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The year of green energy investment – Medicine Hat News

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By COLLIN GALLANT on December 26, 2019.

In early December, Suncor announced it was investing in a $300-million wind farm near Bow Island, capping off a year that saw $2 billion in renewable energy investment in the region.
Pictured: An artists rendering that imagines the visual impact of the construction oft he Suncor Forty Mile Wind power facility.–submitted photo Suncor The view is facing north west from Highway No. 885 near the Forty Mile Reservoir.

cgallant@medicinehatnews.com@CollinGallant

With one complete and nine other major green power projects ready to roll, renewable energy development and its $2 billion investment in Southeast Alberta is the business story of the year in Southeast Alberta for 2019.

Most of that activity will roll out over the next two years, still it was the most encouraging story over what’s been a rocky 12 months for the local economy.

The shallow natural gas sector continued to shudder as the province announced special tax relief on unprofitable wells. In a landmark shift, the City of Medicine Hat announced it would close about 80 per cent of its production to stem loses.

Business owners gained a spring in their step with the election of the United Conservatives in the April provincial Election. But consumer confidence across the province dipped late in the year as high unemployment lingered.

In another jarring hit for local outlook, Aurora Cannabis announced it would delay fully commissioning its massive marijuana growing facility until 2021.

Other efforts moved forward, but little went as smoothly as Capital Power’s building its $350-million wind farm near Bow Island. That project went online in early December after employing more than 300 workers at its height, filling hotels and restaurants this past year.

Estimates vary about what portion construction budgets are spent locally, but even at the lowest estimate, the influx of cash would rival the annual payroll of CFB Suffield.

And construction budgets totalling another $1.6 billion in total construction has been approved for the next two years throughout Southeast Alberta.

The year was bookended by major companies announcing they would proceed with substantial projects.

Suncor, Berkshire Hathaway Energy Canada, Power Corp., European utility giants Innogy and EDF all gave regional projects the greenlight.

Using figures the Lethbridge-based Southern Alberta Alternative Energy Partnership, estimates for annual local impact from the area wind projects alone at $12.5 million per year in new local taxes and $3.1 million paid to landowners for land lease agreements.

Building figures

A commercial construction boom wound to a close in the city’s south end, with new commercial plazas, a car dealership and seniors’ living complex,

In the vicinity, the Save-On-Foods grocery store opened after a year-long delay and replaced the former Walmart Supercentre that was demolished after 10 years on the market.

Municipal commercial land sales soared as the city development office marketed and sold a half dozen properties considered excess to municipal needs. Major projects could be permitted in 2020, including a downtown hotel, a multi-family housing project on the site of the Medicine Hat Arena, a condo complex in Connaught,

Commercial land sales roared, while the residential sector snored.

Building permits to November, show only 19 new home permits were issued to that point, down from 46 in 2018, and a recent high of 100 in 2015.

At the same time, Calgary-based developer Enclave ventures announced it and local partners would build the Coulee Ridge Community on land in the city’s southwest.

The Alberta Advantage

The big win for the United Conservatives was enthusiastically received by the broad business community. The new government announced changes to corporate income tax, labour standards on farms, youth minimum wage and promises to revisits the entire labour code next year.

Mixed year for majors

Cancarb rang in 2019 by announcing a $40-million expansion to their production of rubber additive carbon black, but Methanex moved ahead with major expansion in Louisiana rather than a proposal to twin the local methanol facility.

Aurora announced it would slow down commissioning its massive greenhouse, waiting to bring it fully on line until consumer demand warranted, possibly in 2021.

Folium Bioscience announced its intention to build a local processing plant for hemp derivatives in early January.

Hut 8 Cryptocurrency increased the size of a electricity buy from the city utility to power its data-processing centre in the city’s northwest.

Agriculture

Big Marble Greenhouse, a traditional vegetable outfit, announced it planned to add 10 acres to its site south of the city near Highway No. 3.

In wider agriculture farmers and ranchers were vexed with dry spring and summer, then an early damaging frost and freezing conditions – events across the prairies that earned separate spots on Environment Canada’s top-10 weather stories of 2019.

That’s on top of trade tension with China over canola, while other specialty crop growers were hampered.

Lantic Sugar announced in early November that about half the sugar beet crop would be left in the ground.

