3 Stocks I'm Buying Now! July 2020
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Three thoughts on buying now July 2020 edition oh my goodness guys I am so excited to make this video for you here today okay this is the first episode I have done in quite a while there haven’t been three stocks all at the same time that I felt like buying in the same month in quite a while but we actually have three.
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Here today and I’m happy because these are my favorite videos make each and every month so when I can’t make them It makes me sad I’m like literally This is my These are my favorite videos I make the entire month going into three stocks that I’m actually buying and planning on buying in the current month Okay.
Now in terms of these three stocks, one of these stocks is what we call a boring dividend stock Okay, one of these stocks is a value stock that I think I’m gonna make some pretty good gains on over the next couple years and the last one will be a high risk high reward stock that gets your blood flowing a bit so we have quite a bit of diversification.
It’s not just like all these are super high growth or Walmart dividend you know we have a mixture of three different stocks so hope you guys enjoyed today’s video as always make sure to smash that thumbs up button if you have not already we’re going for 7777 within the first 48 hours of there’s a video being released.
I think we hit in it guys and just so you know down there in the description the first link it’s gonna be to a video I created which is how to create a low risk high reward stock account from scratch it’s a completely free video if you want to check it out.
It’s gonna be the first link down the end the description Okay guys, let’s start getting an S okay stock number one of these three is the quote unquote boring dividend stock which by the way to me dividend stocks aren’t boring Okay.
I know they’re not as cool as some of the growth stocks and things like that but I still love receiving that dividend money each and every month I receive dividend money you know what I do? Go and invest that money into more stocks.
I think there’s something kind of cool about that, but people call it boring. Okay. Walgreens boots Alliance ticker symbol w Ba, this is a first stock of the three is a $42 stock here today. Okay. I actually love Walgreens business model.
I mean, I used to work for the company. I know it very well. I used to be an investor of the company many many years ago, and the valuation hasn’t been that appealing until very recently. And now I actually love this one as a dividend stock.
It’s kind of a recession proof business almost. Which is something not many companies can say okay, think about Walgreens right. Why do you go to Walgreens? Okay, you need a box of band aids and you need it you know, very conveniently you might go to Walgreens for that.
Okay, you need a toothpaste, you go to Walgreens k you need a pregnancy test. I mean, I think we all been there, right? You know, a few days late and it’s like, oh, what’s going on here? Let’s go get a pregnancy test.
You go to Walgreens for that me and I never realized how much makeup was sold at Walgreens. I work for Walgreens many many many many many years ago and I just realized like doing a lot of people actually buy makeup and actually those companies from what I remember actually pay Walgreens substantial amounts of money just for their product placement in the aisles.
Think about that. Okay, so not only is Walgreens making money every time those items are sold, but actually the companies pay money for those spots, which is absolutely extraordinary. Okay, so also Walgreens huge makeup supplier and a lot of people love the company for cosmetics.
Okay, so a lot of needs based items when you need it conveniently and it’s a needs based item. You go to Walgreens Okay, and let’s not forget the cash cow the business it is the pharmacy, okay, the pharmacy, that is the cash cow of the business that’s where they make the big money let’s put it that way the profits Okay, that is what goes on at Walgreens.
So like I said, I love this business model is about as close to recession proof as you can pretty much fine other than maybe I don’t know, grocery store or something like that. Okay. Now, in terms of Walgreens boots Alliance, valuation wise, it’s a $37 billion market capitalization.
It has a P e ratio of 10.8 and a forward dividend yield of almost 4.5% Okay, 4.48% to be exact, most years, Walgreens does raise their dividends something to keep in mind. So likely over time, a dividend could get bigger, but let’s just say for instance, they keep that dividend the exact same over the next year.
If I have 100k invest in that stock, I will get paid out $4,480 during the course that you’re just assuming they keep the dividend the same in terms of dividends, not even you know hopefully I get stock price gains in the stock as well but even if I don’t get stock price gains and somehow the stock price doesn’t move the entire year.
