Category: Featured

Once you’ve sufficiently educated yourself about how markets work and the best strategies to employ when investing, you’ll still need to keep up with news about stocks to buy if you want to stay competitive and “in the game,” in a manner of speaking.

The features articles provide the research and reports to help the reader determine which stocks to buy now.

If you’ve ever wondered “Which are the stocks that will make me money quick?” (and who hasn’t?), then, check out the articles in this category so you can stay current with how various assets are performing and trending. While this section covers various trade option news, special focus is paid to hot penny stocks to invest in so you’re always in the loop when it comes to possibly profitable, but, also volatile stocks.

This way, you can predict the optimum timing and strategies for buying and selling penny stocks to maximize your odds of success.

  • Nvidia Exceeds Q4 Revenue Expectations, AI Demand Fuels Growth

    Nvidia Exceeds Q4 Revenue Expectations, AI Demand Fuels Growth

    Key Highlights:

    Q4 Revenue: $39.3 billion, up 78% year-over-year.
    Net Income: $22.1 billion, reflecting an 80% increase.
    Earnings Per Share (EPS): Adjusted EPS of $0.89, surpassing expectations of $0.85.
    Data Center Revenue: $35.6 billion, a 93% rise due to AI chip demand.
    Projected Q1 Revenue: Expected to reach $43 billion.


    Strong Financial Performance

    Nvidia reported record-breaking revenue of $39.3 billion in its fourth-quarter results for fiscal year 2025, marking a 78% increase year-over-year. The surge in earnings was primarily driven by explosive growth in AI adoption across industries.

    “Demand for Blackwell AI chips is extraordinary,” said Nvidia CEO Jensen Huang. “We are at the forefront of the next wave of AI advancements, shaping industries at an unprecedented scale.”


    AI and Data Center Growth

    Nvidia’s Data Center division led the way, bringing in $35.6 billion, nearly doubling its revenue from last year. This is fueled by demand from cloud computing companies and AI-driven applications. Nvidia’s chips are powering AI models used in cloud services, autonomous driving, and high-performance computing.


    Stock Market Reaction

    Following the report, Nvidia’s stock saw initial volatility in after-hours trading, but eventually climbed 2.5% as investors reacted to the company’s optimistic Q1 forecast.


    Future Outlook

    For the upcoming quarter, Nvidia expects $43 billion in revenue, exceeding Wall Street’s projections of $42.1 billion. However, rising operating expenses and narrowing margins remain factors for investors to watch.

    With its continued leadership in AI hardware and software, Nvidia remains a dominant force in the semiconductor industry, well-positioned for future growth.


    ? Disclaimer: This article is for informational purposes only and should not be considered investment advice.

  • Is There A ChatGPT Stock? Can You Invest In ChatGPT And Other Types Of Artificial Intelligence?

    Is There A ChatGPT Stock? Can You Invest In ChatGPT And Other Types Of Artificial Intelligence?

    ChatGPT, the new artificial intelligence (AI) tool, has gone viral since OpenAI released it to the public last month. It’s a revolutionary technology that will have many implications in the future.

    We’ve already seen the power of artificial intelligence when it comes to AI-created art and simple things like predictive text on social media. ChatGPT can respond to any prompt as a human being would with detailed responses and follow-up.

    Many experts consider this a breakthrough product for the AI space. Some even believe this product could change Google’s business model and algorithm. We’ll look at ChatGPT and ways you can invest in artificial intelligence.

    What’s ChatGPT all about?

    ChatGPT is the newest product from OpenAI, a company started by Elon Musk and Sam Altman. The program is based on OpenAI’s GPT-3.5 language mode, an upgraded version of the model that was released in 2020.

    Users can input a question, request or prompt into the app. Then, the ChatGPT will respond as a human would.

    People have been using this service to write poetry, create opening messages for dating apps, and more. You can also use the ChatGPT for fun purposes and functional reasons, like asking follow-up questions and even giving complex directions for the app to follow.

    OpenAI has received $1 billion in funding from companies like Microsoft. It has repeatedly stated that it’s focusing on creating AI safely for humanity.

    A recent investor presentation revealed they expected to bring in $200 million in revenue in 2023 and $1 billion annually by 2024. OpenAI was recently valued at $20 billion. They currently generate revenue by charging developers licensing fees for the technology.

    We recently looked at how OpenAI released DALL-E 2, a tool that allows you to turn any prompt into AI-generated art. These two tools alone are enough to change the landscape of multiple industries since you can now create content and art with just a few prompts.

    According to the website, the product’s setbacks are that it could occasionally generate incorrect information and sometimes produce biased content.

    OpenAI CEO Sam Altman already discussed these limitations when he tweeted out the following on December 10:

    “ChatGPT is incredibly limited, but good enough at some things to create a misleading impression of greatness. It’s a mistake to be relying on it for anything important right now. It’s a preview of progress; we have lots of work to do on robustness and truthfulness.”

    What’s the impact of ChatGPT?

