Investing can be a very stressful thing if you pick the wrong stocks. For low-risk investors, that means you need to step back and be more selective when researching stocks for your portfolio. A good starting point is to pick dividend-paying stocks like following. That said, there’s more to like about this low-risk trio than just the income they produce. Here’s why these are three great stocks for low-risk investors.
Top Casino Stocks To Own For 2019: Novavax, Inc.(NVAX)
Novavax’s share price was below $1 just 12 months ago. Since then, though, the biotech stock has soared 68%. And the gains were even higher, but Novavax conducted a stock offering in Aprilto raise additional cash. This caused its share price to pull back from the high levels reached earlier this year.
There are two reasons behind investors’ excitement over Novavax. One is the company’s lead pipeline candidate, a vaccine for the respiratory syncytial virus (RSV). Novavax is evaluating the vaccine in a phase 3 clinical study for maternal immunization of infants. Interim results from this study are expected in the first quarter of 2019. If all goes well, the company could submit the RSV vaccine for regulatory approval in the U.S. and in Europe by early 2020.
The second reason for Novavax’s great stock performance is its nanoparticle-based influenza vaccine NanoFlu. Novavax announced highly encouraging results from a phase 1 study of the vaccine on Feb. 28, 2018. The company expects to advance NanoFlu to phase 2 testing in the third quarter of this year.
Novavax’s opportunities are big if the company achieves success with either of these vaccines. RSV is the most common cause of lower respiratory tract infections in infants and young children worldwide and is the top cause of hospitalization of infants. But there’s no approved vaccine at this point. The annual market for flu vaccines in the U.S., Japan, and leading European countries is projected to reach $5.3 billion by 2025 — a 65% jump over a 10-year period.
Top Casino Stocks To Own For 2019: Howard Hughes Corporation (HHC)
As of this writing, Howard Hughes Corporation is my single largest stock investment. And, it is unlike any other real-estate stock I own, or even write about. While there is obviously more to Howard Hughes’ business model than I can discuss in a paragraph or two, here’s the simplified version.
Howard Hughes isn’t a real-estate investment trust. The company’s primary business consists of master-planned communities, or MPCs, which are essentially large plots of land that are developed into extensive communities with lots of amenities.
Here’s how it works. Howard Hughes Corporation sells land in its MPCs to homebuilders, who construct residential neighborhoods. This creates demand for properties such as office buildings, retail stores, etc., which Howard Hughes builds and uses to generate rental income. The addition of these amenities makes the remaining residential land more valuable, so the company sells more land to homebuilders at a higher price. And the cycle repeats…
This is why Howard Hughes isn’t structured as a REIT. The company feels that its business model will produce far superior returns for shareholders if all profits are reinvested back into the business to create more value-adding assets. Howard Hughes’ management has some pretty big plans for the company’s existing MPCs, as well as for some other assets like a Chicago office high-rise, so I’m extremely excited to see what the coming decades have in store for the companies.
Top Casino Stocks To Own For 2019: Boston Omaha Corporation(BOMN)
All told, Boston Omaha is still very early in its life as a public company — its initial public offering was in June 2017 — and not yet profitable. Yet Rozek and Peterson are currently building the infrastructure to support a far larger business, and as the company gains scale, sizable profits are likely to follow. Additionally, with a market cap of just $400 million, Boston Omaha will find it much easier to identify needle-moving investments than the massive, $500 billion Berkshire Hathaway. Thus, unlike Berkshire itself, this baby-sized version of Berkshire can look to nearly any area of the market to deploy its $90 million in cash reserves as it seeks to create value for its investors in the years ahead.
Better still, Boston Omaha’s shares can currently be had for around 2 times book value — a fair price to pay for a business that could potentially compound its shareholders’ wealth for decades to come.
Top Casino Stocks To Own For 2019: Pfizer, Inc.(PFE)
Despite being one of the world’s best-known names in its sector, Pfizer Inc. (NYSE:PFE) shares aren’t always in a long-term uptrend. You’ll recall in the early 2000’s as it was falling off the proverbial patent cliff, Pfizer was downright painful to own.
Things have been different since 2009 though. While PFE has not been without sizeable swings, all the major highs have been higher than the prior peak, and all the major lows have been better than the previous lows. The stock’s resiliency has allowed it to hammer out an average annual gain of 13% for the prior eight years.
The underlying results are likely to keep pushing the stock forward too. Its current best-selling drug, pneumonia vaccine Prevnar 13, still has some patent life left. And its all-star neurological-pain drug Lyrica — which generated $1.1 billion in sales during the last quarter of 2017 — got a partial patent extension late last year when a controlled-release version was unveiled.
In the meantime, late-stage pipeline drugs like Bavencio (or avelumab) and Ibrance (palbociclib), both for the treatment of several forms of cancer, show tremendous potential.