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Millennial Monopoly Money, H1 2018 Value Growth

|About: Axon Enterprise, Inc. (AAXN), CRON, CY, EDIT, HMNY, IQ, JD, PI, TNDM, TTGT, VSH, Includes: AMZN, CGC, NFLX

Summary

A Millennial's guide to value stocks to buy now and hold onto for 2, 5 and 10+ years.

11 stocks I have invested in that exude the Millennial generations personality to build a lucrative nest egg.

My bi-annual review of moves I've made and the reasoning behind them.

All suggestions and numbers are accurate to my personal holdings and purchases made this past year.

Below is my guide to how I have and think a Millennial should align their investment strategy. This will kick-off my bi-annual review of Buys and Sells that I've made. My horizon is 5+ years for all of these stocks based on value and growth - I am not a dividend investor, yet. I'm a Millennial who's in search of easy passive net worth growth that'll allow me to live that Instagram life by 45 years old.

$AAXN, 110 shares at $26.71 – Bought early in 2018, my rational is part timing, product, market & price. The AXON/Taser stock has been relatively flat for a few years with a product that is globally distributed and seeing more attention following the need for data-backed transparency and real time, video-centric solutions to enable law enforcement. Societal pressure and unrest seems to be more and more prevalent; whether that fact or a byproduct of media, it’s a narrative that’s gaining more traction making AXON’s video enforcement monitoring and electric Taser technology very attractive. Lest not forget immensely more human than guns.

As a millennial, I see the need for AXON’s current (and forward looking) product set getting only increasingly popular with large-private and government contracts shelling out for hefty sums. There’s limited competition as AXON’s IP on the technology deployment is best-of-breed and vast. I’m very long on this stock even as it sits up +173% as I write this. I’d buy more but am enjoying my initial price point and will continue to see this darling grow.

$JD, 147 shares at $39.35 - If you’re the Amazon of anything then as an investor your ears perk up and wallet opens, which is what I did with JD.com who is the e-commerce the behemoth of China. The cultural shopping excitement that continues from Singles Day was a reason for me buying early, but I see this stock only continue to climb as they get their feet under them.

America’s tariffs and general rhetoric has hurt them in the short term but in the coming 5-8 years I see this as a stock that can climb to $200 per share. Being a long-term, value investor I see JD as an absolute star, giving me no hesitation to purchase.

A reason to be pessimistic about JD.com is their financials (hate to put this asterisk on most Chinese stocks – but *). Like Amazon, they are burning through cash to gain market share, however, the Chinese market is growing exponentially and have tremendous government ties to surrounding large nations that will only allow them to truly be of Amazon’s size and breadth. As mentioned prior, this is not a quick win… just look the trajectory of ‘challenger’ organizations – Amazon, Netflix, Tesla, Facebook, Micron Technologies, etc. They have all had a least a decade to prominent success, while working out the kinks.

$PI, 270 shares at $20.02 – Not the most common stock in a portfolio but surely one I was (and still am) glad to have at the $20 price point. Ilmping makes RFID technology solutions, it’s platform and play for the next 5+ years is very well positioned, especially in the asset/inventory tracking, but I like them more as a technology leader evolving in the IoT space. I look at this play as, if you have something you want to monitor/track then PI’s technology is a major play.

Ilmping is already in the authentication, healthcare, retail, supply chain, logistics, hospitality, manufacturing and the food & beverage space. Not only are those markets perfect but will only continue to get more use cases as they grow more complex, hence needing a solution to ensure assets are protected. The IoT market is real, the need to monitor at a nuanced level is increasing and this stock is cheap. Already sitting at a 20% gain since purchase, it’ll continue to slowly creep up. Don’t be left behind fellow millennials – blue horseshoe loves Anacott Steel.

$CRON, 500 shares at $8.42 – All investors hope the future is green, but that sediment isn’t more appropriate with Cronos Group, a collection of companies who distribute and sell cannabis products in Canada & Germany. Initially I’m more attracted to CRON opposed to MJ because of its price-point and the government’s appetite for marijuana product legalization. This has been a bit slow moving and I thought Canada’s nation-wide legalization would boost share price based off market enthusiasm, but that’s not the case.

As this is being written, there is a great deal of pessimism in the market for Canadian-based cannabis companies. None of us are Nostradamus, but that can be taken in only two ways: buy or don’t. I’m personally into the benefit of nature’s bounty and willing to take on the risk for as long as I need to. Take this bullish attitude into consideration if my thoughts are to sway your opinions; be bold and be bullish, if not then you probably don’t belong in this stock.

As you know, I play for long-term value and am hard-pressed to NOT believe that the marijuana and cannabis market will continue to grow, if not explode. The market for cannabis company M&A activity is alive. We’re seeing competition from CGC, ACBFF & APHQF. To avoid getting overtly deep, I believe in the future of cannabis use and CRON’s price point is very appetizing – if you want more green go with this stock.

$TNDM, 150 shares at $7.81 – Shamelessly this was only on my radar as a complete shot in the dark after my buddy – Instagram handle - @Robinhoodgrowth put me on them early. I bought 60 shares at ~$4 just when it started to take off, like a true bull – I doubled down and upped it to 150 shares total to round my average cost to $7.81. As I write this the stock has more than tripled in a few months’ time. Getting a three bagger that quick is rather tough, but the outlook is very bright.

In June Tandem’s insulin pump was formally approved by the FDA – followed by a spike in its share price. Cha-ching! This is like opening Pandora’s box for them to market & finally begin to dig away at their R&D investments. Some critics have been putting on puts because they believe the fairytale is bound to stop, but me – I’m still bullish. At least until I hit day 366 so my capital gains kicks back.