    As the technology was just released a few weeks ago, it’s difficult to estimate the total impact. However, there are clear implications that are, well, undeniable:

    • The way people search online will be altered. There are concerns that this new technology could hurt Google and lead to people changing how they search for content online.
    • It will be easier than ever to generate content. We’re not too far from reading articles generated through AI software like this.

    This new tool will be a game-changer that will impact many industries. We will continue to monitor the impact of the OpenAI tools.

    Can you invest in ChatGPT?

    If you’re looking to invest in ChatGPT directly, you can’t just yet since the company hasn’t gone public. If you’re looking to invest in AI, many publicly traded companies are utilizing the technology and investing heavily in this sector.

    We have listed other AI companies you can invest in if you want to put your money toward this space below.

    How can you invest in artificial intelligence?

    Here are some AI stocks worth looking into if you want to invest in this industry.

    Lemonade

    This is the first-ever insurance company powered by AI technology, from purchasing insurance coverage to managing insurance claims. The AI powered-bot Maya handles customer service and every possible aspect of the business.

    Amazon

    It’s surprising how entrenched AI technology is within Amazon’s entire business. Amazon has AI to recommend customized products to users.

    The company’s fulfillment centers use AI with small robots that move packages around the warehouse with real workers. Plus, Amazon has Amazon Fresh and Amazon Go stores with the Just Walk Out payment service.

    Beyond that, you have Alexa in millions of households and the Amazon Web Services platform that hosts many streaming services.

    Tesla

    Tesla has an entire day dedicated to AI and is recruiting the best talent in this field. The company has been working on a humanoid robot that is still in its early stages.

    They’re also working on offering a robot taxi service so that car owners can monetize their vehicles when they’re sleeping.

    Meta Platforms Inc.

    Meta uses AI in everything, including your news feed and the algorithm for ads displayed to you. It also has the Meta AI lab, where they’re working on innovations that could decode speech from brain activity in people who have suffered brain injuries.

    Even though it may seem like Meta can read your mind, it would be revolutionary if they could read your brainwaves one day.

    C3.ai

    C3.ai offers enterprise AI, which are AI applications designed especially for your business if you’re looking to go all digital.

    They help companies complete digital transformations to the cloud. The AI tools aid in everything from improving business operations to increasing employee safety.

    Alphabet Inc.

    We don’t have to look far to see the importance of AI for Google, but we have to state that the parent company of Google is one of the research leaders in this field. AI handles daily tasks, like filtering search suggestions and offering precise organization options for our photos.

    In an interesting plot twist, Google executives recently revealed that they wouldn’t be releasing a competitor tool due to “reputational risks” that they would have to deal with that a startup wouldn’t have to worry about.

    Since over a billion people use Google, the company doesn’t want to publish incorrect information.

    How Wide-Ranging is Artificial Intelligence?

    The importance of artificial intelligence can’t be overstated since it’s changing how every industry operates. With the possibility of self-driving cars that combine Airbnb and Uber along with advancements in the healthcare industry, AI is changing our daily lives.

    College admissions departments are using AI for handling admissions, e-commerce platforms are utilizing AI to offer customized product recommendations, and financial firms have found ways to use AI to detect fraud and avoid budgetary oversights.

    AI allows computers to process decisions that traditionally would require human input. You can interact with a business without speaking to a real human since AI can solve complex problems, automate tasks, perform data analysis, minimize errors and improve customer service.

  • Virgin Orbit Shares Plunge After Air-Launching Satellite Mission Fails

    Virgin Orbit Shares Plunge After Air-Launching Satellite Mission Fails

    Richard Branson’s Virgin Orbit Holdings Inc. crashed in US premarket trading after a rocket launched from a Boeing 747 jumbo jet experienced an “anomaly” and prevented the payload of satellites from reaching orbit.

    “The rocket then ignited its engines, quickly going hypersonic and successfully reaching space. The flight then continued through successful stage separation and ignition of the second stage. However, at some point during the firing of the rocket’s second stage engine and with the rocket traveling at a speed of more than 11,000 miles per hour, the system experienced an anomaly, ending the mission prematurely,” Virgin Orbit wrote in a statement published on Twitter.

    The crew of the Boeing 747 that air-launched the rocket at 35,000 feet returned safely to the ground. This was Britain’s first attempt to send satellites into low-Earth orbit from its own soil, which turned out to be a flop and a major setback for Virgin Orbit.

    Shares of Virgin Orbit plunged as much as 25% to $1.46 in premarket trading. Since going public through a SPAC merger in late 2021, shares have slumped 85%.

    “While we are very proud of the many things that we successfully achieved as part of this mission, we are mindful that we failed to provide our customers with the launch service they deserve,” Dan Hart, Virgin Orbit CEO, said.

  • No End To Bear Market As Stocks Seek Out New Leadership

    No End To Bear Market As Stocks Seek Out New Leadership

    The stock market will remain stuck in a bear market until new sector leadership is clearly established.