I’ll still receive $4,480 during the course of a year in dividends which I can go buy more Walgreens stock or any stock out there okay, I love that valuation wise why this is so compelling is why I love this one is dividend stock not just because those dividends Oh throw me off. But look at the Ford p it’s under seven it’s under seven on the stock which is extremely low.
You know, we know Amazon made a move couple years ago they bought pill pack right I know not everybody keeps up with all these deals and whatnot. But absolutely Amazon is a threat to every company out there including Walgreens okay when they make a move like this just like you know when they bought Whole Foods.
It’s like, you know, they’re a threat to grocery stores. So anytime Amazon gets in anything, it is scary. It scares people. But in my opinion, the valuation on Walgreens just probably come down a little too much, in my opinion, based upon some of these worries, it’s something you always have to deal with.
It’s Amazon, they are a big threat. But at the end of the day, they’re not taken over the pharmacy game today, and they’re not taking over tomorrow. 20 years from now, who knows? Maybe Amazon is the dominant pharmacy player out there, you know, I wouldn’t doubt at all but as of right now, and the next five years.
I don’t really see too much changing as far as market share goes there. Okay. And that goes back to my safety here. Okay, it’s a 4pm to seven. So if I had to pay a really rich valuation for Walgreens, yeah.
I would worry a lot about pillpack. And you know what can happen there over time, but what I’m getting a company for four p under seven, and I’m getting it for a price to sales ratio of point two seven. That gives me definitely a lot of protection because the valuation is so low on this one.
So I think this is kind of the perfect dividend stock in my personal opinion. I you know, I just love this one. It has a dividend stock, that’s the first stock up of these three stocks. And number two of three here is one is the value stock. Let me give you a hint.
And then let me show you a picture. Does that picture ring a bell there? What about this picture? Oh, I’m just getting hungry. Look at these pictures. Look at this picture. Oh my gosh, I’m getting hungry. Do these give you any clue?
The Cheesecake Factory ticker symbol on this one is cake. Okay. Does it get better than that? It’s a $21 stock here today is a stock number two of three. I’m super excited about this one. I started buying this one this past month.
Actually just I think it was just like a week or two ago and started building up the position and I plan to continue to build this position up throughout July. I mean, I love the Cheesecake Factory. I mean just look at that.
Oh, look at all those cheese cakes. A lot of you guys probably know the Cheesecake Factory restaurant. You’ve been there before every single soul in the history of the planet loves the Cheesecake Factory even the Sigma God He loves the cheesecake.
Why you got to fight it with me at cheesecake, the NBA. Those players love the Cheesecake Factory. You might see me posts up at that Cheesecake Factory and one of the testers I had 12 $100 here today holy smokers, okay, even short sellers of the cake stock, even the short sellers.
You know, I heard they secretly eat on Cheesecake Factory as well. And they’re like, Oh, I don’t like the Cheesecake Factory. I’m short selling the stock and there they are stuffing their face with some cheesecake.
Okay, and let me just tell you, we’re about to serve the shorts a piece of cheesecake in their face, okay, these people want to short the stock, they want Cheesecake Factory stock to go to $0 they’ve been shortened and shortened Oh, it’s going to zero it’s going to zero.
They want to see those 45,000 employees lose their jobs so bad Oh, nothing would make them as happy as those 45,000 people losing their jobs and those families basically having to go on unemployment, they would just love that so much the short sellers.
And I think they got another thing coming for them those short sellers. Okay. I understand like the short thesis around this. But then in April, a game changer happen. They raised $200 million through a strategic investment by work capital. And basically for the Cheesecake Factory.
It’s just all about getting through is Ronnie rownum mess, okay, there’s nothing wrong, the company the company is doing amazing. The restaurants are packed there to go orders the delivery orders are amazing. The company’s doing amazing.
It’s just caught in a really rough running run a situation where the government literally said you got to close down all your restaurants along with every other player out there in the restaurant game. We don’t literally close your diamonds.
So it was just a rough situation is all about getting through. And once that deal happen, I mean as a short seller, like what do you have to go off of now now the odds that Cheesecake Factory goes under in this whole situation you get your way and you get those 45,000 employees to lose their jobs and you hope that the stock goes to zero.
