SYAAF) were a graduating high school senior from the Class of 2019, it might be named the "Least Likely to Succeed." On the other hand, this same "student" could be the one who flies a private jet to the 10-year reunion… and then rolls up to the event in a Bugatti!InvestorPlace - Stock Market News, Stock Advice & Trading TipsSimply stated, this company is capable of achieving great success… or great failure.At the moment, however, investors are pricing SYAAF stock for a future of disappointment. It touched a new seven-year low this week and shows no sign of heading in a new and positive direction. Click to EnlargeThe problem is cash flow. Syrah still isn't producing any. So, let me repeat what I stated three months ago when we last checked in on this company: "Unless [Syrah] starts producing positive cash-flow soon, it is more likely to be a zero than a hero."The company has made modest progress toward generating cash from its operations, but not enough to prevent its stock from tumbling 45% through the first six months of this year. Syrah's Key Metal For readers who may not be familiar with this company, let's review…Syrah operates the world's largest and highest-grade graphite mine. It's called the Balama Mine, and it sits in Mozambique. Balama is home to about 50% of the world's known graphite reserves.Syrah's Balama operation contains an enormous graphite resource with a projected mine life of more than 50 years. According to Mining Global, it could provide 40% of the world's natural graphite within three years. * The Top 8 Tech Stocks of 2019 (So Far) So why should anyone care about graphite?Because it is one of the main "battery elements." Think nickel, copper, and lithium. These elements are essential for current battery technologies.But graphite plays a very unique role in battery chemistries because it is the element that forms the anode material in every electric vehicle (EV) battery.All four of the leading EV battery technologies use slightly different combinations of metals like nickel and cobalt to create their cathodes. But the anode material in all four is 100% graphite. That makes graphite "agnostic" about which battery chemistry becomes the most popular or prevalent.Therefore, as EVs continue to gain market share, demand for graphite should trend higher. Syrah estimates that global demand for natural graphite jumped 10% last year. And over the next decade, graphite demand is likely to jump seven-fold. SYAAF Has a Promising PlanAll else being equal, rising demand should produce higher graphite prices. But in the here-and-now, graphite prices are not high enough for SYAAF to operate profitably… at least not yet.That's the bad news. The good news is two-fold:* Syrah has been narrowing its operating losses, mostly by mining its graphite more efficiently. The chart below tells the tale. Quarterly cash-flow from operations has improved from a low of -$41 million in September 2016 to -$8 million in the most recent quarter. But a minus sign is still not a plus sign. Click to Enlarge* SYAAF is in the process of issuing new debt and equity to raise an additional $78 million. But this new cash isn't coming cheap. In order to attract these funds, the company is issuing stock at $0.56 a share -- a steep 20% discount to where the stock was trading before the company announced this financing.Unfortunately, that's the price mining companies -- and their shareholders -- pay for failing to produce positive cash-flow.Syrah is forecasting a negligible cash burn during the current quarter, which would leave it with $43 million at quarter-end. But with this new financing, the company's cash pile would nearly triple to about $120 million.That cash would give Syrah a lot breathing room -- and cover a lot of unexpected setbacks, should any occur.So now we're in a wait-and-see period.SYAAF has disappointed its shareholders so many times that it will not receive the benefit of any doubt. But if the company can start to deliver pleasant surprises, the stock could soar. * 7 F-Rated Stocks to Sell for Summer Positive cash-flow is the first critical hurdle it must clear. From there, the sky is the limit.Eric J. Fry has been a specialist in international equities for nearly two decades. He is known for his extraordinary long-term track record, which includes numerous "10-bagger" calls. And Eric's track record on the short side is just as remarkable. Now, the author, former hedge fund manager, and world-renowned analyst brings you the power of expensive, institutional-quality research in his recently-launched newsletter, The Speculator. Click here to learn more. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 F-Rated Stocks to Sell for Summer * 7 Stocks to Buy for the Same Price as Beyond Meat * 7 Penny Marijuana Stocks That Are NOT Cheap Stocks Compare Brokers The post Best Stocks for 2019: Syrah Stock Struggles But Maintains Great Potential appeared first on InvestorPlace.