    The new year has brought with it some optimism, with a seemingly very upbeat take on last week’s jobs data – a belief that somehow recession will be averted and the Fed will cut rates. While this is akin to betting a coin is going to land on its edge, there is a more structural headwind to stocks: changing leadership.

    The tech sector drove the US stock market through the last cycle. Its exceptional outperformance could be explained on the premium investors were willing to pay for FAANG-like stocks.

    However, that exceptionalism has seemingly been jettisoned, with Tesla down 70% from its highs, Meta down 60%, and Amazon and Nvidia over 50%. Apple and Microsoft are relatively unscathed, but even they are not immune to much steeper falls.

    Tech remains the largest S&P 500 sector, but its weight is dropping fast, and other sectors’ weights are rising.

    The world is changing and stock leadership eventually must reflect those changes. We are in state of flux, and it is not clear yet how much tech will be “humbled,” and who the new leadership will be, but one clear beneficiary in a more autarkic world with rising geopolitical tensions is energy.

    We need only go back to 2008 to reach a time when tech and energy had a similar market cap. In the ensuing go-go years of all things new and shiny and tech, energy was dismissed, and technology grew to be the largest sector, accounting for almost 30% of the S&P.

    The market-weight gap between tech and energy has started to narrow and could go much further in a resource-constrained world where tech valuations are prone to overshooting to the downside, which would keep pressure on the headline index.

    Investors will also continue to adapt to an inflationary world where higher-duration assets will fare less well, and if one is to own them, one needs to be sufficiently compensated. Tech is one of the highest-duration sectors, but its long-term expected EPS growth is inferior to energy, which also has a very low duration, and should fare better with elevated inflation.

    Other sectors have lower long-term expected EPS growth than tech, but have lower duration to compensate.

    Until the market has an assertive leader again, it is unlikely stocks can embark on a new bull market.

  • BUC-EE’S TO BEGIN SELLING TAAT® IN SEPTEMBER

    BUC-EE’S TO BEGIN SELLING TAAT® IN SEPTEMBER

    Buc-ee’s holds a world record for the largest convenience store and has 43 locations in Texas, Alabama, Georgia, Kentucky, Florida, Tennessee, and South Carolina. Starting in September 2022, TAAT® Original, Smooth, and Menthol will be sold in select Buc-ee’s locations.

    LAS VEGAS and VANCOUVER, SEPTEMBER 2, 2022 – TAAT® GLOBAL ALTERNATIVES INC. (CSE: TAAT) (OTCQX: TOBAF) (FRANKFURT: 2TP) (the “Company” or “TAAT®”) is pleased to announce that its flagship product TAAT® will be sold in select locations of Buc-ee’s, a famed gas and convenience chain in the Southern U.S., by the end of September 2022. This presence is expected to complement the existing footprint of TAAT® in the Southern region of the United States and build upon the Company’s relationships with well-known chain retailers who carry TAAT® products across the country.

    With 43 “always-open” locations across Texas and six other states, Buc-ee’s stores are characterized by their large count of fuel pumps (as many as 120 in a single station) and abundant retail space with a wide selection of retail, food/beverage, and tobacco products.    Buc-ee’s also holds two world records; one for the world’s largest convenience store (66,335 square feet in New Braunfels, Texas), and another for the world’s longest car wash (255 feet of conveyor length in Katy, Texas)1. For more information about Buc-ee’s, please refer to the chain’s official website at the following link: https://buc-ees.com/

     

    Buc-ee’s is known for its Southern-themed customer experience found in its 43 gas stations and travel centres mostly located in the state of Texas with other storefronts in AL, GA, KY, FL, TN, and SC. In September 2022, Buc-ee’s will execute its initial placement of TAAT® in select locations, to provide adult smoker patrons a nicotine-free and tobacco-free alternative to traditional cigarettes.

    Readers using news aggregation services may be unable to view the media above. Please access SEDAR or the Investor Relations section of the Company’s website for a version of this press release containing all published media.

    TAAT® Chief Executive Officer Michael Saxon said, “Over the past four decades Buc-ee’s has built a very impressive presence in the Southern U.S., with continuously growing traffic from regulars and tourists alike. We are excited to be launching TAAT® in Buc-ee’s and believe it can perform quite well in their stores. The Buc-ee’s team has shown great enthusiasm about TAAT® because it aligns so well with their business objectives and offers significantly higher profit margins compared to tobacco cigarettes. With Buc-ee’s leading the way, we believe this will bring more attention to TAAT® among other prominent chains across the United States.”

    Sources

    1 – https://buc-ees.com/about/world-record-holder/

    On behalf of the Board of Directors of the Company,

    TAAT® GLOBAL ALTERNATIVES INC.

    “Michael Saxon”

    Michael Saxon, CEO and Director

    For further information, please contact:

    TAAT® Investor Relations

    1-833-TAAT-USA (1-833-822-8872)

    investor@taatglobal.com

    THE CANADIAN SECURITIES EXCHANGE (“CSE”) HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE, NOR HAS OR DOES THE CSE’S REGULATION SERVICES PROVIDER.

