Tag Archives: CWH

Top Clean Energy Stocks To Own Right Now

While most income investors are reaching for big yields right now, a small group of “hidden yield” stocks are quietly handing smart investors growing income streams plus annual returns of 12%, 27.1% and even 54% or more per year.

So if you want to double your money every few years – and double your income as well – then you need to focus on the seven stocks I’m about to share.

(All seven are about to hike their dividends. Yet the “forward-looking market” hasn’t yet priced in these payout raises. This is free money the market is giving us, thanks to the most “underrated” shareholder return vehicle.)

The Most Lucrative Way Shareholders Get Paid

There are three – and only three – ways a company’s stock can pay us:

  • A cash dividend.
  • A dividend hike.
  • By repurchasing its own shares.
  • Everyone loves the dividend, but investors usually don’t give enough love to the dividend hike. Not only do these raises increase the yield on your initial capital, but also they often are reflected in a price increase for the stock.

    For example, if a stock pays a 3% current yield and then hikes its payout by 10%, it’s unlikely that its stock price will stagnate for long. Investors will see the new 3.3% yield, and buy more shares.

    They’ll drive the price up, and the yield back down – eventually towards 3%. This is why your favorite dividend “aristocrat” – a company everyone knows and has paid dividends forever – never pays a high current yield. Its stock price rises too fast!

    Top Clean Energy Stocks To Own Right Now: Apache Corporation(APA)

    Independent oil and gas exploration and production company Apache Corporation hasn’t been able to hit its stride since announcing a monster new oil and gas find in West Texas called "Alpine High." The company shifted a lot of capital to developing the Alpine High field, and initial results have been encouraging. In spite of that, the stock market has bid the company’s shares lower and lower.

    Some of this sell-off may be justified by the delays Apache encountered in getting Alpine High up and running. In mid-2017, Hurricane Harvey delayed the delivery of some much-needed equipment into Q1 of this year. That, coupled with some unexpected third-party pipeline issues in the North Sea, caused lower-than-expected production in the latter half of 2017. The market, nervous that Apache was missing the opportunity to cash in on the recent spike in oil prices, sold off the stock. Apache’s shares are now trading at their lowest levels since 2003.

    That seems like a massive overcorrection because Apache seems to be in better shape now than it was even two years ago. It has paid down debt, achieved record Permian Basin production in 2017, and is projecting a three-year compounded annual production growth rate of more than 150% at Alpine High and 11% to 13% overall. It sold off its underperforming Canadian assets — which is the main reason why its production volumes are down — and recently made a big discovery in the North Sea.

    I fully expect Apache’s shares to rebound once the market realizes its potential, and the company’s best-in-class 2.6% dividend yield should help tide investors over while they wait.

    Top Clean Energy Stocks To Own Right Now: Amphenol Corporation(APH)

    Aphria (TSE: APH) is an early leader in Canada’s high-growth cannabis industry. With a market cap of $2.4 billion, Aphria is the second-largest cannabis company in Canada behind Canopy Growth Corp’s (TSE: WEED) $6.6 billion.

     

    Shares of Aphria are traded on the Toronto Stock Exchange under the ticker symbol APH. Shares are also traded on US, OTC (over-the-counter) markets under the ticker symbol APHQF.

    If there is one stock to own to profit from the cannabis revolution, Aphria is the choice. Let me explain…

    Aphria Is Benefitting From A Legal Monopoly
    Aphria won the cannabis lottery back in 2014 when it received an exclusive permit to grow and sell cannabis from Health Canada, the regulatory agency responsible for issuing permits.

    At last count, more than 1,000 companies have applied for a license. But as it stands, Health Canada has only issued 93 permits — and Aphria is one of the lucky recipients.

    This exclusive permit gives Aphria two powerful and sustainable competitive advantages. First, it gives Aphria a huge head start on the competition. Second, it will protect Aphria from new competition. 

    Health Canada will issue more permits in the next few years. But it is deliberately restricting the number of permits to encourage young cannabis companies’ profitability, as this will help to remove illegal cartels from the cannabis trade.

    Aphria Is Constructing A 1 Million Square Foot Greenhouse
    After securing its exclusive permit, Aphria quickly turned its attention to building one of the largest cannabis greenhouses in the world. The company’s 1 million square foot, state-of-the-art cannabis greenhouse will be one of the largest in the world when completed.

    The new facility will include:
     
    — 700,000 square feet of Dutch-style greenhouses.
    — 230,000 square feet of infrastructure, including new level 9 vaults.
    — Automation of the greenhouses, processing areas, and warehouse facilities.
    — Annual production capacity of over 150,000 lbs of cannabis.

    This new greenhouse positions Aphria to be the number one low-cost provider of cannabis in Canada — and eventually the world as it continues expanding into international markets.

    The final phase of the project is projected to be completed this summer.

    Top Clean Energy Stocks To Own Right Now: Camping World Holdings, Inc. (CWH)

    It’s been a long time since I’ve watched an episode of The Profit on CNBC, Marcus Lemonis’ show helping small businesses succeed. With five seasons in the can and more than $75 millioninvested in American entrepreneurs, Lemonis has proven to be a good allocator of capital.

    Of course, his day job is running Camping World Holdings Inc (NYSE:CWH), the RV dealership-turned camping equipment retailer he took public at $22 a share in 2016.   

    Camping World announced its first-quarter earnings May 8 and despite some really strong numbers on the top- and bottom-line, investors fixated on RV selling prices, both new and used, which were down 4% and 7% respectively in the quarter.

    It was this aspect of the report along with a one-cent earnings miss that forced CWH’s share price to drive off a cliff, down more than 17% on the day, and back to its original IPO price.

    Frankly, with all the acquisition opportunities available, along with healthy organic growth, CWH is now cheaper than it was when it went public.

    Aggressive investors ought to be buying at these levels.

    Top Clean Energy Stocks To Own Right Now: Oasis Petroleum Inc.(OAS)

    Oasis Petroleum Inc. (NYSE:OAS) is an independent exploration and production company. It focuses on the acquisition and development of onshore unconventional oil and natural gas resources in the North Dakota and Montana regions of the Williston Basin, and Permian Basin.

    The company’s total revenue stands at $1,248 million as of fiscal year ending December 2017. This is 81.8% higher than the $687 million achieved in fiscal year December 2012 and represents a five-year compounded annual growth rate (CAGR) of 12.7%.

    Analysts forecast that Oasis Petroleum’s total revenue will reach $3,012 million by fiscal year 2022 representing a five-year CAGR of 19.3%.

    Shares of the company are down -38.8% over the last year while the stock last traded at $8.00 as of Tuesday, March 20th. Three separate valuation analyses imply that there is 34.7% upside relative to its current trading price. Wall Street’s price target of $12.43 per share implies even further upside.