Top 4 Technology Penny Stocks to Watch In 2017

Technology remains fertile ground for young companies to try their hand at putting new tech solutions on the market. That means investors will find plenty of penny tech stocks to choose from.

We have selected four penny tech stocks for you to consider in 2017. These stocks were chosen based on their positions in their industries. In other words, we looked for stocks that have the potential to capture market share.

All figures are current as of July 11, 2017.

1. Zix Corp. (ZIXI)

Zix Corp. is an email provider. It focuses on secure messaging, marketing itself to corporate and government entities. The unique approach of encryption, coupled with avoiding downloading, makes this an attractive service.

With sales rising 65% in five years, Zix is making headway. It tends to range in and out of the penny stock category as it rises over $5 per share on occasion. As you might expect, the company is very small, with a market cap of just over $313 million.

Revenues have been increasing steadily over the past four years. With earnings per share in the positive column, this stock shows promise for investors who are willing to take on the risk of a penny stock.

• Avg. Volume: 407,620
• Market Cap: $313 million
• PE Ratio (TTM): 52.09
• EPS (TTM): 11 cents
• Dividend & Yield: 0.00 (0.00%)

2. Glu Mobile Inc. (GLUU)

Glu Mobile makes games for smartphones. It has multiple titles that are gaining popularity for players who use phones or tablets. Many of the titles are based on action movies, while others are based on existing console games. Interestingly, its biggest selling game is reality TV star Kim Kardashian.

The company has worked its way out of debt and has strong cash reserves. Revenues have been rising over the past four quarters, but operating income is negative. Glu Mobile is spending on research and development to find its next hit. (See which online broker offers the best tools for analyzing the technology industry by visiting our Brokerage Review Center.)

The potential for this stock is based on its industry. Games continue to grow in popularity, and gamers are willing to try new games, even if they are not from large companies. Glu Mobile could come up with a hit game that will send the stock soaring.

• Avg. Volume: 5,141,590
• Market Cap: $335.51 million
• PE Ratio (TTM): -3.26
• EPS (TTM): -76 cents
• Dividend & Yield: N/A (N/A)

3. Arotech Corp. (ARTX)

This company has combined two of the hottest trends around today: drones and virtual reality. It creates technology for the military and law enforcement. It offers training simulations for use-of-force training. It also sells to the security and emergency services sectors. It offers weapons simulations and aircraft and missile systems.

Arotech has positioned itself as a significant provider of surveillance and attack technologies at a time when drones are gaining increased attention, and artificial intelligence is being deployed.

Revenues have not grown in the past four quarters, and the company’s operating income has dropped. That means investors who buy this stock are doing so based on the potential for both the company and the sector.

• Avg. Volume: 271,703
• Market Cap: $93.41 million
• PE Ratio (TTM): -31.30
• EPS (TTM): -12 cents
• Dividend & Yield: N/A (N/A)

4. Guidance Software Inc. (GUID)

This stock is technically above the penny stock range, but the recent dramatic breakout makes it worth noting.

Guidance sells software for digital investigations. This software is used by law enforcement and corporations to search networks and collect data from those networks. In short, the company is in the cyber-security business, at a time when this sector is red hot.

Revenues have been flat for the past four quarters, and operating income remains negative. However, analysts are predicting strong earnings-per-share growth and an uptick in sales. With a target price of $8.92, this stock could produce some strong returns.

• Avg. Volume: 142,424
• Market Cap: $220.42 million
• PE Ratio (TTM): -12.50
• EPS (TTM): -54 cents
• Dividend & Yield: N/A (N/A)

The Bottom Line

The trouble with penny stocks is you have to make some guesses about the future. Very few penny stocks have a strong-enough track record to indicate they will survive and prosper. That said, the penny stocks on our list are in significant industries and have the potential to be vital players in those industries.

By Kevin Johnston

Source: https://goo.gl/Pt7RdK

Bill Gates’ Portfolio: 5 Dividend Stocks Held By The World’s Richest Man

Billionaire Bill Gates is the world’s richest man, with a net worth of $86 billion, as estimated by Forbes. After having co-founded Microsoft Corporation (NASDAQ:MSFT), which later became the world’s largest software company, Bill Gates has considerably expanded his fortune not only through ownership of Microsoft stock, but also through investing. Bill Gates doesn’t reveal his portfolio of investments, but we can get an idea about his holdings by looking at the 13D and 13G filings of his investment arm, Cascade Investment, as well as by looking at the 13F filings reported by his charity, the Bill & Melinda Gates Foundation Trust.

When it comes to billionaires, we mere mortals always want to take a peek and get a glimpse into their lives, lifestyles, and routines that helped them develop the skills and discipline that led to their success and wealth. To that end, be sure to check out our list of 20 surprising facts about Bill Gates’ House.