    About TAAT® Global Alternatives Inc.

    TAAT® develops, manufactures, and distributes alternative products in categories such as tobacco, hemp, kratom, and other emerging CPG segments. Its flagship product is a nicotine-free/tobacco-free combustible with a patent-pending base material formulation, sold in several thousand U.S. stores. With over CAD $80 million in overall gross revenue annually, TAAT®’s facilities include an operations centre in Nevada, as well as a distribution centre and multiple convenience stores in Ohio.

    For more information, please visit http://taatglobal.com.

    Forward-Looking Statements

    This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Often, but not always, forward-looking information and information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur, or be achieved. Forward-looking information in this news release includes statements regarding the anticipated performance of TAAT® in the tobacco industry, in addition to the following: Successful placement of and potential outcomes from the anticipated placement of TAAT® in Buc-ee’s stores as described in the press release. The forward-looking information reflects management’s current expectations based on information currently available and are subject to a number of risks and uncertainties that may cause outcomes to differ materially from those discussed in the forward-looking information. Although the Company believes that the assumptions and factors used in preparing the forward-looking information are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed timeframes or at all. Factors that could cause actual results or events to differ materially from current expectations include: (i) adverse market conditions; (ii) changes to the growth and size of the tobacco markets; (iii) changes to the regulatory landscape applicable to the Company’s business; and (iv) other factors beyond the control of the Company. The Company operates in a rapidly evolving environment. New risk factors emerge from time to time, and it is impossible for the Company’s management to predict all risk factors, nor can the Company assess the impact of all factors on Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ from those contained in any forward-looking information. The forward-looking information included in this news release are made as of the date of this news release and the Company expressly disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable law.

    The statements in this news release have not been evaluated by Health Canada or the U.S. Food and Drug Administration. As each individual is different, the benefits, if any, of taking the Company’s products will vary from person to person. No claims or guarantees can be made as to the effects of the Company’s products on an individual’s health and well-being. The Company’s products are not intended to diagnose, treat, cure, or prevent any disease.

    This news release may contain trademarked names of third-party entities (or their respective offerings with trademarked names) typically in reference to (i) relationships had by the Company with such third-party entities as referred to in this release and/or (ii) client/vendor/service provider parties whose relationship with the Company is/are referred to in this release. All rights to such trademarks are reserved by their respective owners or licensees.

    Statement Regarding Third-Party Investor Relations Firms

    Disclosures relating to investor relations firms retained by TAAT® Global Alternatives Inc. can be found under the Company’s profile on http://sedar.com.

  • TAAT Global Enters into Agreement to Acquire Ohio based Distributor Bringing In 87m in Revenues for 2021

    TAAT Global Enters into Agreement to Acquire Ohio based Distributor Bringing In 87m in Revenues for 2021

    LAS VEGAS and VANCOUVER, British Columbia, Feb. 25, 2022 (GLOBE NEWSWIRE) — TAAT GLOBAL ALTERNATIVES INC. (CSE: TAAT) (OTCQX: TOBAF) (FRANKFURT: 2TP) (the “Company” or “TAAT”) is pleased to announce that it has entered into an agreement dated Friday, February 25, 2022 to acquire HLND Holdings, Inc. (“HLND”), the parent entity of a convenience and tobacco wholesaler based in Ohio. HLND presently maintains a network of more than 5,000 convenience stores through its direct and indirect relationships with independent and corporate retailers as well as a network of regional sub-distributors. From 2019 to 2021 HLND realized at least 10% growth of its net revenues each year, with net revenues for calendar 2021 amounting to CAD $87,181,400.32 (approximate conversion from USD as at February 23, 2022), and continues to be profitable. The Company anticipates that by acquiring HLND it could fortify its existing revenue sources as well as its portfolio of assets as TAAT™ continues to expand both in the United States and internationally.

    With its agreement to acquire HLND, the Company is embarking on a journey in which it plans to convert certain aspects of its supply chain into wholly-owned internal business units, which aligns with the practices of current leaders in the global tobacco industry. With HLND’s seasoned executive team and personnel in sales, logistics, and product development, the Company can leverage these invaluable skill sets as part of commercializing TAAT™ products on a larger scale.

    A photo accompanying this announcement is available at:
    https://www.globenewswire.com/NewsRoom/AttachmentNg/f5840231-aae7-491d-b6c8-d2864802541b

    The Company has entered into an agreement to acquire HLND, which will provide TAAT™ with its own wholesale presence in the Great Lakes region of the United States. HLND operates a long-established convenience distribution network in categories to include tobacco, snacks, candy, and various other convenience products.

    Readers using news aggregation services may be unable to view the media above. Please access SEDAR or the Investor Relations section of the Company’s website for a version of this press release containing all published media.

