Tag: Term

Why I’m happy to pay $70 a month for term life insurance

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  • After meeting with a financial planner, my husband and I set out to pay off our credit card debt. We did it in six months, and during that time I started earning more money than ever.
  • Our financial planner recommended that I buy a term life insurance policy since I was only protected for $20,000 on my husband’s employer-provided policy.
  • He recommended $1.4 million in coverage for me, which felt high. But after accounting for our standard of living and future financial goals, I went for it.
  • Now, I feel good about paying $70 a month for that peace of mind.
  • Policygenius can help you compare life insurance policies to find the right coverage for you, at the right price »

“Protect, optimize, grow.”

Tom, our CFP, introduced this financial approach on our first call — a simple, three-step perspective that would guide our work together. The idea is that before you can build wealth, you need to protect your assets (through life and disability insurance) and optimize cash flow (in our case, setting up a separate account for my business and hiring an experienced CPA to help with taxes).

We started by getting out of debt

When my husband, Tim, and I first started working with Tom in 2019, we came up with a plan specific to our financial situation. We decided together that we would work as hard as we could to pay off as much debt as possible, then start protecting and optimizing our money. The approach made sense. Clean up the mess we had made in

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Red-Hot JinkoSolar Stock Is a ‘Sell’ in the Short Term



a green sign with white text: The JinkoSolar (JKS) logo displayed on a plain white wall.

© Source: Lutsenko_Oleksandr / Shutterstock.com
The JinkoSolar (JKS) logo displayed on a plain white wall.

Shares of JinkoSolar (NYSE:JKS) have certainly been on a moonshot lately. The Chinese solar manufacturer has risen more than 200% in the past month, coinciding with a breakout in the solar space. Some of the parabolic move higher was certainly warranted given the falling costs and rising demand. However, the rally has now come too far, too fast. It is time for a red-hot JKS stock to cool off.



a green sign with white text: The JinkoSolar (JKS) logo displayed on a plain white wall.

© Provided by InvestorPlace
The JinkoSolar (JKS) logo displayed on a plain white wall.

InvestorPlace Markets Analyst Luke Lango recently took a deep dive into why solar stocks, especially Chinese solar stocks, are poised for continued upside. He noted how the landscape has dramatically changed for JKS. Actual sales are now driving profits, instead of subsidies. This is undoubtedly a more enduring business model for JinkoSolar.

Valuation multiples have expanded dramatically over the past month but are still reasonable. For instance, the current price-earnings ratio is at a two-year high, but still well under 15x. The price-sales ratio is under 0.5x. InvestorPlace contributor Larry Ramer did a more in-depth fundamental analysis in his recent research piece on JinkoSolar.

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So with sales growing and valuations still reasonable, why am I short-term bearish on JKS stock? It all comes down to the technicals. Investors rightfully focus more on fundamentals. Traders are definitely more driven by technical analysis. And from that viewpoint, JKS stock is looking extremely overbought. One look at the price chart is really all one needs to think the rally is getting way overdone.

Getting Technical With JKS Stock

The first sign of this is that the nine-day RSI reached over 90 — hitting the loftiest levels in the past year —

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UMB Financial: A Compressed Valuation Should Grind Higher Over The Medium Term (NASDAQ:UMBF)

Investment Thesis

Headquartered in Kansas City, Missouri, UMB Financial Corporation (UMBF) is the $29.7 billion asset holding company for UMB Bank. Formally known as United Missouri Bank, UMBF is a commercial-oriented Midwestern bank. While its runs a fairly branch-lite model, UMBF has 95 branches located throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas.

UMB Financial, along with its sibling bank, Commerce Bancshares (OTC:CBSH), both have a storied century-long history of being run by the Kemper family. With that being said, I have a lot of faith in Mariner Kemper, the current CEO, and his ability to lead the franchise. He has led the bank for more than 15 years and helped grow assets from $8.2 billion to where they are today.

