The consumer price index used to measure inflation rose 5.4% year-on-year in June-July, the highest level since September 2008. In a reopening economy, chain failures are mostly “transient.” However, the chairman of the Federal Reserve ome Jerome Powell recently said that this level of inflation could be maintained longer than expected until 2022.
So far, the central bank has decided not to change near-zero interest rates or its $ 120 billion bond-buying program, with many economists predicting a slowdown in bond-buying rates in the coming months to have some effect on inflation.
Contradictory views on the interest rates of some central bank officials, economists, are extremely confusing for retail investors. These are indefinite times, but long-term investors still have the opportunity to make a solid return on investment with minimal investment. Even just $ 500 in capital, if available և not needed for expenses, debt reduction or emergency fund financing, can be used to buy some cheap but solid stock if you know where to look. Here are three dirty-cheap stocks worth considering.
Created by: Discovery Communications:founder John von Hendrix, which focuses on non-fiction CuriosityStream: (NASDAQ: CURI) is a relatively new participant in the video streaming space. The company’s portfolio includes more than 3,100 actual titles, including more than 1,000 documentaries in categories such as science, history, technology, nature, society, and lifestyle. The initial production cost of this content is $ 1 billion.
CuriosityStream currently faces little competition in this genre. In addition, the company has chosen the hybrid distribution model (direct subscription service is available in 176 countries with more than a dozen partners, including: Amazon:Prime Video service և: Alphabet:YouTube TV ումը distribution of affiliates in 83 countries in five languages). The unique content, combined with a powerful distribution model, helped the company rapidly increase its paid subscriber base from about 1 million in 2018 to 20 million by the end of the second quarter of 2021 (ending June 30). In addition, 75% of direct subscribers choose annual subscription plans, which in turn helps control the rate of burnout.
In the second quarter, CuriosityStream reported a 56% year-on-year increase in its direct subscriber revenue, which is the average revenue per user. The company is also focused on rapidly expanding its international presence. The latest partnership with Spiegel TV will increase brand awareness in Germany, as well as add hundreds of hours of duplicate German content. Annual revenue growth of 80% to $ 71 million for fiscal year 2021, of which more than 90% is already committed.
CuriosityStream is not yet profitable, which is not abnormal for a high-tech company growing at an early stage. However, against the background of direct customer growth, high visibility of fiscal year 2021 revenues, a large portfolio of attractive actual content in the markets, and expansion plans in Germany, the company offers an attractive risk-compensation offer to retailers.
fuboTV: (NYSE: FUBO) The growth of the number of households in the US ropeway will significantly increase from 31.2 million in 2020 to 46.6 million in 2024, as it enjoys an early advantage in the area of sports-centric live broadcasting. While viewers have long switched from streaming to streaming entertainment services, many continue to rely on cable news, satellite, or telecommunications for television. In fact, according to a study by Parks Associates, 27% of US pay-TV households opted for the service primarily for sports programs. The global live broadcast market is expected to grow from 2021 to 2027, with an annual growth of 27%. Offering FuboTV live sports և TV services at half the cost of such cable packages, the company seems to be in a good position to expand rapidly. subscriber base in the coming months. In the second quarter (ended June 30), the company’s customer base expanded by 138% year-on-year to 681,721.
In addition, the increase in advertising spending in a recovering economy may also be a major driver of fuboTV growth. eMarketer estimates that US video advertising spending will increase from $ 9 billion in 2020 to $ 24.8 billion in 2024. This is a good opportunity for the company, especially since the availability of first-party data allows it to make optimal decisions for content development and customer engagement. կատարում Advertising performance.
fuboTV will soon announce new revenue streams due to the planned expansion of the sports betting market. To that end, the company acquired Balto Sports, a competition automation software player, in December 2020, and Vigtory, a sports betting player, in January 2021. Zion Market Research expects the online sports betting market to reach $ 155 billion by 2024. Free gaming products in the third quarter ություն service of sports books or sports games և until the end of 2021.
The company faces some risks due to tough competition, dependence on the content of the license from external suppliers, lack of profitability. However, despite these challenges, the company seems to be well positioned for a sustainable growth trajectory in the coming years.
3. Rental of global ships
Rental of world ships (NYSE: GSL) It has emerged as a major beneficiary of capacity hire tariffs (the exchange rate agreed between the container operator and the shipowner), which is a direct consequence of the rapidly growing demand for consumer goods in the recovering economy due to the sharp shortage of vessels.
Unlike larger container vessels, the company’s medium-sized container vessels can operate on more commercial routes. In addition, new ship orders placed in the last few years have mainly been related to larger ships. About 70% of Global Container Trade comes from major cargo areas, and Global Ship Lease is currently in an enviable position.
Despite the increase in new ship orders, the supply-demand mismatch in the shipping industry will persist for several years. Demand for container trade will grow by 6.8% year-on-year in 2021 to 5.9% in 2022. However, it is predicted that very small container vessels will enter the market by the end of 2023 or the beginning of 2024 due to the limited capacity of shipbuilding companies. երկար Long shipbuilding periods.
At the end of the second quarter, the capacity of Global Ship Lease increased by more than 50% compared to the end of 2020. The company has agreed to acquire 23 small-medium containers with attached charters (contracts with cargo owners) with revenue of $ 906 million.
In the first half of 2021 (ended June 30), Global Ship Lease operating income increased by 9.6% year-on-year to $ 155.9 million, while net income increased by 70.1% year-on-year to $ 41.5 million. The company also more than doubled its quarterly cash dividend to $ 0.25 in the second quarter, which translates into a 5.45% dividend yield.
Against this background, although emissions regulations are emerging as a major risk factor for the entire shipping sector, there are some structural back winds that could push stocks to a high-strength trajectory in the coming months.
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