In partnership with

Stocks of the Week!

In this email:

• Double Your Money?! 💰💰

• Best 0% Credit Cards 💳️

• Fizzy Drinks & Fat Dividends 🥤

• Profit From Smart Homes 🧠🏠️

Double Your Money?! 💰💰

AI this, AI that. I know. You can’t get away from it. But that’s where the money is so if you like money, then you should love AI.

And you’ll definitely love this stock which is flying under the radar. It’s so neglected that if it made a 100% gain it’d still be a better value buy than most AI stocks right now.

Let me tell you why Micron Technology could be an easy triple digit gainer. 📈 

High-Bandwidth Memory (HBM3E)

Micron’s secret weapon is its HBM3E chip. It’s designed to make AI systems faster & more efficient. We’re talking 30% improved power efficiency & lightning-fast memory performance. AKA these chips come with a 30% cheaper energy bill & run faster. That’s why they’ve got a queue out the door for them.

It’s also thumbs up from the environment. 👍️🍃 

• 📦 Ramp-Up Mode: Shipments of Micron’s HBM3E chips are expected to surge in FY 2025

• 💰 The Market Is Huge: Micron’s management are predicting the high-bandwidth memory market will grow 6.25X from FY 2023 to FY 2025. That’d mean the market will be hitting $25B by next year.

• 📈 Boosting Margins: Gross margins are already up to 35% in the last quarter (compared to a 3-year average of 15.8%). Pretty good, right? What if I told you they’re still on the rise?! They’re hoping margins can reach 39.5% next quarter. 🤯 

Just to be clear, this new chip isn’t Micron breaking into a new market. They’ve been a huge player in the memory space for a while. This is just the cherry on top. 🍒 

Micron is the third-largest DRAM producer globally, with a 25% market share. The guys taking 1st & 2nd on the podium are Samsung (40%) & SK Hynix (29%).

69% of its revenue comes from DRAM products, where the HBM3E chip is ready to be let loose. The expectation is Micron should be able to scoop up even more market share thanks to the new tech giving a healthy boost to revenue & margins.

Speaking of margins, let’s talk numbers because…..

Micron’s Valuation Is Dirt Cheap

It’s so cheap I’ve had to triple check everything to make sure I’m not missing anything.

Micron’s forward PE is sitting at 11x. The sector median is 31x. That means Micron is three times cheaper than the average company in the sector.

Micron’s shares could double in value and they’d still be undervalued compared to the industry. If that’s not an incentive to open your wallet & park some cash with Micron I don’t know what it’ll take.

When something is this undervalued vs it’s peers it makes me suspicious. But all the fundamentals look great & analysts are expecting earnings growth of 587% in FY 2025.

No I didn’t sneeze & smash numbers on my keyboard. 587% earnings growth!

In a dream world where Micron’s forward PE ramps to the sector median, share price should be somewhere around $284. That’s a 183% gain, nearly triple your money!

I’m not saying that’s going to happen but even if it gets halfway there I wouldn’t be disappointed!

Buybacks

Micron hasn’t just been sitting on the cash it’s generated from those hefty margins. It’s been put to work with aggressive stock buy backs.

• Over the past few years, Micron has repurchased 63M shares worth $4.4B.

• Last quarter alone, they’ve bought back 3.2M shares for $300M.

Reducing share count is always a win if you’re an investor. The good old laws of supply & demand should work in your favour here.

 What Could Go Wrong?🛑

The potential of huge gains doesn’t come at no cost otherwise I’d full port it & be on my way. Here’s some things to keep in mind here.

1. 📦 HBM3E Shipment Delays: If Micron stumbles on ramping up shipments the growth story might be less romantic than it is on the powerpoints.

2. 🛑 AI Spending Slows: Right now, AI investment is booming. There’s no guarantees it stays that way. Any slowdown could make a dent in the demand for Micron’s chips.

3. 🕰️ Volatile Earnings: Memory markets are notoriously cyclical & Micron’s earnings have been all over the place in the past.

Next earnings is on December 18th 2024 & I’ll be paying close attention to their guidance for FY 2025. If they’re on target or better yet, beat expectations I’ll be reserving more seats on this rocket to the moon. 🚀 

The $100,000 build portfolio already has a very small part in Micron, around 0.4% & at 10% profit. I’m going to look at doubling this position size assuming everything looks good on the 18th.

Best 0% Credit Cards 💳️ 

Tackle your credit card debt by paying 0% interest until 2026

If you have outstanding credit card debt, getting a new 0% intro APR credit card could help ease the pressure while you pay down your balances. Our credit card experts identified top credit cards that are perfect for anyone looking to pay down debt and not add to it! Click through to see what all the hype is about.

Learn How To Apply Now

Fizzy Drinks & Fat Dividends 🥤

Pepsi or Coke? I’m more of a Pepsi guy & I’m not just saying that for the sake of the segment….

