Category: Wealth
Good Monday everyone and welcome to the BCB Cyber Series that takes on the tech stocks that can provide the cyber-fuel we need to pursue our digital wealth passions.
Today, we are returning to Mega-Cap Tech Stock Tesla. As Tesla is set to be added to the S&P 500 on December 21st, 2020, much is about to change and much already has.
Before we get there though, as always our reminders: we dig for the cyber-fuel we need, we are always working to make sure the best of the best, those monster companies in Tech, form a key portion of our portfolios.
For all these mega-cap stocks, just like Investopedia, our core defining feature here is that the market cap is over $200 Billion! As always though, we dig deeper still, looking for those companies that are pushed by incredible disruptive tech with a great story, not to mention having a solid base in the numbers.
Before we dive too deep though, we strongly advocate that we don’t act solely on anyone else’s opinion, not even ours! Make sure we are all thinking for ourselves as self-definers and making our own decisions. In the end, the responsibility is on each one of us as individuals. So decide wisely!
Jumping right in now the BCB Cyber way, we cover 3 quick pieces of important information so we can get moving on our day. First, we tackle the story to find out who and what the company is, second, we look at the numbers both positive and negative, and finally we discuss our position on the stock.
This is TS2B, Tech Stock to Buy, Mega-Cap edition, and this week we are going to take on Tesla, the Palo Alto, California energy-redefining enigma; cleverly, unintentionally, disguised as an automobile company.
BCB Cyber: Mega-Cap Analysis for 12.14.20
1 – STORY
Tesla is Most Definitely a Tech Company, Not Just an Automaker
If there is one thing that 2020 has proven, its that Jim Cramer (we love Jimmy Chill) was right about Tesla: this is no automotive company. Tesla’s story is much deeper. It is in fact a technology company first and foremost that makes cars, and should in fact be compared to NVIDIA and AMD.
Where Elon Musk leads like a real life Tony Stark, the products and business model are so much more. With a mission statement that seeks to accelerate the world’s transition to sustainable energy. The product of Tesla may be oft-understood to be cars cars, whomsoever assumes that is grossly underestimating this incredible company.
Tesla is creating its very own ecosystem for Technology for the automobile in the same vein as Apple has for its phones. The software experience is central to the customer as it provides the opportunity to add value to an individuals investment in their mode of transportation.
Tesla is working to do exactly this with everything from autopilot to power charging and this is just the beginning for a tech enhanced mobile environment that is quickly becoming a centerpiece in people’s lives.
In addition, the quality and therefore reputation of an Tesla product is considered in much the same vein as something like Apple today as both are racing forward.
In addition to this, Tesla takes aim at the ESG world of investment as well as becoming the poster child for climate change innovation. The push for their energy business to remodel the world under solar is well under way and the company is making great strides to make it quick, efficient and effective. A true path to any investors heart.
Taking its Rightful Place on the S&P 500
Perhaps the biggest news this year however is the inclusion of Tesla into the S&P 500. The chart above gives a quick and easily understandable entry into how significant this inclusion is. Tesla will enter into this index on December 21st, 2020 based on the closing price from December 18th, but may have a very bumpy ride. Rumor has it that traders may be looking to move out on the 18th, but remember, BCB Cyber advocates investing, not trading. This may be another entry point.
As for what Tesla is actually worth, there is a tremendous amount of debate. From under $100 to nearly $800 per share there is wild speculation.
Our assessment though is that for a company changing the world around us and more importantly our daily lives, its worth riding the wave, but to do so intelligently.
2 – BY THE NUMBERS
BCB Cyber loves to follow five specific metrics: Revenue Growth, Forward Price to Earnings Ratio, Return on Assets, Operating Margin, and Debt Considerations.
Starting out, we see that Tesla is definitely still a growth driver, with most recent numbers on trailing twelve months (TTM) demonstrating another significant increase in revenue over 2019.
And, that Forward P/E is still ranking high, but right in line with where we see other massive technological disruptors like Shopify with a Forward P/E of 277.78.
Now we flip to compare the Return on Assets (ROA) and Operating Margin (OM) when we last examined Tesla in October 2020.
In October we saw an ROA of 2.17% and an OM of 4.74%.
In just a short couple of months we see that both are building in a significant fashion. Operating Margin sits now at 6.11%, a whopping 28.9% increase, and Return on Assets at 2.74%, representing a substantial 26.3% increase.
Finally we see that debt factor, as always… However, the cash position is nearly double what it was in October ($8.62 Billion). The strength of this position is clearly improving as well as Tesla is increasing its financial flexibility.
