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TFSA Investors: 2 Canadian Blue-Chip Stocks That Can Still Make You Rich!

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Blue chips aren’t going to make you filthy rich overnight like penny stocks, marijuana stocks, Bitcoin, or any other sort of speculative asset. While they pale in comparison to such spec stocks on the (possible) return front, they more than make up for it on the safety front and can thus provide investors with superior risk-adjusted returns, or returns relative to the risks taken on.

And over a longer-term time horizon, there is a particular class of mega-cap stocks out there that can still make you rich. Not the stalwart behemoths like BCE, but certain mega-cap growth kings that continue to grow in spite of their size and successfully avoid diseconomies of scale, a growth-stunting phenomenon that plagues many massive blue chips.

This piece will have a look at two of my favourite blue-chip TSX stocks that can continue growing their top- and bottom-line by double digits. Each firm has a high growth ceiling, and a means to sustain growth over the next decade.

Alimentation Couche-Tard

Alimentation Couche-Tard (TSX:ATD.B) is a company that’s not going to let its size shoot down its growth ambitions. With a market cap shy of $50 billion, you’d think that the best days of the convenience store giant were in the past and that it’s on the road to becoming a stalwart behemoth, but that’s far from the truth.

Management is striving to double its net income within five years, which is very ambitious and even far-fetched for a company as massive as Couche-Tard. What gives management the confidence that it can double its profitability in five years? It’s found the magic formula, and it continues to unlock sizeable gains for shareholders.

The mergers & acquisistions (M&A) specialist has a management team that knows the value of driving same-store sale (SSS) comps while keeping an eye on potential bargains in the global convenience store space. The company is a rapid earnings grower. Despite the massive pool of potential takeover targets, management is only willing to pull the trigger on a deal if there are ample synergies to be had, and the price of admission is absurdly low.

M&A can be risky with substantial integration risks. Given the expertise of Couche-Tard’s management and the fact that they tend to acquire with a margin of safety, such risks are substantially diminished. And that’s a huge reason why the stock tends to surge on acquisition announcements.

With Couche-Tard’s crosshairs set on the global c-store scene, which remains highly fragmented, there appear to be decades’ worth of M&A opportunities, and that bodes well for growth investors with a long-term mindset.

Restaurant Brands International

Up next, we have Restaurant Brands International (TSX:QSR)(NYSE:QSR), the fast-food kingpin behind Tim Hortons, Burger King, and Popeye’s Louisiana Kitchen. The company has grown its earnings (net income surged nearly 18% annualized over the last three years) and dividend at a staggering double-digit rate.

The company has the means to increase its growth ceiling at its discretion through the acquisition of a new brand. With a considerable amount of selling activity conducted by management over the past few years, some have speculated that the company may be getting ready for another significant acquisition, possibly a pizza play, which would be a perfect complement to fried chicken, burgers, and donuts.

Even if Restaurant Brands pulled back on acquisitions over the next five years, the company still has a world of expansion opportunities with Tim Hortons and Popeye’s, both of which haven’t seen their global potential unlocked as of yet.

Warren Buffett once suggested that investors buy stocks of businesses that even an idiot could run. No disrespect intended, but even with the poor execution of the Tim Hortons brand, the company has continued to do well thanks to Burger King. With three wonderful brands in the portfolio, Restaurant Brands has the means to sustain massive growth in a capital-light fashion and should all three brands go into high gear; the stock could surge like a bat out of heck!

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Fool contributor Joey Frenette owns shares of ALIMENTATION COUCHE-TARD INC and RESTAURANT BRANDS INTERNATIONAL INC. The Motley Fool owns shares of RESTAURANT BRANDS INTERNATIONAL INC and has the following options: short January 2020 $94 calls on Restaurant Brands International. The Motley Fool recommends ALIMENTATION COUCHE-TARD INC.



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Are There Any Safe Alternative Investments?

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The stock market is famous for its volatility, so it’s not too surprising that risk-averse investors are keen to find safer ways to invest money. Traditional stocks and shares are vulnerable to fluctuations in the market, and this can cause major losses that can wreak havoc in any investor’s portfolio. It’s no wonder, then, that alternative investments are becoming more popular as those who are investing for the first time, as well as those who are seasoned investors, look for options that will give them a reliable and secure source of ongoing income without so many risks.