    HLND has aggressively expanded its footprint in the Great Lakes region of the United States, which can add to the Company’s overall presence with its first owned facility and distribution network in the northeastern region of the country. Besides TAAT™ and leading brands of tobacco cigarettes (e.g., Marlboro, Newport, Camel), HLND also carries a selection of consumer packaged goods (“CPG”) oriented towards the convenience segment such as candy, snacks, beverages, and paper products. Additionally, HLND already stocks a diverse range of alternatives to tobacco cigarettes such as e-cigarettes and vaping cartridges, which the Company intends to complement with its heat-not-burn offering as detailed in its February 18, 2022 press release. Since 2019, HLND’s net revenues have seen “double-digit” growth (i.e., growth of 10% or more) year-over-year (“YoY”) as shown in the table below.

    Year HLND Net Revenues
    2018 $54,134,739.20
    2019 $60,181,829.12 (+11.17% YoY)
    2020 $78,629,344.00 (+30.65% YoY)
    2021 $87,181,400.32 (+10.87% YoY)
    All figures in this table are expressed in Canadian dollars (CAD) as approximate conversions from United States dollars (USD) as at February 23, 2022

    TAAT™ Chief Executive Officer Setti Coscarella commented, “In competitive industries such as tobacco, long-term success largely depends on how self-sustaining and independent your operations are at a macro level. TAAT™ has proven quite popular in the Midwest, and I believe that by owning a regional fulfillment centre we will be able to distribute our products more efficiently and more profitably as we continue to build market share. Additionally, with direct access to Ohio stores through HLND we can test new offerings and initiatives, and overall gain an improved understanding of a product’s journey to market from a distributor perspective. HLND has proven to be a very reliable, insightful, and beneficial business partner of ours since they began carrying TAAT™. As such, we are excited about making them part of the TAAT™ family, where we anticipate they will be invaluable to us for growing our distribution, developing new products, and formulating strategies for commercializing TAAT™ on an even larger scale.”

    HLND Director Barry Adelman stated, “Ever since we started carrying TAAT™ over a year ago, it has proven to be an impressive product among our existing tobacco offerings. Over the past several decades we have seen numerous alternatives to tobacco cigarettes hitting the market, though for a combustible product to be nicotine-free and tobacco-free is rather unique, and that alone does a great job at capturing the attention of our retail accounts, leading to repeat orders when consumers are ultimately compelled to make the switch. Having worked side-by-side with TAAT™ all this time, we have identified countless opportunities for them to potentially generate unparalleled value as our parent company. The combustible OriginalSmooth, and Menthol offerings are just the beginning; between the recently announced heat-not-burn offering and the ability to develop and test new variations, our facilities, team, and network are capable of bringing many great things to fruition for TAAT™, which we are very excited to begin exploring.”

    The purchase price to acquire HLND will be equal to CAD $6,604,000 or the equivalent of approximately USD $5,200,000 (the “Purchase Price”), representing a valuation of CAD $8,890,000 or the equivalent of approximately USD $7,000,000 (the “Valuation”) less CAD $2,286,000 or the equivalent of US $1,800,000 debt outstanding on the HLND line of credit. The final Purchase Price on closing shall be adjusted accordingly as the sum of the Valuation less the Debt Amount on the Closing Date. The Purchase Price shall consist of up to CAD $1,254,760 or 19% of the Purchase Price in cash (“Cash”) and the remaining CAD $5,349,240 or 81% of the Purchase Price in Common Shares of TAAT™ (the “Consideration Shares”).

    All Consideration Shares will be issued upon closing, and will be subject to a lock-up schedule whereby one-third (1/3) of the Consideration Shares will be released from lock-up on the 4th, 8th and 12th month from closing.

    The transaction as contemplated in the agreement between the Company and HLND is expected to close on or about March 15, 2022.

    In connection with the closing of this transaction, TAAT™ will pay a finder’s fee of 5% of its value (paid as 50% in cash and 50% in shares) to an arm’s length party.

    On behalf of the Board of Directors of the Company,

    TAAT GLOBAL ALTERNATIVES INC.

    “Setti Coscarella”

    Setti Coscarella, CEO and Director

    For further information, please contact:

    TAAT™ Investor Relations
    1-833-TAAT-USA (1-833-822-8872)
    investor@taatglobal.com

    THE CANADIAN SECURITIES EXCHANGE (“CSE”) HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE, NOR HAS OR DOES THE CSE’S REGULATION SERVICES PROVIDER.

    About TAAT Global Alternatives Inc.

    The Company has developed TAAT™, which is a tobacco-free and nicotine-free alternative to traditional cigarettes offered in “Original”, “Smooth”, and “Menthol” varieties. TAAT™’s base material is Beyond Tobacco™, a proprietary blend which undergoes a patent-pending refinement technique causing its scent and taste to resemble tobacco. Under executive leadership with “Big Tobacco” pedigree, TAAT™ was launched first in the United States in Q4 2020 as the Company seeks to position itself in the $814 billion1 global tobacco industry.

    For more information, please visit http://taatglobal.com.

