Penn Wealth Publishing

2019.01.13 Penn Wealth Report Vol 7 Issue 01

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13 Jan 2019 penn wealth Report volume 7 issue 01 15 Penn Wealth Report Copyright 2019. All Rights Reserved. investment intelligence Under The radar Four companies being ignored—or missed—by the financial press iPath S&P 500 VIX Short-Term Futures ETN Alternatives Inverse funds can be an effective way to play a market downturn, or to hedge your long positions against a down market. But what about volatility? ere are often spells in which volatility is disconcertingly quiet—a trader's worst scenario. However, it is a condi- tion guaranteed to rear its head with a vengeance, typically after investors have been lulled into a false sense of security. To play wild swings in the market, either to the upside or downside, one option is the iPath S&P 500 VIX Short-Term Futures ETN (VXXB $26- $51-$58). Currently up 86% YTD, the fund thrives in chaos. Just use caution—and stops. First Trust NASDAQ Cybersecurity ETF Technology: Comp Software Semtech Corp Semiconductors Ternium SA Basic Materials: Steel Let's face it, the global cybersecurity threat is only going to get worse. With state-sponsored players in China, North Korea, and Russia, there is a hyper-critical need for American companies to protect their systems from hack attacks. From an investment standpoint, the NASDAQ was hammered in the fourth quarter of 2018, taking down vir- tually all players. CIBR contains such industry juggernauts as Palo Alto Networks, Fortinet, Trend Micro, Cisco Systems, and Raytheon. While shares of this dynamic ETF were flat last year, we expect major gains in 2019. We placed a stop loss on the position at $19.75/ share. (See the "Trading Desk.") Semtech Corp (SMTP $31-$49-$61) is a mid-cap ($3 billion) semiconductor manufac- turer and a leading supplier of high performance analog and mixed-signal semiconductors and advanced algorithms. Now that the official description is out of the way, let's talk about how the company might impact you: Its wireless charging products eliminate the need for cables and cords to charge all of your electronic gadgets. Its LoRa® technology is a direct competitor to Wi-Fi and cellular, and will help power the Internet of ings (IoT). e company's protection products group provides a shield for your devices from a variety of electronic threats. Semtech earned $48 million on $608 million in sales over the TTM. While based out of Luxembourg, Ternium SA (TX $26-$29-$42) has steelmaking operations across Latin America, with a total production capacity of over 11 million metric tons per year. is is a play on the construction boom in many Latin American countries, to include Brazil, Mexico, Argentina, and Columbia. is $5 billion mid-cap is a cash cow. With a tiny PE ratio of just 4, the company earned $1.4 billion on $11.77 billion in revenues over the trailing twelve months. Furthermore, the company gives shareholders a 3.82% dividend yield. Ternium has been profitable every year for the past ten years. 3 2 1 4

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