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Three socks i’m buying november 2008 teen edition welcoming guys it’s my favorite time of the month each and every month i do this series on this channel three stocks that i am planning on buying in the upcoming month upcoming month this month being november 2018 i hope you guys really enjoy this as always i’m gonna go into seven reasons on each of these stocks
On why i’m buying them and if you’re new to this channel basically i’m a long-term investor in companies i’m playing i’m buying into these stocks and holding them long-term so regardless if they go up a little bit down a little bit over the like the next few weeks or a few months or whatever it really doesn’t make a difference to me so i hope you guys enjoy this
As always by the way if you want to come spend a day with me and graham stefon all-around personal branding building a personal brand online stock market investing in real estate investing that’s gonna be the first link down there in the description you have less than 30 days left to get tickets for that so i hope to see as many of you guys there as possible and
Let’s get into this already guys time to get into these three stocks now the first one is a company named skyworks solutions ticker symbol s wks okay why i’m planning on buying this stock in the upcoming month and adding some additional shares i have added some shares in the past but i haven’t built a really massive stake in this company it’s something it’s a stake i
Want to get to be a lot bigger in this upcoming month there are seven core reasons why i want to do this okay the first one is this is a business that is expanding despite a slow smartphone market the smartphone market for a long time i’ve been on fire you know the numbers what’s going up like crazy the last year so the smartphone market in general has slowed down
Substantially however despite this slowdown in the overall smartphone market skyworks solution has still been able to expand their business and if you look at skyworks the numbers over the past year they’re still very very strong growth numbers despite a week overall smartphone market right now so that’s the first reason that this company can expand even even if
Smartphones don’t really grow volumes anymore okay the second reason is this company is so well run the past 10 years this company you can look at a stock price you can look at its revenues profits over the past decade and you’re gonna see that they have expanded dramatically it’s a very well-run semiconductor company they know how to get in with the big customers
In stay and once they get in okay and they know how to fight off much bigger competitors out there so it has been a very very well-run company the past decade the third reason is this company has a ton of growth vectors in the internet of things iot devices think about you know if the sky work solutions core business is smartphones okay chips selling semiconductor
Chips into smartphone products okay to the big customers like apples or samsung’s or whoever out there alright but internet of things is a massive opportunity for skyworks solutions where all these devices are starting to become connected to each other you can think about things like you know apple watches are just wearables in general you can think about speakers
That are in your home that you talk to all these type of things are all the internet of things you can think about your microwave that might be connected somehow to some other device or the refrigerator that somehow does a grocery shopping list like all these things were going into and all these things out a lot of people already have these internet of things this
Is all a massive massive opportunity for skyworks solutions and they’re benefiting from this already and they will continue as these devices become more and more popular over time that’s reason number three reason number four is a diversified business you know there are two ways a semiconductor company can go one is they can be super into just one customer and that
Customer kind of completely dominates our revenue profits that would represent like cirrus logic which is a stock i own in my portfolio cirrus logic is is like 80 plus percent of their revenue comes from apple and they live and die by apple skyward solution is pretty much in any big electronics play you you want to know out there okay apple samsung google amazon
It doesn’t really matter who you’re talking about skyworks solutions is likely a customer of the biggest electronic companies out there so it’s not like they’re just relying on one company to kind of live or die by that company very well diversify business and that’s another reason why this company has been so well run the past decade right now this company is at
A forward p/e of 10 a 4 p of 10 is ridiculous for this type of business ok skyworks solution is an expanding business revenues and profits expanding all right and they have so many big huge opportunities in front of it to be at a four to pe of 10 that’s like as if it was a dying business or like this so business is done this is a dead business or something when
