Airo AV Announces Here's Why We're Wary Of Buying Consolidated Water's (NASDA... - Jonathan Cartu CPA Accounting Firm - Tax Accountants
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Airo AV Announces Here’s Why We’re Wary Of Buying Consolidated Water’s (NASDA…

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Airo AV Announces Here’s Why We’re Wary Of Buying Consolidated Water’s (NASDA…


InvestorPlace

7 Sin Stocks To Buy That Will Outperform the S&P 500

While the S&P 500 and a wide range of stocks continue their September slide, many investors are understandably jittery, wondering if a second market crash is coming this year. In response, they’re searching for industries that can offer more stability, but also growth and income over the coming quarters. One such group are the so-called “sin stocks,” which benefit when humans indulge in vices.Although there may be different definitions of sin stocks, these businesses include those in alcohol, tobacco, cannabis, gambling, adult entertainment, weapons and defense industries. What is viewed as a sin stock today may also change over time.Recent research by David Blitzo of Robeco Asset Management in Rotterdam, the Netherlands, and Frank J. Fabozzi of EDHEC Business School in Nice, France, highlights how “various studies … [of] the historical performance of sin stocks … [show] they have delivered significantly positive abnormal returns.”InvestorPlace – Stock Market News, Stock Advice & Trading TipsThat is to say, sin stocks outperform the broader market time and again, and that isn’t based on one study; it’s based on many studies, by different researchers at different times.Sales figures from companies back up the anecdotal evidence that even in economically difficult periods, tobacco and alcohol consumption remain fairly stable. In fact, during the early weeks of the pandemic, alcohol sales in the U.S. increased by 27%. * 7 Hot Stocks to Buy on Robinhood Now Therefore, for investors whose convictions allow them to invest in these firms, such stocks can provide meaningful diversification during volatile market periods. On the other hand, some sin stocks, particularly casino stocks, have suffered greatly as gambling locations remain closed due to lockdowns.With all that in mind, here are seven sin stocks to invest for the long-run: * Advisor Shares Vice ETF (NASDAQ:ACT) * Constellation Brands (NYSE:STZ) * ETFMG Alternative Harvest ETF (NYSEARCA:MJ) * iShares U.S. Aerospace & Defense ETF (CBOE:ITA) * Smith & Wesson (NASDAQ:SWBI) * VanEck Vectors Gaming ETF (NASDAQ:BJK) * Vanguard Consumer Staples Index Fund ETF (NYSEARCA:VDC)Most sin industry stocks also bear juicy dividends. Thus, they could be appropriate for investors seeking passive income, especially in a low-interest environment such as this. Sin Stocks to Buy: Advisor Shares Vice ETF (ACT)Source: Shutterstock 52-Week Range: $16.16 – 26.95Dividend Yield: 2.41%Net Expense Ratio: 0.99 % per yearOur first choice is an exchange-traded fund (ETF), best for investors who would rather not risk capital on one company. The AdvisorShares Vice ETF concentrates mainly on U.S.-listed alcohol and tobacco companies. It may also hold stocks of firms conducting federally legal cannabis business, per the U.S. government.As regular InvestorPlace readers likely know, marijuana remains illegal at the federal level in the U.S. At the state level, legal status depends on the laws of the individual state. Outside of Canada, which was the first G7 country to nationally legalize cannabis, the size of the legalized marijuana industry remains very small. Yet that market is expected to reach $40 billion by 2023.In terms of ETF composition, cannabis-related firms top the list with a 40.9% weighting. Next are alcohol (27.1%), Restaurant & Entertainment (12.2%), and Tobacco with Cannabis Exposure (11.3%). Close to 80% of the companies come from North America, followed by Europe (13.3%).ACT’s top ten holdings comprise around 60% of total net assets, which stand close to $10 million. ACT’s top five companies are Boston Beer (NYSE:SAM), Thermo Fisher Scientific (NYSE:TMO), Abbott Laboratories (NYSE:ABT), Turning Point Brands (NYSE:TPB) and Abbvie (NYSE:ABBV). A closer examination of the holdings shows that there is considerable emphasis on life-sciences. For example, in Canada, Thermo Fisher undertakes cannabis compliance activities. Another holding is Scotts Miracle-Gro (NYSE:SMG), which is known for its fertilizer products, used by marijuana producers.So far in 2020, the fund is up around 3%. Yet since the lows seen in early spring, ACT is up around 55%. In fact, on September 16, it hit a 52-week high.Any decline toward the $22.5-level would make the fund more attractive for long-term investors. However, we’d like to underscore the high management fee as well as the fact that it is still a smaller size fund. Constellation Brands (STZ)Source: ShinoStock / Shutterstock.com 52-Week Range: $104.28 – $210.65Dividend Yield: 1.62%Victor, New York-headquartered Constellation Brands’ website highlights that it is the fastest-growing large consumer packaged goods (CPG) company in the U.S. at the retail level. And in addition to the U.S., the global alcoholic beverage company has operations in Mexico, New Zealand and Italy as well.The group produces and markets beer, wine and a diverse range of spirits. Several of its well-known brands include Corona, Modelo, Pacifico, Robert Mondavi, SVEDKA Vodka, Casa Noble Tequila and High West Whiskey.In 2018, Constellation Brands took a considerable stake in Canada-based Canopy Growth (NYSE:CGC), providing the company with managerial and financial backing. There may be investors who are hoping that Constellation Brands, which holds a 38% stake in the company, will acquire the remaining shares of Canopy Growth. Given the question marks surrounding the cannabis industry and the global economy, we don’t expect such an acquisition to happen in the near-term.Year-to-date (YTD) the stock is down about 2%. Part of the weakness in price may come from the fact that its wine and spirits business has seen lower shipments in 2020. But the beer business is strong, posting the tenth consecutive year of rising shipments. * 7 Hot Stocks to Buy on Robinhood Now Since the lows seen in March, the shares are up about 80%. As a result of the rapid increase, forward P/E and P/S ratios have also been pushed up, standing at 20.75 and 4.33 respectively. We’d look to buy the shares around $170. ETFMG Alternative Harvest ETF (MJ)Source: Shutterstock 52-Week Range: $8.81 – $23.44Dividend Yield: 10.76%Expense Ratio: 0.75%Our next choice is an ETF from the cannabis space. The ETFMG Alternative Harvest ETF tracks the Prime Alternative Harvest index. MJ stock invests in companies that have exposure to global medicinal and recreational cannabis legalization moves.Pharmaceuticals (56.4%), Tobacco (24.7%) and Biotechnology (9.1%) are the top 3 sectors for MJ, which has 35 holdings. The top ten holdings comprise about 60% of total net assets, which are around $550 million. MJ’s top five companies are GW Pharmaceuticals (NASDAQ:GWPH), Cronos Group (NASDAQ:CRON), Canopy Growth (NYSE:CGC), Corbus Pharmaceuticals (NASDAQ:CRBP) and Aurora Cannabis (NYSE:ACB).It’s important to note that…

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Jonathan Cartu

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