When it comes to investing, a fact that is often overlooked is that Bill Gates is not solely responsible for his portfolio. In fact, he only takes care of his investments in technology and biotech, which are not even held by Cascade Investment, so little-to-nothing is known about them. The bulk of Bill Gates’ portfolio is handled by Michael Larson, who also manages the Bill & Melinda Gates Foundation Trust. Larson is responsible for Gates’ investments in property and non-technology stocks and has been running Cascade since 1994. Due to the secretive nature of the asset management firm (Cascade does not label itself as a family office), we can only get a slight idea about its returns from various articles in the media. Between 1995 and 2015, Cascade has reportedly had a compound annual return of 11%, while during the financial crisis, its losses were smaller than those of the broader market.

At Insider Monkey, we follow hundreds of investors like the Bill & Melinda Gates Foundation Trust. By analyzing their filings with the Securities and Exchange Commission, we can identify the stocks that these investors are collectively bullish on. We then share those stocks with our premium subscribersas part of our flagship strategy, which has returned over 44% since February 2016.

Even though there is not much information about Larson’s investment principles, judging by the publicly disclosed filings, he has a rather conservative approach and prefers to hold positions in a relatively small number of stocks for long periods of time. According to the 13F filings of the Bill & Melinda Gates Foundation Trust, out of 18 positions held at the end of March, more than half have been included in the Trust’s portfolio for over a decade. It’s also worth mentioning that several of the Trust’s long-term holdings have solid dividend yields.

With this in mind, let’s take a look at five dividend stocks that are held by Bill Gates via the Bill & Melinda Gates Foundation Trust, beginning on the next page.

5. Waste Management, Inc. (NYSE:WM)

Let’s start with Waste Management, Inc. (NYSE:WM), which is the second-largest holding in the Bill & Melinda Gates Foundation Trust’s equity portfolio as of the end of March. The fund disclosed holding 18.63 million shares of the company worth $1.36 billion. It should also be mentioned that Waste Management, Inc. (NYSE:WM) is one of the oldest investments held by the Trust, having been included in its equity portfolio since 2002. The stock has gained over 200% since then. The company pays a dividend of $0.43 per share, which gives its stock a yield of 2.30%.

Because Waste Management, Inc. (NYSE:WM) is the largest waste and recycling company in North America, it has been able to consistently generate cash flow, which in turn has allowed it to increase its dividends consistently for the last 14 years. Waste Management, Inc. (NYSE:WM) is also well positioned to be a cash flow-generating machine over the long-term, as it owns 240 landfills and a large network of recycling facilities. Even though its landfill business might decline as consumers become more aware of environmental issues and reduce their waste, its big recycling business helps offset some of the risks. Including Bill Gates’ Trust, there are 29 funds in our database holding shares of Waste Management, Inc. (NYSE:WM) as of the end of March, down by seven funds over the quarter.

4. Wal-Mart Stores Inc (NYSE:WMT)

Then there is Wal-Mart Stores Inc (NYSE:WMT), in which the Bill & Melinda Gates Foundation Trust owns 11.60 million shares worth $836.34 million. Wal-Mart Stores Inc (NYSE:WMT) is the only dividend aristocrat in which the Trust is invested and the stock currently has a yield of 2.70%. Wal-Mart Stores Inc (NYSE:WMT) has a tough battle ahead of it as it tries to take on Amazon.com, Inc. (NASDAQ:AMZN) in the online retail space. While still a leader in terms of overall sales, having generated $482 billion last year, versus Amazon’s $136 billion, Wal-Mart will have to adopt changes as the online retail industry expands to include groceries, a development that seems imminent now that Amazon has bought Whole Foods.

However, the good news is that Wal-Mart Stores Inc (NYSE:WMT) has the infrastructure required to perform well, as it has over 5,000 locations in the U.S, including over 3,000 Supercentres. Moreover, their close proximity to residential customers means that Wal-Mart can easily provide same-day delivery to its customers. In any case, the U.S retail market is worth over $5.0 trillion, so there’s plenty of room for both Wal-Mart and Amazon. Overall, 48 funds tracked by Insider Monkey disclosed long positions in Wal-Mart Stores Inc (NYSE:WMT) in the latest round of 13F filings, compared to 54 funds a quarter earlier.

3. Caterpillar Inc. (NYSE:CAT)

Caterpillar Inc. (NYSE:CAT), which has a dividend yield of 2.90%, is represented in the Bill & Melinda Gates Foundation Trust’s equity portfolio by a $1.04 billion stake containing 11.26 million shares. The stake makes the fund Caterpillar Inc. (NYSE:CAT)’s largest shareholder among the 38 funds in our database that are bullish on the stock as of the end of March.