I know you were hoping for that but it just got much more unrealistic now that that $200 million dollars was raised. And keep in mind if if for any reason they needed to raise more capital you think word capital is not going to give them more capital to get through it?
Yes, of course they are as well as plenty of other venture funds because I realized the Cheesecake Factory is amazing business model anytime other than a Roni Rona situation when you’re forced to close down your dining rooms and things like that.
And I’ve been to the Cheesecake Factory several times over the past couple of weeks. I can tell you it’s been crazy busy. Okay, crazy, crazy busy. Okay, so when I look at Cheesecake Factory stock, it’s been everywhere over the past 52 weeks. Okay.
I mean, in the march lows, it reached all the way down to under $15 a share in those March lows when the market was just getting absolutely tore up. And it was like everybody’s afraid that every single company out there was gonna go bankrupt, right under $15 a share.
And it’s been all the way over $45 a share. In my opinion, this is a stock that’s 20 $21 let’s say somewhere around there roughly even, let’s say $22. In my opinion, the stocks gonna likely double up over the next two to three years.
I think I’m very, very confident that this stock will be a 40 last dollar stock again in the future and I will double up my money over the next two to three years now I have seen some folks actually think it’s going to happen faster than that some folks think, you know, business is going to return just to normal actually, in 2021.
I am a little more pessimistic when it comes out, I think more of a return to business in like, like 2022 2023 is more realistic. And that’s why I think this stock will be over $40 in about two to three years from now, think about this.
Okay, one as I mean, if there were actual legit worries just a couple months ago, about the Cheesecake Factory potentially going under. And so that’s one of the short sellers, you know, placing bets that Oh, it’s going to go to zero.
Imagine how many other smaller restaurant chains that can’t get a $200 million capital infusion. Imagine how many of those are going under or gonna go under right? Imagine that there’s going to be much less competition in the restaurant space.
And there basically has been in maybe a decade or maybe like, you know, around like the Great Recession time or something like that. There’s a lot of these, these mom and pop restaurants and a lot of the restaurants that got over capitalized that honestly they’re just gonna they’re not going to be able to make it in the end.
So a lot of those will end up going under Okay, so there’s gonna be less competition in the restaurant space. Also, there’s a company Cheesecake Factory that has gotten better and better at to gore’s through this Roni, Rona situation, right dining rooms, close, people still want to eat Cheesecake Factory.
So then you go ahead and place to go orders. And I know that a lot of the cheesecake factories they have, you know, six to 10 spots reserved just for cars pulling up for basically curbside pickups all the time. Like it’s it’s really quite busy.
And it’s actually one of the most if not the most successful big restaurant chain out there at doing to go orders, okay, they’re getting better and better at delivery and being on the delivery platforms as well.
So if you want to order through an app, basically, and you want the food delivered to your house, they’ve gotten better and better at that. And those are two categories that they’ve grown massively during this, Ronnie Rona and their business has gotten to a lot better place.
And lastly, dine in I in my my opinion, it’s going to fully fully return by 2020 to 2023. My opinion 2021 will be the year of recovery. As far as the diamond business by the way, the diamond business, you know, most locations has been like 50% to 65%. And you know, it’s just like the the wait times are pretty substantial at Cheesecake Factory.
Because still a ton of people want to go there to dine in. But eventually, they’ll be able to have 100% capacity again, I think 2021 will be the year of rebuilding the dining business in a big way. Again, getting it back to capacity. And then 2022 and 2023 the business is going to be just as the same dining wise.
If not better than as pretty much ever been before. Okay, now, what are the risks with the stock that I was talking about the risk, right? Well, the risk is in the whole US economy shuts down again for months and months.
Okay, so government, you know, puts out a federal mandate or something like that it’s shutting down the whole economy. Again, dining restaurants are closed or restaurants in general are closed. And it would be from months and months and months.
That’s obviously the big risk. I think that Cheesecake Factory could likely get capital again from work capital or for somebody else to get through a situation like that. But it is a risk it is absolutely a risk at the end the day I don’t see this happening.
Because if this does happen, there’s going to be the the unemployment rates are already so ridiculously high that they’ll go to just numbers that it will take us a decade plus to come back from so I honestly do not see a situation where the US the entire US economy shuts down again for many, many months.
