Nintendo Might Be Worth Playing (NTDOY)

Forget the hottest trends in game counsels for a second. Think long term. Will Nintendo be there? The Pokémon craze has topped out. The Nintendo Switch is selling but nothing crazy. All seems calm. For now.

What happens when the next Pokémon hits? Will it be Playstation or Xbox that builds the tech? It will probably be Nintendo. They’ve done it before, they can do it again. While Xbox and Playstation have their niche market, they never had a worldwide phenomena. Pokémon went viral. Not just media viral. Like out in real life viral.

The chart looks like we could be making a double bottom. If that’s the case, I want to place a bet now. Long-term I like this company. They have demonstrated an ability to capture the world’s attention like I haven’t seen for a video game since…the original Nintendo home system.

The classic Nintendo is making a comeback as well. Old school gamers are introducing these technological artifacts as starter to kits to the younger generation. Before Call of Duty or Madden, kids need to see what video games are. Old school Nintendo dominates the retro market, just as it dominated the main market back in the 80’s and early 90’s.

The stock has been a perennial pink sheet winner. Nintendo has managed to use the OTC market to stay listed and let investors participate with considerably less fees and oversight from traditional exchanges. If they ever did go traditional, it’s unknown what the status of the “old stock” would be. Investors will have do their own research as to Nintendo and its pink sheet status and decide if it’s worth the risks.

Look at the expected earnings growth. This chart highlights the amazing outlook. The earning per share nearly doubles in two short years. With the previous chart showing a double bottom, the long term bet should be placed now.

Nintendo might have another trick up its sleeve. There might be a few Pokémon’s left in its arsenal before its upended by a game changing revolutionary way to play video games. Some say that could be virtual reality. Nintendo could have a hand in that too.


Sports Card Collectors Could Make This Stock A Buy (CLCT)

The holy grail of baseball card collecting is the 1952 Topps Mickey Mantle rookie card. If you were born before 1985, there’s a good chance you already knew this. Millennials are not baseball card collectors. It’s not a growing trend being picked up by the youth. Card makers have gone to extravagant lengths to keep the hobby alive, including fastening actual fragments of athletes jersey to cards, special sets of shiny refractor cards, rare one of a kind cards and special autographed cards. It’s not a booming industry, per se, but its still alive and well.

Ebay is the official home to the card collecting community. In the old days (pre-internet) you would have to wait for a Beckett’s monthly magazine price guide to get an idea about the market for your card. Now you look on Ebay to see what it’s actually selling for. You can also gauge demand by how many watchers are keeping an eye on the card. You can track past sales. The tools available give collectors a serious assessment on how much they stand to make when selling an item. That kind of transparency in the card collecting market has never been seen before. For someone who remembers the old days when baseball card shops were rip off magnets for gullible sellers, it’s a thing of beauty.

It gets even better. In the old days, an old man would pop out of the back office with a microscope and grade your card’s condition on the spot. His word was infallible. VF (Very Fine) was the highest all the way down to P (Poor), the very lowest. Once your card was graded, the process was over. This left lots of room for all sorts of scams, from trimming the edges, to outright fakes. The naked eye knew no better. It was the wild wild west out there.

Enter Collectors Universe. The business owns Professional Sports Authenticator (PSA), the gold standard in grading and authenticating sports collectibles. Worried that your Pete Rose autographed baseball you bought from Uncle Jimbo when you were 12 might be a fake? Send it to PSA and for a small fee and you can either thank or confront him based on the results. Got a 1986 Michael Jordan rookie Topps basketball card? PSA will encase your prized possession in a tamper proof slab of hard plastic, assign a unique bar code to your card, and grade it on a 1-10 scale based on a sophisticated computer program. Taking out the scammers, fraudsters and the old man in the back with the microscope makes card collecting fun again.

The business is not solely relying on sports cards either. Baseball, Football, Basketball and Hockey are the big 4, but coins and stamps get plenty of PSA action too. On Ebay, PSA graded collectibles are worth more money than similar condition cards graded by their competitors. PSA, simply put, dominates the authenticating, grading and encasing market.

5 year chart

The chart looks decent with prices hovering around the lower end of historical stock prices. The 200 day MA is almost 40% higher from today’s price. The P/E is a bit high at 24.00, but the dividend is juicy at 5%. The business is solid. The chart looks good. The dividend rocks. If you can’t afford that 1952 Mickey Mantle you always wanted, perhaps you can invest in a stock that profits off everyone else who does.

