4 Stocks I Own! - April 2018
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For stocks, I own April 2018 edition, this is one of my favorite series on the entire channel. I do it each month. And I basically tell you guys about my four biggest investments in the stock market right now, and why I’m so excited about these particular stocks over time, and why I believe they’re gonna make me a lot of money over time, guys.
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So I hope you really enjoy this, let me know in that comment section. If you guys own any of these stocks, I would kind of love to hear from you. If you’ve owned any of these stocks in the past, I would love to hear from you guys, as always, and at the end of the video, I’m going to kind of pitch my stock market membership group for anyone that’s not in that stock market membership group.
At the very end of the video, I’m going to kind of tell you why you should be in there. And I kind of go through all that into detail. Alright guys, let’s get into this. The number four biggest investment I have currently is in gold men, Sachs, Goldman Sachs, which is an investment bank, okay.
And investment bank, the most well run investment bank out there in my personal opinion, okay, they have a lot of things going for them. One of them is this new product, they come out with the last few years, which is called Marcus by Goldman Sachs.
And basically they’re getting into a lot of loaning activity now where they can actually do consumer loans, which is a brand new business for them and they don’t have that you know, high cost of having branches and things like that like traditionals banks have they also provides a CD accounts.
They also provide savings accounts, you can look at the the rates you can get for a savings account on one of their products versus you know, say chase or Citibank, Wells Fargo Bank of America, they pretty much kill them. So it’s a brand new product.
That’s a huge growth vector for the company. This is a company that has very nice growth as it is right now. Right? This is also a company that is very well politically connected. We know that if you can look at any administration, United States, pretty much every single one of them has Goldman Sachs, former employees in it, okay.
And their CEO, I in my opinion is one of the best out there. Lloyd Blankfein is the guy who led them through the you know, crisis, he’s kind of led them in now the whole situation that happened where, you know, everybody was attacking Goldman Sachs, do you remember like, there was a whole you know, anti Wall Street deal going on? That was like 2010 to like 2012 and Goldman Sachs was the forefront Why?
Because Goldman Sachs made a ton of money even during the recession and coming out and everybody else was struggling, right. And their Goldman Sachs was just making billions and billions of dollars profit is Goldman Sachs, a type company, they find ways to make money in any sort of market guys, it’s really a great business.
Okay. This is a company that has no not stellar growth, okay, it doesn’t it has about a 3% growth rate on it up around a 4% growth rate is expected next year as far as revenues go. But this is a company that right now is trading at a forward p e of 10.
Guys, a for a P of 10. Yeah, it’s not supposed to be a company that’s going to have a ton of growth going forward right as they’ll say three 4% type revenue growth numbers, but at a four P of 10. For what I feel is the best run investment bank in the entire world.
It’s kind of a no brainer for me in this situation. I think it’s just an undervalued company right now that still has growth potential ahead of it over the next decade. So that’s why I own this one. That’s why it’s my fourth biggest investment now to get to the three big dogs Okay.
My third biggest investment and this one I just started adding shares up last few weeks and it’s already my third biggest investment in this company is the company I am adding the most shares to and I plan on adding the most amount of shares to over the next let’s say month or two.
All right, and their number their name is Toll Brothers the creme de la creme of Home Builders out there Okay, number one brand in luxury home building this is one of the fortunately this on fortune always does this like World’s Most Admired Companies list right? Toll Brothers is pretty much on it almost every single year.
It’s up there with companies like Apple and Disney and Netflix while Facebook used to be on it I’m not sure they’re gonna be on it anymore. One of my old investments Wynn resorts and always usually makes the list there. Now if we look here, look at the way you know anything any metric you want to look at this company is absolutely unbelievable.
Right now if you’re looking at units okay the amount of homes going up that number is up huge. If you look at unit dollars up huge if you look at average selling price up very nicely. Any metric about you want to look at for this company is very, very positive, very strong backlog of this company as far as homes that are coming down the line.
Very, very, very exciting there. Then if we look here, this is a company that is very well spread out across the United States of America. Okay, it’s not just like there’s one or two markets and they kind of you know, dominate those markets and that’s all they got is a company that’s in all a ton of different markets and those type of markets you want to be in California, Phoenix here I’m in Vegas, you know, Dallas, Austin Houston.
You know a lot of Florida markets, Charlotte, North Carolina, a lot of markets you want to be in in the real estate industry, a lot of growing cities, they are in them. Now look at how well diversified they are across the United States. So you look at California makes up a big chunk of the business about 30% but of course.