They have so many growth vectors in front of this company over the next half decade to decade it’s read kilis guys it is such a disrespect to be trading out a ford p of ten right now it’s an absolute joke guys that’s reason number four their reason number five is this is a great balance sheet company or actually that was reason number five reason number six is a
Great balance sheet if you want to look at one of the best balance sheets you could possibly look at look at skyworks solutions okay we’re talking about no debt loaded up on cash and investments type a business you want with a semiconductor company just in case the dark days come you know our recession comes or semiconductors are slow they can get through that type
Of situation because they’re not loaded up on debts and whatnot a great balance sheet and the last reason reason number seven is 5g represents a massive opportunity for the next five to ten years for this company all right 5g is gonna start getting rolled out next year in a real way all right in 2019 and that’s gonna kind of be the first startup year and 2020 and
2021 are gonna be the years that are all send like 5g is upon us and it goes from just being oh that’s something in the future to now it’s reality okay 2020 and 2021 are gonna be those years that represent it we’re pretty much every big smartphone player out there will have 5g you know smartphones as their main devices okay and we’ll go from 4g or 4g lte to 5g this
Opportunity for 5g is not just for smartphone opportunity but the internet of things machine learning artificial intelligence all this stuff is a great growth catalyst for skyworks solutions over the next five to ten years they’re in a position to be one of the biggest companies to capitalize off 5g out there when when i think about companies that have an opportunity
To expand their business quite dramatically off of 5g skyworks solutions is one of the first ones that comes to my mind so with all this being said at a ford p of 10 with how well run this company is the great balance sheet and all these big huge opportunities in front of itself over the next you know half decade to decade it’s rather a joke that it trades that the
Type of valuation a trades have right now guys so needless to say that is why scott work solution is one of the stocks i’m planning on adding a lot more of in this upcoming month november 2018 let’s get into stock number two already guys to get into stock number two which is a company name u.s. steel ticker symbol x all right what are the seven reasons why i love
This company the seven reasons are the first one is this is a simple business that is needs based this is a steel producer it’s about as simple as a business you can get okay and basically any products that need to be made with steel they’re one of the biggest steel companies out there all right it’s a needs based business now if you need steel to make any type of
Product or anything out there you’re gonna go to a company like us steel a very simple business and not hard to understand it’s just a very simple business that whenever people need steel they need steel all right the second reason is profits are absolutely exploding for this company right now this is a company that just a couple years ago was taking massive losses
On their business and looked like it was just a company that was dead and it was just gonna be you know dead in the water forever and ever okay and tell somebody got elected named president trump and he’s kind of helped turn things completely around with a lot of the tariffs that we’ll get into in just a second and so now their profits are absolutely exploding for
This company and it went from a company that you know you know very few businesses wanted to use now i know everybody’s like going to this business and they want to use u.s. steel products out there so it’s a massive massive take change for this company reason number three is this company trades at a 4 p of 4 yes for you heard me right companies that trade at a
Ford p really like under 8 or are businesses that sometimes they’re seen as like like this business is done like things are gonna get much much worse for this business this is a peak for it or something i don’t feel like that at all with us steel i don’t feel like today’s profits or the peak and things are never gonna get better from here i think this business
Has more growth in coming in the future and so the fact that trades that afford pf4 is is absolutely ridiculous we’re talking about one of the biggest steel makers all in all of the united states to be trading out of for pf4 is unbelievable to me i think it should be trading us somewhere around a 4 p of 8 to 9 somewhere around there which is basically you know
Would double its valuation overnight all right know there are a lot of talk about oh this company might be hurt by tariffs this company might you know see their business go down because of tariffs things like that there’s one company that for sure and one industry that for sure is benefiting massively from these tariffs that are china and what not and that is u.s.