So, what are alternative investments? It’s a term that is used to describe any type of investment outside the standard three asset classes of cash, bonds, and stocks. While these more unusual investment options have a role to play in any investor’s portfolio, it’s important to be aware that these investments can’t take over from traditional assets. As an investor, you shouldn’t sell your stocks, or take your cash out of your savings account and put it all into untraditional options. In fact, the majority of financial experts believe alternative investments can be put to best use when it comes to portfolio diversification.  Rather than putting all your money into stocks, it makes more sense to put some into stocks, some into bonds, and some into alternative investments such as fine art, wine, private equity, or hedge funds. This is one of the best ways to protect your portfolio.

Alternative investments have long been popular with institutional investors and high net-worth individuals, and this is because many of them require a bigger initial investment when compared to bonds and stocks. Also, in many cases, alternative investments have less liquidity than more traditional ones, so they are harder to cash in easily and quickly. Nevertheless, don’t be put off just yet. There are several benefits to making alternative investments.

Investing In Fine Art

Historically, price fluctuations within the fine art market do not reflect the standard fluctuations reflected in the traditional stock market. On the other hand, though, the art market has shifts of its own that may make investing more risky. Although buying sculptures and paintings in top auction houses and galleries will cost you a minimum of $10,000, it’s possible to enter this market with lower amounts of around $500 – $1,000 if you’re willing to gamble on undiscovered, smaller artists, or cheaper media such as lithography or photography.

Investing In Wine

You may never have considered investing in wine, but in fact, it’s possible to make steady returns of 6-15% each year in the long-term. The prices of some vintages will fluctuate year-to-year, however, the price of wine from the most popular vintages and vineyards will usually eventually increase when the supply becomes more scarce. On the downside, though, since wine collectors and connoisseurs are picky, you’ll need to do your research to choose vintages that represent a good investment, and you’ll need to invest in a large quantity to ensure sizeable returns.

Investing In Commodities

Livestock, crops, precious metals, and fossil fuels are all commodities. Their marketplace is extremely volatile since unpredictable world events and natural disasters can have direct impacts on prices. If there’s a drought in one year, the price of a certain crop may soar, but then the following year there may be a surplus that causes that commodity’s price to drop dramatically. Since commodities are unpredictable, they are better long-term investments than short-term ones. The safest way to benefit from commodities’ rising prices is to purchase ETFs. These mutual funds buy several commodities instead of just focusing on a single one. This eliminates a little of the uncertainty involved in choosing which commodity could fall or rise at any given time.

Investing In Real Estate

Real estate has long been an extremely popular form of alternative investment. Yet, even this long-standing option is subject to market fluctuations. The potential of crashes in the real estate market makes some investors nervous and wary about making investments in property. However, purchasing rental property usually provides a reliable and steady income as long as the right tenants can be found. It’s important, though, to remember other expenses such as general upkeep and property taxes that may limit profits together with major investments of effort and time.

Choosing The Right Alternative Investments

If you’re keen to make alternative investments, the key is to add them to an expanding portfolio of options. If you choose the right alternative investment for you, whether than be in wine, fine art, rental property or commodities, you should ensure that it forms part of a larger series of investments to protect you from potential risks. This way, you can enjoy greater financial security as well as maximum money-making potential.

The post Are There Any Safe Alternative Investments? appeared first on Wall Street Survivor.



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The IPOX® Week, June 1, 2020

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  • Everything IPOX records big returns during May as investors flock to the New Generation of stocks.
  • FANG-free, broad-based IPOX 100 U.S. (ETF: FPX) jumps +11.26%. Diversified IPOX International (ETF: FPXI) rises to +14.33% YTD, closes week at fresh all-time high.
  • JDE Peet’s strong Amsterdam debut, ZoomInfo lined up.

