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The Three Most Important Steps for Trading Success (You Won’t Get Anywhere Else)

Posted: 24 Sep 2019 12:42 PM PDT

Two Blockchain Breakthroughs That Will Change the World By George Gilder

When I say the word "blockchain," most people immediately think of bitcoin.Of course, they're right. Blockchain provides a secure framework for bitcoin transactions.

But the technology's reach goes far beyond just bitcoin.

Blockchain holds the key to an entirely new system of the world.

Its expansion in the coming years will trigger major changes in the way we live our day-to-day lives.

And there are two areas in particular that will experience major breakthroughs as blockchain technology continues to gain traction.

[Editor's Note: Something big is happening right now, but nobody is talking about it…YET. I want to share my next prophecy with all of you. Click here for more details.]

Blockchain Breakthrough #1:
The New Security Architecture

There were a billion breaches on the internet last year. A billion breaches of private data.

As a result, security technology spending is growing faster than ever. We've seen a 20-30% rise every year in spending on internet security technologies.

But that only means more and more ways for hackers to find a way in.

And we know that internet security is driving everybody crazy.

Consider that the government is trying to ban international technology from our market merely because they’re afraid it might be hacked.

By doing so, they’re expressing belief in intrinsic vulnerability of all our internet connections.

The thing is, that cultivates paranoia. And that paranoia has to be addressed not with psychiatry, but with new technology.

Part of the problem is that internet security is centralized. By centralizing your security, you actually help hackers and spies. Because it tells them 1) what’s important and 2) where it can be found.

This is the fundamental vulnerability of all centralized security, and the classification systems that are associated with it.

And the technology to address it is the blockchain, which offers the new security architecture for the internet.

[Editor's Note: Tech insiders are holding their breath for what I'm about to reveal on September 4th at 1PM EST. Click here to save a seat.]

That's because the blockchain provides an immutable record of all transactions and information transmissions that have occurred — and distributes a compressed version of all the data to everyone in the network.

By using a distributed model instead of centralized, we won't have all information in one place — where it's an easy target for hackers. Instead, you'd have to attack all the records across the whole internet before you can change anything or steal anything.

What does that mean for you?

It will mean that you are not in charge of security.

You don’t have to learn dozens of different passwords to access every walled garden on the internet. No more sets of security questions and entering your mother’s maiden name, or the last four digits of your social security number.

Your identity goes where you go, all accessible blockchain. Available anywhere you go, but ultimately protected at the same time because no one else will have the same digital footprint, the same digital signature as you.

Blockchain Breakthrough #2:
Giving Power Back to Money

There's a major problem when debt is growing three to four times faster than the economy.

And a big part of that problem is the fact that we've adopted an absolutely preposterous monetary system — one where central banks just manipulate money in order to supposedly regulate the economy and summon growth.

The problem, of course, is that growth is real. It's not some kind of illusion that can be conjured up by magicians at the central bank.

The reason trade today is so contentious — and why the whole world economy is convulsed with battles over valuation — is that the biggest industry in the world economy today is currency trading.

Currency trading reaches $5.1 trillion dollars a day. That’s almost 75 times all the trade of goods and services. That’s 25 times all global GDP.

It doesn’t even arrive at a measuring stick, at a value that an entrepreneur can depend upon.

It seems that governments have forgotten what money is for and how it works. As a result, they're issuing more and more of it, on the assumption that somehow money constitutes wealth, instead of realizing that money measures wealth.

So in this paradigm, I think it's perfectly possible for people to blind themselves to the real sources of their progress and prosperity.

You can’t get real growth by fooling people about the value of their measuring sticks.
If money is going to be a measuring stick for the allocation of resources and guidance for investment, it can’t float. It has to actually register real scarcity. It must be a fixed rate.
One way to do that is to tie money to physical constants.

[Editor's Note: This prediction that could mean the END for big market tech giants like Google, Facebook, Amazon and more…And it has the potential to make early adopters as much as $1,000,000 in the years to come. Click here for details.]

It was gold until 1971. And I believe that blockchain — along with cryptocurrencies — offer the solution today.

It's not just about creating a new form of money that the government can't touch.

With the help of blockchain, some cryptocurrencies will eventually replace real money and displace wildly floating currencies.

There are even efforts to tie cryptocurrencies to gold.

That will create a stable coin standard — from which I think it will be possible to launch digital algorithms that can perform better as money than the various contraptions of gold and fiat (paper money).

With the help of blockchain and some cryptocurrencies, I think we’re on the verge of an emergence of a better global money, which will resolve these ridiculous trade conflicts between the U.S. and China.

As a new global money emerges, real money, I think that we can have a great new era of capitalism.

The Blockchain Explosion is Well Underway

So when will we see blockchain make a real impact on the world economy?

It's happening faster than you think.

Just look at Jamie Dimon at JP Morgan — who used to deride blockchain. He's now devoting much of his technology to developing blockchains for his own bank.

And the owner of the New York Stock Exchange is launching products around blockchain.

But it's like the internet was in the late ’90s and early 2000s. There was lots of turbulence. There were slumps and crashes. There were frauds and fantasies. And people were inclined to dismiss it or regard it as a criminal conspiracy.

Then today you have companies like Google, Amazon, Facebook, Netflix, and Apple that have taken over by leveraging this once-volatile technology.