California is the biggest state as far as population that’s you know pretty common there but look at the North Mid Atlantic South West very equal lis proportions there of what they have coming in for revenue and that’s very exciting that there if one of the region’s you know, weaken, they got all these other regions going on.
Okay. Now this is really exciting to me this this chart here This shows the average selling price per home compared to their competitors People always ask me why why would you you know, in my stock market membership group because I already know.
I was buying the stock and so they asked me why are you buying this one over you know, another home name or another home name this is one of the reasons they compete on the high end guys look at the average selling price for a Toll Brothers home versus one of the other guys okay, the KB a polti or something like that.
It’s you know, double what they’re they’re charging per home, and they’re much more in the luxury and I think it’s a good thing because guess what happens okay, recessions in the happening eventually over time? Where do you want to play if you were you know, a home homemaker basically a home builder out there?
You want to play at the the lower class of the middle class? Or do you want to be playing at the wealthier individuals, obviously, the wealthier individuals because those ones are hurt way less in a recession type scenario. You know, they’re usually ones that have a lot of money still in the bank.
And so it’s like, oh, I’m not doing as well as I used to do but I’m still doing dang Well, okay, so that’s, that’s a big thing there. Now, if we look, this is also a company that is that is evolving their product diversification. This company back in 2000, was almost a pretty much a dominated single family type, you know, company.
Now looking at the single family still accounts for about 62% Yeah, that’s still dominant, but it’s not 90%. Now they have a lot of an attached business, which is condos, things like that age qualified, which is more like retirement communities think about those city living, they build some properties out New York City, Boston, some of these big metropolitan areas now and they get some phenomenal returns on those those ones as well.
Now, also around one in four buyers have a Toll Brothers home, pay all cash, all cash guys, imagine that imagine being so well after you pay 1,000,002 million dollars and you could pay it all cash, not even a mortgage, not alone, not even partial loan, all cash guys. Unbelievable.
There is another reason why I’m excited. Now this chart might be the most important chart of the of anything I’m going to show you in regards to Toll Brothers. And this shows the average annual production of homes from 1970 to 2007, it was around 1.6 million. All right.
Now, if we look at for what we’ve done from 2008 to 2017, as far as housing starts, we’re at around 885,000 on average, okay, that’s around a 700,000 annual shortfall, when you compare it to what we’ve been doing, you know, the the previous you know, 47 years or excuse me 37 years there, so that you know people.
That might say oh housing might be topping out or might have topped out I’m not convinced to that because we aren’t even close to producing as many as nothing we don’t even have to compare to you know, 2005 and 2006 numbers, we can just compare it to historical averages.
We’re still not even close to getting to where we really should be if you’re looking at it from that perspective guys, so we’ve got a long way to go there in my personal opinion and based upon the facts there now also look at this company’s forward p e ratio it is under a nine under a nine four p for Toll Brothers the creme de la creme home builder out there in my opinion this is almost like another no brainer stock for me in the situation.
It’s a company that you know is growing unbelievably you got to look at those past charts look at where the revenues trending look at the backlog look at the APS numbers look at the they got share buybacks on right now their purchases share it’s gonna make the NPS look even better so much going for this company and they’re at a 90 they’re literally trading at a PE like like we’re in a dark situation like we’re going to go into a recession if anything.
I look at the US economy and I see it getting stronger over the next year or so. Not weakening it looks like it’s gonna get weakening is type situation and I just don’t see interest rates going up could that hurt our home builders maybe a little bit but you got to remember the US government they’re gonna You are the excuse me the Fed which is kind of like the US government they are going to slowly inch up those rates Okay.
So that’s not gonna that’s not gonna hurt homebuilders nearly as much as you would think. And especially especially a Toll Brothers buyer, Toll Brothers buyer, doesn’t matter if they gotta pay an extra $100 or $500 on their mortgage if they happen to take out a mortgage. No, these are these are not maxed out buyers. They got lots of money, man.
It’s not like oh, it’s the end of the world. They can’t buy the new house because it’s extra, you know, a few $100 because the interest rate went up. No, these aren’t those kind of buyers not for Toll Brothers. Maybe for some of the other players. They might get hurt Toll Brothers. No, not that situation. The number two biggest investment I have currently is Cirrus Logic.
Cruzi doozy, cruzi doozy Okay, there’s a company that I’ve been involved with in the past on and off made a lot of money from in the past got into recently maybe got it a little too early I’m down on my shares currently that I’ve added, I will probably continue to add more shares as if it stays in the you know.