Everything IPOX records big returns during May as investors flock to the New Generation of stocks. Amid stable U.S. yields, lower equity risk (VIX: -2.31%), geo-political jitters, declining global anxiety over Covid-19 and the S&P 500 (SPX) zooming through big technical resistance, IPOX finished May with another strong showing, with multiple Indexes closing out the month at or near all-time highs. In the U.S., e.g., the FANG-free, broad-based IPOX 100 U.S. (ETF: FPX) jumped +3.28% last week to gain +11.26% during May, a massive +673 bps. ahead of the S&P 500 (SPX), benchmark for U.S. stocks. The IPOX 100 U.S. (ETF: FPX) also finished out the month by recording its first positive YTD close since Feb. 26, 2020, as late-day positioning amid previously delayed index rebalancing’s propelled IPOX holdings which are typically underrepresented in the benchmarks. 88% of portfolio constituents rose during May, with the equally-weighted average (median) stock adding a massive +13.96% (+11.52%), ahead of the applied market-cap weighted IPOX 100 U.S. (ETF: FPX) and underlying the big strength in small- and mid-cap specialty exposure in light of a good month for the Russell 2000 (RTY), which gained +6.36% to -16.45% YTD.

Diversified IPOX International (ETF: FPXI) rises to +14.33% YTD, closes week at fresh all-time high. Strong IPOX momentum continued to extend to firms domiciled outside the U.S. with the diversified IPOX International (ETF: FPXI) adding +3.35% to +14.33% YTD, its 8th consecutive weekly gain, and up +10.69% for May. All global regions represented in the portfolio drove returns, including China (CNI), Developed Asia-Pacific (IPTA), Europe (IXTE, IPND) and Japan (IPJP). Gains were broad-based across market-cap spectrum and industries, led by Asia-Pacific key tech plays Sea (SE US: +43.58%), Meituan Dianping (3690 HK: +41.33%), Pinduoduo (PDD US: +40.96%), Freee KK (4478 JP: +39.29%) and Mercari (4385 JP: +18.32%), followed by specialty exposure linked to diverse other industries including Danish drug maker Genmab (GMAB US: +25.24%), Brazil Financial XP (XP US: +20.67%) and leading global energy plays Orsted (ORSTED DC: +14.29%) and Saudi Arabian Oil (ARAMCO AB: +4.27%).

IPOX International ETF (FPXI)-Investing since 11/2015

Long-only IPOX® Indexes Price Returns (%) Last Week 2019 2020 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) 12.23 27.93 12.79
IPOX® International (IPXI)* (USD) (ETF: FPXI) 10.69 31.37 14.33
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 11.26 29.60 0.38
IPOX® ESG (IPXT) (USD) 7.13
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 11.99 34.55 15.03
IPOX® Nordic (IPND) 15.29 38.52 14.71
IPOX® 100 Europe (IPOE)* (USD) 9.52 30.97 3.02
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 10.67 4.41 9.23
IPOX® China (CNI) (USD) 7.79 26.31 14.52
IPOX® Japan (IPJP)** (JPY) 13.00 37.91 -3.10

* Basis for ETFs: FPX US, FPX LN, FPXE US, FPXU FP, FPXI US, TCIP110 IT and CME-traded e-mini IPOX® 100 U.S. Futures (IPOM0). Source: Bloomberg L.P. & Refinitiv/Thomson Reuters. For IPOX Alternative Strategies Returns, please contact info@ipox.com

NOW TRADING: 0.25 tick IPOX 100 U.S. Index Futures (Front month: IPOM0). Whether you are a risk manager or speculator, CME Group – the world’s largest exchange operator – now offers efficient and cost-effective access to the IPOX 100 U.S. Index (ETF: FPX) via emini IPOX 100 U.S. Index Futures (Front month: IPOM0). Contact info@ipox.com for further info and Free Data & Resources.