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Bitcoin’s Massive Swings Give Pause to CFOs Mulling Reserve Investment: Bloomberg – Yahoo Finance

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TipRanks

These 3 “Strong Buy” Stocks Are Top Picks for 2021, Say Analysts

Some traditions are too time-honored to shirk, and on Wall Street, the annual ‘top picks’ are one. Usually made at the very end or very beginning of a year, the Street’s analysts publish reviews on the stocks they believe will show the best performance in coming months – their top picks. The analysts have been analyzing each stock carefully, looking at its past and current performance, its trends on a variety of time frames, management’s plans – they take everything into account. Their recommendations provide valuable direction for building a resilient portfolio in the new year. With this in mind, we used TipRanks’ database to identify three stocks which the analysts describe as their ‘top picks’ for 2021. Talos Energy (TALO) The Gulf of Mexico has long been known as one of the world’s great hydrocarbon production regions, and Talos Energy, which produces some 48,000 barrel of oil equivalent per day from offshore operations in the Gulf, is an important player in the area. Talos finished the third quarter of 2020 running a net loss, but revenues, at $135 million, were up 53% sequentially. The company reported over $353 million in accessible liquidity to end the quarter, including $32 million in cash on hand and $321 million in available credit. In December of last year, and continuing into this January, Talos has firmed up its liquidity situation through issues of senior secured notes. The December issue, of $500 million at 12%, will be used mainly to pay down a previous note issue which comes due next year. The January issue, an additional $100 million, will be used to cover outstanding debt on the reserves-based lending facility. Both note issues are due in 2026. Highlighting TALO as his top E&P pick for 2021, Northland analyst Subash Chandra wrote, “TALO is one of the few companies that we are aware of trading at trailing PDP values without a good reason, in our view. The company has addressed the maturity wall and credit facility stresses with a December equity offering and refi. They enter 2021 with breathing room to cross the finish line with Zama and look for scaling opportunities in GoM.” To this end, Chandra rates TALO an Outperform (i.e. Buy), and puts a $19 price target, indicating the potential for 91% growth in the coming months. (To watch Chandra’s track record, click here) Overall, with five analyst reviews on file, including 4 Buys and a single Hold, Talos gets a Strong Buy rating from the analyst consensus. Shares are priced at $9.96, and their $14.33 average target gives ~44% upside on the one-year horizon. (See TALO stock analysis on TipRanks) Twilio (TWLO) Next up is Twilio, a Silicon Valley cloud communications company. Twilio’s software services allow customers to run their telecom service through their office computer servers, making available not just phone calls but chats, texts, and video conversations. The service includes security features such as user verification. The COVID pandemic, and the shift to remote work that was enforced on the economy, has been a boon to Twilio. The shift put a premium on stable and reliable remote connections and telecommuting, and the company’s revenues, which were already strong and showing sequential gains in every quarter, rose to $447 million in 3Q20. Subsequently, Twilio’s shares have skyrocketed 225% over the past 52 weeks. Oppenheimer analyst Ittai Kiddron sees the company on a solid foundation for continued growth, writing, “While some puts and takes are in place in 1Q21, Twilio’s long-term opportunity remains underappreciated by investors. We believe the company’s differentiated product portfolio (communications/data) and evolving GTM approach (hiring/GSI) can drive G2K/int’l adoption/expansion and enable >30% rev. growth at scale (>$4B/$6B) through CY23/24.” The 5-star analyst chooses TWLO as a ‘top pick,’ based on his upbeat analysis of Twilio. That comes with an Outperform (i.e. Buy) rating and a $550 price target implying one-year growth of 41%. (To watch Kiddron’s track record, click here) How does Kiddron’s bullish bet weigh in against the Street? Overall, Wall Street likes Twilio, a fact clear from the 21 analyst reviews on record. No fewer than 18 of those are Buys, against just 3 Holds. However, the stock’s recent share gains have pushed the price up to $388.65, leaving room for just 2% upside before hitting the $396.88 average price target. (See TWLO stock analysis on TipRanks) SI-Bone (SIBN) Medical tech is a field of near-endless possibility, and SI-Bone has found a niche. The company specializes in the diagnosis sand treatment of pain and dysfunction in the sacroiliac joint between the lower back and pelvis. The company’s revenues dropped off between 4Q19 and 2Q20, as the corona crisis put a damper on elective medical procedures. That turned around in Q3, when the economy began to open up; many industries, including the medical field, saw a burst of pent-up demand that has not yet dissipated. In raw numbers, SIBN reported a 42% sequential revenue increase for Q3, with the top line at $20.3 million. Year-over-year, revenues were up 26%. During the quarter, the company passed 50,000 iFuse procedures, handled by 2,200 surgeons around the world. The company had $132 million in liquid assets available at the end of the quarter, against $39.4 million in long-term debt. Looking forward, the company guides toward an 8% to 10% yoy gain in full-year revenue for 2020, expecting that top line at $73 million to $74 million. Analyst David Saxon, covering the stock for Needham, says, “SIBN has shown resiliency during the pandemic, and we believe its growth drivers can allow it to beat consensus revenue throughout 2021. Further, we expect SIBN’s 2021 sales force expansion, building momentum in surgeon training, upcoming product launches, and direct-to-patient marketing will all contribute to strong revenue over the next few years.” Saxon uses these points to support his ‘top pick’ status for SIBN. His average price target is $35, suggesting an upside of 23%, and fitting nicely with his Buy rating. (To watch Saxon’s track record, click here) All in all, SI-Bone gets a Strong Buy from Wall Street, and it is unanimous – based on 5 positive reviews. The shares are selling for $28.48, and their $33.80 average target implies room for ~19% growth over the course of 2021. (See SIBN stock analysis on TipRanks) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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Researchers Hot Stock Tip: Avoid This Type of Investment Fund – SciTechDaily

