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Get Your Motor Runnin’… Head Out on the Highway

Wall Street Daily Senior Analyst Greg Miller is not one to shy away from adventure – neither when it comes to recreation, nor investing.

Long-term success in both areas involves learning, understanding, and following certain rules of safety and prudence.

That’s not to say there’s no room for creativity or self-expression in these pursuits. It’s just that we want to be around to enjoy the next visceral thrill and another profitable trade.

New to the lifestyle but already an “easy rider,” Greg hit the road on his motorcycle – a GoPro Inc. (GPRO) camera firmly secured on his helmet – to talk about “the biggest theme in technology today.”

Heavy traffic limiting him to 10 miles per hour on a road designed to support 60 miles per hour provides Greg an entrée to talk “the intersection of the Internet of Things and Big Data and how it’s changing the way we live.”

Indeed, Greg knew about the traffic jam and exactly how to find stuff before he took off – because of the Internet of Things, Big Data, and a crazy little app called Waze.

Waze even suggested Greg get off Route 100 for a less-clogged alternative route while he was riding.

Waze is able to collect real-time data from motorists all over the place. And it’s able to share it with other motorists so they can save time on their travels.

Take a few minutes to ride along with Greg as he explains Waze and other ways our lives are getting easier because of technology.

https://wallstreetdaily-1.wistia.com/medias/qcz1fkm2r0?embedType=async&videoFoam=true&videoWidth=960

Greg’s quest for adventure and his thorough-going approach to research make him an indispensable part of Wall Street Daily Founder and Publisher Robert Williams’ premium research service Extreme Alpha.

After all, Extreme Alpha is the place to go for benchmark-beating stock returns.

Robert, Greg, and the rest of the Extreme Alpha team make it their business to identify momentum stocks, and they generate abnormal gains through the strategic use of options.

It’s not exactly “Born to Be Wild”- type stuff. But you have to know what you’re doing. And you have to know when to gun it on a trade.

Click here to learn how you too can ride with the Extreme Alphas.

Around WSD

Stick around as Greg goes electric…

Tesla Motors Inc. (TSLA) is generating serious buzz for its approach to powering automobiles while incorporating sleek design concepts. And Toyota Motor Corp. (TM) has been pumping out Priuses for nearly 20 years now.

But, there’s an unknown out there, Faraday Future, which is building a 3 million square foot automobile manufacturing plant in North Las Vegas at a cost of $1 billion.

It will employ 4,500 people and will be capable of producing more than 500,000 cars per year.

There are some clues about Faraday’s product (it unveiled a 1,000 horsepower supercar at this year’s Consumer Electronics Show) but few hard answers.

Greg gets to the middle of the mystery.

Chief Technology Analyst Louis Basenese updates one of his 10 major tech trends for 2016 with a look at the state of mergers and acquisitions activity in the semiconductor space.

Although it’s off to a slower start than Lou anticipated, it is only April.

And Intel Corp. (INTC) CEO Brian Krzanich recently said that his company, which made the biggest acquisition ever last year, will continue to make deals.

More importantly, “A recent KPMG survey of 163 global semiconductor industry business leaders revealed that 59% of them expect the pace of M&A activity to accelerate this year.”

That’s because, amid shrinking margins, shifting customer demands, and a need to stimulate growth, M&A is “a requirement.”

Global Markets Analyst Martin Hutchinson establishes some context for evaluating the safety of dividends, and adds, “Life is getting increasingly difficult for income investors.”

Here’s why: “First-quarter earnings for S&P 500 companies are expected to come in below last year’s levels for the sixth successive quarter, with energy and financial stocks showing the biggest declines.”

Some industries and sectors – such as energy and oil and gas producing MLPs – are obviously more vulnerable than others.

But we’re seeing earnings weakness for regional telecoms and cigarette companies as well.

Martin has a plan, though. “For dividend security in what is promising to be a difficult year,” he writes, “look for a stable business model, modest vulnerability to a downturn, ample dividend cover, and a track record of taking the dividend very seriously without wasting cash on buyback operations.”

Senior Analyst Jonathan Rodriguez offers another perspective on earnings season.

While he concedes that the price of a stock “almost always follows the same path as its earnings,” as a trader focused on stock charts Jonathan is more concerned with “support” and “resistance.”

These are the main pillars of technical analysis – “the study of securities, using historical price and trend data.”

Jonathan explains movements between support and resistance and “how to put these margins to work for you.”

Finally, Chief Income Analyst Alan Gula picks up a theme he’s been following over the past year…

In addition to Peabody Energy Corp. (BTU) and Energy XXI Ltd. (EXXI) – both of which filed for bankruptcy protection in mid-April – “there are plenty of other companies in the energy sector experiencing credit distress, too.”

Alan isolates two key takeaways: America’s new energy boom has been fueled with borrowed money, and the slide in commodity prices “leaves a mountain of debt exposed to default.”

And the bust has only just begun.

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