3 – THE BCB CYBER TAKE
As of this morning, on 12.14.20, my own portfolio has a position of 22.29% in Tesla with a cost basis of $155.42. This is definitely a stock worth buying at the right price and one that BCB Cyber believes to be the right fuel for the fire!
Remember, we are just like the masses, struggling to make ends meet and build our future. So, we start building and keep doing our homework. This is just what we need to start us on our journey toward cyberizing our lives.
BCB Cyber believes in the potential for this risky, tech innovator and loves the story. However, this is definitely a stock worth buying at the right price and one that BCB Cyber believes to be the right fuel for the fire! Remember we balance our perspective and cyberize our wealth over a longer term of 5 years or more. We will definitely be looking to add balance to our position, with the right portfolio proportions of between 13 and 15 percent and at the right price. Tesla, alongside Nvidia, are our two biggest holdings and look to keep them growing, while maintaining balance.
Remember, as always, think for yourself, do your own homework, and cyberize your life with the best in disruptive tech. Learn more in our Wealth Section and dive deeper into Establishing the Baseline on BCB Cyber.com!
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Tech Wealth Tips to Cyberize My Weekend
12.12.20
Good Monday everyone and welcome to the BCB Cyber Series that takes on the Tech stocks that can provide the cyber-fuel we need to pursue our digital wealth passions.
Today we are back on track in the new month with Tech-Growth Companies. As always, we are digging for the cyber fuel we need. For all these growth stocks we are looking for top-line revenue growth of 20% or more!
Growth of Palantir
Before we dive too deep though, as always BCB Cyber loves the deep dive, we strongly advocate that you don’t act solely on anyone’s opinion, even ours! Make sure we are all thinking for ourselves as self-definers and making our own decisions. In the end, the responsibility is on each one of us as individuals. So decide wisely!
Jumping right in now, we do these quick deep dives so we can all get the info we need but also do so in a way that keeps us going in our day. To do this the BCB Cyber way we cover 3 quick pieces of important information. First, we tackle the story to find out who and what the company is, second, we look at the numbers both positive and negative, and finally we discuss our own BCB Cyber position.
This is TS2B, Tech Stock to Buy, hi-tech growth edition, and this week we are going to take on Palantir, the Denver, Colorado Software Infrastructure company forging new paths ahead when it comes to data integration all the while fulfilling a promise to keep America safe.
We’re gonna be honest, Palantir for us is all about the story right now. We are gonna wade in and keep a watchful eye.
Palantir has incredible promise and a first foot in the door with industry giants defense, aerospace, and health care. Where they go from here will definitely be a story worth following.
1 – STORY
Palantir presents us with an incredible story capable of redefining so much in the world of analytics and data. This company, while oft secretive, presents a unique opportunity in driving how data becomes the core tool and structure redefining our world.
One of the most unique aspects of Palantir is how it represents a new OS for the modern enterprise with the capability to bridge and drive industry in a number of ways.
This comes with a fantastic growth opportunity as we have seen not only a current increase of 52% year over year for revenue but also the overall projections have gone up for the year.
Most well known for its ties to the U.S. government and its promise to help keep America safe, this company continues to grow and develop these opportunities in a variety of capacities.
However, the story that provides its greatest opportunity lies in its ability to reach out across the industry and redefine what it means to do business. Palantir, with the standing global health crisis ongoing, has sought a massive impact on public health regarding the security of scientific platforms.
Palantir is joining the biggest names in data like Google, Microsoft, and Facebook when it comes to taking on global health challenges.
In terms of the disruptive nature of their technological prowess, the numbers speak for themselves. Speed, efficiency, and impact. In one case study highlighted by Palantir, within two weeks they assisted one company in saving $57 million in the case and provided the opportunity for an additional $1billion savings on an annualized basis.
For others, Palantir simply changes the way they do business!
2 – BY THE NUMBERS
BCB Cyber loves to follow five specific metrics: Sales/Revenue Growth (noted above), Forward Price to Earnings Ratio, Return on Assets, Operating Margin, and Debt Considerations.
This is where things do get rough for Palantir. While revenue is above our 20% mark, there are concerning signs.
We do see that the market recognizes the opportunities for Palantir and market cap, price to book, and price to sales are all inflated to date.
While Palantir is not yet profitable, we are still early on in its life as a public company and only time will tell. That is why we must be diligent and continue our homework on this amazing tech company.
While Palantir, does represent some risk, it has created for itself a solid base to stand on. Its cash position has been bolstered in 2020 and the debt levels are very manageable.
The most notable concern in the cash flow is that with the offering came a dilution event in value for shareholders but as the stock price has rebounded over double its IPO, things have started looking up.