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Specialized ETFs invest in trendy, overvalued areas, study finds.

“Buy low and sell high” says the old adage about investing in the stock market.

But a relatively new type of investment fund is luring unsophisticated investors into buying when values are at their highest, resulting in losses almost immediately, a new study has found.

The lure? Buying into trendy investment areas like cannabis, cybersecurity and work-from-home businesses.

“As soon as people buy them, these securities underperform as the hype around them vanishes,” said Itzhak Ben-David, co-author of the study and professor of finance at The Ohio State University’s Fisher College of Business.

“They appeal to people who are not sophisticated about investing. They may have an extra $500 and decide to try to make what they think is easy money in the stock market.”

The research was presented earlier this month at the annual meeting of the American Economic Association and is available on the SSRN preprint server.

These investment funds are a particular type of Exchange Trade Funds, or ETFs, which were first developed in the mid-1990s. ETFs are investment funds that are traded on stock markets and are set up like mutual funds, holding a variety of other stocks in their portfolios.

The popularity of ETFs is growing quickly. By the end of 2019, in excess of $4 trillion was invested in more than 3,200 ETFs. The original ETFs were broad-based products that mimicked index funds, meaning that they invested in large, diversified portfolios, such as the entire S&P 500, Ben-David said.

But more recently, some companies have introduced what Ben-David and his colleagues call “specialized” ETFs, which invest in specific industries or themes – usually ones that have received a lot of recent media attention, like work-from-home opportunities.

“These specialized ETFs are often promoted as the ‘next big thing’ to investors who are wowed by the past performance of the individual stocks and neglect the risks arising from under-diversified portfolios,” said study co-author Byungwook Kim, a graduate student in finance at Ohio State.

For the study, the researchers used Center for Research in Security Prices data on ETFs traded in the U.S. market between 1993 and 2019.

They focused on 1,086 ETFs. Of those, 613 were broad-based, investing in a wide range of stocks. These are the Walmarts of ETFs, appealing to value-conscious consumers, Ben-David said.

The remaining 473 were specialized ETFs, investing in a specific industry, like cannabis, or multiple industries that are tied by a theme. These are the Starbucks of ETFs, appealing to consumers who are willing to pay more for what they see as higher quality, he said.

“The securities that are included in the portfolios of specialized ETFs are ‘hot’ stocks,” said co-author Francesco Franzoni, professor of finance at USI Lugano and senior chair at the Swiss Finance Institute. “We found that these stocks received more media exposure, and more positive exposure, than other stocks in the time leading up to the ETF launch.”

In 2019, the new ETFs included products focusing on cannabis, cybersecurity and video games. In 2020, new specialized ETFs covered stocks related to the Black Lives Matter movement, COVID-19 vaccine, and the work-from-home trend.

The performance of broad-based versus specialized ETFs was very different, the researchers found.

Broad-based ETFs had earnings over the study period that were relatively flat, the analysis showed. But specialized ETFs lost about 4 percent of value per year, with underperformance persisting at least five years after launch.

“Specialized ETFs, on average, have generated disappointing performance for their investors,” said co-author Rabih Moussawi, assistant professor of finance at Villanova University.

“Specialized ETFs are launched near the peak of the value of their underlying stocks and start underperforming right after launch.”

The study found that the types of investors who bought into specialized ETFs were different from those who invested in the broad-based products.

