The 7investing Podcast

Innovative Industrial Properties is America's only publicly-traded REIT who's exclusively focused on the cannabis industries. It buys cannabis-growing facilities and then rents the spaces out to tenants through triple-net leases.

Business was booming in the zero-interest rate economy, with IIP's committed capital skyrocketing 60-fold from $30 million in 2016 to $2 billion in 2023.

But with interest rates rising and a shaky economy, growth is much slower these days.

The stock currently pays a dividend of 6.7%. That's much higher than money market funds and bonds, with the possibility of rising if the Fed cuts rates in 2024.

https://7investing.com/company-update/innovative-industrial-properties-patience-is-a-virtue/

See our current conviction rating on IIPR -- as well as all of the stocks in our universe of coverage -- by starting your 7investing membership today.

Visit 7investing.com/subscribe and use promo code "IIPR" at checkout to get your first week for absolutely free!

Tesla (Nasdaq: TSLA) is one of the market’s most unique battleground stocks. People either love it or they hate it, the financial media's commentary is either euphoric or miserable, and institutional price targets have ranged everywhere from $10 to $2,000.

For the past two weeks, 7investing CEO Simon Erickson has been building a very detailed discounted cash flow for Tesla. He's put all emotions (and social interaction) aside and has let the numbers do the talking -- to develop his most-likely estimate of Tesla's future revenues, operating costs, and capital expenses through the year 2040.

Furthermore, a large part of the Tesla equation lies in the optionality offered by its visionary (and yet eccentric) CEO Elon Musk. Musk has several options of where he could lead Tesla into its future, including full self-driving software subscriptions, autonomous commercial trucks, an on-demand Robotaxi network, or a thousand other AI-based projects.

Yet even with so many potential destinations, the Tesla we know today is still primarily a car company. 92% of its revenue currently comes from selling, leasing, and servicing battery-powered electric vehicles.

IN THIS PART 1 OF 2, Simon describes how he came up with an estimate of $104 per share for Tesla as a car company. The company is aggressively building Gigafactories and ramping up the production of new models, but is also constrained on pricing and by rising competition in China.

Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-documentSupporting documentation for any claims will be furnished upon request.

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In this week’s episode of the 7investing podcast, Lead Advisors Luke Hallard & Krzysztof Piekarski sit down with Rina Wulfing, Senior Manager for the North American policy team at Wise ($WIZEY) to discuss the company’s original founding story and mission: to empower its users with a transparent system that sends money cost effectively and instantly across borders.

We discuss junk fees — what they are and how Wise is working with regulatory agencies to limit their adverse impact on customers.

We also discuss why direct access to US banking systems is limited to certain types of financial institution, and why this hits US consumers and businesses (and visitors!) in the pocket.If you ever travel internationally, or are looking to upgrade your legacy banking arrangements, today’s episode is a must listen conversation that will give you better insight into the finance industry, and will save you money!

ShockWave Medical (Nasdaq: SWAV), the innovative pioneer of intravascular lithotripsy, has received an all-cash acquisition offer from Johnson & Johnson (NYSE: JNJ) for $335 per share. In today's episode, 7investing advisors Luke Hallard and Simon Erickson discuss why we made ShockWave a 7investing recommendation, several financial details of the offer, and what investors should expect going forward.

Investors are continually looking for a good deal in the stock market. But how exactly should we define value?

Quantitatively, publicly-traded companies should serve as compounding machines for their investors. They raise capital -- either through debt or by issuing stock -- then put it to work into projects. If the after-tax profits they generate are greater than their associated costs, they're creating value for us as the owners of the business (i.e. as the investors).

But the investing world is also extremely complex. Markets are changing and being disrupted by new technologies every year. CEOs and leadership teams are continually trying to balance between their desire to be visionary and their need to be efficient. Underinvesting in growth could put a company several steps behind its competitors. Yet going "all-in" on an acquisition that turns out badly could very quickly light their shareholders' capital on fire.

So what are we as the investors to do?

Are there specific metrics we should look at, to determine if a company is using our money responsibly? How should we figure out what the right price is to pay for a stock? And are their any specific stocks out there right now, which might be significantly undervalued and could represent a great bargain for us as investors?

investing CEO Simon Erickson recently spoke with John Rotonti, who is the host of the JRo Show podcast (and available on both Spotify and Apple Podcasts).