They’ve been having a bit of a rough time lately but I think this a great time to add a tried & trusted dividend king to the portfolio.

Have a taste of what I’m sipping 👇️ 

Q3 Earnings…. A Mixed Snack Pack 🍿

PepsiCo’s Q3 results were a pick of a pick’n’mic. Some sweet stuff, a few sours but a good enough mix to keep everyone happy. Here’s what you missed…

• Revenue: $23.3 billion (-0.6% YoY) 👎Missed analyst expectations by $460 million. Why? A sticky combo of 2% volume decline & a strong dollar eating into international sales. On the bright side, they managed to bump prices by 3% to offset the dip in volume.

• Core EPS: $2.31 (+2.7% YoY) 🥳 Beat analyst expectations by $0.02. Fun fact: Their profit margin expanded to 13.7% which is good to see in a space that runs on tighter margins. Might have something to do with that extra 3%…..

So even with a very slight revenue miss there’s still some positives to take away. And if they can keep those healthier margins as volume picks back up then it sets the foundations for a top notch earnings down the road.

There’s a reason they’ve been around for so long, I guess.

Dividends That Keep Delivering 📬💰

That brings us on to one of the most appealing thing’s about PepsiCo.

They’re a consistent powerhouse that you can put your money with & sleep easy at night. The AI stuff is sexy. This is for peace of mind.

The current dividend yield is right around 3.4% & it isn’t going anywhere. There’s 52 consecutive years of dividend growth to back that up.

Let’s be real. Snacks & soda don’t go out of fashion. Even when cash is tight, people still buy their Doritos & a Pepsi Max to treat themselves. That’s why PepsiCo is a cash flow king & can reliable generate enough cash to fund growth, pay dividends, & make strategic acquisitions.

PepsiCo’s Growth Plays 🌱

I’m glad you brought up acquisitions. PepsiCo’s M&A has been on point.

A $1.2 billion deal for Siete Foods (grain-free, dairy-free Mexican-American foods) is a big brain play.

Siete is one of the fastest-growing Latino food brands in the U.S. The best part? It taps into an area that PepsiCo have left mostly neglected. The booming health-conscious food trend!

This acquisition gives PepsiCo access to new markets without having to build out specialized production facilities.

(Click here if you want to check out the press release from PepsiCo about it)

They also fancy themselves as a bit of a tech company. Who doesn’t these days?

Money is being poured into automating warehouses, manufacturing, & distribution centers. The plan is the upgrades will boost efficiency & drive profits in 2025.

No Free Lunches 🍔

As stellar as their track record is, you always have to look at the worst case scenario. So what is it for PepsiCo?

Well appetite suppressing drugs seem to be the craze right now. People eating less isn’t ideal if you’re in the business of selling snacks & fizzy drinks. I think the chances that this actually becomes a worthwhile worry are very slim.

And if it’s not the drugs doing it, it might be the crowd. People seem generally more health conscious. Again, not ideal but they’re planning ahead with acquisitions like Siete so I don’t think it’s a problem they can’t tackle should it become one.

Another worry is slightly out of their control. A strong dollar & high interest rates aren’t great for global consumer staples. We’ve already seen them squeeze revenues globally so if it keeps it up, it could be more of the same. Seems like more of a storm to weather than a permanent issue.

My PepsiCo Plan 🍹

Buy, Buy, Buy. That’s what I’ll be doing.

It’s trading at pandemic level valuations & from a technical perspective, it’s a swing traders dream. Look at how the support level has held up time & time again!

And we’re right at that support price again. 🛍️ 

$180 will be my first price target which gives me a 13% gain. It’s pretty a pretty firm resistance point the past few years.

And at this entry price, I might even consider just holding for the long term. It’s a perfect mix of growth & income from dividend royalty. What’s not to love?! The 3.4% dividend is just the cherry on top.

Profit From Smart Homes 🧠🏠️ 

$10 Million in Revenue, 200% Growth—Meet the Smart Home Company That’s Changing the Game

Smart homes are the future, and RYSE is leading the charge in one category being ignored by the competition. With 10 granted patents and products already earning rave reviews on Amazon and Best Buy, RYSE has achieved over $10 million in total revenue and is grew at an astonishing 200% month-over-month.

RYSE make it easy to automate window coverings, helping homeowners upgrade to smart living in minutes. And with partnerships with major retailers like Home Depot, Lowe’s, and BestBuy, RYSE is rapidly expanding its footprint in a market growing 23% annually.

At just $1.75 per share, you can invest in this game-changing company before their next wave of growth.

Last chance to invest before their share price change.

That’s all! See you same time next week 👋 

P.S Hit reply & let me know what you thought of this weeks newsletter. All feedback is welcomed ❤️