Speaker 1 (00:00):
But we’re saying, okay. Hi everyone. I’m Tim. Melvin. Welcome back to a better way for wealth this morning. We’re just going to take a look around the world and look at some stocks that I think might offer extraordinary upside from the current price levels. The first one is energy transfer. The symbols ETP. This is a natural gas pipeline company. They have 9,400 miles of pipelines and three storage facilities in the state of Texas. And then they’ve got another 12,340 pipelines outside the state of Texas. They sell also sell natural gas to power plants, to utilities and directly to large industrial users. So totally a natural gas based business. Natural gas is going to be very competitive with renewable energy. It’s not going away. If you look at what the us energy information administration says, natural gas and oil products are still going to be the leading source of fuel in the United States.
Speaker 1 (00:59):
As much as 30 years from today, all the way out to 2050. So all that monarchy that you hear about we’re going to be completely renewable by 2030. Yeah. That’s just political garbage ignore that pipelines are going to be with us. They’re going to continue to be a great business. Saint throws off about a six and a half percent dividend yield. We had some massive institutional buying, which is what bought this stock to my attention. Blackstone’s law, private equity firm that has a mathy large presence in the energy markets was a big buyer of the stock. So it was Brookfield asset management company. You may not be familiar with, but is a number one infrastructure company in the world. And fidelity was putting in some really large Bywaters from the stocks during the quarter. So that by the way, the company also wants some gas stations around the country.
Speaker 1 (01:45):
So they they’re covering pretty much all aspects of the gas business, natural gas and ordinary gas and all those five lines they’re going to be used for years. And it’s we saw with Keystone, it’s not easy to get a new pipeline built. These taste guys, the state local and federal regulatory agencies make this really hard to do. And most Americans have a not in my backyard attitude. So energy transfer, irreplaceable pipeline assets, producing tremendous cash flows, which are paid out in the form of dividends. I think this thing can make quite a bit of money over the next seven years. And the next up is a really interesting company bell Reed brands. I’ve never even heard of this until I saw the the, that their parent company post holdings cereal company, who’s going to spend them off. Then I realized I do know their products.
Speaker 1 (02:34):
They make PowerBar. So that’s the brand. They make energy bars under the PowerBars brand. They make energy and protein drinks that they sell in gyms and stores all over the country. Post still owns about 80% of the company and sometime over the next six months or so, they’re going to spin the stock off. And again, the symbol here is BR BR is this a great business? And you know, the analysts that are looking at this thing expect it because they’ve you know, they’re not penetrated across the country in a very big way. Just yet earnings could grow for a standalone version of of bell ring brands by as much as 30% a year over the next five or six years, guys that can drive this stock price up a lot higher. When this spin off has done good chance.
Speaker 1 (03:21):
We see some institutional selling by people who wanted to post not bell ring. That happens all the time. When we see corporate spin-offs, we could get a chance to load up on this stock at a very attract attractive prices, insiders like it, where right where it is now, they’ve been buying this month, including a couple of very large purchases. So bell ring brands, BR BR well-priced 30% potential grower. If we see any kind of selling pressure in this, we want to own this stock for the longterm is going to make us a lot of money, but that kind of growth rate next up is a company that’s just fascinating. This was another off from SunPower. I’d love spinoffs in case you can’t tell name is maxi on max 10, they sell under the SunPower brand, outside the United States rooftop and solar plants inside of the United States.
Speaker 1 (04:13):
They sell industrial level solar plants, and they’re picking up some market share in that business and it’s growing. But they all over the world, which bought off a little bit earlier this year. They’ve got some deep pocketed ownership because it’s competent loses money, and it’s going to take them a few years to be profitable. That’s usually a big turnoff for me, but total energy, the large French company owns about 24% of it and a large Chinese semiconductor company with an absolutely unpronounceable name owns about 25% of it. Ordinarily. I don’t like owning Chinese companies but this company is not going to be patient in China. It’s going to be based in Singapore, but it will do business in China and they have production facilities. Make sure I get this exactly right all over the world. Malaysia, the Philippines, Mexico, France, and Chile.
Speaker 1 (05:06):
And it’s that Mexican operation that they’re using to make industrial level solar panel panels for installation in the United States where they think they can really continue to pick up a ton of market share. Now oil and gas is not going away. I’ve already said that here in this, in this today’s show, but solar is the up and coming power. And we’re going to see very high growth rates in the use of solar all over the world. And this company is going to be a leading player in the solar market. So max N it’s your symbol Maxient. And I think that just driven by the enormous adoption of solar energy, all over the world, that this large global solar power company can actually make us a ton of money. And by the way, since the spinoff, this stock has gotten hammered coming from up,
Speaker 2 (05:53):
Come up and get the exact, because it’s really been coming off people to own that U S operations of SunPower, not the international operations. So
Speaker 1 (06:01):
This thing was up at 55 and yeah, earlier this year, it’s a cool $15 a chair. So we’ll get back to 55 over the next year. I don’t know, but it does over the next couple of years, giving you a return of about three times your initial investment. So great opportunity. And finally, we have another post IPO and no surprise guys. You haven’t figured out by now. The only thing I love and spinoffs as banks, especially small banks and a small bank, orange county bank, Bancorp up in the Hudson valley area of New York, did their IPO just a few weeks ago, relatively small bank. But do they do their first earnings report already? And guys, it’s just exactly what you want to see. 2020 was a tough year for banks. These guys earn 20% over what they made a year ago. Got a really healthy return on equity of about 15%.
Speaker 1 (06:55):
That’s way above most banks, their size, which really is still down, you know, 10, 11%, 15% indicates that you’re running the bank very well. That’s the return on equity usually earned by the big banks like JP Morgan. So management seems to have a pretty good handle on what they’re doing so far. They do mostly commercial loans, commercial real estate, commercial and industrial loans. And they’re doing some multifamily lending as well. That’s unusual in a bank this size, but they seem to be extraordinarily good at it because they have a very low level of non-performing assets in the bank’s portfolio. It’s 13 banks, about $2 billion in assets. That’s the perfect price for takeover guys. And they do most of their business in the Hudson valley area of New York, just outside of New York city. So it’s basically the New York suburbs. Fantastic market for banking is something that I could easily see someone wanting to buy this bank to have a presence in the market.
Speaker 1 (07:53):
Look, we’re only paying 10 times earnings. This is post IPO. This is pretty good deal. 10 times earnings at 1.15 times, book value. I prefer to pay under book value. The dividends are about 2.3, 5%. So if I’m going to buy a base just with a P I like the deed, the dividend would be over three. So the price needs to do a little settling in here, but if it does be prepared, cause we’re going to jump on this stock and expect to sell this to another bank of the next few years at a much higher price than we’re going to pay for it. When the product, when the trade sets up properly of the guys, that’s just some stuff I’ve got my eyes on that I think have the opportunity to make us very big profits over the next couple of years. So I’m Tim, Melvin, this has been a better way to wealth and thanks for watching.
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