John previously worked for nine years at The Motley Fool, where he was an analyst on several newsletters and most recently served as their Head of Investor Training and Development. Simon and John have been friends for a decade, and we recently exclusively published his interview with legendary Fidelity fund manager Joel Tillinghast on our own 7investing site.

We are on a quest to find the best stock opportunities of the year for investors. Enter for free, with a chance to win a $1,000 Amazon gift card and a free year of 7investing!

To complement our contest, we'll be publishing seven head-to-head matchups between stocks; and we'll include the winners in our own 7investing Team entry.

Our third head-to-head matchup is two companies who are embracing artificial intelligence to make their platforms even better, between The Trade Desk (Nasdaq: TTD) and Palantir Technologies (NYSE: PLTR).

After that, it's the battle of the animals as Crocs (Nasdaq: CROX) takes on American Eagle Outfitters (NYSE: AEO) in a battle for retail dominance!

Listen to hear the cases for these companies and then head to the 7investing X account to vote for your favorites!

As part of our Best Stocks of 2024 Contest, we're narrowing down the picks that will be the start of 7investing's entry into our contest! Between now and March 1, 2025, we'll see which stocks will catapult one of our lucky fans to victory, free subscriptions, and a $1000 Amazon gift card.

Of course, we'll analyze some great companies along way, like Celsius (CELH), Novo Nordisk (NVO), Uber (UBER), and Rocket Lab (RKLB).

Tune in to hear our breakdowns of these companies and to learn more about how you ca win our Best Stocks of 2024 Contest!

To enter, go to www.7investing.com/contest/

The Wall Street Journal’s 2024 Health Forum in Boston recently showcased the technology, business, and policy regulations that are impacting the health care industry. With a massive disruption in the medical weight loss industry, new treatments that permanently alter patient DNA, and the ever-present COVID response and its aftermath, this year's conference had plenty of intrigue.

For investors, there were several publicly-traded companies who took the stage — including CRISPR Therapeutics (Nasdaq: CRSP), Vertex Pharmaceuticals (Nasdaq: VRTX), Alphabet (Nasdaq: GOOGL) and Moderna (Nasdaq: MRNA).

7investing CEO Simon Erickson joins JT Street to break down the conference and review the key storylines investors should be following if they want to capitalize on the current disruptions in the medical investing landscape.

Enterprise software is so intriguing to investors. The rise of mega-platforms like Meta Platforms (Nasdaq: META), powerful SaaS forces like Salesforce (Nasdaq: CRM), and micro-computer software providers like Microsoft (Nasdaq: MSFT) have created several of the best-performing stocks of the past two decades.

But things move fast in this innovative field. And we're living in an entirely different digital world today.

Enterprises have laid off hundreds of thousands of tech employees in recent years and have begun harnessing the power of generative AI. And a renewed focus on efficiency has led them to consolidate vendors, especially in somewhat-redundant fields like cybersecurity protection.

Will the next decade or two also feature the same pool of outperformers? Will the software companies of the Magnificent 7 still remain at the top of the market? Or will we see a new wave of AI-native competitors displace them?

In the second episode of 7investing advisors Anirban Mahanti and Simon Erickson's latest podcast series, the two discuss the enterprise software industry from an investor's perspective.

The Fed's rampant rate increases have wreaked havoc on stocks in recent years. Yet we're perhaps finally seeing a light emerge at the end of the tunnel.

Projections released by the Fed suggest that America's central bank will reduce its Fed Funds target rate multiple times during 2024. The Fed ultimately wants to reach a median target rate of 4.6% by the end of this year.

Falling interest rates are generally good for business. It allows them to raise capital and more attractive rates and to begin reinvesting in growth projects once again.

For investors in those businesses, falling interest rates translate into lower discount rates. This is the metric that institutional investors on Wall Street use to discount a company's future profits to the present in their discounted cash flow models. When a discount rate falls (which typically happens when the Fed reduces the Fed Funds rate), future cash flows get discounted at a lower rate. And you ultimately end up with a greater present valuation and a higher stock price.