Steel us steel is benefiting in a massive massive way so you know when people are looking around they’re kind of like thinking well what are some companies that can benefit from this whole tariff situation u.s. steel is absolutely without question one of the companies benefiting more than any other company out there okay plan plan start ups continue so basically
A us steel has had a lot of assets that have just been sitting dormant assets meaning a lot of different plants all around the united states and some in europe they’ve just been kind of sitting dormant for a while okay because you know chinese steel’s was kind of been able to flood in the united states for a long time and that’s just kind of the way it’s been so
They had to shut down a ton of plants fire a lot of workers and whatnot what is it what does continue to happen throughout 2018 is plant startups have been continuing in a massive way so they’re revitalizing their old assets their old plants and whatnot getting those back started so they can produce more steel out there and these continue to go on so this is just
Kind of helping out their business in general number six the sixth reason is a steel workers deal is done now it’s in the past okay so this was kind of a cloud overhanging a us steel stock and this just got approved a week or two ago that now the deal is done and the workers are set to make their their future wages and getting you know future raises and whatnot
And that’s just done now and it’s all in the past and i think that’s just a big thing to get that cloud out of the way and just know that all the you know there for several years out that in that whole situation is taken care of guys in the last reason reason number seven although this isn’t a technically a government-backed company when you really look at it kind
Of is a government backed company you know president trump one of the things he said more than anything is he wants to save the steel industry he thinks it’s one of them you know it’s been one of the biggest focuses of him you know in his eye you know election campaign and basically since he became president so when you look at us steel you know for at least the
Next two to six years of hanging on if he gets reelected us steel is is going to be in a huge position of power as far as you know being the company that people go to if they want steel products however even when i look at this i’m when i think about like the next administration that comes in whether they’re gonna be republicans or democrats i don’t think they’re
Necessarily gonna go you know head in real quick to go ahead and take off the tariffs off china and whatnot first steel products i just don’t think that’s going to be realistic i think these are these – this tariff situation it’s going to continue to be like this at least on steel and aluminum products for a long time into into the future so when i look at this
I think this is almost like a government-backed company that the government literally wants them to succeed in a massive way and bring back the steel industry so you know whether trump’s in or out over the next two to six years i really don’t think it’s something that will be taken off you know and say oh no no let’s just take all those tariffs off of china as
Far as steel and aluminum in other countries and let’s just allow all that steel aluminium to flood in here because i think would just be a bad look from workers you know because nelson you’d have tons of workers get laid off that would go into the news so in my opinion this will continue to probably be a government-backed industry if those tariffs did ever get
Removed from china’s for steel and aluminum products go and whatnot i would probably just a solid a us steel i’d be like okay i’m just time for me to get out of that but as long as those tariffs are in place there’s no reason for me to sell off the stock when it’s basically almost like a government act guaranteed stock to succeed into the future because of those
Massive tariffs guys and so for that reason that is stock number two i’m planning on buying in november 2018 now let’s get into stock number three already guys time for stock number three stock number three i call it the easiest money in the stock market over the next five years in terms of the most reward potential with the least downside for the next five years
And that stock would be facebook ticker symbol fb i had to end up doing eight reasons why i love this stock so much instead of seven i could have probably done eight hundred reasons honestly okay the first reason is their growth levers everywhere for this business so it’s not just like a u.s. deal where they have one thing they do it so you can steal business and
That’s our one growth lever and if it’s going bad it’s going really bad and if it’s going good then it’s going really good facebook has growth levers everywhere with this face do with their platforms okay it’s not just like they have the facebook platform okay then they have instagram which is just a massive growth piece for the company in terms of revenues users
Profits it doesn’t matter what you want to talk about instagram it’s a massive growth lever and there are things inside of instagram that a growth levers inside the platform so thing about instagram shopping down the road you can think about instagram tv all these different things that will be in the future those are growth levers you can think about facebook
Messenger you can think about oculus you can think about whatsapp there’s just massive massive growth levers all over the place for facebook and that’s the type of business model i really love because it’s not just like oh they have this one thing over here and when it’s good it’s really good and when it’s bad it’s really bad no this company has growth all over
The place guys it’s a growth beast okay second reason is profits or exploding for this company right now they’ve been exploding for the last several years and they will continue to in the future the profits continue to go up because a more and more ads getting played on their platforms okay and then on top of that ad rates going up it’s a it’s a double whammy
And advertisers more and more spenders coming on profits just continue to explode it’s one of those things once you get out and you know things built out the way you need it then all that future money that comes in just basically going straight to the bottom line it’s a beautiful beautiful thing okay a pristine balance sheet you know if i said you know sky our
