Eric Fry’s favorite low-priced stocks today … a 170-year-old market veteran that’s also a tech leader … a backdoor way to ride the EV boom … tonight’s live AI event with Luke (not more AI stocks)
We all know the formula – “buy low, sell high.”
Well, many of this market’s most popular stocks are trading on the “high” end of the equation today. Dozens have set new 52-week highs in the last two weeks:
Amazon… Adobe… Micron… Palantir… Netflix… Roku… Spotify… Microsoft… Nvidia… We would be here a while if we were to list them all.
So, if you’re looking to “sell high” to free up some holiday spending cash, you’re covered.
But what about buying low? What are some great companies selling at low prices that are likely to blossom into tomorrow’s winners?
Our macro specialist Eric Fry has you covered. Today, let’s give you two of his favorite stocks selling at bargain prices. They should reward investors handsomely in the coming months when they gravitate back toward the “high” side of equation.
We’ll then pivot to look at a third investment opportunity from our technology expert Luke Lango. It ties in with his special live sit-down this evening called The AI Windfall Event 2023.
Luke will be detailing a unique way to invest in AI that’s not on the radar of the average investor. To be clear, it’s not another portfolio of AI stocks with hefty price tags. It’s different, holding the potential to produce 10X to 100x the returns of simple stocks.
There’s lots of ground to cover – let’s jump in.
***Get in on this 170-year-old market veteran while the market “sale” is still on
For newer Digest readers, Eric is a “macro” investing expert and the analyst behind Investment Report. This just means he begins his analysis by looking at investment opportunities from a 30,000-foot broad market perspective. It’s only after he finds an attractive markets/trend that he digs deeper, identifying the best, specific plays within that market.
It’s a winning combo, as Eric has found 41 different 1,000%+ recommendations. That’s more than anyone we know of in the newsletter business. Let’s cross fingers it’ll be 43 thanks to the two stocks that he’s flagged for us today.
The first is a market veteran with a name synonymous with best-of-breed glass products – Corning (GLW).
While this name might evoke images of your grandmother’s Corning Ware dishes and big sheets of storefront glass, Corning is actually a highly diversified technology leader today.
Here’s Eric with their business structure:
Today, the company operates six different business segments – each of which is beginning to benefit from powerful tailwinds.
Those six segments are…
• Optical Communications – accounting for 34% of Corning’s 2022 sales and 37% of its net income.
• Display Technologies – accounting for 22% of sales and 44% of net income.
• Specialty Materials – accounting for 14% of sales and 19% of net income.
Environmental Technologies – accounting for 11% of sales and 16% of net income.
• Life Sciences – accounting for 8% of sales and 9% of net income.
• Hemlock and Emerging Growth Businesses – accounting for 11% of sales and 2% of net income.
Eric highlights the worldwide 5G buildout as a massive tailwind benefiting Corning’s largest segment, Optical Communications.
As the global 5G build-out proceeds, this will result in increasing demand for Corning’s fiber-optic cable and components. Eric writes that this demand “could become shockingly large.”
However, if you look at Corning’s stock today, you’ll see Wall Street isn’t pricing in this potential. It’s been in a sideways/down holding pattern for two years.
But what Wall Street is missing is where our profit opportunity lies.
Everyone knows how “tech” is the hot sector today. Well, Corning is a backdoor technology company. Here’s its CEO describing the relationship:
When it comes to the critical components that enable high technology systems in multiple markets that we serve, the bar just keeps getting higher. This leads to a world where precision glass and ceramics win, and we have been winning…
Corning is one of the world’s most proficient innovators in materials science. We combine our unparalleled expertise in glass science, ceramic science, and optical physics with our proprietary manufacturing and engineering platforms to develop category-defining products that transform industries and enhance lives.
Here’s Eric’s bottom line:
I expect the coming decade to reward Corning with a level of profitability that few investors anticipate today. As a small bonus, the stock pays an annual dividend yield of 4.2%.
