You won’t see these US Bluechip Stocks this cheap for another decade.

The Dow Jones opened 9% lower on Monday morning as investors prepare for another week of uncertainty. The COVID-19 fears have dissolved into the Global markets, driving Blue Chip stocks to extreme lows. We are currently witnessing some of the biggest corporations in the world, trading at prices they have not been at since the GFC or longer. The current market situation has given investors the Golden opportunity to buy Blue Chip stock at a ¾ or in some cases even ½ of the original price at the start of 2020. Here’s some of the best American Bluechip stocks trading at discount:

    • Amazon.com Inc – currently trading at 1,712.30 (1:00pm EST NY) a 21% decrease over 1 month of trading.
    • JP Morgan currently trading at 89.90 (12:30pm EST NY) a 34% decrease over 1 month of trading.
    • Apple Inc – currently trading at 252.93 (1:00pm EST NY) a 20% decrease over 1 month of trading.
    • Tesla Inc – currently trading at 469.70 (1:00pm EST NY) a 45% decrease over 1 month of trading.
    • Starbucks corporation – currently trading at 61.47 (1:00 pm EST NY) a 31% decrease over 1 month of trading.
    • NIKE Inc – currently trading at 70.29 (1:00pm EST NY) a 31% decrease over 1 month of trading.
    • Facebook Inc – currently trading at 153.36 (1:00pm EST NY) a 30% decrease over 1 month of trading.
    • Microsoft Corporation – currently trading at 142.77 (1:00pm EST NY) a 24% decrease over 1 month of trading.
    • American Express Company – currently trading at 91.00 (1:15pm EST NY) a 34% decrease over 1 month of trading.
    • This leaves an average decrease of 30% over the 1 month of trading for what’s considered the best companies in the world.

So if these companies are so cheap, why is no-one buying?

Before I start, I am obliged to remind our viewers that this is not advice only general commentary from my extensive research in this area.

As I put it, the markets will remain unstable for the next two weeks meaning these Bluechips are exposed to even more volatility. A lot of people are relying on the vaccine to save the market, however these investors will be left behind as they will be waiting another 12-18 months. The turnaround will be when the big hitter countries such as China and the USA are able to successfully contain the virus amongst their vast population. When we hit containment, then and only then will the markets begin to generate weeks of green again. We won’t see a full recovery in the next few months meaning investors remain uncertain on when to buy into the markets. An entry too early will cost investors another 5-10% however an entry too late will result in missing out on the upturn. We are re-shaping our portfolio in two weeks as we see this as an opportune time to enter the market (our strategy based on research not advice).

We will be covering this current situation with our team working around the clock to give you the best free information anywhere. Make sure you subscribe down below to be notified when we post.

Here is our free, uncomplicated, and extensive ASX portfolio

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The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Written by Tyger Fitzpatrick, Founder of Youth Investment Group

 

The Big 3 Nasdaq stocks worth watching come market open

Before I start, I am obliged to remind our viewers that this is not advice only general commentary from my extensive research in this area.

NASDAQ has seen record-breaking highs this week as investors regain confidence in the security of American stocks. Amidst the success, Tesla (NASDAQ: TLSA), Amazon (NASDAQ: AMZN)and Apple (NASDAQ: AAPL)all experienced a healthy increase over the week. Making the NASDAQ giants worth watching when the market opens tomorrow. But let’s find out why?

It is no surprise that Tesla (NASDAQ: TLSA) reports yet another strong week, increasing 5.47%. From our last article on Tesla, we predicted that Tesla would experience some inertia and the market would correct them down to $650. The stock did not surge as low as we thought and actually recovered very well posting another green week. Aftermarkets suggest Tesla will bounce around $815-30 during the day, possibly getting as high as $850. Since market correction, Tesla is on track to grow into the $1,000 mark in the next couple of months. An entry below $800 may mitigate some systematic risk, however investing in Tesla now would be a long term strategy. With the risks involved, ensure you do your research and understand what systematic events could influence the price such as the up-coming election.

