Left Brain Thinking

Brian Dress, director of research at Left Brain Investment Research, says that Energy Transfer's strong position -- with oil contracts in place that reduce its exposure to commodity volatility -- make it an attractive bond-like equity, even after the company cut its dividend. He said the current dividend yield of more than 7 percent and the stock's potential to rise make it the kind of income-generating stock that has a place between the fast-growing stocks and aggressive high-yield bonds that Left Brain typically looks for.

Janice Quek, senior analyst at Left Brain Investment Research, says that Airbnb came through the dark times of the pandemic poised to capitalize on the changes in the travel and hospitality industries not only as the economy reopens but beyond. The company, which went public in an initial public offering last December, has been come off of highs since peaking in early February,but Quek believes it is poised to pick back up quickly with the start of an expected summer travel boom.

Mark Hines, managing director at Left Brain Investment Research, says that AGNC Investment Corp. -- a residential agency real estate investment trust with a yield north of 8 percent -- is the kind of bond-like stock that investors can use to bridge the gap between high-flying stocks and low-yielding bonds. He notes that investors get the security of investments backed by agencies like Fannie Mae and Freddie Mac, but with the leverage that AGNC uses to goose returns, making for an investment that should safely deliver steady returns.

Noland Langford, chief executive at Left Brain Investment Research, says that Etsy -- the online retailer whose shares have climbed from roughly $40 a year ago to over $220 today -- has plenty of room for continued growth as it continues helping small companies and home-based entrepreneurs and others monetize their efforts, while expanding its own business to where, eventually, the home-craft that has been the backbone of the company may be a sidelight. Etsy benefitted from the pandemic, Langford noted, but rather than being a temporary boost, he expects the exposure and attention simply accelerated the company up its growth pat

Brian Dress, director of research at Left Brain Investment Research, discusses what makes a small- or mid-cap stock a true 'wealth builder,' the kind of long-term grower that can change both portfolios and lives, ahead of Left Brain's April 8 Fortune Makers Zoom event featuring 'Wealth Builders.' He singles out tax-collection and compliance firm Avalara (AVLR) as a stock that the firm likes and has a 'green light' rating on, but which finished just outside of the cut for the ideas that will be featured in the Zoom meeting. He notes that Avalara has a thesis that could easily run five to 10 more years of strong growth.

Freddy Garcia, vice president for investments at Left Brain Wealth Management, talks about how the firm's value statement underpins all of its efforts, from stock picking and the development of The Chosen List to working with clients to provide an overall approach to money management.

Janice Quek, senior analyst for Left Brain Investment Research, says that video-game platform Skillz Inc. (ticker SKLZ) has a different model than many game-related companies and has strong potential in the e-sports arena, but lacking profits in a crowded industry fields makes it a stock to watch, rather than one to buy now.

Mark Hines, managing director at Left Brain Investment Research, discusses real estate investment trusts, many of which don't fit the typical Left Brain profile of fast growers, but he notes that mortgage REITs in current economic conditions are poised for growth in a hot housing market and says that New York Mortgage Trust offers an 8.5 percent yield -- good enough to qualify as a big income-generator -- with some strong appreciation potential to boot.

Noland Langford, chief executive officer at Left Brain Investment Research, says that in a market where decent yields are hard to find, Rite Aid Corp. has high-yield bonds that should deliver, paper that was issued while the company was struggling but which feels better and safer now that new leadership -- along with an economic boost from the pandemic -- has helped the company and the stock recover from past troubles. In addition, Langford identifies another income-generating asset worth a look now.

Brian Dress, director of research for Left Brain Investment Research, says that increased demand for high-yield securities, coupled with rising interest rates, has made it more difficult to find worthy, well-priced securities, which has Left Brain changing up the criteria on its Chosen List, adding high-dividend stocks and business-development companies to the income-producing mix. Dress discusses the change and highlights Black Stone Minerals as the kind of stock that fits the new bill.