Straight from Benzinga newsdesk, hosts Brent Slava and Steve Krause bring you the market news and stocks to watch.

Today Steve and Brent focus on:

• Find Out how Benzinga News Desk Navigates this stock market
• Tune into the episode to have Brent & Steve explain why you should look into high yield stocks now
• Podcast Trivia - What Is SWIM stock?

Benzinga Pro's Top 5 Stocks To Watch For Thursday, May 12, 2022: PBR, DPRO, TECS, EVA, SWIM

BZ WireToday's 5 Stock Ideas:

• Petrobras (PBR) - Brazil's state-run oil company. The company's stock currently has one of the highest dividend yields. Last quarter, the company paid about a $1.20/share dividend for a stock that trades around $14.
• Draganfly (DPRO) - A play on drones. This Canadian company describes itself as "engaged in the provision of engineering services and the manufacture of commercial unmanned vehicle systems and software."
• Direxion Technology Bear 3X Shares (TECS) - An exchange-traded fund (ETF) play on continued downside in tech stocks. This ETF is known as a leveraged ETF, meaning exposure to the space is tripled. More reward but more risk. To see a list of all of Direxion's leveraged ETFs, click here.
• Enviva (EVA) - A play on a recent insider buy. Company director John Bumgarner purchased nearly $1 million in Enviva stock earlier this week. Enviva is a producer of sustainable wood pellets used in the energy sector. This insider transaction info was found using Benzinga Pro's Insiders tool.
• Latham Group (SWIM) - A play on summer in North America. The company is "a designer, manufacturer, and marketer of in-ground residential swimming pools."

Hosts:

Steve Krause Reach out to Steve at [email protected]

Sr. Reporter Benzinga Newsdesk

Brent Slava Reach out to Brent at [email protected]

Sr. Reporter, Head of Benzinga Newsdesk

Ryan Faloona Reach out to Ryan at [email protected]

Director of Customer Success

pro.benzinga.com

Free 2-week trial, no credit card required

Use coupon code YOUTUBE20 to get 20% off

Disclaimer: All of the information, material, and/or content contained in this program is for informational purposes only. Investing in stocks, options, and futures is risky and not suitable for all investors. Please consult your own independent financial adviser before making any investment decisions.

Good morning, ladies and gentlemen, you are tuned into another fabulous edition of Benzing as Saks watch podcast. Today is not Friday. I thought it was Friday. Today is Thursday, Steve. It is Thursday, May 12th, 2022. We've got a good list here for you folks. The daily sax watch podcast is a list of at least five sacks hand.

Every single trading day by the Benzinga pro Newsdesk team. We're going to have these on our radar for today. Maybe for the rest of the week. We want you to take a look at the. Here, what we're saying, maybe consider them for a watch list. Maybe consider them for a chart. Maybe if you're a technician and you don't necessarily care about fundamentals or operations, maybe you see the ideas here and you put a stack or you hear the ideas.

You put a sack on a chart and you look at how the stock trades and you go. It's actually a sexy way. The SACS trades, the stack trades, maybe I'll make some technical plan. It, we're going to give it a little preview of the sack swatch that we're going to go over in just a sec. And then we'll dive into each of them a little bit more in depth with some insight as to why we picked them for today.

So our SACS watch list. Number one is Petrobras PBR. Number two is dragon fly D P R O. Number three is an ETF. We don't oftentimes feed. Oftentimes feature. This is the techs ETF. It's the direction technology bear three times shares it's ticker, T E C S. We'll go into a little bit more what that means. I got some questions.

All right. Sweet number four, Sasquatch. Number four is an Veeva Eva. And number five is Letham group. The ticker is SW I M swim, everyone. Get their votes in for what Letham group does. With their operations. That's I like that a little teaser podcast class. I like that. We'll I'll start us off at the top with Petrobras, ticker PBR.

So few days ago we mentioned at and T right has a pretty high dividend yield of around 5%. You came in, you said that's good. Let's do better Petro for us. One of the highest dividend yields pain about a hundred, or sorry, a dollar 20 a share. And the trading around $14 a year.

That's a pretty that's pretty good. That's nearly 10% right there and so that, and that's that's not, that's it's quarterly dividend payments actually. Oh, you're right. You do a dividend yield over an annual basis and you get a little education here. You do a dividend yield over an annual basis.

And with. These, some of these integrated some of these state run oil play. They do like different, like they change their dividend a lot. And so you have to do the math and add up the last four dividends to get to a dividend yield. But when I looked on Benzinga pro Benzinger UPROSE calendar tool under the dividend tab, it showed that petrifies dividend yield was like 35%.

I think I'm remembering the right 30 or 35%. And what the yield means. Let's get practical here for a second. The percentage that the company is paying back into their pain, back to their shareholders versus the price that shareholders are paying to get one of those shares. Yeah. So when you do the math, if, I said it was 30 or 35%, you're basically getting 30, 35% of your investment back just by buying the stock.

If you hold the sack over a year and get all those dividends. Yeah. And as we are like folks, we are knocking on the door of bear towards bear territory here. Bear territory means a 20% move. Pull back from the recent highs and if our S P 500 futures high at 48 0 8 and we're around 3,900, we're about 19% pull back.