***Eric’s second stock is another backdoor play on tomorrow’s hottest megatrends
You think demand for electric vehicles will be around in a decade? What about green energy solutions?
Let’s go even more basic – do you think we’ll be using computers in a few years?
If so, then you’re bullish by proxy on aluminum. And that means you need to look at the U.S.’s largest aluminum producer, Alcoa (AA).
Eric explains that aluminum doesn’t receive the same high-profile attention that other metals do, but countless industries and sectors can’t operate without aluminum.
There’s consumer goods (think aluminum foil) … restaurants… hospitality… construction… shipping/trucking… computers/electronics… video/audio technologies… industrial/municipal LED lighting… military/defense… agriculture… the list is near-endless.
But due to widespread anxiety about a global recession, aluminum’s price has tanked. And that’s weighed heavily on Alcoa’s price.
Here’s Eric:
After spiking to $4,000 a tonne during the early days of the Ukrainian invasion, the aluminum price tumbled about 40%, which caused Alcoa’s share price to drop as much as 65%.
Incessant chatter about recession and demand destruction is weighing on the price of aluminum. But as with copper, the long-term outlook for the silvery metal is excellent.
A new report from the London-based International Aluminium Institute finds that global aluminum demand will jump about 40% by 2030 – and cleantech industries will power most of that growth.
As a result, the report states that aluminum producers will need to ramp up their production from 86 million metric tons in 2020 to 120 metric tons by 2030.
Despite this massive tailwind, AA is now trading at a price not seen since 2019.
Eric’s analysis includes far more supportive details that we don’t have the space to include in this Digest, but I encourage you to read his full piece. Here’s his Alcoa takeaway:
Despite the strong supply-demand dynamics in the aluminum market, the Alcoa share price is reflecting all doom and no boom. The stock changes hands for less than four times earnings.
From this low valuation, Alcoa offers substantial upside potential – both over the next few months and over the next few years.
***Finally, Luke Lango is eyeing a unique corner of the investment markets that’s intersecting with AI
In yesterday’s Digest, we dove into the recent drama surrounding OpenAI and the firing/rehiring of its CEO Sam Altman.
In short, speculation is that Altman’s team recently made an AI breakthrough so big that it scared some OpenAI board members. They wanted to slow down on its rollout… Altman didn’t… so they fired him… OpenAI employees rebelled… they rehired Altman and fired the board members who were responsible.
Last week, Luke wrote that this breakthrough represented an AI inflection point:
I’m calling it Act II of the AI Boom: a rapid and immensely successful “profit push” that will turn AI from a research concept into a series of world-changing products and services.
Seems like a good time to load up on top-tier AI stocks, right?
Well, yes, but that’s not the whole story. Back to Luke:
Because of what happened at OpenAI over the past week, we anticipate that 2024 will be the best year ever for investing in artificial intelligence.
But the biggest returns next year won’t be had in AI stocks.
Rather, the AI Boom’s biggest gains will come from a rare and unique investment vehicle outside of the stock market – the same investment vehicle that folks like Elon Musk and Mark Cuban used to become billionaires in the dot-com boom.
Tonight at 7 PM Eastern, Luke will reveal this investment vehicle that he says can generate between 10X and 100x the returns of normal stocks. He’s even giving away his top recommendation in this space – totally free, just for attending. To join us tonight, click here to reserve your seat.
Here’s Luke to take us out:
To be sure, nothing that offers the prospects of multi-million-dollar paydays is risk-free. But [what I’m discussing tonight] is one of the very best ways to make fortunes in a hurry.
This investment vehicle is always available. But it only becomes exceptionally compelling about once every few decades, during a major new technological boom.
Right now, we’re watching the AI Boom unfold. And this investment vehicle is emerging once again, with mouth-watering profit potential, the likes of which is even bigger than what we saw in the Internet Boom.
And if you want in on the opportunity of a lifetime, now is the time to act. Tune in tonight for all the details.
Have a good evening,
Jeff Remsburg