It’s just at this point in time it’s too I guess you could say unrealistic. Okay, so the reward, what’s the reward potential here, I make a 2x on my money over the next two to three years. I think that’s very, very likely and I’m happy you know.
If I can get a to x in a matter of two to three years, I I kind of take it I got I gotta take it. Okay, so that was step number two of three I’m buying in July 2020. Stock number three, this is the high risk and the high reward stock. Okay, this is the only lonely stock I have that’s in the MJ space.
Okay, if you don’t know the MJ space, you know, just dance around a little bit and you might figure it out. Okay, it’s the only one I have it is blue planet Planet 13 ticker symbol p L and h f on this one, stock number three a three it’s $1.58 for sure the cheapest stock I own Okay.
Extra decent size Mark capital’s company so don’t let just like the fact that it’s a quote unquote penny stock full you know, stock actually has a market capitalization of over $200 million. So it’s not like you know.
It’s a smaller company compared to most companies I invest in but it’s not like it’s a teeny tiny stock like you know, some of these other penny stocks that have you know, $2 million market capitalization or something on that planet 13 as of right now, they own one massive superstore that does crazy business here in Las Vegas, the city I live in Okay, Planet 13 amazing place.
Yeah, it’s just if you ever come to Vegas, even if you’re not into MJ, you got to go to the planet, you have to go to Planet 13. Even if you’re not into MJ just trust me come to Planet experiences CSC the restaurant inside see you know the way the floor plan is laid out.
It’s absolutely amazing over time to talk about potentially even adding a nightclub lounge to the property they have the space to do it it’s real for the strip essentially. So it’s funny I can actually go from Planet 13 to then to go to the mall.
There that’s I think it’s called fashion show and I get to check out a few stores that have stocks in there and then I can go straight up the road tech see the wind right there and it’s like, again, hit them all at kind of the same time and check in on in business at all in but it’s right off the strip.
It’s an amazing, amazing location being that close to the strip, and and tons of people if they drove to Vegas, they drive their cars to plan 13 and also, if you go there on a Friday night, Saturday night, Sunday night.
Thursday night, pretty much any night, you’re going to see a ton of Ubers and lyfts coming in and out taking people basically you know from the hotels over to Planet 13 because keep in mind not everybody drives a car to Vegas, some people fly in and then they need an Uber Lyft over there.
So ton of business k The company has pivoted in focus so much because the Las Vegas Strip was closed for many months right because of Ronnie Rona situation right. So they had to pivot the whole business to more focus on actually Nevada and not just like tourists guests K.
So home delivery, curbside pickup is actually becoming a big business for Planet 13. Now, and they’ve done a phenomenal job is for the building the local business up. And this is huge. No as far as our 2020 us objectives. One is they’re supposed to open a second superstore.
This one’s going to be in Santa Ana, California that’s supposed to open at some point that’s really going to open actually in 2021. It’s just kind of getting built out this year, hopefully open in maybe one or two q2 of 2021.
And then acquire more licenses for a lot of these other big cities that would easily easily support a superstore, like Planet 13. As far as their five year us objectives, they want to have eight or more superstores in Tier One markets across the US.
And that’s pretty much in line with what I think they can do, I think they can have five to 10 locations over the next five years. So by the end of let’s say, 2025 you think about so many of these major metropolitan areas, I think they could easily easily support a planet 13 and would love to basically have a planet 13 in their city.
Okay, so that’s definitely something I see. I think it’s genius that they’re building the brand in Vegas, right? So many people love to travel to Vegas, and Vegas is known as a place that you know, things are legal, whereas in a lot of other states, things aren’t legal yet.
So people you know, come here, they experienced plant 13 they, you know, know the plant 13 brand, they love the plant 13 brand. And then when Planet 13 goes and gets in some of these other cities and goes to LA and goes to Seattle and goes to Miami and goes to New York City and some of these other markets over time, right?
A ton of customers in those markets will already be familiar with the planet 13 brand, they’ll know it and when they open, they’re going to tell their friends and family members, hey, we got to go check out the planet.