3 – THE BCB CYBER TAKE
As of this morning, on 12.7.2020, our stake in Palantir sits 1.69% of our portfolio with a cost basis of $20.56. As the stock has gone from an IPO at around $10 and has tracked into the low $30 range, we’ve seen a lot of volatility in this company’s shares and many opportunities for trade. However, as we invest for the long term opportunity, our target is anything under $21. We’ll be building!
Remember, we are just like the masses, struggling to make ends meet and build our future. So, we start building and keep doing our homework. This is just what we need to start us on our journey toward cyberizing our lives.
BCB Cyber believes in the potential for this risky, tech innovator and loves the story. However, this is definitely a stock worth buying at the right price and one that BCB Cyber believes to be the right fuel for the fire! Remember we balance our perspective and cyberize our wealth over a longer term of 5 years or more. We will definitely be looking to add to our position, with the right portfolio proportions of between 2 and 3 percent and at the right price.
Remember, as always, think for yourself, do your own homework, and cyberize your life with the best in disruptive tech. Learn more in our Wealth Section and dive deeper into Establishing the Baseline on BCB Cyber.com!
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Tech Wealth Tips to Cyberize My Weekend
12.05.20
Exploring Butterfly Network
As a rule, we follow the technological advancements of corporate giants in tech health to help inform those of us individuals choosing to define for ourselves who we are and what we want to be. That means knowing the world and those tracking us, good and bad. Incredible advancements are made every day by health companies seeking to do good in the world, no doubt. However, we need to follow and examine them to enhance our own capabilities and positioning. We are not victims, we are active agents in our lives.
Street Medicine Pending…
You know we are getting closer and closer to the cyberpunk versions of street medicine and body mods when ultrasounds are now under $3k, first-gen models on eBay under $1000, and work with the cell phone in our pockets.
No, we’re not talking about the Street Medicine Institute that works with the homeless (great org, check ’em out here), but we are talking Ripperdocs and the like! In the Cyberpunk Universe, these are literally doctors available on the streets of the world’s megacities some operating “legally,” and others making “illicit deals, such as installing military-grade cybernetics for the right price.” A great spot to explore more is below…
The road is long yes, but we are taking the first steps. And the tools necessary for those steps are becoming available by the day. The Butterfly Network is one such company providing those tools.
Butterfly Network
Gettin’ pithy though, our attention this week is on Butterfly Network due in no small part to all the recognition they received these past few weeks in a recent merger with SPAC Longview Acquisition Corp (LGVW). More specifically, because Butterfly network is offering a true leap in street capable med-tech with a handheld, single-probe whole-body ultrasound system, Butterfly iQ, to make ultrasound technology, that links with your cell phone and has the tech to track a needle, called NeedleViz, as it enters our bodies.
The Impact
The story here is one of Med-Tech gone disruptor. With a tremendous $8 Billion market opportunity and the track to offer simplicity and affordability with ease of use and increased accessibility, the company is one worth watching.
The company is just on the verge of going public and infusing its coffers with a pile of cash!
As with any technological disruptor, getting it in the hands of as many as possible is always key. With so much of the world currently holding no access to medical imaging and with such great need for it, increased access combining ease of use and a significantly lower cost to competitors, this company is one that is worth watching as it grows toward a bigger role in the lives of the masses around the world.
Lots of money is coming as LGVW becomes BFLY and gains capital from private investment in the form of PIPE. One thing is for sure we are sure going to pay a close eye on the completion of the deal as we near the end of the first quarter in 2021.
The Outcome
With such an impact, the promise for a meaningful outcome is greatly enhanced. The ultimate opportunity here is to expand the ability of patients to get access to the care they need and improve the ability of the medical profession to be able to meet that need. If the tech fell to a few street vendors we wouldn’t be totally surprised.
The best part of the Butterfly Network outcome is not just that they are making such an impact, but they are improving on it all the time. With such a splash already made, they are already improving the physical device and the ability to use it with software upgrades including education mods.
The best outcome here is all the ways in which ultrasound is already helpful and safe, expanded to the ultimate use case!
Our Opportunity
Not only is this device and this company set to help fuel up the aesthetic of med-tech in our daily lives, I mean just look at how cool the aesthetic is on this thing, tell me we are daydreaming cyberpunk! Beyond this, though there are incredible fortunes to be made on this and this is where the punk in us see the opportunity to expand out and wants the masses to get in on the ability to increase our portion of the wealth pie. As it comes into our lives as a health device, it should also come into our lives as a wealth device!
In terms of investment, there is no doubt that the market is there. This company/product combo looks to be a best-in-class option with not only a great cash reserve to get through the upcoming growth period but also one with great tech, sky-high prospects with big margins but the balance sheet to set us up the right way.
