The Feedback Strikes Back
Welcome one and all to the last issue of Great Stuff … until tomorrow!
So, to send us all into the new year with style, we’re taking today to turn it over to the real greatness that’s powered me and the team through 2020: your emails!
Who knew the real Great Stuff this year was the friends we made along the way?
Sorry … that was a bit too corny even for me. But nevertheless, the entire ‘Stuff gang and I deeply appreciate the virtual heaps of emails from you and your fellow Great Ones — both the festive cheers and semiserious jeers.
And if you’ve still never written to us with your thoughts, make that your No. 1 resolution right meow.
GreatStuffToday@BanyanHill.com is the one-stop shop for ranting and raving, so pull a Pat Benatar and hit us with your best shot — market related or otherwise!
And what better way to round out the year than with a double dose of the good stuff on this, our final Reader Feedback day of the year!
In today’s issue, we try to untangle Tesla’s (Nasdaq: TSLA) place in the valuation conversation and wonder how Apple’s (Nasdaq: AAPL) rumored electric vehicle (EV) could shape up. We’ll also check out one particular real estate stock that somehow blazed through the pandemic.
It’s like the best of 2020’s market themes boiled down into one espresso shot of snark (yeah, something like that). We have a couple weeks’ worth of write-ins to wade through here. So, I hope you got your feed sacks and Alka-Seltzer ready — it’s time to dig in on a Reader Feedback feast!
Quiet Cars, Deafening Hype
Dear Great Stuff, I hear all the noise about Apple’s new EV.
Do you think for “security” reasons, Apple will not allow its cars to drive on the same roads as other EVs? Do you think Apple will create proprietary roads for its diehard fans?
Will the “iCar” require its own proprietary charging station — possibly not even connect to the standard electricity grid?
What is the chance that the new “iCar” will not cost at least twice the price of a Tesla, with half the range and no driverless function — upon release. That will be in a later update.
Of course, it will probably look fantastic — sitting in a garage. Just interested to know your thoughts, based on Apple’s previous record.
— Gary C.
Oh, Gary, you coy sly dog, you! I’m afraid it’ll be even worse…
You start up your iCar one morning, ready to load up some King Crimson (prog for breakfast is better than Golden Grahams any day). Oops! Your onboard iTunes forgot to sync. Entire library … vanished! Sorry. Don’t worry, that bug — erm, feature — will be fixed in iCarOS Puma edition, as you said.
You go to open the door, and the glass decides that’s the perfect time for the window to split into a thousand spiderweb-like cracks. What if you make it to the lone proprietary iCharge station for miles but forget your bag of iDongles at home?
I don’t even trust Siri to search for a sushi restaurant nearby, let alone navigate me cross-country. The future’s scary, Gary.
Editor’s Note: End of the Dow?!
My colleague Ian King correctly called the 2008 crash — a move that sent his hedge fund soaring 1,700% in just two years and lifted King’s name into the “world’s best investor” category.
Yet recently, he made an even bolder prediction: the end of the Dow. He says: “Sadly, most Americans are investing in the wrong place… There is a new stock market full of opportunity, and the biggest gains are yet to be made.”
3 Tesla Takes
Hi, oh great one — leader, nay, scribe of Great Stuff. Obviously, Tesla is different; it has real products (beyond cars) which it is selling. Valuation aside, I have left Tesla and will wait on the side to see if there is a dip to buy back in.
There are plenty of other opportunities in the market, so worrying [about] Tesla seems to be a waste of time and energy.
— Grant B.
I believe Tesla is more like Amazon with some AOL sauce. Eventually, Tesla’s stock will get beat down to a bargain price just like Amazon was beaten down in the dot-com bust. Almost everyone will fear buying it because all the news will say that Tesla can’t deliver on its promises.
I believe that will be the time to scoop it up, and then 10 to 15 years later, it will rise in price like Amazon did 15 years after the dot-com crash.
— Daniel R.
I believe that Tesla will become the ultimate example of a dumpster fire. The saying, “The market can stay irrational longer than you can stay solvent,” is true. Therefore, as much as I want to short Tesla, I won’t.
I lost about 80k speculating in the oil market a few years back (talk about irrational and ignoring fundamentals).
— Tim P.
I’ve gathered you three here today because, honestly, I’m just surprised that we’re still finding things to talk about with Tesla. And I’m glad it’s not just you Great Ones hoping TSLA returns to some semblance of reality next year … as if anything with the Big Red T could be realistic.
We brought up the “Is Tesla the next AOL?!” conversation the other day half in jest, but y’all seemed to run with it. 2020 could’ve been the year where Tesla’s cup of hype runneth over … if you forget about that whole “joining the S&P 500 thing” and the tug-of-war with Twitter attention that Elon’s been up to.
And until this trade becomes considerably less busy, even betting against TSLA’s continued exuberance is a roaring torrent of tenuous timing. How many times have Tesla shorts been burned this year? (And no, not the red short shorts with the Tesla logo and “S3XY” on the back.)