$CY, 150 shares at $17.19 – The past two years the semiconductor space has been white hot, led by market darling Nvidia (NASDAQ:NVDA) – of which I own stock and am a personal fan of. The reason I’ve bought a nice chunk and would like to write about Cypress Semiconductor is because it’s too attractive to miss.

First, I love the semiconductor space. With the rise of compute requirements and manufacturing, its setup to scream for the next 10+ years. Cypress has a very palatable price point at the mid-16s right now with a target for this year around $24. Fellow Millennials, #TrustTheProcess and look into Cypress Semi.

$VSH, 225 shares at $23.95 – Vishay Intertechnology manufactures and distributes switches for semiconductors, which protects electrical products (which is nearly everything) from power surges, emit light, electromagnetic interferences & detects power. What ALL of that means, is the technology to control electricity, electronics, light, power, sensors and sound, remotely. An easy way I light to envision the Vishay winning in the future is as our lives get even more complicated, electronic-centric and IoT devices are surrounding us then Vishay will be the one powering all the stuff around us. This is absolutely a heavy long play and at $26+ for the current share price I see this as a steal – as in NVDA at $26 kind of steal.

$EDIT, 100 shares at $35.55 – Science fiction films seem to have a funny way of dictating our future, which is exactly what Editas is doing in the now. Editas is a human DNA editing biotech company that uses complex solutions (not limited to the ever popular CRISPR) to power and cure the most harmful diseases now and for the future. As of recent there have some claims against the popular CRISPR technology, which is okay in this case because EDIT isn’t putting all their eggs into that basket.

This stock has been around for just 2 years and is finally getting it mojo working. With the common trend of nearly most of my stocks, this is an attempt to get in on some power technology, that is doing good for people (oh hey pharmaceutical industry!), and at a very palatable price.

$HMNY, 14,500 shares at $.37 – For those of you thinking my buys this year have been rather safe, here’s one to throw you for a loop. Yep! I’ve gone in really hoping for Helios + Matheson’s leadership to do a complete turnaround with MoviePass, their video production & analytics business. The market is really pushing this stock down as it’s trading at $.11 right now or a 70% loss, but this month brings a great deal of buzz.

July kicks off MoviePass’ peak pricing to stop the bleeding based on their $10 per month subscription model for watching movies in theaters. This has continued to help was a PR and revenue mechanism, but the results are at least a quarter away to understand the initial impact. These efforts are a nice step forward, but competition is stiffening up as AMC has released a $20 per month subscription that gets you three movies a month. Far from MoviePass’ offering, plus it only qualifies for AMC theaters while this is an actually financially responsible movie. Sinemia, another threat to MoviePass who initially started out of Europe has a scaled subscription plan for 1-3 movies from $5-15 with minor limitations as well.

One of the co-founders of Netflix is behind HMNY and sees them as a disruptor as Netflix was early on. You know the DVD company, Netflix. I see the same for MoviePass, which will be the initial engine (read: DVD to Netflix’s streaming business) for growth, market share & consumer data sales into ancillary markets for a fee. I’m hoping this HMNY turns the corner or is acquired for a nice take home on the most risky buy for H1.

$TTGT, 181 shares at $27.84 – TechTarget has been around for 5+ years and have the backing plus leadership of some industry vets – Roger Marino, Founder of EMC, Atlanta Hawks co-owner Bruce Levenson, and the former CFO/CEO to the NY Times Co. Michael Cotoia. Enterprise software purchases are becoming increasingly tough for vendors as purchasers are increasingly more educated and entering their sales pipeline later, thus giving more power to the buyer not vendor. TechTarget has been building out their product and making strategic acquisitions to give vendors purchase intent insights from marketing data. This data is used in a similar fashion as cookies and re-targeting on webpages for consumers, but for the enterprise.

This enterprise B2B play has the right leadership, taken tactical steps to acquire and build the right product while partnering with the largest organizations to penetrate the enterprise. At this price point, I’m ready for them to take off as they’ve 3x’d their stock the past year and the groundswell is in motion. Frankly, I believe in this space, the data solutions TTGT provides and the need for more deal control at the large to enterprise space.

$IQ, 141 shares at $35 – As with JD.com, IQ is a Chinese stock being called the Netflix of China. Hot off a very successful IPO in March of this year at $18, IQ soared to $44 per share in June. The market, PR & opportunity in China has had investor (especially millennials) eager to get in this seeming no-brainer.

It’s been reported from Robinhood’s data team that this stock has been a screaming buy from most of their users, who are typically millennials. Also, most any net-new IPO out of China that’s being compared to Netflix will catch anyone’s attention.

The demographics of China are evolving, they’re building a middle-class (what’s that!?) that has tastes like America’s. Focused on discretionary spending, entertainment & a growing social fabric based on shared experiences. China is going through the same change as the US & UK have as television and media deepen into the social fabric to belong and fit in. Looking at this stock, at $33 – today – I see that price point so worth a 2-5+ year outlook as they continue to evolve to fit their market and users. If this goes to $45, $95, $160 or $210+ it’s worth serious consideration. Buy this ASAP, dump a nice chunk of change into it and thank me later.

Disclaimer: I am not a licensed broker, I am not compensated for this article by any of the company's mentioned nor Seeking Alpha. These trades and suggestions are my own, the investment claims made are accurate and have been made within the past 6 months.

If you like what you've read, please let me know. If you want further insight into my thoughts don't hesitate to ask. Lastly, share this article on Facebook, Instagram or LinkedIn if you think your network will benefit from it.

Original Content: https://medium.com/@calvin.gunsaulus/millennial-monopoly-money-h1-2018-best-bets-ec019a639596 

Disclosure: I am/we are long TNDM.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.