For example, large institutional investors who have professional managers, such as mutual funds, pension funds, banks and endowments, generally avoid specialized ETFs.

The study found that institutional investors own about 43 percent of the market capitalization of broad-based ETFs in their first year, but less than 1 percent of the capitalization of specialized ETFs.

In contrast, data from one online discount brokerage that caters to individual investors showed that its customers are much more likely to invest in specialized than broad-based ETFs.

Other research has suggested that investors using that discount brokerage exhibit “sensation-seeking behavior” and their holdings can be described as “experience and curiosity holdings,” Ben-David said.

The results suggest that most people should be wary of investing in specialized ETFs, Ben-David said.

“If you purchase a specialized ETF, you are likely to lose money because their underlying stocks are overvalued,” he said.

Meeting: American Economic Association 2021 annual meeting

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Here’s Why Chewy Inc. (CHWY) Is A Good Investment Today – Yahoo Finance

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InvestorPlace

10 Smart Stocks to Buy With $5,000

If you’re looking to build a portfolio of stocks to buy with just $5,000, the advent of fractional share ownership has made it a whole lot easier. Google the words “fractional share portfolios,” and you get 527,000 results with everything from reviews on seven of the best fractional share investing brokerages to links to some of the leading players in this burgeoning area of the markets. Many think of Robinhood when they think fractional, but the truth is almost every major online broker in this country’s got some offering or service.InvestorPlace – Stock Market News, Stock Advice & Trading Tips Heck, I can remember years ago, when FolioFN was the only game in town. Launched in 2000, it was acquired by Goldman Sachs (NYSE:GS) in May 2020. FolioFN’s self-directed accounts are scheduled to be transferred to Interactive Brokers (NASDAQ:IBKR) early in 2021. In the meantime, for those who don’t want to do the work of constructing a $5,000 portfolio of stocks to buy, here are 10 recommendations to help get you started. Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) Tesla (NASDAQ:TSLA) Nvidia (NASDAQ:NVDA) SVB Financial (NASDAQ:SIVB) Roku (NASDAQ:ROKU) Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) Dollar General (NYSE:DG) Apple (NASDAQ:AAPL) Williams-Sonoma (NYSE:WSM) Thor Industries (NYSE:THO) 9 Stocks That Investors Think Are the Next Amazon Their share prices will add up to $5,000 or less. To make things interesting, all 10 stocks must have share prices exceeding $100. Stocks to Buy: Alphabet (GOOG, GOOGL) $1,740 Source: BigTunaOnline / Shutterstock.com It’s funny, I had intended to include Amazon (NASDAQ:AMZN) in my list of 10 stocks to buy, but given I was limiting my names to those companies with shares prices greater than $100, the e-commerce giant’s $3,166 share price would have made it awfully hard to fit nine more under $5,000. So I went with Alphabet, a company I didn’t write about at all in 2020, but helps me achieve my task. InvestorPlace’s Mark Hake recently suggested that rising ad sales make it an attractive investment in 2021. My colleague compares Google to the valuations of Apple, Microsoft (NASDAQ:MSFT), and Amazon. He reckons that Google should have a similar valuation to the three companies at $1.43 trillion or 6.7 times sales. As I write this, Google’s market capitalization is $1.18 trillion, 17% below Hake’s simple calculation, which puts its share price at $2,112 per share. I like the upside. Tesla (TSLA) $845 Source: franz12 / Shutterstock.com The second-highest share price in our $5,000 portfolio, we can thank Elon Musk for doing a five-for-one stock split in August 2020. Without it, TSLA would take up 86% of our investment capital. I’m an unabashed Tesla fan, so I’m not going to give you reasons why the valuation is over-the-top, although there’s no question it puts all the other large car companies to shame with its $810 billion market cap. InvestorPlace contributor Matt McCall recently gave investors some wise advice regarding the electric vehicle (EV) maker. McCall believes that rather than griping about the price you have to pay for its shares, embrace the fact that even the mighty Tesla has corrections, so buy like crazy on the rare occasion that it happens. To illustrate his point, McCall references its pullback in September 2020, shortly after its stock split. On Aug. 31, it was trading just under $500. In a week, it fell 34% after Tesla was left off the annual additions list for the S&P 500. 