The throughline here? Opportunity costs. While practically everyone chases their tales with Tesla, the EV market roars on (quietly though, remember). All I’m saying is that the next big innovation in new energy won’t come from Tesla…
Hey, what do you think about IIPR? You don’t have to smoke it to invest in it.
— Cliff M.
Ah yes, Innovative Industrial Properties (NYSE: IIPR) — the name just rolls off the tongue.
The short answer: I like it!
Slightly longer answer: Sometimes you want pot stock exposure without playing the often-dicey game of “Gee, which of these growers will actually … make a profit?”
IIPR takes a bit of that guessing game out of the equation. What it does is lease back property for growers and multistate operators to work on, whether that’s for greenhouses or processing facilities.
Since cannabis is still federally illegal, it’s not like these companies can just waltz into the bank looking for loans to build out their physical production chain.
That’s where IIPR comes in. It’s a REIT — a way that you can benefit from real estate without, you know actually dealing with realtors (distant shrieking). You’re like a mini Robinhood land baron … but with pot-growing greenhouses.
On the stock front, you’re not pigeonholed by any one grower going under. Though, as we’ve seen this year, let’s not act like real estate is without its drawbacks.
And, if the incoming administration does prove fruitful to cannabis legalization — along with revised banking regulations for pot companies — IIPR’s role as a workaround won’t be as necessary.
Just Like Starting Over
I have never purchased stocks. If you announce a stock in which I am interested, how do I make a purchase?
— Donna T.
Perfect timing, Donna! Here’s how this whole “buying stocks” thing shakes down, fast and loose.
I’ve often said that we’re living in the golden age of discount brokerages. Robinhood pioneered the zero-commission shtick (for better or for worse), but now the bigwigs like Schwab (NYSE: SCHW) are in on it too.
Sign up with whichever free broker has an easy-to-use platform (usually, they’ll also offer trading via an app if you went and ditched the desktop life already). Spoiler alert: You’ll be asked to fill out the typical “Yes, I am who I say I am,” rigamarole that comes with setting up any other account.
After that, you’ll fund your account and start loading it up with some Greatness, sticking with stocks to start … before we even glance at the dark (yet glorious) alleyway that is the options market.
And, speaking of segues, we just released three new additions to the Great Stuff Picks portfolio — all stocks that play right into the pandemic recovery. Check those three stocks out right here!
Before I joined Banyan Hill, I found reading about investing dull but informative. However, now that I have access to Great Stuff, all that has changed. I really look forward to your musings as they accomplish three things for me:
- I learn great stuff about what’s happening in the market.
- I have a chance to make some money from the information you share.
- You make me laugh.
What more could a girl want from reading about investing?
So, way to go, Joseph. (We don’t know each other well enough for me to call you, Joe, even though that would have rhymed.) With gratitude from one of your Great Ones.
— Gail G.
Hi Joseph, happy new year!
I just started investing in a small way a couple of months ago and haven’t lost my shirt (yet). My newsletters have risen exponentially (more than my $$), and I have somehow become a recipient of Great Stuff.
I must say that I enjoy your informative and witty newsletter and look forward to seeing it in my inbox; so, thank you! And keep up the good work! 😊
— Alice K.
Hey Joseph, this one is for you personally! Thanks for your update on Tesla!
You just never know how things are going to turn out with Elon. I really enjoy reading your reports and letters! Keep up the good work, and stay safe yourself! 👍
Dang, Vince! Me, personally? (I won’t tell the rest of the team, promise.)
I have to give you all a hearty thanks for the kind words. And welcome to the market, Alice. You and Donna up there couldn’t have picked a better time to join in on our romp through the market.
Stick around, and we’ll keep you in the know on those picks that Gail’s raving about. Who knows? You may just end up as one of our longtime pen pals like this wise guy over here…
Really, Dude? Scotch Over Bourbon?
In the year 2021, I hope we can all start having fun. No more being safe at home all day, let’s get out and play, play, play.
I have been responsible during the holidays by staying home alone (not nearly as exciting as the movie) and am looking forward to the new year. Also looking forward to getting my Coronageddon protection from the new vaccine.
Some positives from all the safe-at-home time: I have improved my acoustic guitar skills, started a new business venture, enjoyed preparing some new recipes, and the house is cleaner than ever.
We all share the same interest in financial success, but most important is our health and safety, so please, everyone be safe and sane on New Year’s Eve (amateur night).
Celebrate at home with some safe, close friends and look forward to 2021 being a better year. I recommend a bottle of Johnny Walker Double Black. Double Black is double good! 👍
In the year 2525 — wait, we’re not there quite yet. I spoke too soon the other day and must’ve summoned you out of hibernation, Dick. Thanks for all the times you’ve chimed in this year, buddy — seriously!
You also stole my parting words right out of my mouth: All ye Great Ones, whatever your plans are tonight, be safe out there. We need each and every one of you market masters standing at attention, Monday morning, bringing Greatness into 2021.
New year, new memes. Same ol’ Great Stuff. We’ll see you there!
Until next year, stay Great!
Editor, Great Stuff