Today, my bullish stance is predicated on a couple of factors. I think the valuation is too low for such a well-run franchise; however, valuation alone does not invoke a great investment thesis. In order for shares to re-accelerate higher, I think there needs to be a definitive line of sight into the net interest margin (NIM) no longer compressing. This alone should help shares work higher in the shorter term. If credit continues to remains stronger than average over the next couple quarters, I think the shares will experience very healthy outperforming trend. In short, the positive NIM outlook should cause a near-term pop in the shares, while solid credit should provide the positive catalyst for long-term outperformance.

ChartData by YCharts

Revenue Outlook

In the second quarter the net interest income came in at $178.2 million, which was actually up a little more than $4 million from first quarter levels. While the NIM did compress in the quarter, overall loan growth (greatly supported by PPP loans) helped drive higher average earning assets to support a higher

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2 Top Marijuana Stocks to Buy for the Long Term

Even before the legalization of marijuana in Canada in 2018, cannabis companies were busy investing billions of dollars in facilities to meet implausible demand projections, as well as acquiring their competitors at inflated prices. Looking back, the entire series of events placed the foundation for a catastrophe in the sector. Indeed, the Horizons Marijuana Life Sciences ETF (TSX: HMMJ), an index that tracks the performance of sector constituents, is now down nearly 80% from all-time highs. 

Now that the bubble has burst, investors have opportunities to do the previously unthinkable — buy top marijuana stocks at a great value. Today, let us look at two companies in this category and how they can reignite their momentum for long-term growth. 

Hand holding marijuana leaf towards the sky.

Image source: Getty Images.

1. HEXO

HEXO (NYSE: HEXO) is a weed producer that grossly miscalculated the demand for marijuana but quickly improvised to overcome its headwinds. The company focuses mainly on three production aspects — high-quality cannabis (greater than 20% THC content), value brands, and mass production of low-grade cannabis to squeeze out competitors in the black market. So far, HEXO has a leading market share of 33% in Canada’s second-most populous province, Quebec.

In the first nine months of fiscal 2020, HEXO nearly doubled its gross revenue year over year, from CA$38.7 million to CA$74 million. That’s even though the company sold a mere 25,427 kilograms out of its current annual production capacity of 90,000 kilograms of cannabis in the past four quarters.

As a result of this supply-demand mismatch, HEXO recognized a massive write-off of CA$111.9 million in goodwill and CA$42 million in unsold inventory, and took CA$106.2 million worth of asset impairments in January. Such non-cash losses did not continue into the third quarter.

Right now, the company has about CA$27.3 million in long-term debt

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Mind The Uncertainty In The Short Term, But Do Not Forget About Inflation

Introduction

One of the most important variables that investors have been carefully watching and trying to predict in the past few months is inflation. The massive rise money supply to avoid economies from plunging into a deflationary depression has led market participants perplex about the potential consequences in the medium to long term. We have seen that uncertainty over inflation expectations have already started to surge significantly since March as more and more investors are convinced that inflation will eventually surprise the market and start to rise unexpectedly.

Inflation is an important variable for asset allocation as some risk off assets may start to perform very poorly if we see a surge in prices. Figure 1 shows three different measures of US inflation in the past 25 years: CPI, core CPI and core PCE (CPI is more volatile as it includes more volatile items such as food or energy). Even though there were short periods when inflation overshot the Fed’s 2-percent target, it has been more or less oscillating around 2% during the whole time period and modern portfolios never experience a sudden rise in consumer prices since 1995.

Figure 1

Source: Eikon Reuters

In this article, we will review the dynamics of the most popular leading indicators of inflation to see if inflationary pressures have started to rise.

Short term looks more deflationary

The first popular inflation leading indicator is the Underlying Inflation Gauge (UIG, full dataset), which is reported by the NY Fed. Figure 2 (left frame) shows that the UIG has historically led core CPI by 15 months and has been constantly plunging in the past two years; UIG is therefore not pricing any inflationary pressure at this stage.

The second indicator we also like to follow is the NFIB small business surveys, which is an indicator

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