Our Picks Continue to Lead the Market

The technology sector has embarked on a rally that’s likely to maintain its momentum into next year. Our portfolio holdings are positioned to lead the way.

Let’s look at the news with our picks, as well as our latest advice.

  • 22nd Century (NYSE: XXII)

The biotech firm’s third-quarter earnings per share of -$0.03 missed expectations a penny. However, revenue came in at $4.53 million, for a year-over-year gain of 46.1%. Revenue exceeded Wall Street’s expectations $53,000.

22nd Century’s proprietary Very Low Nicotine cigarettes continue to show that the FDA’s planned mandate for cigarettes with non-addictive levels of nicotine is practical. The biotech firm also bioengineers low-THC marijuana plants for medicinal purposes.

Medical marijuana is one of the hottest corners of the biotechnology sector for investors. The potential this apparent wonder-herb packs for alleviating symptoms of countless diseases, as well as its curative properties, makes biotech companies developing cannabis-based treatments among the most exciting and potentially lucrative investment opportunities today.

XXII remains a buy up to $7.00.

  • Helmerich & Payne (NYSE: HP)

HP reported a net loss of $23 million or $(0.21) per diluted share from operating revenues of $532 million for the fourth quarter of fiscal 2017. For its fiscal year 2017, the company reported a net loss of $128 million or $(1.20) per diluted share from operating revenues of $1.8 billion. 

As with its peers, HP fell victim to energy price volatility. However, the company has invested in growth and has set the stage for renewed earnings momentum once energy prices renew their upward trajectory.

During its fiscal 2017, HP undertook the largest ramp-up of U.S. land rig activity in the company’s history. HP started the fiscal year with 95 rigs contracted in the U.S. and closed the year with 197 rigs, including an increase of 102 FlexRigs. The company’s most active basins today include the prolific Permian and Eagle Ford plays.

HP is a buy up to $80.

  • Tencent Holdings (OTC: TCEHY)

The China-based Internet services and gaming company posted a 69% spike in third-quarter earnings, exceeding the consensus estimate. Growth was driven by the company’s smartphone games and payment-related services.

Earnings soared to 18 billion yuan ($2.72 billion), well past the average analyst estimate of 15.18 billion yuan. The company’s revenue rose 61% to 65 billion yuan, beating the analyst estimate of 60.78 billion yuan.

Tencent’s market capitalization has more than doubled this year, hitting $472 billion. However, the company’s shares have gotten pricey and are now due for consolidation.

TCEHY is a “hold.”

  • YY (NSDQ: YY)

The China-based Internet streaming platform continues to outperform. YY reported revenue of $464.8 million, blowing past the consensus estimate of $423 million and up 48% from the same period a year ago. YY reported adjusted EPS of $1.59, also beating the consensus estimate of $1.45 and up 41% on a year-over-year basis. Revenue from livestreaming jumped 60% to $431.6 million.

YY is a pioneer in livestreaming services such as music, game broadcasting and e-learning. China continues to experience a boom in the use of livestreaming services, stemming from a lack of entertainment options in the country.

Buy YY up to $110.

Options Trades

  • Tesla Motors (NSDQ: TSLA)

Tesla Motors 11/17/17 Sell Call $370 (TSLA171117C00370000)

Entry date: 04/24/17

Entry price: $14.80

Strategy: Sell Call

Strike Price: $370

Expire Date: 11/17/17

Equity Price (at market close on 11/17/17): $315.05

With this trade, we bet that TSLA stock was overvalued and would go down. We were right. The strike price is higher than the market price. We’re letting this call option expire in-the-money. Congratulations, you were just paid $1,480 for each contract for doing nothing.

  • YY (NSDQ: YY)

YY 11/17/17 Buy Call $75 (YY171117C00075000)

Entry date: 07/29/17

Entry price: $8.30

Strategy: Buy Call

Strike Price: $75

Expire Date: 11/17/17

Equity Price (at market close on 11/17/17): $107.23

With this trade, we bet that YY stock would go up. Again, we were right. We’re letting this call option expire in-the-money. Your profit is $3,223 for each contract, which works out to a 288% gain!

John Persinos is chief investment strategist of Breakthrough Tech Profits.

Stock Talk

Melissa Pruitt

Melissa Pruitt

I joined the program a couple weeks ago and still trying to find out which stock to buy for tech to be more popular than I phone. I keep getting emails to join but I’m already a member. Did I miss it somewhere? Thank you

Jim Pearce

Jim Pearce

Hi Melissa, and welcome to Breakthrough Tech Profits. You can find that Special Report under the ‘More’ tab at the top of this page: https://www.investingdaily.com/breakthrough-tech-profits/reports (it should have been emailed to you when you joined, but that message may have gotten redirected to your spam filter since it included an attachment from an unknown sender so you may want to check to see if all of our emails are getting through to you).

Weiyu Liu

Weiyu Liu

Hi, John,

I am still holding some YY shares. Do you also think positively about its 2017 annual financial report, which I noticed would be release on March 5, 2018 ? Or I should sell it before the annual report ?

Thank you very much.

John Persinos

John Persinos

Dear Weiyu: Thanks for your question. Securities law prevents us from offering customized investment advice for individuals. I can’t specifically tell you want to do with your shares. But I can tell you this: I’m still bullish on YY and I see no reason for me to sell or downgrade it as a BTP portfolio holding. I’ll comment on the company’s operating results when the time comes. But for now, I’m still optimistic about the firm’s prospects.

Stanley

Stanley

Hi John,
I joined wealth management a few months ago but never rec’d an alert from
Breakthrough Tech Products.
Can you make sure I get your alerts.
Are you basically just recommending stocks or do you also recommend options as well.
Thank you Stan

John Persinos

John Persinos

Stanley – Glad you’re aboard! I send out weekly BTP Portfolio Updates, every Friday. If you’re not receiving them, please contact our customer service department: KCICustSvcDept@capinfogroup.com. For the most part BTP recommends stocks, but we will occasionally recommend options trades as opportunities warrant. Thanks for your question. I value reader engagement.

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