    References

    1 British American Tobacco – The Global Market

    Forward-Looking Statements

    This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Often, but not always, forward-looking information and information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur, or be achieved. Forward-looking information in this news release includes statements regarding the anticipated performance of TAAT™ in the tobacco industry, in addition to the following: Completion of the Company’s planned acquisition of HLND under the terms of a February 25, 2022 agreement; the ability of management to integrate HLND’s business into its current operations; and the ability to execute on its plan to expand both in the United States and internationally. The forward-looking information reflects management’s current expectations based on information currently available and are subject to a number of risks and uncertainties that may cause outcomes to differ materially from those discussed in the forward-looking information. Although the Company believes that the assumptions and factors used in preparing the forward-looking information are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed timeframes or at all. Factors that could cause actual results or events to differ materially from current expectations include: (i) adverse market conditions; (ii) changes to the growth and size of the tobacco markets; and (iii) other factors beyond the control of the Company. The Company operates in a rapidly evolving environment. New risk factors emerge from time to time, and it is impossible for the Company’s management to predict all risk factors, nor can the Company assess the impact of all factors on Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ from those contained in any forward-looking information. The forward-looking information included in this news release are made as of the date of this news release and the Company expressly disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable law.

    The statements in this news release have not been evaluated by Health Canada or the U.S. Food and Drug Administration. As each individual is different, the benefits, if any, of taking the Company’s products will vary from person to person. No claims or guarantees can be made as to the effects of the Company’s products on an individual’s health and well-being. The Company’s products are not intended to diagnose, treat, cure, or prevent any disease.

    This news release may contain trademarked names of third-party entities (or their respective offerings with trademarked names) typically in reference to (i) relationships had by the Company with such third-party entities as referred to in this release and/or (ii) client/vendor/service provider parties whose relationship with the Company is/are referred to in this release. All rights to such trademarks are reserved by their respective owners or licensees.

    Statement Regarding Third-Party Investor Relations Firms

    Disclosures relating to investor relations firms retained by TAAT™ Global Alternatives Inc. can be found under the Company’s profile on http://sedar.com.

  • The Only Way Shiba Inu Will Ever Reach $1

    The Only Way Shiba Inu Will Ever Reach $1

    There’s no question that Shiba Inu (CRYPTO: SHIB) had an incredible run in 2021.

    The dog-themed cryptocurrency jumped from $0.000000000133 (nine zeros) at the end of 2020 to $0.000033 (four zeros) at the end of 2021, skyrocketing around 26,000,000% as major cryptocurrency exchanges allowed trading in SHIB and meme coins remained popular after the earlier rise of Dogecoin (CRYPTO: DOGE).

    After the meme coin shaved off five decimal zeros from its price, some are calling for the coin to eventually reach $1. From its current price of $0.000021, that would mark a gain of roughly 4,700,000%. Considering how far Shiba Inu has already come, it may seem realistic for the coin to gain another 4,700,000%, but basic math is standing in the way.

    Shiba Inu trades for such a small fraction of a penny because its supply is so large. There’s currently a supply of 549 trillion SHIB tokens in circulation, giving it a market cap of around $11 billion. If those tokens were worth $1 each, SHIB’s market cap would be $549 trillion, roughly 200 times bigger than Apple, the world’s most valuable company, and more than six times the world’s annual GDP.

    In other words, Shiba Inu reaching $1 would likely require a massive reordering of the world economy. That’s not going to happen. However, there is a caveat.

    Coins against a bar chart graphic

    Image source: Getty Images.

    The only way SHIB can reach $1

    There are two ways for Shiba Inu’s value to increase. One is that traders simply bid up the price. The other is for the supply to decrease, which should make the remaining coins more valuable. In order for this to happen, the coins have to be taken out of circulation, or burned, as traders usually call it, by being transferred to dead wallets.

    It’s not unusual for this to happen. In fact, according to Shibburn, a website that tracks the burning of Shiba Inu coins, 410 trillion Shiba Inu coins have already been burnt. Nearly all of those coins were taken out of circulation by Vitalik Buterin, the co-founder of Ethereum (CRYPTO: ETH) who was gifted half of the 1 quadrillion Shiba Inu coin supply by the anonymous Shiba Inu founder. Buterin did so because he felt uncomfortable controlling so much of the supply of the cryptocurrency.

    According to Shibburn, at the time of writing, 62 million Shiba Inu coins had been burned in the last 24 hours. While that might sound like a lot, at that rate it would take a little more than two weeks to burn 1 billion coins, and 40 years to burn 1 trillion. The burn could accelerate if there were an organized movement among SHIB holders, which could pick up steam if the value of SHIB continues to drop. However, there’s a clear disincentive to burning the coins. If the value begins going up, it’s in the interest of holders to keep their coins rather than burn them, and the decentralized nature of cryptocurrency makes it unlikely that there will be an organized movement powerful enough to substantially reduce the number of coins.