The potential for revenue growth is clearly a top-line benefit, due in no small part to those increasing margins built on low production costs.
Ultimately, the best opportunity is the chance to get in on great tech that is built on an open ecosystem with power from artificial intelligence and an eye towards securing data from the outset. This, of course, bears the requirement of a watchful eye, but the future definitely looks bright!
As always, make sure we are thinking for ourselves out there, doing our own homework, and cyberize our lives with the best in disruptive tech. Wanting more tips on wealth: learn more in our Wealth Section and dive deeper with Establishing the Baseline! And for those fueled by health-tech make sure to explore our BCB Cyber Health Section in more detail!
Top Three Tech Buys for December 2020
What does Wealth mean for us? What would we become if money didn’t rule our lives? Who would we choose to be? How can technology transform our lives in Wealth?
Join BCB Cyber every Monday as we seek to provide the Cyber-Fuel necessary for each of us to answer these questions and so much more. Here is where we review the best, current opportunities as we see them in our portfolio to help build wealth in disruptive technology. Remember, we always need to do our homework and think for ourselves!
A Monthly Platform, Every Monday: Top Buys in Tech Growth, Mega-Cap, and Dividend Plays!
Each and every month we bring to you the best buys in disruptive tech. First Monday of the Month we announce the best three in the BCB Cyber portfolio and those desired. Remember, the BCB Cyber way invests, we don’t trade. We research and do the work necessary to understand a company, then examine it against opportunities in disruptive tech. We build our positions slowly into a stock, buying over time for the long term. We are not subject to short term whims but look to build our future selves on great companies looking to redefine the world! Join and share in the discussion, for all ideas are better when tested against the torrent of the masses.
On the second Monday, we dive right in with the month’s best growth stock in disruptive tech. This could be a great projected growth rate, a phenomenal new tech to consider, and weigh opinion on or more!
On the third Monday of the month, we hack a Mega-Cap. We’ll dive deep and explore these companies through a variety of metrics to makes sure we tear apart the story and get to the heart of the opportunity.
On the fourth and final Monday of the month, we bring tech-balance. It is here where we provide a discussion on the opportunity to further fuel our growth capacity. We dive deep into disruptive tech dividend plays. We explore how they can become a passive income source, that helps pay us while we sleep to tech-fuel our waking lives!
December 2020
This is the TECH Stock Review: T3TB for 11.30.20
Make sure to come back every Monday this month as we explore each one of these stocks. And remember, TECH Stock Review: T3TB comes back to start each and every month! If you’d like the vid-version, check back on our blog every Saturday as we turn the week’s stock review into a quick flash review that gets us the info we need but keeps us fueling our passion with the Cyberized knowledge we need!
For more Cyber-Fuel on Wealth, please check out our dedicated section on the subject.
Categories
Tech Wealth Tips to Cyberize My Weekend
11.28.20
Good morning all you Cyberpunks out there and welcome to the BCB Cyber Series that takes on the Tech stocks that can provide the cyber-fuel we need to pursue our digital wealth passions.
Today we are tackling those big dividend payers that can add passive cash flow to our portfolios. As we dig for the cyber-fuel we need, we are always working to make sure the best of the best, those monster companies in tech, can form a key portion of our balanced portfolios.
For Dividend Payers, BCB Cyber is always looking for a forward annual dividend yield of over 3% as our key, defining characteristic. Better yet, we are looking for great tech companies we can build on over time, delivering consistent value and technological prowess.
Helping to Define Technology Fueled Industries Since 1911
With some of the biggest names in information technology, International Business Machines, better known as IBM, leads the way for us today. Built on three key innovative platforms, Artificial Intelligence, Cloud Computing, and Quantum Computing, IBM is positioned like few others to help drive technology into its next society-altering breakthrough! Better still, we get that great dividend.
With a key split recently announced, IBM is set to unlock value in an already undervalued company. With a current forward P/E of 10.60, there is a lot of stored-up potential here for not only a great dividend but price appreciation.
A cash dividend payer for 104 years now, IBM has a current track record of 25+ years of consecutive dividend increases and is included with the “best of the best” dividend growth stocks.
Before we dive too deep though, we strongly advocate that we don’t act solely on anyone else’s opinion, even ours! Make sure we are all thinking for ourselves as self-definers and making our own decisions. In the end, the responsibility is on each one of us as individuals. So decide wisely!
BCB Cyber: Dividend Payer Edition
Jumping right in the BCB Cyber way, we cover 3 quick pieces of important information so we can get moving on our day. First, we tackle the story to find out who and what the company is, second, we look at the numbers both positive and negative, and finally we discuss our position on the stock.
