Archive Category: 10X Stocks Archive

Investors are hungry for yield… Actually, that’s an understatement. They’re the hungriest they’ve been in 20 years. A quick look at Google Trends shows that searches for the phrase “high yield” exploded fourfold earlier this year: It makes perfect sense. Sustained inflation, combined with the Federal Reserve’s interest rate hikes, made high-yield investments a staple of nearly everyone’s financial plan. But there’s a good and a bad way to “reach for yield.” As Chad Stone pointed out on Friday, one of the best ways is to buy quality dividend stocks. Emphasis on “quality.”

Here’s something you may not know about me… Years before I found my passion as an investment strategist, I was an undergrad biology major on the pre-med track. While life wound up having another plan (doesn’t it always?), I never forgot that foundation of medical knowledge I built in my college years. And it certainly comes in handy when I’m identifying investment opportunities in the biotech and pharmaceutical sectors. We have two such positions in the 10X Stocks portfolio, Dynavax Technologies (Nasdaq: DVAX) and Voyager Therapeutics (Nasdaq: VYGR). Both are showing early promise — with open gains of 35% and 76%, respectively.

Last week, I wrote you about how many of the companies we invest in are in a “sweet spot” of profitability — that is, not quite profitable, but with a clear path to profitability, and soon. Buying companies on the cusp of profits allows us to get in at a cheaper level — before positive cash flows attract more conservative investors. One of the examples I shared last week was Clean Energy Fuels Corp. (Nasdaq: CLNE). I showed how the company reported a reasonably small loss based on GAAP numbers, but otherwise a small profit on adjusted earnings. In short, the company is almost in the black … and I expect it to be clearly profitable in the not-too-distant future. Another example of a company on the verge of solid profitability is Hims and Hers Health (NYSE: HIMS).

We currently own two biofuel companies — FutureFuel Corp. (NYSE: FF) and Clean Energy Fuels Corp. (Nasdaq: CLNE), which I just recommended two weeks ago. Both companies have just reported quarterly earnings and their stock prices are on the move. Unfortunately, the reaction in shares of FF have been negative. The stock is down around 22% today, putting shares back down to around the $7.86 level we recorded as our entry price last June. The initial reaction to CLNE’s report was also negative, with shares falling from yesterday’s close of $4.49 to an intraday low of $4.07. Though as of noon, the stock had rallied back up to $4.50. I’m writing today with a brief note to tell you… Don’t worry — remain patient and stay the course.

In late December, I put together a special presentation on the “oil super bull” … what I expect to be a massive, multiyear bull market in crude oil and, by extension, oil and gas stocks. At the time, oil had already completed the first act of that play … rallying from practically $0 (!) in April 2020 to $115 by June 2022. And it had already begun the common act that follows any initial “too far, too fast” rally: a pullback. When I released my “Oil Super Bull Summit” on December 29, 2022, crude oil was priced at $79 a barrel — already down 31% from its first-rally peak of $115.