    What’s next for Shiba Inu

    Since its peak at $0.88 at the end of October, Shiba Inu has lost more than 75% of its value, and other cryptocurrencies have fallen sharply as well. Bitcoin (CRYPTO: BTC) is down nearly 50% from its all-time high, as is Ethereum. Cryptocurrencies have tumbled amid broader jitters in the stock market over rising interest rates.

    It’s impossible to predict where the cryptocurrency market will go next, but the most highly inflated assets during the pandemic have already fallen sharply.

    At this point, another Shiba Inu rally seems unlikely, and reaching $1 is nearly impossible.

  • Market Bottom? Is It In, Or More Downside Coming?

    Market Bottom? Is It In, Or More Downside Coming?

    Market bottom? Is it in? That was the main question I got last week, and I even discussed it with Charles Payne of Fox Business. It’s the one answer everybody is searching for. Is it time to “load up the truck” for the next leg of the bull market or go to cash?

    It certainly is a problem now, given that January had a rough start for the S&P 500. But, of course, such brings up the age-old Wall Street axiom “so goes January, so goes the year.”

    Chart courtesy of Zerohedge (ahead of last two day rally)

    As of this past Friday, the damage is quite apparent. As noted by Zerohedge:

    Nasdaq is down 5 straight weeks (16% from its highs) – the longest losing streak since 2012 – while Small Caps are down 22% from their highs (in a bear market)

    After a year, investors believed they “could do no wrong,” now it seems as if “nothing is going right.”

    As I noted previously in “Investor Resolutions,” such is how bull markets work. To wit:

    When the “bull is running,” we believe we are smarter and better than we are. As a result, we take on substantially more risk than we realize as we continue to chase market returns and allow “greed” to displace our rational logic. Like gambling, success breeds overconfidence as the rising tide disguises our investment mistakes. 

    Unfortunately, during the subsequent completion of the full-market cycle, our errors return to haunt us. Always too painfully and tragically as the loss of capital exceeds our capability to “hold on for the long-term.” 

    Such is where many investors find themselves today, hoping for a return of the bull market to bail them out of bad investment strategies.

    So, is a bottom in? First, let’s look at the technical backdrop.

    Technically Speaking – A Bottom Is In

    In this past weekend’s newsletter, I made the case the market has likely made a short-term bottom.

    The markets do look to be stabilizing, as shown below, and are holding the October lows. That 100% Fibonacci retracement, and multiple rally attempts, triggered a short-term buy signal. All of this is short-term bullish.

    Furthermore, our Simplevisor Money Flow analysis is also at extreme oversold levels. Such usually provides a sustainable rally, particularly when the indicator is at extreme lows and triggering a “buy” signal as it is currently.

    However, while the technicals suggest a short-term bottom is getting established, we are concerned that may limit any bounce to a 50% to 61.8% Fibonacci retracement of the recent decline. From Friday’s close, such would entail a further rally of roughly 3-4% before the market runs into the broken 50-day moving average.

    At that juncture, most of the oversold indicators will be back to overbought, and we could potentially see a reversal to retest the recent lows. There are a couple of reasons we suspect such will be the case:

    1. There are a lot of “trapped longs” that will look to “sell” into the rally.
    2. A reversal of the previous tailwinds from earnings and economic growth, to tighter monetary policy, liquidity and inflation.

    As JP Morgan noted this past week:

    Given the lack of strong capitulation, it is not yet clear whether this rebound should be any more than short-term and tactical in nature. In addition, how discretionary investors perform if there is a bounce could be critical. Given many captured a large amount of the decline, if they don’t capture most of the rebound, it could continue to create risks.” – via Zerohedge

    As is always the case, nothing is a guarantee. But there is a crucial risk developing.

    The Dollar Is Key

    With inflation surging short-term due to the impact of massive floods of liquidity against a supply-constrained economy, such suggests that the U.S. dollar is just beginning to play catchup. Furthermore, with tensions rising between Russia and Ukraine, it will not be surprising to see global fund flows into U.S. Treasuries, which will push the dollar higher as a “safety trade” for global reserves.

    Historically, a surging U.S. dollar undermines both the stock and commodity markets (per our discussion yesterday), as a strong dollar negatively impacts exports which comprise about 40% of corporate revenues.

    With the markets extremely overbought, as shown below, such suggests that we could well be in the midst of a more significant correctional process. If such is the case, then we could be seeing a shift in market dynamics from “buying dips” to “selling rallies.”

    As we have noted previously, there are more than just a few headwinds facing us in 2022.

    • The Fed is reversing liquidity and tightening monetary policy.
    • Fiscal policy supports no longer exist.
    • Current inflation is impacting consumption
    • Economic growth is slowing dramatically (Atlanta Fed GDP Now at 0.1% for Q1)
    • Earnings growth will slow.
    • Profit margins remain under pressure from higher input costs and wages.
    • Valuations remain elevated

    These challenges could lead to a more challenging investment dynamic this year.

    But the Fed is likely the catalyst to the next correction.