And so when we start getting into this kind of market value plays, as we've seen in the selloff and tech socks, and the NASDAQ grow sacks, become unfavorable value, stocks become more, more favorable and things that are making like a passive income, like a dividend become also more favorable. So this might be a little theme that you start seeing here, folks, as far as.

The on news S looking at socks that are more in favor when we're in more of a value market. Yeah. And I'm not a betting man, but I would wager considering that there are, a few more scheduled rate hikes and in the near future, just for 2022, that this is going to be a theme that we continue to touch on.

This is going to be on investor's minds for the duration of the year. I think so. I think. Sack to watch. Number two, let's keep it rolling. Here is dragon flight, D P R O. This is a play on drones and this is a Canadian company and they described themselves as quote, engaged in the provision and engineering services and manufacturer of commercial unmanned vehicle systems and software.

And this company had a little news today. I remembered that this company was a plan drones, but then they had a little news item today. I was sitting at my desk. I was like, oh yeah, that's a play on drones. What was the news today? Steve? Yeah, this one's really cool. So w some of the other drone plays are a little bit more commercial, or you even say fleet, they want to do kind of commercial delivery type of stuff, or they're selling to the military. This one is, doing a little bit of a demonstration of it's of its product here, but they said they began delivering new gen medical devices, which is a needle free injection.

And insulin to Ukraine basically supplying the people of Ukraine with insulin. Obviously that's a drug that's you when you really need when you need it. And so they're going out and they're delivering insulin for people with diabetes, to the people, Ukraine and the Ukrainian military.

I think that's super exciting. Awesome stuff. It's fun to know and learn about these little niche plays because they occupy, a space in the market. There's going to be somebody doing this at some point and dragonflies is doing it. Yeah. Yeah. It's like a non-military, but they're working within a military, like sphere, it's almost like humanity, humanitarian, right?

It's like the humanitarian delivery space, which, there's, I'm, I imagine that if this goes well and it works. Yeah. They could have stuff with the UN to deliver supplies in Africa, and throughout south America, et cetera. And this is, just one application that we're highlighting here for their drones.

I'm sure that they have other applications, but it's just kinda interesting to hear again, the different places that these companies occupy in the market. All right. Our stock to watch number three is not a stock. Ooh. Isn't it's not, it's an ETF. It's, you can trade it like stock, but yeah.

So it's an ETF direction. Technology bear, three X shares, ticker, T E C S alright, techs. All right. So this one, I, it was going to be, a setback and education moment for me. So I know an ETF is, it's a fund that kind of groups together. Stocks of a sector, so you can trade that sector more easily, right?

Yep. What is this? So there's a few phrases in here that you put in here. It's a triple leveraged. Yeah. That's the three X. Yeah. Yeah. And then there's you said that it's for the downside and tech stocks. So talk about both of those things. So what direction and spider, some of the ETF companies have done over the last probably 10 or 15 years is just, like you said, Steve and ETF is a basket of a bunch of securities and basically.

More or a more more focus or more general basket of exposure. And so what these ETF funds started doing over, over the last few years here is focusing on sectors, focusing on regions, focusing on themes. And then I think, I imagine that the users of these ETS. Went to direction, went to spider and they said, Hey, we want more exposure to these.

And so what these funds started doing is packing more exposure. And what the three X part means is it is three times the amount of exposure. Then if you bought the direction technology. ETF. There's also a two times one I don't know about specifically for this fund, but what these funds will do a lot of times is they'll take it and make their basic ETF into a two time or three time.

And so basically the practical usage of it here. If the tech sector is up 2% today, this bear fund, meaning it's trying to capture downside. It's going higher when the market's going lower. If the ma if the tech stocks were up 2%, this thing would be down 6%. Okay. Okay. 2% higher times, 3%, the three times leverage.

And it's going in the opposite direction. There's bowl funds. There's bear funds. There's two times funds. There's three times. I've heard about some crazy traders emphasis, crazy going like long, a three time and short going like long, a three time bowl and short a three time bear to get six times exposure.

I like what that would mean would be if a space that they're playing was up 2%, they could be gaining. 12 times 12%. Yeah. It's kinda funny, but it's cool to have awareness of, more than Saks, Steve and I, a lot of times are focusing on SACS, but of course, ETFs are out there and a lot of people use.

Really successfully. And I think this is a good one to point out for today, specifically to add, as we talk about our theme of shifting from growth into value, right? Maybe entering bear territory. Obviously tech is like the mother of all growth, right? It's it's what drives growth.

And so I think, this bear three, three X one is probably, going to be doing well. It's probably done well over the last few weeks probably. Exactly. Exactly. And of course the disclaimer, more reward here, but also of course more risk. And I thought it was, I thought it was cool to add this one because it's not the case that investors need the SAC market to go.

We are advanced enough in this industry that instruments have been created, derivative derivatives have been created so that you can play both the upside and the downside pretty easily. It's not the case anymore that if you're a bowl and the market goes down, you have to leave the market. That's just not the case anymore.

