Anthony Speciale Stock Market Analyst

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Your Weekly Watchlist for August 16th

Speaker 1 (00:00):

Okay. Hi guys. It’s Tim Melvin. And welcome back to a better way to wealth today.

Speaker 2 (00:04):

I just want to share with you some of the stocks that I’ve got my eye on, where there’s some things developing that could lead to enormous profit opportunities in the weeks and months ahead. And the first one is a company called Realty income. The symbol is, oh, and this is one of the single best real estate investment trusts on the planet. This is such a high-quality company. I can’t emphasize that enough. Now they’re getting ready to merge. Still should close later this year with another company that’s in the same aspect of the real estate business called verbiage, the symbols VIII, or now both of these are large, very large. I might add owners of what they call net lease properties. These are standalone properties for the most part where the tenant not only pays rent. They take care of all of the maintenance, the taxes and insurance. So the check that they send to their landlord is just pure cashflow coming in the door. So all the expenses of maintaining the property are the tenants responsibility.

Speaker 1 (01:03):

Now, when you look at this merger is going to

Speaker 2 (01:07):

Create a top five global read and let’s think about what kind of properties these discrete owns its standalone properties. And we’re talking Walgreens, CVS, fast food restaurants, home Depot, Starbucks. They had no problem with rent collection for the most part throughout the pandemic because vast majority of their businesses were deemed essential. You know, CVS, Walmart, they stayed open full bore. The whole time. Fast food restaurants were open, doing a takeout business. Same with Starbucks. Home Depot was essential and actually saw a huge upswing in business as a result of the pandemic. So these are properties that are going to generate a lot of income. There are long-term leases and the leases usually have an escalation clause. That’s one of the reasons that since they came public in 1994, Realty income has increased the dividend 111 times all, not quite every quarter, but not far off it either.

Speaker 2 (02:11):

So also, and the surviving company here will be Realty income they’ve returned since 1994, over 15% a year. The guys 15% a year from a low-risk portfolio of real estate assets is a really fantastic way to get filthy dirty, rich over the long run. So this is going to create a fantastic rate. One of the top five rates in the world, the dividend should be 4%. It should continue growing for years. And that’s the only part of the opportunity because we’re willing. And trigs me about this is both of these REITs own some office properties just as office properties, they’ve accumulated over time. And they’re going to put all those office properties into one REIT and spin it off

Speaker 1 (02:51):

As much as the market hates

Speaker 2 (02:53):

Office right now, those officer’s could get spun off at a massive discount to what they’re really worth. So kind of watching this merger as it comes together, to see if there’s an opportunity to buy some office properties for pennies on the dollar. Absolutely. I want to own the combined rate and we want to own it pretty much forever when this deal is done, but we really got our eye on that office property. Cause that could be a chance at some short term, very large profits as the underpricing corrects itself. Now, the next thing I’m watching is a company that this one actually fascinates me a little bit. This is called Outbrain is symbols OB, and the reason it fascinates me, it’s a venture capital investment. Last year, $200 million went into this company from ballpark partners. Now, if you’re not familiar with Balpost, it’s run by a guy named Seth Klarman who is legitimately one of the best investors of the last 40 years. His track record right up there with Warren buffet and all the other great guys.

Speaker 1 (03:50):

What’s interesting is he’s usually,

Speaker 2 (03:52):

You know, one of those deep values, right? You guys not necessarily a technology company, and this is definitely kind of a technology company. They do 

Speaker 1 (04:02):

Leading recommendations.

Speaker 2 (04:04):

They recommend content and products and services for about 7,000 different media partners on their wet, you know, their internet platform, kind of a cool company to growth business, as much as driving traffic. And they do drive traffic and revenue since their inception, they’ve delivered $13 billion revenue to their partners, but this really isn’t data collection business. Okay. When you’re typing in what’s the best, whatever, and they give you a recommendation, they collect data about you. The more data in advertising and marketing company has the better their engagement levels with their customer bases. And the more they monetize that customer list, fascinating company came public. It’s just kind of drifted around a little bit. What’s interesting is Carmen put 200 million. It’s only worth 160 million today at current stock prices. Seth is a smart guy. He in 60% of the company. Now I rather suspect he’ll lean on management just a little bit to do all those things. I need to be done to get the stock price a lot higher over the next couple of years. So we’re kind of watching that for great income point Outbrain, the symbols, Obie fat. So any company really aggressively investor who we think will lean on management to do whatever it takes to get the stock price a lot higher over time.

Speaker 1 (05:24):

Now this next one, one of my favorite kind

Speaker 2 (05:28):

Of stories, the name of the company is neti

Speaker 1 (05:30):

Symbol is E N E T I in neti

Speaker 2 (05:34):

Is selling for a fraction of what we could liquidate this company for. And I do mean a fraction and we wouldn’t have, have to do much liquidation because most of the assets are in a short-term investments and cash. Right now, this popped up on our radar screen because in the last six months they bought back a lot of stock. In fact, they bought back 9% of the company, which is really high rate over the last six months is I dig in something fascinating going on here, guys. There’s a lot of ways trust to get paid on this deal. They are converting their entire fleet of dry bulk carriers. They’re just selling them off, getting rid of them, getting rid of them. They’re going to merge with a company. I’ll make sure I get this name, right, see jacks. And they are going to become ready for this.

Speaker 2 (06:19):

Remember I told you, I love real. They’re going to be there largest owner and operator of offshore windmill installation ships. Okay. That’s just going to be such a huge growth business and they’re going to dominate the marketplace for that. But in the meantime, that’s going to be an assumption of that and a stock deal. So not burning up their cash. So I look at this as they get all these ships Sol, what I’m seeing is $27 a share in cash and investments and a 17 and change stock price. Now they’re going to report or earnings on the 17th of this month. Analysts are looking for 34 cents a share versus a COVID inspired $5 and 73 cents a share loss last year. Kind of hoping that they disappoint just a little bit. The stock backs up. We get an opportunity to get in on an even cheaper level than the stock is trading at right now. Sorry, this is just one of those great companies. You can liquidate the company at a profit which I’m always interested in and have made a lot of money buying stocks that fit that description over the years. So that’s the three stocks that I’m really watching this year. I mean this week looking for an opportunity to make a bunch of money over, you know, not too terribly long, a period of time. So anyway, guys, I’m Tim Melvin, that’s a better way to wealth and thanks for watching.