Amazon (NASDAQ: AMZN) climbs even higher this week growing by 5.29%. This is now the second week in a row, that investors have rallied behind this stock. It’s most recent earnings report was impressive, alongside capturing market share in the monetisation industry, the company has never looked so good. With markets at all-time highs, purchasing Amazon now holds much more un-diversifiable risk with PSE’s that can effect it’s price. However, if the market continues to rally behind Amazon, there’s a possibility of making a nice capital gain. In my opinion, Amazon may flatten out today as the stock begins to find its new equilibrium of $2,150. The biggest threat to entering Amazon now, is that it is hard to predict how long this rally will last. With buy volumes steadying, it is likely Amazon won’t bounce around too much come close Friday.

Apple (NASDAQ: AAPL)continues to support bullish and surprise bearish investors as it has jumped 1.24% over the week. Apple’s surge appears to be off their impressive 8% growth in iPhone sales in the first quarter of 2020. Apple’s Iphone sales in 2019 did not please investors. Meaning, the recent growth indicates Apple’s revival of the Iphone, arguably one of their most successful product lines. Moreover, the 17% rise in service revenue, iCloud storage subscriptions and the like, further adds to the investor confidence behind the tech giant.

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

If you enjoy our articles or are wanting to learn more, you can subscribe to us for free via email and get updates when we post new articles. From all of us at YIG, thank you for the support.

The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

 

Written by Patrick McLoughlin and Tyger Fitzpatrick

Amazon reaches an all-time high – is it too late to buy shares?

In recent weeks, the world has been closely watching the Tesla share price as investors rallied, pushing the stock into all-time highs before quickly correcting at $750. However, the E-commerce giant Amazon has also been smashing records this week getting as high as $2183.00 on Tuesday 12th of February. This has caused some concern whether or not it is too late to enter Amazon for capital gain in the near future. So let’s breakdown some fundamentals and formulate a concrete decision.

What is the Fair value of Amazon?

In some cases, when a stock becomes popular to the mainstream investor and a rally begins to build behind a stock – it can cause the stock to be overvalued. Stocks can be valued through different methods, some as simple as the Discount Cashflow method or using the P/E ratio. These methods are not very reliable, and should only be used in sequence with other methods and extensive research. However, to see if Amazon is overpriced it is worthwhile finding a fair evaluation. An article written by the Trefis team states “a fair value of $2,218″ for Amazon stock currently found on the Nasdaq website.

“Our Price Estimate of $2,281 for Amazon’s Stock is based on our Detailed Valuation Model for Amazon and implies an 82.7x P/E Multiple on expected 2020 EPS of $26.83.  Trefis Team

This indicates that there may still be room for growth and possibly a chance to capitilise on Amazon shares.

Internal efficiency and opportunity

Amazon beat it’s forecasted earnings report and in-turn created an opening for investors to get in before the stock was set to rise again. Amazon is internally exceptional, with a $1 Trillion valuation and more than 150 million Prime members it is hard to fault the E-commerce giant. Amazon have prioritised their profits effectively forecasting to save $2.3 billion in depreciation expense. The most exciting aspect IMO, is that Amazon is beginning to take Market share away from Google and Facebook regarding advertisement revenue. Amazon made $4.8 billion in Advertisement revenue in 2019 on it’s platform and poses a new threat to the Google/Facebook advertisement Oligopoly.

Evaluation

Before we evaluate the evidence and make a concrete decision, I am advised to ask all viewers to do their own research before making any investment decision. 

From both the valuation and looking at Amazon’s internal figures and opportunities in 2020, it seems that Amazon still has significant room to grow not only in 2020 but in decades to come. Evaluating today’s current price opening at 2,150.80 USD +16.89 . As an investor, I would be tempted at $2,060 USD however this price may not come around for sometime. I would this stock in your watchlist and find the exact price you want to enter with your own research and understanding of the markets.