IPOX-linked ETFs (FPX, FPXI, FPXE) Movers (May 2020 in %):
MYOKARDIA (FPX) 62.83 ARVINAS (FPX) -36.63
LIVONGO HEALTH (FPX) 49.79 HAPAG-LLOYD (FPXE) -34.07
ARGENX (FPXE) 49.70 COUNTRYSIDE (FPXE) -28.23
APPFOLIO (FPX) 44.28 GSX TECHEDU (FPXI) -20.73
SEA (FPXI) 43.58 AIB GROUP (FPXE) -20.08
REDFIN (FPX) 41.93 KOOLEARN TECH. (FPXI) -16.84
MEITUAN DIANPING (FPXI) 41.33 CHINA FEIHE (FPXI) -13.37
PINDUODUO (FPXI) 40.96 COOR SERVICE (FPXE) -10.08
FREEE KK (FPXI) 39.29 ROKU (FPX) -9.67
KINSALE CAPITAL (FPX) 37.47 GILEAD SCIENCES (FPX) -7.35

IPO Deal-flow Review and Outlook: JDE Peet’s surges in Amsterdam $2.4 billion debut. ZoomInfo lined up. With no U.S. IPOs taking place during the shortened U.S. trading week, focus was on deals in Europe with JAB’s coffee empire JDE Peet’s (JDEP NA: +13.78%) and German analytic database management firm Exasol (EXL GR: +35.58%) debuting strongly. With the global IPO window now open, the world’s third-largest record label Warner Music Group (WMG US), business-intelligence platform ZoomInfo Technologies (ZI US), fibrosis biopharma Pliant Therapeutics (PLRX US) and J&J-backed GenScript cell therapy unit spin-off Legend Biotech (LEGN US) are scheduled to list in the U.S. this week, while Tencent-backed payment platform Yeahka (9923 HK) is set to launch with over 600x oversubscription in Hong Kong. Other IPO news include: 1) Brookfield-backed WeWork rival Industrious poised for IPO; 2) Germany OTC drug maker PharmaSGP plans Frankfurt listing; 3) U.S.-listed NetEase and JD.com to list in Hong Kong in upcoming weeks; 4) multiple biotechs added to the U.S. pipeline including Avidity Biosciences Generation Bio, Progenity and Vaxcyte.

The post The IPOX® Week, June 1, 2020 appeared first on Low Cost Stock & Options Trading | Advanced Online Stock Trading | Lightspeed |.



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Retail Resilience is More than Immediate Recovery—It’s Planning Ahead

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One of the many things the current situation has taught businesses worldwide is that in addition to consumer dependency, the supply chain is incredibly fragile. And, a global pandemic that interrupts the proper flow of products today will create a different challenge down the road; one that completely devastates the market. In the immediate post-pandemic landscape, a plan to offload excess inventory that accumulated due to store closures is necessary. But what about the rest of the year?

The ‘What If’ of the Supply Chain

Now more than ever, it’s imperative to have a backup plan for excess stock. This will guarantee that retailers and brands have an inventory management system in play, should usual sales channels be affected. There’s a fine line to walk between meeting consumer demand and accounting for extra—and when something out of the norm affects all the stops involved, an alternative is not only nice to have; it can make the difference between company survival or demise. 

The Clearing of the Warehouse

Trends come and go, as does inventory. How do you make room for new arrivals every season? By clearing out your warehouse—and sustainably, at that. In recent months, partnerships have formed between brands all over the globe that cater to taking care of the planet. There’s a whole market ready to be tapped into—one that supports and contributes to the circular economy that extends the lifecycle of millions of products. We call it the secondary market.

The Model that Supports it All

If the last few years showed an upward trend toward earth-friendly initiatives and the growth of the secondary market, the current landscape has likely shown its necessity. With the world watching and options dwindling, now is the best time to enter this exploding market and take advantage of what it has to offer in terms of recovery, velocity, and sustainability. B-Stock works this way. We help retailers and brands offload their excess inventory via a B2B online auction platform on which thousands of vetted business buyers from all over the world purchase goods. We create these auction marketplaces scaled to each company’s needs, allowing them to set the pace at which they sell, and who they sell to—protecting their brand name. It’s why nine out of the top 10 U.S. retailers are currently using our online auction B2B marketplaces to sell their excess and returned goods.

Learn more about how we’re helping the earth, one item at a time, by checking out our recent Earth Day article. And if you’re ready to take advantage of the secondary market for your overstock, request a demo. 

Request Demo

The post Retail Resilience is More than Immediate Recovery—It’s Planning Ahead appeared first on B-Stock Solutions.



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