And just a quick little statistic for this one. TEC S so it started off the year. A little bit under $30, it that like maybe even 26, 20 $7 and it's at 51. Hitting a high of 52 today. Wow. Okay. So it's an all time high today, especially over the last few days. And it's up around 5% today.

Gotcha. Thanks for that little factoid, Steve. Our stock to watch number four is an Veeva, Eva. This is a play on a recent insider buy. There is a relatively new tool on Benzinga pro it's just called the insiders tool and what the insiders tool does is highlight. Insider transactions and stocks, why this is important.

Investors love to know that their insiders meaning an executive or a director or. A big shareholder are either moving with the company or moving against the company. If a company is stack is at an all time high. And for example, you see some of these insiders executives start going. I think it's prudent to be taking a little bit of profit and they go out in the open market and they sell some of their shares.

When the sax at a high investors did not like that. Investors love when a Sox at a high. And the execs are gone. We still think the stack is cheap. We're buying it in our, with our own money. That gives investors a lot of conviction that they are, that the company's management is. The best interest of shareholders.

And also that the company's management is convicted that this is still just the beginning of something here. And so in N Veeva, we had a company director, John Bumgarner, who purchased nearly $1 million of in Viva sack earlier this week. And this company itself is interesting. If you asked me, this is a producer of sustainable wood pellets using the energy sector and.

They have a Marine ports like they have, I think they have like vessels that ship this product around the world, the way that they scribed described it was like deep water Marine ports, meaning I think they send ships out to sea to deliver some of their products. Fun wood bioenergy.

That's interesting. Exactly. It was it's an alternative energy. I think that you can use it in the place of like fossil fuels. Wow. That's super cool. I'm like, yeah. Who knew? There's a company out there for everything. There honestly, there are companies because they're all out there. Exactly. Like people say, no, no idea's original, no company has not been made.

And speaking of there is a company for everything, our last stock to watch. S w I M did you write it down? Did you, do you have the right answer? What is swim? What is swim? Do Brent. They are a designer, manufacturer and marketer of in-ground residential swimming pools. I imagine that there's a little play on the upcoming summer in north America folks.

Yeah. Swim for swimming pools. Super easy to remember this. One's a little bit of a newer stock, started trading last year. It's about a year old and they recorded earnings today. Yup. How are their names? See the earnings were they missed on EPS by a fair bit, but they beat on sales and they re they also announced a hundred million dollar by.

And their guidance was like pretty good. They gave some physical year 22 guidance. The sales guidance was pretty good. This company, they generated almost $200 million last quarter. Their guidance for the fiscal year was almost a billion dollars. Yeah. And this is not a small company, no last year or last quarter, which was the.

Winter spring months, we, this one will be interesting to see how it grows and how it behaves in the summer months, Brent, you and I looked back at it, but when we started recording, we couldn't really see anything, the SAC was like kinda down last summer, like over the summer, it was maybe moving a little bit higher into the summer.

Like in April, it was moving higher, but the market was moving higher at that time. I heard, I remember hearing about this stack last year, Steve, when there was that extreme cold front that reached all the way down to Texas. Oh, you're the one that froze everything. Poor citizens of Texas had like their pools freezing and stuff like that.

And there was a lot of damage. I remember hearing about this stack as a play on getting some service to those damaged. Interesting. Yeah. I'd be curious to do a little bit of extra research and look into that and see how, how well they fared from that. Absolutely. I did read that this com most of the company's sales are from the United States, but they do also have operations in Australia and new.

Which are, warm all year round pretty much. Exactly. Exactly. All right, folks, that's going to wrap it up for us tomorrow. Steve, you're going to be a way with, we're going to be way again tomorrow. We'll miss ya out tomorrow and Monday. Okay, man. We'll miss you the next couple sacks to watch podcasts, but tomorrow we will be bringing on Benzing is option expert Ryan Felina.

So I have a little partner and we're going to talk some options tomorrow, folks. Nice. That should be great. I'll be listening in. All right, Steve we'll have a good weekend and listeners out there. We'll be back tomorrow. With another edition of bending is sax. Watch podcasts. Everybody have a great day.

Good luck everyone. Did you know, nearly all stock price changes of 10% or more result from a single news headline. That's right. News headlines have a unique ability to drive stock prices up or down. These news catalysts create trading opportunities every day. All you need is a little help to reach out and take the.

And if you're looking to grow your portfolio, it doesn't matter if your investment budget is small or big and easy to read stream of news headlines will increase your opportunities to profit from price changes in the stock market. Consolidate a knowledge-based investment strategy and grow your portfolio.

All you need is Benzinga pro and it's powerful news alerts, price tracking, and portfolio monitoring. To make a positive change in your trading performance. We've already helped thousands of retail traders across the world, and they could not be happier. Increase your market now. Boost your exposure to big movers and make informed trades before major price changes, the opportunities are all around you.

Subscribe now and will skyrocket your portfolio today.

Advertising Inquiries: https://redcircle.com/brands

Privacy & Opt-Out: https://redcircle.com/privacy