Mid 30 Ranges put it that way, because a company that is the main audio chip supplier to Apple in pretty much the majority of smartphone makers out there, they get the majority of their revenue 70 80% from Apple, and they have the you know.
If you’re talking about microphones, audio codecs, all this stuff, you know, audio data, digital signal processing, audio amplifiers, a software, all those type of things, anything that runs audio through your smartphone, they are like the kings of that, that is their business model. They are the kings of making those type of semiconductor chips, guys, they do a phenomenally they execute very well.
They get out on time, and they live up to their promises is a company that they say they’re going to got huge potential for ABC, they usually meet that I’ve been following his company for since around 2012 ish. I’ve been following this company, so around six years or so. And I’ve always been very, very impressed with the company in the way it’s run by Jason road, the CEO, he’s done a phenomenal job here.
Now, if we look at r&d spend, it has been going up and up and up there is spent over $300 million in research and development spent last year, a lot of money for his company the size of Cirrus Logic, not a very big company. But why are they doing this because they have tons of growth vectors out there that we’re going to look at here in just a second that are things that can double triple the company from where it’s at right now guys.
That’s why they’re spending so much on r&d, they have huge potential things out there. Okay. Now if we look here at Long Term track record of growth, very nice revenue growth from this company over the past decade, right it when Jay Jason road took over this company in 2007 2008 is a company doing $180 million in revenue now it does over $1.5 billion in revenue and they’ve just done a phenomenal job.
They’ve got obviously many different customers but almost all their revenue comes from Apple which is that little brown box there you see this is covered up number one customer that’s Apple they account for between 70 to 80% of their revenue usually Samsung accounts for the other chunk, and Samsung is a company that they have a great chance of winning back in a big way as.
Samsung kind of like split some of their chips like they’ll use Qualcomm for sometimes they’ll use Cirrus for some of these chips and they’ll kind of like split a half and half also Samsung to switch to a cheaper Cirrus Logic chip last year that did not go well for.
Samsung Samsung thought they you know like it’s like if Samsung didn’t already make enough money on their freakin smartphones. They were like, oh, let’s try to use a cheaper chip that’s a lesser of a chip it was less quality of a chip. So one that Cirrus Logic made many many years ago and still using top of the line Cirrus Logic actually is caused our phones a lot of troubles.
And you know, just kind of shows the lack of caring from Samsung, they let me just try to save an extra 50 cents of phone. Yeah, and it’s ended up producing you a worse product there. But Samsung should be changing back very soon. If according to Jason Brown, he kind of said that indirectly on the conference call, I would say balance sheet phenomenal balance sheet, over $400 million in cash, no debt on that balance sheet.
They do have a share buyback on they just announced another $200 million repurchase program here in January it’s a perfect time for Cirrus Logic to be buying shares and my personal opinion also the the board of directors a personal opinion because of how much growth they have going in the future and where their share price is probably going to go in the future.
They you know, getting shares down here in the 30s I’m not gonna go on a limb and say I highly doubt Cirrus Logic shares are going to be in the 30s 234 years from now but they are now so they’re taking advantage of that. Now long term we’re like we talked about the spending all that money in r&d. What are they doing?
Why are they going after that? Well the opportunity in digital headsets which is basically taking out the the microphone jack okay or excuse me, the the headphone jack, nothing microphone jack, take me out the the headphone jack and put it into a digital, almost all smartphone makers are going to be going to that over the next year or two.
That’s a huge opportunity for them in the Android space there. And voice biometrics is a monster thing, which is basically the ability to say something to your your smartphone. Okay, it can just be over there whatnot. And it can do you know anything for you, you can say read my latest email from Sally. Okay, now currently, you can’t do things like that.
Because unless your phone’s unlocked, right, because that would be really creepy. Otherwise, your phone could be anywhere you could have lost your phone. And anyone who just picks up your phone could just get access to it. What a voice biometrics chip does is it basically can tell that that is your voice.
So if you say read Sally’s email she just sent me It knows that’s that your specific voice the same way a fingerprint sensor would know that’s your thumbprint. Okay, that is a huge technology shift there and a huge arm you know, way of changing smartphones in the future.
So that is a huge potential, you know, thing out there that could potentially double if not more than done. The company because those chips, when they’re integrated are going to be very, very expensive. I can almost guarantee you that that’s another huge reason why Cirrus Logic is spending so much money on r&d right now.