Editor's note: This article is part of InvestorPlace.com's Best Stocks for 2019 contest. Eric Fry's pick for the contest is Syrah Resources (OTCMKTS:SYAAF).Syrah Resources Ltd. (OTCMKTS:SYAAF) has gotten off to a rough start in 2019, but it could still finish the year with a spectacular flourish.Before we get into that, let me give you a brief refresher on the company.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSyrah operates the largest and highest-grade graphite mine in the world. It's called the Balama Mine, and it sits in Mozambique -- the southern African nation that is home to about 50% of the planet's known graphite reserves.Most of us think of graphite as the hard, gray stuff that's inside a No. 2 pencil. That's true. But it's also the hard, gray stuff that's inside the batteries that power electric vehicles (EVs), as well as most of the batteries that store energy for power-generation facilities.Even though graphite hasn't attracted as much attention as other "battery metals" like nickel, copper, lithium and cobalt, it is just as essential to current battery technologies -- perhaps even more essential.As I explained in my initial recommendation, graphite plays a very unique role in battery technology. All four of the leading EV battery technologies use slightly different combinations of metals to create their cathodes. But the anode material in all four is 100% graphite. That makes graphite "agnostic" about which battery chemistry becomes the most popular or prevalent. * The Elite 8 Stocks to Buy for Massive Outperformance Syrah's Balama operation, which came into production in 2018, contains a vast graphite resource with a projected mine life of more than 50 years. According to Mining Global, Balama possesses such enormous potential that it could provide 40% of the world's natural graphite within three years.That's the good news. The bad news is that Syrah has so far failed to deliver on this enormous potential. Instead, it has disappointed its shareholders numerous times. SYAAF Stock Is High Risk, High RewardWhen I first wrote to you about Syrah in December, I highlighted its appeal as a play on what I called the "Second Electric Revolution." I also warned that it was a speculative, one-mine operation that operates in Mozambique.In other words, this stock offers huge upside but is also susceptible to huge downside. As such, Syrah is a classic "hero or zero" kind of play. And so far this year, its performance has been anything but heroic.While the stock did rack up some nice gains early in 2019, it surrendered all of those gains and then some when the company announced a disappointing quarterly result on Jan. 29. Since then, this mining stock has continued to tumble down the shaft.Syrah's poor recent performance leads us to that all-important question: What's next?The short answer is that the company needs to start walking the walk of being a play on the Second Electric Revolution. It needs to begin fulfilling its potential as one of the world's pre-eminent battery metals miners.It is, after all, the operator of the world's largest and highest-grade graphite mine. But so far it has not operated that mine profitably.The company burned through nearly one quarter of its cash in the fourth quarter of 2018. That's the kind of thing that makes investors nervous … and for good reason.But Syrah is forecasting better times ahead. In an interim update dated March 14, the company offered the following tidbits of promising developments: * Significantly lower negative cash flow than in the previous quarter * Significant jump in graphite production, compared to the prior year quarter * The expectation that it will receive higher prices for its graphite production later in 2019.Previously, Syrah had forecast that it would produce positive cash flow from its operations by the back half of 2019. But words are cheap. The company must deliver on that forecast if it expects to retain the trust and interest of shareholders.More importantly, it must begin producing positive cash flow in order to begin realizing its potential as a major provider of battery metals.Syrah has the wind at its back, but it needs to demonstrate that it has the sails that will propel its profitability forward. Syrah Resources Is Benefiting from DemandThanks to the Second Electric Revolution, demand for graphite is ramping up quickly. Syrah estimates that global demand for natural graphite jumped 10% last year. And this trend is just getting underway.Over the next decade, graphite demand is on track to jump seven-fold.Very few mining companies are able to feed demand growth of that size. But Syrah could, assuming it overcomes its early growing pains to begin achieving cash-flow positive graphite production.The company certainly has the potential to reap enormous profits by supplying graphite to the battery makers that will power the Second Electric Revolution. But it must get off the starting blocks by demonstrating that it can produce sustainable and growing profits.That hasn't happened yet. If and when it does, this stock could be a 10-bagger … or even a 50-bagger. But if it doesn't, Syrah will end up as just another stock with unrealized potential.This stock remains a great speculation, but the company needs to start producing positive cash-flow soon. When it does, I look for this zero to turn into a hero.Eric J. Fry has been a specialist in international equities for nearly two decades. He is known for his extraordinary long-term track record, which includes numerous "10-bagger" calls. And Eric's track record on the short side is just as remarkable. Now, the author, former hedge fund manager, and world-renowned analyst brings you the power of expensive, institutional-quality research in his recently-launched newsletter, The Speculator. Click here to learn more. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Genomic Testing Stocks That Can Ease the Sting of Theranos * 4 Pot Stocks That Could Be Fizzling Out * 7 Mid-Cap Growth Stocks That Could Be the Next Amazon or Netflix Compare Brokers The post Best Stocks for 2019: Don't Count Syrah Resources Stock Out Yet appeared first on InvestorPlace.
Editor’s note: This article is part of InvestorPlace.com’s Best Stocks for 2019 contest. Eric Fry’s pick for the contest is Syrah Resources (OTCMKTS:SYAAF). The Second Electric Revolution is underway. This revolution is taking several different forms … and it’s offering a variety of investment opportunities.