    The Fed Is Walking Into A Trap

    There are more than a few reasons why we believe that “disinflation” is a more significant threat in 2022 than inflation. With inventories surging and liquidity reversing, prices will fall as a supply glut occurs. As BofA noted recently:

    “Inflation is annualizing 9%, and real earnings are falling to a recessionary 2.4%. Stimulus payments to US  households are evaporating from $2.8tn in 21 to $660bn, and there is no buffer from excess savings with the rate at 6.9%, which is lower than 7.7% in 2019). There is a huge inventory build in retail products (ex-auto), while the upcoming weak US consumption most likely catalyst for consensus cuts in GDP/EPS.”

    In a simple word, this is very “deflationary.”

    However, the Fed intends to hike rates to combat an inflationary surge that has most likely peaked. If such is the case, the Fed is walking into the same trap as before. Notably, the Fed probably won’t be able to hike more than 1% before creating the next crisis.

    For all of these reasons, we agree that a short-term bottom may be in as it is “hard to kill a bull market.”

    However, investors should use rallies to rebalance risk and take on a more cautionary posture as we head into 2022.

    Will there be a time to “start loading up the truck” again? Yes.

    “But after a lot more pain, the time to buy will come, and that’s usually marked by the transition from panicking stock markets to panicking Fed officials.” – BofA

  • Can Biden Really Flaunt The “Strongest Growth In Four Decades”?

    Can Biden Really Flaunt The “Strongest Growth In Four Decades”?

    I was surprised to see a tweet from President Biden showing the GDP (Gross Domestic Product) of the United States for 2021 compared to the average GDP growth under other presidents. The Tweet stated “This didn’t happen by accident. Because of the actions we took, last year we achieved the fastest economic growth in nearly four decades.”

    The first thing we must remind the president is that a recovery from a massive crisis is not “growth.”

    Unfortunately, this marketing tactic is not new.

    When Biden was vice-president under Obama, they always compared growth and jobs of the president’s tenure excluding the first year, 2009.

    Presidents tend to compare their figures favourably, but to talk about 2021 as the “fastest economic growth in nearly four decades” is misleading.

    First, recovering the GDP after a massive crisis is not growth. After falling 3.5%, a 5.7% recovery is not “the fastest economic growth” in forty years. It is a bounce. Furthermore, when inventory build contributed a massive 4.9 percentage points to the 6.9% increase in real GDP of the fourth quarter, we should be cautious. This factor is likely to fade in the first quarter and points to slower growth in 2022.

    Second, because 2020 and 2021 saw the largest increase in federal debt in decades. After a $3.1 trillion deficit in 2020, the largest in history, and another historic record deficit in 2021 of $2.7 trillion, the United States’ economy has shown a much larger debt increase than GDP recovery. Current-dollar GDP increased by $2.10 trillion in 2021 to a level of $22.99 trillion, in contrast to a decrease of 2.2 percent, or $478.9 billion, in 2020. This means that the United States economy has barely grown at all after adjusting for the massive increase in debt.

    The United States government has consumed 3.5 times more debt than the GDP accumulated in two years.

    Third, because the 2021 GDP growth comes with the highest inflation figure in 39 years, a 7% increase in CPI. This means that real wages have plummeted, and consumers are suffering while small and medium enterprises see declining margins.

    The slowdown in economic growth that the United States is likely to see in 2022 is an important risk. Industrial production, retail sales and job creation have slowed down notably in the past three months. Let us not forget that the labor force participation rate has been stagnant for a year.

    These figures show that the recovery is extremely complicated. More importantly, what these figures show is the extremely poor multiplier effect of government spending and the stimulus plans.

    If we put this recovery in the context of the largest monetary and fiscal stimulus in recent history, with two record-high deficit prints, what the Biden tweet shows is the poorest recovery adjusted for debt and monetary support in many decades.

    No administration since World War II has used such immense policy actions to deliver above-trend growth and a rapid recovery. However, despite the almost unlimited use of government spending and Federal Reserve resources, including negative real rates and the lowest borrowing cost of government debt in decades, the reality shows an extremely poor and diminishing return of the fiscal and monetary space.

    This is also the problem of many economists’ and investment banks’ analysis. No one seems to care about the massive debt surge and the appalling return on investment of the stimulus plans. If there is something that resembles “growth,” politicians are happy.

    But there is a much deeper issue. The accumulated debt will be a burden on growth and jobs in the future, is likely to trigger massive tax increases and, additionally, the placebo effect of the spending plans fades away rapidly. The United States government consumes $1 trillion stimulus plans as of it did not matter.

    There is a bounce after such massive adrenaline injection into the economy. But the bounce is clearly insufficient and low quality. The result is higher inflation and no discernible multiplier effect of the spending programs approved because most of the recovery comes from the re-opening of the economy, not from stimulus.

    This, unfortunately, is typical in many economies. A lot more debt for weaker growth and higher inflation.

    The Biden tweet states that “this is no accident.” He is right. It is more like a Keynesian trainwreck.