Okay, so I think it’s a genius that they’ve been building the brand in Vegas first, actually really liked this management team over there. Okay, why was a few things. One is when it comes to CFO, he has 17 plus years in investment banking plan 13 is going to have to raise more money over the coming years to more than likely like continue to expand the business in more of a rapid fashion. Right?
If they just wait for the profits to pour in and then pour that into a property, it’s going to take longer, it makes a little more sense, in my opinion, to raise money, get these locations built out because they’ll be huge profit centers.
And so when I look at somebody like him that has a ton of investment banking experience, I look at that, as you know, very valuable also when it comes to the CO CEOs, okay? Both these gentlemen have been basically in the government before, okay.
So they understand how to deal with a lot of these, you know, politicians and people that are in office, especially locally, they understand like, you know, how to talk to them how to deal with them, because they’ve been in those positions before.
And so I think that is huge. I think in this business, which is a new age business at the end of the day, you got to get the elected officials of those different markets to agree on this right. I think it’s really important to be able to speak the same language and understand where they’re coming from.
So I love that the management team has experience in government, okay, it was not just about building more and more superstores. They also are building some great brands simultaneously why they build the superstore business that they can sell to all the other retailers out there that sell these products Hey.
They’re building a brand called trendy Okay, if you want to look more into these brands go and look more into I’m not gonna you know go into depth on on the on the medicine brand, they want to bring full leaf in a vine dreamland chocolates I think has massive potential.
You think about this, there’s going to be over the next 10 years there are going to be certain brands that are built consumer packaged brands in this space that will become the next billion dollar brands Okay, the next billion dollar brands that everybody recognizes and they love those products and dreamland chocolates could very much be one of those brands.
Okay, the haha gummies brands. There’s another one that has massive massive potential in my opinion, okay, the planet m brand. When you think about all these different brands, they have huge opportunities in front of themselves.
Okay, so here’s what I look at. Okay. Um, Looking at a superstore opportunity, where basically breaking out to have one store is great superstore is super busy here in Vegas, by the way, it’s been really like I’ve done channel checks there several times, it’s been really busy as it is never mind.
Imagine as Vegas comes back which Vegas is going to take about a year to two, maybe three years to get fully back. But imagine it’s already so busy. Imagine how busy the stores are going to be in a year two years from now it’s going to be extraordinary.
So they have their one store now, it should be able to get to a place where they have at least five stores within five years if not more than five stores. Remember, these are super stores that do huge volumes. Then you have the brands opportunity, which we’re talking about.
If they can build out some of these brands successfully over the next decade. Some of these brands will be worth billions of dollars in themselves. Forget about the superstore business, just the brands they own like the dreamland chocolates and haha gummies if they expand these in build these brands super strong, it’s game over. Okay.
Now in terms of the risks with a stock, obviously, it’s an OTC stock. So OTC stocks have different regulations that are much lesser than some of these other public companies buying an OTC stock is not the same as buying Apple stock.
Okay, I can just tell you that straight up. So that is definitely a risk of it is OTC stock and is a lower price stock in general. But like I told you guys, just because $1.50 doesn’t mean it doesn’t have a decent size Mark cap on, it’s over $200 million market cap K.
Which means there’s a lot of investors other than just myself that understand that this company has a high probability of being very successful when it comes to building up their superstores over time, and building out their brand simultaneously.
And this is one of those rare opportunities you get in the stock market of a stock that literally has a legit chance to 10x or more than 10x. Over the next decade, it all it is left up to is for execution. All they have to do is execute and that’s a it’s a hard thing to do and execute at a high level.
But if this company can do it, and I’ve seen the way they’ve executed with this property in Vegas, in the way they pivoted the business when it was like in a scary time when I was like man, they’re gonna go under something they pivoted the business when I see the way they’ve executed so far.
It makes me very confident that this company is going to continue to execute over the next 510 years and it’s a potential tech stock. So hope you guys enjoyed today’s video. As always, let me know what you think about these three stocks in that comment section. I would love to hear from you guys.
As always, don’t forget to smash that thumbs up button and thank you for watching. Have a great day. Don’t forget about three resources first link in the description.