The Trust has held shares of the mining and construction equipment maker since 2005, during which time the stock has more than doubled in value. Caterpillar Inc. (NYSE:CAT) has also more than tripled its dividend during that time, to $0.78 from $0.25 per share. In its latest financial report, Caterpillar Inc. (NYSE:CAT) delivered EPS of $1.28 in the first quarter, which was significantly above the consensus estimate of $0.62. In addition, its revenue of $9.82 billion was $550 million higher than expected and also rose by 3.8% on the year, which was its first quarterly revenue growth since 2014.

2. United Parcel Service, Inc. (NYSE:UPS)

In United Parcel Service, Inc. (NYSE:UPS), the Bill & Melinda Gates Foundation Trust disclosed a $485.57 million stake that contained 4.53 million shares as of March 31. Overall, the company registered a decline in popularity among the funds we track, as the number of investors long the stock fell to 36 from 41 between January and March. In 2017, United Parcel Service, Inc. (NYSE:UPS) increased its dividend to $0.83 from $0.78, which provides its stock with a yield of almost 3%.

United Parcel Service, Inc. (NYSE:UPS) is among the best stocks to invest in for the long-term. It operates in an industry dominated by a few well-established companies like FedEx Corporation (NYSE:FDX) and is unlikely to face a lot of competition because of high barriers to entry. Providing delivery services requires a large fleet of trucks, planes, and cargo ships and a large network of warehouses and outlet locations, all of which are capital intensive.

There are concerns that Amazon.com, Inc. (NASDAQ:AMZN) might undercut delivery companies like United Parcel Service, Inc. (NYSE:UPS) because the eCommerce giant has been building its own fleet of planes and trucks. However, while delivery companies will be affected if Amazon takes delivery into its own hands, the online retail business is very large and continuously growing and traditional retailers seeking to expand their online presence will require companies like United Parcel Service, Inc. (NYSE:UPS) to handle deliveries.

1. Crown Castle International Corp. (REIT) (NYSE:CCI)

Finally, the stock with the highest dividend yield in the Bill & Melinda Gates Foundation Trust’s 13F portfolio is Crown Castle International Corp. (REIT) (NYSE:CCI), which has a yield of 3.75%. At the end of March, the Michael Larson-managed fund owned 5.33 million shares of the REIT, worth $503.69 million.

As people are using their phones ever more frequently and companies like Facebook Inc (NASDAQ:FB) and Alphabet Inc (NASDAQ:GOOGL) are investing more in the development of their mobile platforms, the demand for mobile data and mobile network infrastructure will grow and Crown Castle International Corp. (REIT) (NYSE:CCI) stands to benefit a lot from this trend. Crown Castle International Corp. (REIT) (NYSE:CCI), which has a market cap of $37 billion, currently owns around 40,000 cell towers, and thanks to that size, it can afford to invest further in its infrastructure. Including the Trust, 38 funds from our database held shares of Crown Castle International Corp. (REIT) (NYSE:CCI) at the end of the first quarter, compared to 36 funds at the end of 2016.

By Alexandr Oleinic

Source: https://goo.gl/YSsbKP

Here's exactly when you'll become a millionaire if you save $1,000 per month

Mike Stobe | Stringer | Getty Images

If you start saving $500 a month today, you could become a millionaire as early as 2046. But what if you'd rather reach that seven-figure milestone sooner? We used CNN Money's helpful millionaire calculator to estimate when you'll become a millionaire if you're able to contribute $1,000 to an investment account each month, assuming that you're starting from scratch with zero savings.



With a four percent rate of return, you'll become a millionaire in 37 years, by 2054. With a six percent rate of return, you'll become a millionaire in 30 years, by 2047. With an eight percent rate of return, you'll become a millionaire in 25 years, by 2042. With a 10 percent rate of return, you'll become a millionaire in 22 years, by 2039. Want to get rich sooner? If you can hack it, putting away $2,200 per month will make you a millionaire in 20 years, and $6,000 per month will get you there in 10. Try out the calculator yourself here.

 

If you start saving $500 a month today, you could become a millionaire as early as 2046. But what if you'd rather reach that seven-figure milestone sooner? We used CNN Money's helpful millionaire calculator to estimate when you'll become a millionaire if you're able to contribute $1,000 to an investment account each month, assuming that you're starting from scratch with zero savings. Customers pick up their orders from Shake Shack. Simple money habits that will help you build wealth in 2017 With a four percent rate of return, you'll become a millionaire in 37 years, by 2054. With a six percent rate of return, you'll become a millionaire in 30 years, by 2047. With an eight percent rate of return, you'll become a millionaire in 25 years, by 2042. With a 10 percent rate of return, you'll become a millionaire in 22 years, by 2039. Want to get rich sooner? If you can hack it, putting away $2,200 per month will make you a millionaire in 20 years, and $6,000 per month will get you there in 10. Try out the calculator yourself here. This mindset is what separates the middle class from the millionaire class This mindset is what separates the middle class from the millionaire class These differences speak to the power of compound interest, in which any interest earned accrues interest on itself, and a little money invested now can end up being more than a lot of money invested later. In short: If you want to become a millionaire, the earlier you start investing, the better. This calculation doesn't account for the many variables that can affect your wealth over several decades, including windfalls, emergencies and rises or dips in the market. But it can give you a good idea as to whether or not you're saving enough to retire comfortably.

