$9 5G Stock Set To Soar From Huawei Trade Ban!

RoboStreet May 30, 2019

A Great 5G Company to Buy on Market Weakness

Much of what goes into investing is recognizing when secular- or multi year- trends are unfolding and drilling down to find which companies are going benefit from disruptive and transformational change. Typically, the transformational changes involve a major advancement in technology where widespread implications to businesses and consumers realized.

Probably the most compelling technological change to affect all our lives has been the advent of the smartphone and features it brings that advance our ability to manage so many areas of importance from a mobile device. It’s clear that feature-rich smartphones are now something billions of people around the globe simply can’t do without. The monthly communications bill now falls into the same category as paying the water, power and medical bills. It’s an essential utility and only getting more essential.

The major land-based and wireless network service providers are contending with a rapid rise in peak-time network bottlenecks resulting in dropped calls, slower browsing and longer times for downloads. The expanded use of smartphones for gaming and video content puts tremendous demand on wired and wireless networks, which has prompted the current rollout of 5G technology to provide stationery and smartphone users with a much smoother experience.

 “I’m investing my own money in each and every stock as my AI platform identifies.”

And remember we’re not talking about day-trading here.  I’m looking for 50-100% gains inside of the next 3 months, so my weekly updates are timely enough for you to act.

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Most current networks operate under 4G technology, with a handful of 5G networks having been activated in some metropolitan areas. To put it simply, 5G offers data speeds of up to 100 gigabits per second, or up to 100 times faster than 4G. Techies cite “low latency” as the key beneficial property – the time it takes for information to be sent from one device or source to a receiving device.

The beauty of 5G advancements is that all 3G and 4G devices can be absorbed without bandwidth interruptions while also providing robust power to support the future of driverless cars and connected home products. All of these improvements require building out networks around the world to support 5G and that’s where a few network infrastructure companies come into focus.

Of the many companies touting a 5G solution or suite of products, Ericsson AB (ERIC) is making a big statement in the rollout of 5G networks within the biggest markets and among the biggest service providers. Now that the U.S. has painted a target on Huawei Technologies- Nokia and Ericsson- are getting very aggressive to take full advantage of the situation, as they are Huawei’s two biggest competitors,

Just this week, Japanese mobile carrier SoftBank Group announced it would upgrade its next generation networks with gear from Ericsson and Nokia. According to BofA Merrill, Ericsson has a technology lead over Nokia and raised their rating to “Buy” amid bullish meetings with Ericsson management. Plus, Ericsson has been savvy in gaining a lead in markets that are quickly transitioning to 5G, gaining a competitive foothold.

Source: Ericsson

The company’s move to address North American markets, where investment in 5G has been strong, is paying off. First quarter 2019 results were nothing short of impressive as revenue of $33.5 billion was 12.7% higher than Q1 2018 while operating income rose by 41.02% to $5.5 billion as margins expanded to 16.4% from 13.5%. The first quarter numbers were very impressive as earnings per share of $0.09 were 50% higher than forecast. These are solid year-over-year numbers and lay the groundwork for a strong 2019 and beyond.

From a purely technical standpoint, shares of Ericsson are in a nice uptrend, having hit $10.50 on an earnings spike, following by some back and filling with the recent market downturn. The opportunity to win huge deals from blacklisted Huawei is a dramatic catalyst for the company and the stock.

With global stock markets headed for six straight weeks of selling, almost every great stock is giving up a bit of ground as traders and investors book profits, cut losses and reduce risk. Rising volatility is warranted when trying to get into the most bullish 5G stocks that provide few good entry points in a strong market. The 5G sector is in its own “stealth bull market” and will continue to boast fantastic growth numbers and stock returns for those companies that have heavy exposure to 5G networks.

More importantly, my Tradespoon AI platform will guide traders and investors as to when and what price to own 5G stocks like Ericsson. It’s exactly these kinds of uncertain markets that keep the caution flag raised and cash on the sidelines. But my “always thinking” AI programs are finding high-quality and profitable trades every day, making money for subscribers, even in a difficult investing and trading landscape.

In fact, our subscription-based investing service RoboInvestor is making money for investors 93.55% of the time it recommends putting capital at risk. That’s an unheard-of batting average in baseball and on Wall Street. Of the 62 trades recommended that have been closed out, 58 have been profitable with the average return per trade being 4.74%. By comparison, the S&P and Nasdaq are virtually unchanged from June 2018.

Just during the month of May, when every week the market was losing ground, those subscribers to RoboInvestor that allocated $10,000 to each recommendation booked profits of $403 in Waste Management (WM),$525 in WEC Energy Group (WEC), $325 in iShares 20+ Year Treasury Bond ETF (TLT), $199 in Alphabet (GOOGL) and $253 in Abbott Labs (ABT). In April, we booked profits of $433 in Netflix (NFLX), $365 in JP Morgan (JPM), $799 in Starbucks(SBUX), $757 in Alphabet (GOOGL) again, $211 in TJX Corp. (TJX), $473 in Pepsico (PEP) and $284 in Ross Stores (ROST). The combined gains of these trades total $5,027. And the major averages are actually trading at a lower level today than at the beginning of April.

So much for passive investing. This isn’t that kind of market anymore and having a set of proactive AI tools to spot ideal points of entry and exits takes a surgical approach to making money on a consistent basis. In addition, and this is highly important, I don’t toy with second and third-tier names, only the crème de la crème sector leaders that are the go-to stocks for professional money are deployed in RoboInvestor.

Investing with a high level of comfort is key to maintaining discipline. When a portfolio is long stocks that are tremendous long-term holdings, it helps greatly to weather the short-term volatility. Investors almost always get a chance to sell Amazon.com or Microsoft or any of the stocks noted above at a price higher than where paid in good time, but the idea is to shorten the time in which to realize profits.

Timing those entry points and exit points is where my AI platform does its best work, and for investors that seek to manage a portfolio of around 20 stocks and ETFs, RoboInvestor is custom-tailored for just this time-tested and track-record proven approach to managing risk-on capital properly and profitably. Give me and my AI-driven system the opportunity to go to work for you today and let’s pay for that summer vacation well before you take it.

 “I’m investing my own money in each and every stock as my AI platform identifies.”

And remember we’re not talking about day-trading here.  I’m looking for 50-100% gains inside of the next 3 months, so my weekly updates are timely enough for you to act.

Click Here – To See Where I Put My RoboInvestor Money

*Please note: RoboStreet is part of your free subscription service. It is not included in any paid Tradespoon subscription service. Vlad Karpel only trades his own personal money in paid subscription services.  If you are a paid subscriber, please review your Premium Member Picks, ActiveTrader, MonthlyTrader, or RoboInvestor recommendations. If you are interested in receiving Vlad’s personal picks, please click here.