This is the typical foundation for an explosive new technology — one that will provide the backbone for a more secure internet, along with a revitalized form of money.

And several ways to profit along the way.

[Editor's Note: I want to share my next BIG prophecy with you and tell you why "Big Tech" is doomed. Clear your calendar for September 4th at 1 PM EST. Click here to save a seat.]

Credit Suisse Gives Micron a $90 Price Target

Posted: 24 Sep 2019 03:00 AM PDT

Company likely to see first-time profit in cycle low.

An analyst at Credit Suisse upgraded shares of Micron (MU). Although the company is going through a down cycle for its semiconductors, the company is expected to report its first profitable cyclical bottom when it reports earnings later in the week.

The expectation is for the company to report between $4.6 and $4.8 billion in revenue, above average analyst consensus. The combination of profit and improving supply and demand for the company's products are likely to lead to multiple expansion.

The price target of $90 is 80 percent higher than the company's current share price of $50, and is a price far above the company's 52-week high of $51.40. Micron shares are up 9 percent in the past year, a better return than the S&P 500 Index on average.

Shares trade at less than 6 times earnings, but 19 times forward earnings, and the company next reports earnings on September 26th. Analysts are generally bullish on average.

Action to take: We like the company's position within the sector, and shares are a reasonable price at $50 for investors. With no dividend, however, buyers of shares may be in for a wild ride. Shares have traded near $50 in the past, only to drop as low as $28 during a market pullback.

Speculators may like the June 2020 $50 calls, which trade at-the-money and should move dollar-for-dollar higher with shares over the next nine months.

 

Insider Activity: Roadrunner Transportation Systems (RRTS)

Posted: 24 Sep 2019 03:00 AM PDT

Fund with major ownership adds to stake.

Investment fund Elliott International bought 6,529 shares of Roadrunner Transportation Systems (RRTS), shelling out over $64,000 to make the trade. A mere 0.3 percent increase in holdings, Elliott now owns over 23,227,100 shares, a stake worth more than 10 percent of the company.

Elliott has been an active buyer of shares throughout the year, at prices as much as 25 percent higher than where shares currently trade. There has been only one insider sale this year, from a different fund.

Roadrunner provides asset transportation and logistics services, via ground and air. The company operates through a network of independent brokerage agents and sales representatives. Shares have declined 60 percent in the past year and the company is currently unprofitable.

Action to take: With a global economic slowdown underway, it's likely that demand for shipping and logistics will remain weak, likely getting worse before getting better. As shares do not pay a dividend, there's no way for investors to get paid to wait. And, as a smaller company, there's no options trades for speculators.

Anyone interested in a shipping-related trade should consider a railroad firm instead, as America's rail lines tend to operate as a monopoly for a given route and tend to see some demand from raw commodity shipping even when the economy slows.

 

Unusual Options Activity: Amazon (AMZN)

Posted: 24 Sep 2019 03:00 AM PDT

Big bet on shares heading higher by November.

The November 15th $1,770 call options on Amazon (AMZN) saw over 2,042 contracts trade against a prior open interest of 147, a 14-fold surge in volume. With each option contract representing 100 shares, each option essentially controls $177,000 worth of shares.

With Amazon shares around $1,775, the options are $5 in the money. Trading around $80, or $8,000 per contract, shares would need to top $1,850 for the trade to close in-the-money in the next 52 days.

Shares of the retail giant have traded as high as $2,000 in the past year. A return to that price before November 15th could cause the option to trade as high as $230, a near-triple from current prices. Amazon reports earnings the last week of October.

Action to take: Amazon is a difficult company to analyze given its focus on growing how it wants to grow rather than follow a metric like earnings per share. As far as bets go ahead of earnings season, it's a good one provided shares move higher quickly enough.

Given the prohibitive cost of the option, or building a large stake in shares, most small investors may simply want to buy one or two shares, at the very least to profit from the company's continued growth in a variety of space from internet retail to cloud storage services.

 

Morgan Stanley Sees Double Digit Growth at Microsoft

Posted: 24 Sep 2019 03:00 AM PDT

Cloud storage and infrastructure will prove a key driver of growth.

With growth in the cloud architecture space, Microsoft (MSFT) can show investors "durable double-digit growth" according to a recent comment from Morgan Stanley. Improving profit margins for the company's commercial cloud product, known as Azure, make the software giant big relative to better-known names in the cloud space.

Morgan Stanley has an Outperform rating on the stock, and has given shares a $155 price target, an 11.5 percent increase over the current price of shares near $139.

Besides the growth opportunity and fat 31 percent profit margins, Microsoft has increased its dividend recently to $2.04 per share from $1.84 per share, and the company has spent billions of dollars in share buybacks with more planned. Shares at the tech giant are up 21 percent in the past year, about tenfold the return of the S&P 500 Index.

Action to take: While we like Microsoft's move in the high-margin cloud space, the trillion-dollar company is a bit expensive at 23 times forward earnings. Investors should wait for a pullback to at least $110 or lower, a price easily achieved on a market drop.

Speculators may want to consider the June 2020 $155 call option as a bet on higher prices without overpaying for shares, but all holders of shares are cautioned not to expect the repeat of last quarter's blowout earnings surprise.

 
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