 

Of course, saving hundreds or thousands a month is an ambitious goal. Even $2,100 a year is more than most Americans can manage. But getting into the habit of saving any amount will be great for you in the long run, and if this inspires you to get started, the simplest way is to invest in your employer's 401(k) plan, a tax-advantaged retirement savings account. Next, consider alternate retirement savings accounts, such as a Roth IRA, traditional IRA and/or a health savings account. You can also research low-cost index funds, which Warren Buffett recommends, and online investment platforms known as robo-advisors.

By Emmie Matins

Source: https://goo.gl/HQNHaR

How To Beat The Market By 20 Percentage Points

Hedge funds are much better investors than you are made to believe by the financial press. Even hedge fund indices hide the truth about hedge funds’ amazing talent in picking winners and losers. Our research has shown that hedge funds’ top small-cap picks outperformed the market by nearly a percentage point per month between 1999 and 2012. We launched an investment newsletter that shares the stock picks of this strategy in real-time. This strategy returned 131.4% between the end of August 2012 and February, 2015. S&P 500 ETF (SPY) gained only 57.2% during the same period. Hedge funds’ top stock picks significantly outperformed the market.

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However our advice to you is to dump your hedge funds.

The fact is that most hedge fund investors don’t make as much money as they did in the nineties and the first half of the past decade, where alpha in excess of 10% was the norm. Aggregately speaking, hedge funds’ alpha has been in decline over the past decade for several reasons. They are as follows:

1) A greater level of competition within the hedge fund industry has caused profit margins to shrink.

2) Hedge funds got bigger and started investing in less profitable areas.

3) There are a lot of unskilled hedge fund managers who are trying to get rich by being “lucky”.

4) Equity hedge funds charge an arm and a leg for beta exposure.

Our research has shown that hedge funds have a small edge when it comes to large-cap stock picks and a large edge when it comes to small-cap stock picks. We created a 50-stock portfolio of the most popular large-cap stocks among fund managers. Between 1999 and 2012, this 50-stock portfolio underperformed the market by less than 1 percentage point per year but its annual alpha was 0.7 percentage points (read the details here).

It should be clear to you, then, that hedge funds’ large-cap stock picks are marginally better than the S&P 500 index because of their lower risk profile. However, if you are a hedge fund client you won’t see much outperformance in this space because you have to surrender 2% of your assets and 20% of each year’s return to your hedge fund manager. If your hedge fund invested entirely in large-cap stocks in 2014, its gross return would have been 13.5% but YOUR net return would have been only 8.8%, because you have to pay 2 percent flat fee and 2.7 percentage points of performance fee as if they accomplished something significant!!

Hedge funds can’t generate enough alpha in the large-cap space to justify their high fees. They invest in the large caps because they have too much money to manage, and they don’t want to give up juicy management fees that enable them buy condos on New York City’s Park Avenue. How do hedge fund managers get away with this?

The answer is simple.

They generate significantly higher alpha in their small-cap stock investments. Generally speaking, there are fewer analysts covering the little guys, and these stocks are less efficiently priced. Hedge funds spend enormous resources to analyze and uncover data about these stocks because this is one of the places where they can generate significant outperformance. Our analysis also shows that this is also a fertile ground for piggyback investors.

Between June 1999 and August 2012, the 15 most popular small-cap stocks among hedge funds managed to return 127 basis points per month.

It is not a typo. Reread it.

This outperformance wasn’t due to high risk either. Our small-cap strategy’s monthly alpha was 81 basis points during this 13-year period (read the details here). This isn’t even the end of the story.

We launched a newsletter at the end of August 2012 that lists the stock picks of this small-cap strategy. During the 2.5 years between September 2012 and February 2015 hedge funds’ most popular small-cap stock picks returned 131.4% vs. 57.2% return for the S&P 500 ETF. This corresponds to an average monthly return of 2.95% for these stocks versus 1.55% for SPY.

Our proposition is very simple: dump your hedge funds and imitate their small-cap stock picks. You don’t have to surrender 2% of your assets and 20% of your returns. You don’t have to invest in hedge funds’ large-cap picks which usually underperform the market. Finally, you don’t have to worry about fraud/mismanagement and you will have instant access to your funds. Click viewer appreciation button on page top to donate for blog upkeep

by Meena Krishnamsetty

Source: http://www.insidermonkey.com/hedge-fund/education-center/how-to-beat-the-market-by-20-percentage-points/1