Solution had a good balance sheet it’s nothing compared to facebook facebook we’re talking about a company that after this quarter should have somewhere about 50 billion if not more than 50 billion dollars in cash and cash equivalents along with investments versus zero zero debt okay it’s literally about as good of a balance sheet as you can get in the world two
Reasons why i love this one is it gets a company through a rainy day if they ever have trouble in their business it gets up through a rainy day the second reason is the next time we have in this is never talked about okay second time we have a massive recession whenever that comes over just a decent-sized assessor and you know with start-up space with the slows
And you have less venture capital money going into some of the smaller startups guess who’s going to be well-positioned to go ahead and buy up a ton of startups that have huge growth potential facebook is okay it’s a beautiful thing with that business model okay a pristine balance sheet the next thing is they’re spending a lot of security right now which is hurting
Some of their profitability although profits are still exploding they are they aren’t going up nearly as much as they could be because they’ve hired like 10,000 workers this year alone for security they’ve also hired a lot too you know kind of thing watch out for things as far as elections and in what not in countries trying to interfere in different elections all
This is for a huge long-term game to kind of you know save their platforms from kind of all this negativity they had to go through in the past year year and a half so this is this is in my piñon money well-spent that will help kind of you know save the business long term alright the next reason is ad rates are going to skyrocket over the next five years basically
It’s the same thing to happen with google adwords back in the day you had a lot of advertisers come on you use google adwords for a few years for very very cheap that’s what’s happened with facebook and instagram and then all sudden what happens over time is they get more and more and more expensive why because advertisers spend more and more money on there because
The tension is there the attention is on facebook the attention is on instagram the attention is on whatsapp and on facebook messenger the attention are on these platforms so what ends up happening is is more more advertisers come on bigger and bigger spins and you only have so much real estate to advertise in these platforms so add the what ends up happening is
Ad rates start to push up and push up and all sudden you might have been paying $5 per thousand views olson you pay $10 per thousand views awesome $20.00 per thousand views also in $30 and it continues to go up and go up this is the advertising industry for the longest time where they talk about television radio where they talking about google adwords you know a
Banner ads things like that it’s just the way it works okay and so in what where does all this money end up going straight to the bottom line it’s a beautiful thing okay next thing is their position for virtual reality leadership in their in their business okay so with oculus they gives them a great opportunity to literally possibly be the leader in virtual reality
It’s almost like a call option for the company in the future when i look at occupy and the device they have coming out this spring it looks like it’s going to be going to be a device that attracts a lot of people to it okay including myself i’m gonna buy one of those virtual reality devices that are coming out this spring so they’re in a position where they could
End up being a virtual reality leader which would be huge for the company because we know virtual reality is gonna be a big trend in the future all right last two reasons here is they’re coming for econ this is a secret thing so obviously the advertising business that is talked about more than anything but in my opinion facebook has a lot of the ambition secretly
To expand into shopping okay so you can you can kind of see this starting with facebook marketplace which is a you know kind of like a almost like an ebay competitor but i think they’re gonna be doing a lot more things as far as facebook shopping in the future also instagram shopping so somebody might like let’s say victoria’s secret instagram okay so also the
Victoria’s secret can you send direct links through their stories or different things that say hey come by our products directly from there i think shopping ecommerce i think facebook has a lot of big ambitions there and this is not talked about at all this is a huge opportunity for them because you they have so they have so much over the world’s attention right
Now that ecommerce is a huge potential for the company over time and the last part is this this valuation of the company right now is disgusting okay it’s a disgusting valuation we’re talking about company with a four p of 17 a 4 p of 17 with these type of growth vectors in front of the company it’s ridiculous guys in with this type of balance sheet to have a
Valuation where it is right now it is absolutely silly this company should be trading at somewhere around a 4 p of 30 to 35 the fact that it’s trading at around half of that right now is is absolutely mind-blowing to me okay they have so much potential to grow this business over the next half decade a decade that to be a training out where its trading out its the
Most disgusting value i’ve seen since apple a couple years ago was trading around 90 or 100 dollars a share back then i was like what what is apple trading at this do people not understand like how the average selling price of iphones is gonna go up in the future do people now see the services like i was like why do people who not see this this was like two or three
Years ago and now since people see the the future for apple the stocks will over double and when i look at facebook right now i’m like people just they’re not seeing it right now it’s just all negativity and they’re not seeing how much this company has going for it in the future those are three stocks i’m planning on buying november 2018 let me know what you think
About these three stocks down there in that comment section let me know if you are buying any stocks out there and by the way if you want to come spend the day with graham and myself in las vegas make sure you get the tickets at first link down there in the description less than 30 days to get tickets guys hope to see you all there thank you for watching have a great day
Transcribed from video
3 STOCKS IM BUYING NOW NOVEMBER 2018 By Financial Education
