Hi Everyone
To begin with, right or wrong and regardless of ridiculous panic and over-reaction, the new US Tariff policy is affecting the market and will affect us until things settle down. At issue is what is smart for us?
All companies have some reliance on imports and exports in both products and raw materials. As part of the market, we will profit best with domestic materials and manufactured products and least from imported supply chains, but international trade will not stop and if the Trump power play works, the international trade could even improve in the U.S.’s favor. So lets look at the things we invest in.
- Shipping – ZIM – just paid a 53% dividend!!!! – irrational fears suddenly dropped it to $12.50/sh which at today’s price raises the dividend value to 101%. Is shipping really going to slow down that much, especially if Trump’s Art of the Deal approach to fair trade works, after all we hold the cards in that.
- Retail Goods –AMZY – hedge fund profits on AMZN call options. Most of AMZN sales revolve around imported goods which in the short run could be slowed by higher prices. AMZY was paying an OK dividend but that is likely to drop now. Our price has dropped from $16/sh avg to $14/sh today – not a huge drop considering. I sold my position for better opportunity elsewhere.
- Oil is until the next crisis on a downhill skid – our USOI is already way down to $55.30/sh but it has never made a terrible payment – from 8% to 56%. In fact between the market and the current weak oil prices, this may be a great time to pick up some shares and wait for an oil surge. This is actually a variable payment ETN (United Bank Switzerland Bond that financed a USO hedge fund) which pays monthly according to the price of oil.
- Gold is up but the Swiss Bank ETN hedge we follow GLDI is expensive ($160/sh) and doesn’t pay great. On the other hand our gold miner’s hedge GDXY just paid 52% and its price has dropped from $15.80 to $14.70 – bargain times anyone?????
- Silver -a potential opportunity for us – also is up and the Swiss Bank ETN hedge we follow SLVO ($72) is $10 cheaper since this market crash started. It just paid a 21% monthly dividend. Click the link to see its history.
- Computer science, chips and AI – does anyone with half a brain really believe the demand for state of the art science for American and European products is going to diminish because of tariffs especially considering the intergovernmental deals being made to limit high tech tariffs. I guess some folks are really brain dead here.
- NVDY and DIPS – It seems ridiculous for people sell out stocks like NVDA for lots of reasons but market suckers have dropped its price and our positive hedge NVDY is now down to $13.52 with a 70% yield!!!! At the same time our negative hedge DIPS is slightly up ($13.24) with a 62% yield. Both are opportunities now but they have always made us great money.
- PLTY – PLTR software/AI company absolutely crucial to safe and efficient operations of business and government, has dropped from $67 to $50 yet pays 125%. Is it even sane not to be acquiring this now.
- AMDY has dropped from our average price of $13 to $6.40 now with a 47% dividend. AMD is the number 2 player against NVDA and because they make money with occasional technology breakthroughs the demand for AMD stock could pick up creating larger dividends for us.
- AIYY – Another idiotic breakdown today to $4.37/sh while it pays 88% and its reference company, C3AI, has lots of positive business activity but its price is victimized by the current market and technical analyst headlines – possibly a short seller driven issue.
- SMCY – Based on Super Micro Computer, Inc., this hedge is a 130% dividend payer that dropped to $18.25 from our average cost of $25/sh. Analysts are bullish about SMCI, and the hedge pays very well. WHATS NOT TO LIKE ABOUT THIS ONE?????
- Crypto has a huge worldwide belief system behind it that creates monetary value. Everything in this business seems to at least partly track the price fluctuations of Bitcoin.
- CONY and FIAT – Positive and negative hedges on Coinbase Global (COIN) [which operates like a stock exchange but only for crypto]. While COIN stock closely tracks Bitcoin prices, regardless which way Crypto moves we usually make great money although lots of folks don’t understand that and wrongfully drive the stock prices down. Now is an example of that – CONY dropped from our average price of $16 to $7 yet it just paid 103% while FIAT held its price of about $9 and just paid 106%.
- MSTY, a hedge on MSTR, the big bitcoin miner and investor, at $21/sh has only dropped $1 from our average. . Last time it paid 80% and it declares a new dividend next Wednesday. Its negative counter hedge is WNTR $53 and it will declare the first dividend on Wednesday as well.
- YBIT a bitcoin hedge has dropped $2.00 to $19.80 yet recently paid a 52% dividend in spite of the lower recent prices of bitcoin.
- Automotive – with all the government insanity in the electric car business between China and the US volatilizing the EV market, Tesla bumped and then kept on humming. While our price dropped on TSLY hedge from $10.50 to $7.75 and on our negative CRSH hedge from $9.50 to $7.30, we still made money on both. TSLY paid 72% and CRSH paid 106%. Go figure, — both dropped even though the market went down, yet both paid out great money. On the price charts, both seem to have bottomed and flattened out – maybe a buy signal.
- Pharmaceutical – MRNY is at its all time low $2.46/sh yet paid a dividend 2 weeks ago of 89%!!!!! We published a feature last month on the fake news that has driven this down and on the reasons it could rebound.
.We could continue with CHPY, ULTY, CVNY, LFGY, etc, but as much as it hurts to see portfolio values drop, to make money we have create some ice in our veins and grab the opportunities crashes create for us. When the herd is mistakenly led by fake news, analysts for hire and short sighted politicians, we notice that and try to make money in the other direction.
Please forward your text number for faster alert links. XtremeInvestor@xtremeinvgrp.org ,
Regards,
Clint