7 Cheap Stocks to Buy as Democrats Gain Control Ultimately, Tesla was added to the index on Dec. 31. As money managers added TSLA to their portfolios, it moved even higher. Nvidia (NVDA) $528 Source: Hairem / Shutterstock.com If you’re one of the lucky investors who joined the Nvidia bandwagon five years ago when it was trading around $26, you’re sitting on an annualized total return of more than 79% through Jan. 13. It’s crazy to think that things can get any better for NVDA shareholders over the next five years. Still, they actually could, given the growth in gaming, cloud computing, and artificial intelligence. As my InvestorPlace colleague, Faizan Farooque, recently stated, you most certainly won’t be buying Nvidia if you’re a value investor — it trades at 45 times its forward earnings, far higher than many of its peers — but when it can grow sales at 50% a quarter and continue to beat analyst expectations, it most certainly deserves a premium valuation. In June 2019, I argued that Nvidia’s free cash flow made it a great stock to buy on dips. At the time, it had lost about half of its value over nine months — October 2018 to June 2019 — and was trading around $145. Some 18 months later, it’s up almost four-fold and generating more than $4.2 billion in 12-month free cash flow. Buy some now and wait for the next big dip. It’s bound to happen sooner or later, no matter the near-term prospects. SVB Financial (SIVB) $465 Source: Pavel Kapysh / Shutterstock.com I’m not going to say too much about SVB Financial because it’s one of those bank stocks to buy that you have to get to know for yourself to understand why it’s so special. You wouldn’t think this was the case by the analyst coverage of its stock. At the moment, 21 analysts cover SIVB, with eight rating it a buy and 12 a hold with an average price target of $424.49. Sure, it’s come a long way over the past year compared to its peers — it has a one-year total return of 74.2% — but that’s because investors recognize that the bank’s laser-like focus on providing lending, asset management, and banking services to innovators and entrepreneurs will always be in demand. Recently, it announced that it would pay $900 million to buy Boston Private Financial Holdings (NASDAQ:BPFH) for a combination of cash and stock. The Boston-based private bank specializes in wealth management and other banking services. Together, SVB Financial’s wealth management business will have almost $18 billion in assets under management. The 7 Best Marijuana Stocks on the Markets Right Now Continue to ignore SIVB at your peril. Roku (ROKU) $418 Source: JHVEPhoto / Shutterstock.com The streaming platform has gotten off to a hot start in 2021, up 26% year-to-date and more than 205% over the past 52 weeks. Roku and HBO Max parent, Warner Media, buried their longstanding disagreement recently by announcing that the streaming service would be available on Roku as of Dec. 17, 2020. By getting a spot on Roku, HBO Max is now on all the major over-the-top platforms. “We believe that all entertainment will be streamed and we are thrilled to partner with HBO Max to bring their incredible library of iconic entertainment brands and blockbuster slate of direct-to-streaming theatrical releases to the Roku households with more than 100 million people that have made Roku the No. 1 TV streaming platform in America,” Scott Rosenberg, SVP of Roku’s platform business, said in a statement. The key part of the above statement is that Roku believes that all entertainment will eventually be streamed. I couldn’t agree more. That’s why I recommended ROKU stock in December 2017 and still recommend it among stocks to buy in 2021. Berkshire Hathaway (BRK.A, BRK.B) $235 Source: Jonathan Weiss / Shutterstock.com I recently read an article about the reasons why Warren Buffett failed in 2020. This kind of analysis of the Oracle of Omaha has been going on for years, possibly as long as Buffett’s been investing in stocks to buy. Yes, Berkshire Hathaway severely underperformed the S&P 500 in 2020 — up 2.5% versus 16.5% for the index — but I’ve always believed that the biggest boost to BRK stock will come when the holding company has to be methodically wound down due to the passing of Buffett and Charlie Munger. Consider that its equity portfolio, which is massive at $271 billion, represents just one-third of Berkshire’s assets at the end of September 2020. I can assure you that the true value of the $418 billion or so in privately-owned assets on its balance sheet is worth far more than this. When the time comes to wind it down, the board will do what’s necessary to ensure fair value is obtained for every business. It’s possible the process could take a decade or more. The 7 Best Startups You Can Buy on StartEngine Right Now When people say that Warren Buffett has lost his touch, they forget that the final tally has not been given. Not by a longshot. Dollar General (DG) $213 Source: Jonathan Weiss / Shutterstock.com It’s not a secret that Dollar General caters to customers that don’t have a tremendous amount of disposable income. It probably also doesn’t come as a surprise that its employees aren’t flush with cash, so the fact that it will pay those of its 157,000 employees who get a vaccine four hours of pay is noble. And smart business. “‘We do not want our employees to have to choose between receiving a vaccine or coming to work,’ Dollar General (DG) said in a press release, noting that its hourly workers face hurdles to getting vaccinated, such as travel time, gas mileage or childcare needs.” If there’s a retailer that has done well during Covid-19, Dollar General would have to be at the top of the list. In early December, Dollar General reported Q3 2020 results that included 12.2% same-store sales growth and a 62.7% increase in earnings per share. As a result, it’s passed on a total of $173 million in 2020 for employee appreciation bonuses. As it continues to open more stores while simultaneously growing its gross margins, the fact that it remembered that its employees are the ones who deliver this good fortune to shareholders is a big reason why DG stock will continue to move higher in 2021. Apple (AAPL) $130 Source: Hadrian / Shutterstock.com Most of the talk around AAPL stock right now revolves around its long-simmering Project Titan and its efforts around delivering its own autonomous electric vehicle. The Verge recently reported that Apple held discussions in 2020 with Canoo (NASDAQ:GOEV), the EV startup using a platform based on a skateboard to provide a much better cabin design for its future vehicles. Canoo apparently just wanted some investment capital. Apple, on the other hand, was thinking more about acquiring the business and integrating it into its existing work in this area. The two didn’t come to an agreement. Canoo went public and Apple’s now working with Hyundai (OTCMKTS:HYMTF) on getting a self-driving EV to market by 2024. Wedbush Securities analyst Dan Ives recently suggested that Apple could be worth $3 trillion by sometime in 2022 due to strong iPhone 12 sales. He projects it could sell as many as 250 million in 2021. “If Apple continues to execute at this pace, a $3 trillion market cap could be on the horizon over the 12 to 18 months,” Ives is reported to have said. 7 Dividend Stocks That Are Growing Their Payouts As I write this, it’s at $2.2 trillion. Williams-Sonoma (WSM) $125 Source: designs by Jack / Shutterstock.com Several news outlets reported that the retailer’s CEO, Laura Alber, sold some Williams-Sonoma stock just before Christmas. Don’t be alarmed; it was only 15,000 shares or 3.5% of her total holdings. And it was part of her Rule 10b5-1 trading plan started in September 2019. As I always like to say, even wealthy CEOs have bills to pay. Over the past year, Williams-Sonoma stock has delivered a total return of 61.4% for its shareholders, including Alber. That’s double the returns of the specialty retail sector as a whole and three times the entire U.S. markets’ performance. In June 2016, I called WSM one of the best retail stocks to buy due to its excellent omnichannel experience. Going on five years later, nothing’s changed about that assertion. During Covid-19, business at the retailer has been full-speed ahead. Here’s what I said about it in December: “It’s got a business that’s ideally balanced between online and brick-and-mortar sales. In the second quarter, it generated 76% of its sales online; in Q3, due to the novel coronavirus constraints, its online sales accounted for 70% of its total revenue — while growing by almost 50% over last year– and that’s during a pandemic,” I said on Dec. 9. “More importantly, its Q3 profits were through the roof — up 151% to $2.56 a share thanks to significantly higher margins — and that was only through Nov. 1. It doesn’t include Black Friday and Cyber Monday.” The world’s going digital, and that’s good news for Williams-Sonoma. Thor Industries (THO) $105 Source: Angel DiBilio / Shutterstock.com There is no question that 2020 was good for recreational vehicle manufacturers such as Thor Industries, as people young and old sought the great outdoors, away from the maddening, Covid-19 crowd. The problem for investors who’ve followed the RV industry for any length of time is that the good times never seem to last. In the case of the novel coronavirus, once vaccines make humans comfortable with packing together in large crowds, the great outdoors won’t be nearly as enticing as Paris or Australia. That being said, the latest push into RVs may be coming from a sub-set of consumers who might actually take to the open road. “All dealers are reporting a high mix of first-time buyers as evident by lack of trade-in units,” said Wells Fargo analyst Tim Conder in a July 15, 2020 note. “Dealers are saying as high as 80% of customers are first-time buyers … vs. the typical 25% mix. The pandemic is driving the purchase decision for new-entrants.” If even half of those first-time buyers stick around long enough to upgrade to a bigger or better model, Thor Industries might not have to worry about the eventual downturn. To me, THO is one of the perfect stocks to buy for the long haul, buying more whenever it corrects by more than 5-10%. On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner It doesn’t matter if you have $500 in savings or $5 million. Do this now. The post 10 Smart Stocks to Buy With $5,000 appeared first on InvestorPlace.

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