Also, this company has a four p under 10. Right now a forward p under 10. Right now guys, for a company that has a chance to double triple this company within within a, you know, a 234 year span, we’re not talking like they can double triple the company like 10 years from now we’re talking like 234 years from now this is a company that could have two to three times more revenues and profits than.
They do now as long as they execute well, and this is a company that executes very well. So huge potential here trading at a ridiculously low P. Obviously, the only negative with this company is they get so much revenue from Apple currently, that’s kind of like literally the only negative i can think with this company.
Other than that, it’s just positive, positive positive. We know Apple does not like doing business with Qualcomm anymore. They don’t want to do much more business with Qualcomm. There’s really a lot of rumors that Apple doesn’t want to use Qualcomm at all.
Guess who Cirrus logics biggest competitor in audio chips is Qualcomm. Qualcomm is their biggest competitor out there. And so that’s just another good thing out there. There are some other competitors but Qualcomm’s the main one that serious fights against Okay, all right, guys. The number one biggest investment I have right now is Callaway golf Callaway, they make golf clubs, golf balls, all that good stuff.
Okay, first off, I want to start out here by looking at the NASDAQ over the past month, the NASDAQ’s down around a little over 6%. Okay, Callaway is up over 2% in the past month. Okay, so this is a stock that’s held very strong, despite the weakness in the market over the past month.
All right, if we look here, so a company that gets about 54% of its sales from the US they get around 19% of their revenue from Japan around 13% from Europe, about 7% from the rest of Asia 7% from the rest of the world, the rest of Asia, they have huge growth potential there in my opinion over time. Now if we look here, there’s a company that really dominates Okay.
They’re dominant as far as the US sales go if you look at any other club other than putter, their number one okay and then guess what they’re number two in putter and they’re number two main maker of golf balls out there guys. phenomenal, phenomenal dominance.
Look at the net sales over time, you know, now they’re doing over a billion dollars in revenue they kind of got through that weak spot golf was really weak in that 2014 2015 time horizon it kind of started bounce back in 2016 2017. bounce back further in 2018 is gonna be a really good year. gross margins.
Look at the way gross margins are trending up, up, up and away. Look at the way EP S is trending. Okay, this is a company that was losing money as recently as 2013 started making some money in 2014 2015 built on them to 2016 and exploded here in 2017. That should explode much more in 2018.
Net cash from operations obviously, up up up in a way they acquired ojio, which is basically a bag maker gear maker that they’re going to be able to expand that should be a very profitable business there. They also have Travis Matthews which they have now acquired, which is a clothing brand high end clothing brand out of Huntington Beach, shout out to my brother He lives out there at Huntington Beach California.
And yeah, phenomenal opportunity there. Now the that’s like that’s cool. There’s a cute business you know, I think has around a 24 p on it little high but not not that high, good business grade DPS growth, good revenue growth looks like great things. they’ve acquired some businesses that they can expand awesome.
But there are two wildcards or two wildcards here I’m going to share with you that excited me so much more about this company and where they’re going to be going over the next few years Okay, the first one is Top Golf if you don’t know what Top Golf is man all man you got to go.
It’s one of the most fun things we’ll do is like a driving range meets a nightclub meets dining meets just fun entertainment calm next time you’re out here in Vegas, man come to the Top Golf in Vegas. You’ll probably see me post up there. Oh my goodness. It’s such a good time guys. They got two pools there.
It’s just a blast. Okay, they ever run a 15% ownership stake in Top Golf is this is a business that is just exploding. The revenues and profits for Top Golf are absolutely phenomenal. And there’s talk about maybe Top Golf going public next year. We’ll have to see if that comes true or whatnot.
It’ll be interesting to see if Callaway you know sells out their stake. Callaway has already made a probably a three to 4x return on their investment Guys, if not more than that. And it’s just a business that’s growing like crazy. And the other wildcard which is just as big if not bigger is Tiger Woods is back playing he is playing really freaking good guys.
The Masters is coming up this weekend. And it might be the most watched masters in history guys, it may be the most watched masters in history. All because Tiger Woods is back playing good again when Tiger Woods is playing really good and he’s got all that media attention. And guess what happens to viewership ratings, they go through the roof, okay?
And golf is a very different sport than most sports. Okay, most sports like NFL NBA sports like that, if you got a lot of people watching, those people don’t like go out and like start playing basketball or start, you know, playing more football magically or something.
Golf is different in the respect that if they if someone watches golf, they’re much more interested in, I want to go out and play, I want to go out and do this, I want to go to top call for owner and you know, go hit the balls in the driving rings. It’s a much different sport than most sports where people just watch and just relax and whatnot.