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

If you enjoy our articles or are wanting to learn more, you can subscribe to us for free via email and get updates when we post new articles. From all of us at YIG, thank you for the support.

The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Written by Tyger Fitzpatrick, founder of YIG.

 

 

An $800 investment in Amazon at IPO would now be worth over $1,000,000

Before I start, I am obliged to remind our viewers that this is not advice only general commentary from my extensive research in this area.

Amazon is currently priced at $1,861.64 (AMZN), a 120,000% price increase since it’s IPO in 1997. Amazon’s come up is nothing short of remarkable, with the distribution giant reaching $1 Trillion in market cap. The common response to my last article regarding how investing $40k in Tesla would have made you a millionaire, was that $40k was a very unrealistic investment in a company that has come close to bankruptcy many times. Taking that into consideration, I have found a company that would have only required $800 initial investment to turnover millions. 

The brilliance of this is that Amazon’s initial IPO price was $18, meaning that $800 would have only bought you 44 shares initially. However, in the following year’s Amazon went under 3 splits- meaning they wanted to issue more shares and therefore would give holding investors more shares devaluing the share price. The 3 splits lead to a multiplier of 12, meaning after the splits you would know have 528 shares in Amazon. Now, in 2000 the value of your shares was worth around $40,000. Not bad right? At this point many people would have sold at least a portion of their shares as the share price was not likely to climb any higher. Here’s were it becomes a little unrealistic, as human’s we tend to act on emotion and therefore anyone that has made a cool 39k would tend to sell their shares – as we all know things come crashing down at some point.

If you held these shares through the troughs, even to the point where the stock staggered at $65 for many years,  you would now be holding over $1,000,000 in Amazon stock. Amazon in 1997, however was not the most favoured stock and it’s volume didn’t start ascending arguably till 2015 – almost 18 years later.

The moral of the story is that a calculated investment in a company with revolutionary ideas can pay off. Even an entry into Amazon before 2017 would have made you a very nice return. These companies are one offs – however revolutionary ideas should not go un noticed.

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

If you enjoy our articles or are wanting to learn more, you can subscribe to us for free via email and get updates when we post new articles. From all of us at YIG, thank you for the support. 

The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you. 

Written by Tyger Fitzpatrick, founder of YIG.

Let’s Talk Money : The future is climate financing

Before I start, I am obliged to remind our viewers that this is not advice only general commentary from my extensive research in this area.

Whether you believe in the threat of Global warming or not , it is without a doubt the number one talking point within the political arena . Climate financing is the movement towards a more efficient , low carbon global economy which will be financed by a movement of major investment firms and governments around the globe .

I have no doubt , in 25 years from now your super annuation fund will contain renewable energy shares aswell as shares in the electric-automotive industry . The movement towards a low carbon society has already seen success , with Tesla driving a shift towards faster and more eco-friendly cars that produce surreal performance . Last week , Amazon have planned to order 100,000 electric delivery vans to increase efficiency and cut cost- according to Jeff Bozos , further accentuating the significance of the low carbon movement .

Australia will feel the strongest inertia with climate financing as 95% of it’s exports in GDP terms are in iron ore and coal mining . The switch may even put Australia into a major recession , which could be the reason why the Australian Government have chosen to ignore policies that will aid the switch . However , just like in the business world , to stay afloat in a dynamic environment you must change with the tide . When this day comes , those who invested in renewable energy and technology will be rewarded .

I will be posting ASX companies in our new portfolio brought to you by our associates at YIG . This portfolio will list up and coming investment opportunities we have found in the market . In particular , I will be adding potential Australian and Global companies that have made the switch to developing the future of low carbon based energy and transport . These companies are the future , and more importantly will effect your future whether it be an investment such as superannuation or as literal as how you get to work every morning . The future is now

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

If you enjoy our articles or are wanting to learn more, you can subscribe to us for free via email and get updates when we post new articles. From all of us at YIG, thank you for the support.

The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Written by founder , Tyger Fitzpatrick .