Water Is The New Gold (PHO)

Investors have been told to be patient before investing in this resource for a long time. Perhaps now investors should consider this sector ready to take off. The water infrastructure investment boom is here. The EPA estimated that over 1 trillion dollars will be needed over the next 30 years just to maintain the viability of basic water infrastructure. That sounds like a good long term investment.

John Gabriel wrote a Morningstar report in 2014 highlighting the need for prudence as the fund is not a “pure water” play – there is pipe and pumping manufacturing along with water treatment and 16% of the portfolio is invested in water utilities – which have significant industries outside the investable water complex.

That’s not to say the fund won’t participate in the upcoming water boom. With the recent crisis of Flint, Michigan, Americans are now more aware than ever that water treatment and filtering systems are an important process when providing water. As fresh water supplies tighten and government regulations become more onerous, that could be the catalyst that launches this sector into a long term bullish frenzy.

PHO is an interesting play in the water world. The Invesco ETF has about 750 million in assets spread over 28 different water stocks. One thing to keep in mind is that some of the bigger water players like GE and Dow Chemical are excluded because significant revenue is generated outside the sector. However, that means the stocks included can greatly benefit by providing customized solutions that larger companies might not be able to fulfill.

Emerging markets see water infrastructure demand growing at a 10% rate. That’s an attractive growth rate and between that and America’s needs, water might not be the slow and steady “boring” investment that past investors passed up for more lucrative plays. The world doesn’t only need water, it needs piping, pumping and filtration. That is why this sector is a lot more than just water. It’s an infrastructure play that has been dormant for far too long.

PHO is just one of many water options to invest in, but from a technical analysis perspective, there is something I like that tells me to start a position sooner than later. If you look at the chart below, the 200 ma is about to be breached and become support again. The last time this happened PHO went on a 25% bullish run. If you get in now, it’s possible this ETF could be raining profits in your portfolio for a long time to come.

This Penny Stock Is About To Pop (MYMMF)

Mym Nutraceuticals (MYMMF) is an over the counter penny stock. These type of stocks are inherently riskier than traditional stocks traded over exchanges. However, this one deserve serious consideration. With the recent sell off in the sector, the buy conditions couldn’t be better.

Canadian recreational pot passed legislation in October and Canada is about to be open for business. The cannabis sector is poised for a comeback after a year long slump. Prices are near lows and the time to speculate might be now.

MYMMF has a very interesting project worthy of your attention and that is The Wheedon Project. Located in Quebec, this 1.5m square foot facility will be one of the largest greenhouses in Canada. The project owns 365 acres of land and plans to include a cannabis university with a cannabis museum. They were approved by the city of Wheedon and await licensing from Heath Canada. Their website is updated often with new construction photos and they predict project completion in 2020. As a test run, 30,000 sf of greenhouse will be dedicated to producing sometime in 2019. More information can be found here MYM Nutraceuticals

Penny stocks are notorious for having little or no use for technical analysis, the volume is thin, most price jumps rely on news, and they are easily manipulated. That being said, the 3 month chart below looks like a textbook double bottom. If the second pivot point is complete, a rebound of prices should be around the corner.

Another reason I think this stock is a decent play is they reported 1.9m in cash according to Google Financials. That seems healthy for a young start up with 20 employees. With two greenhouse facilities coming online next year and other cannabis related revenue streams in the works, perhaps it’s time to open a position.

In 2018, weed stocks took a beating. 2019 might be the year they start recovering. If you are looking for a speculative stock in a speculative sector, MYMMF will do the trick. Just be careful. You wouldn’t want to see your investment go up in smoke.

Freeport McMoRan Is A Buy (FCX)

If you follow these two rules, you will never have a losing trade. First? Buy low. Second? Sell high. Sounds easy, right? Well, here we are, hovering at nearly 5 year lows and after a long and bumpy ride, precious metal investors want to know, “Are we there yet?” Continue reading “Freeport McMoRan Is A Buy (FCX)”

Fannie Mae and Freddie Mac Cash Cows Released?

Its amazing how history has a tendency to repeat itself, but this time around if we have no economic slowdown and the government does not have to issue bailouts this could be a great buying opportunity into a cash cow. Continue reading “Fannie Mae and Freddie Mac Cash Cows Released?”