This is a sport where people watch and then they want to go play as well. And so you can see like, he literally could look, you know, when golf Pete Tiger was peeking at that time, right. And he kind of helped you know, the US trend as far as taking golf to new stratosphere and things like that, as far as new courses being belt.
And you know, once Tiger started to fall off, you know, obviously, you know, sales fell off mount a course has been open, fell off all those types of things. And now he is back and he’s playing great. He’s playing healthy. And it’s such a big boost for golf, that I that a lot of people don’t even realize, guys, wait till you see, wait until you see the ratings numbers, the Masters do wait until you see guys, it’s gonna be unbelievable.
So those are my four biggest investments I have in the stock market. Now I just want to kind of put my salesmen hat on and tell you why you should be in my stock market group. All right, why should you join my private stock market membership group, it is the first link down there in the description.
I’m going to explain to you why you absolutely need to be in that group. Okay? The first reason is that B just being in that group, it has a full 12 part options course in the group that you can watch anytime you want, which will teach you all about the basics of options and a lot of different options, strategies, options is a way you can basically lose less money, okay, or make more money. Depending on how you play, you can hedge positions, okay.
So let’s say you got, you know, a lot of shares you own in the stock, and you’re like afraid it could go down or something like that you can buy put options and things like that I teach you about all those different strategies in there. And it’s a great way to help make you more money or save you money if things go the wrong way for a stock. Okay, that’s a huge benefit on every Monday, I post lessons.
Okay, so I teach you about something in the stock market. That’s very important. And these aren’t just like, super basic lessons, a lot of these are really in depth, okay. And they can help you immensely every single Monday, I post those in there very, very helpful. Whether you’re a stock market beginner, or whether you’re someone that’s an advanced investor, okay, there’s almost anybody will learn things from me on in those videos.
Thoughts. Number three is the Fridays Fridays, I post these big videos, big elaborate videos, where I talk about, you know, different things that happened in the market that week, stocks I was paying attention to, I talked about, you know, stocks.
I’m looking into why I’m looking into specific stocks, you know, like, like the reports, I’m looking at all those type of things. I talked about all that on those Friday videos, very important. I also show the public account every single time on those Fridays.
So you can see what happened with that account that particular week, how many shares we got in there, all that type of stuff, Okay, number four is about the public account, which is a huge thing. That’s an account, I think I’ve got like $30,000 in there.
So I usually add around five to $10,000 new money into that account every single month. And we just build that up, that should be a six figure account, here, probably within six to nine months, I would say. And it’s available that you guys can see it and whatnot, you can see all the trades I’m making and just kind of see the way I build an account, the way I make position moves the way.
I add shares and things like that, guys, it’s very beneficial, in my opinion, as far as seeing the way I build an account. And we’ve kind of started that from scratch, like, I think it was six months ago, five months ago, six months ago, we literally start that account from scratch, and you just kind of get to see the way it’s built.
The number five, right reason is in that group, you get to talk with me and 400 plus serious stock market investors. So in that group, in the comments of every single video, you get to discuss with a lot of very, very serious investors, you know about videos about stocks, you’re looking into things like that.
I almost I respond to almost every single comment in that group, guys. And you know, so you get to interact with me, you get to interact with all these different people that are from all different walks of life, we have a lot of successful people that have sold businesses for millions of dollars, we got, you know, people that are just starting out and getting newer to the stock market.
We got a full gamut of people in that group, very serious people that are interested in stock market investing in number six reason is there’s a huge backlog of content, like there’s been so much of that groups, and now about six months old or so five, six months.
And so think about it, you’ve got all that content, if you join now you still get to view all that old content that’s already been posted up there guys. So it’s a tremendous value that not only do you get all the future content you’re going to get but you get all that backlog of content that you can watch whenever you want to watch it guys, which is absolutely phenomenal.
So many videos in there, especially those Monday lessons that are so so helpful and you can learn so much from in the number seven reason to join is the fact that you can cancel anytime no questions asked. You don’t have to deal with me or anything. It’s super simple in there. You just cancel your membership.
It’s not like something you know hoops you got to jump through like some membership things it’s like you want to cancel and cancel your membership it’s as simple as that is no you know hullabaloo there and stuff like that. It’s not like you know, cancel a membership at a gym which is like a headache.
Trust me, I’ve had to do it before. I hope to see you guys in there. People absolutely love being in that group and I think you will really love being in that group as well. So I hope to see you in there first link down there in the description. Thank you for watching and have a great day.