This is TS2B, Tech Stock to Buy, Dividend Payer Edition, and this week we are going to take on IBM, the Armonk, New York tech powerhouse working to redefine artificial intelligence, hybrid cloud, blockchain and so much more!
1 – STORY
The story for International Business Machines (IBM), is one built on legacy, a commitment to the biggest fields of technological innovation and surprising value.
IBM began in 1911 and over the years has been transformed multiple times, from punch cards to introducing digital storage, IBM has long been a key player in the world of technological innovation. Even when that meant changing the product line. That story today begins with yet another opportunity to redefine itself. IBM’s merger with Red Hat, a $34 Billion Dollar merger that redefined IBM for a new age, has created a new industry behemoth in Hybrid Cloud Technology.
The addition adds to a company that already possesses incredible strength in cloud platforms. The company saw 19% growth in the sector along the last quarter pushing a revenue of $24 Billion. In addition, Red Had demonstrated a 16% percent growth rate to fuel the fire further. With margin expansion and cash generation a priority for this company, it has great legs to stand on.
In addition, due to the current climate regarding increased competition, the company has been responsive under the direction of new CEO Arvind Krishna pushing to focus on AI and Hybrid Cloud in as unique and focused drivers of growth in the company, better positioning the company for a Trillion dollar industry opportunity.
2 – BY THE NUMBERS
Turning to the numbers now, BCB Cyber loves to follow five specific metrics: Revenue Growth, Forward Price to Earnings Ratio, Return on Assets, Operating Margin, and Debt Considerations. While IBM does have a key risk factor we will consider, it does also hit on several other key metrics: solid revenue stream, a promising value proposition, a well-covered dividend, a positive Return on Assets, a positive Operating Margin, and a solid, growing cash flow alongside investment that will help with debt considerations.
A solid revenue profile…
A value proposition in current Forward P/E of 10.60 representing a discount to the market and even more significant a Price to Sales in the most recent quarter of 1.48 representing a deep value to the revenue stream!
Strong Operating Margin, one of the best we’ve seen, and a quality return on Assets…
A balance sheet that suffers under the weight of acquisitions but is not out of proportion to the company or the quality of the Red Hat addition.
Analysts have also demonstrated an undervalued nature with averages and high-end price targets being significantly above the current share price.
Finally, as a dividend payer, BCB Cyber loves to see the over 3 percent forward annual dividend yield and IBM currently has a yield of 5.25%. More importantly, during very tough times around the globe, the company has a healthy payout ratio of 73.61%.
3 – THE BCB CYBER TAKE
As of this morning, on 11.28.20, my own portfolio has a position of 9.07% with an average cost of $114.46in IBM. This is definitely a dividend payer worth buying at the right price and one that BCB Cyber believes to be the right fuel for the fire! In addition, the Red Hat opportunity is an incredible one in terms of pushing forward the future opportunities in the hybrid cloud. As always, think for yourself, do your own homework, and cyberize your life with the best in disruptive tech. Learn more in our Wealth Section and dive deeper with Establishing the Baseline!
Good Monday Morning! So yeah, we’re messing with the schedule again. But, for good reason! As Thanksgiving is approaching in the States, that and seeing as how we just started an amazing project that we can’t help but continue to share out, we thought we’d mix it up again!
This coming Saturday, we’ll bring our slate back up-to-date with a release of our Cyber Wealth Dividend-Payer blog post along with the video. And, next Monday we’ll have that jump-start into next month with our T3TB for December 2020.
Image presented here by courtesy of, and with many thanks to, the CD Projeckt Red Press Center under Agreement.
For now though, as we just released our intro video to our Project Cyber Rider, we thought we should take a moment and say thank you to CD Projekt Red, Mike Pondsmith, William Gibson, and the entire Cyberpunk Universe for all the incredible work that has been done to build a world of infinite tech possibility, even if it is low-life styling. Oh, who are we kidding, that’s why we love it!
In any case, we thank you Cyberpunk Universe! A special thanks to all those hard-working folks at CD Projekt Red for going above and beyond in their drive to make sure we get the game world we’ve all been dying to lose ourselves in!
In combination with CD Projekt Red’s Cars_beautyshots kit, we just had to share out our favorite selections. This is one of the initial inspiration kits we are using to start stylizing our own Project Cyber Rider!
One last time, thanks to all you who make the Cyberpunk Universe the kind of amazing we all love! For all you Cyber Wealth lovers, we’ll see you Saturday morning and hope you take a moment in thanksgiving with us and make sure to charge yourselves up in prep for Cyberpunk 2077!