Market Crash Alert: Dollarama (TSX:DOL) Stock Is a Buy

Timor Invest

Dollarama Inc (TSX:DOL) stock has crushed the market over the long term. Over the past decade, shares have increased by more than 1,000% versus a measly 3% return for the S&P/TSX Composite Index. This stock rarely goes on sale, but the market crash is providing a limited-time opportunity to capitalize.

Dollarama’s historical success has come from a differentiated business model that allows it to offer unique items at a price its competitors can’t match. The key is sourcing directly from manufacturers.

Around half of Dollarama’s merchandise is now purchased from the manufacturer itself. This eliminates middlemen, effectively cutting costs for both the company and the consumer.

Additionally, by working directly with the makers of products, Dollarama can secure exclusive deals and provide rapid feedback to improve quality or features. That’s a line of communication that few competitors possess.

Dollarama stock has grown immensely over the years, but as we’ll see, the true growth has just begun. The recent market crash allows you to buy into this growth at a sizeable discount.

Dollarama can actually benefit

During the financial crisis of 2008, we experienced a phenomenon called trend-to-thrift. This essentially describes how consumers shifted toward bargain stores and discounted retailers.

The evolution made sense. Millions of individuals and families were financially devastated from the market downturn and ensuing recession, but of course, people still need to eat. They still need clothes and many other life necessities. These consumers still purchased plenty, but they chose to patron discount retailers.

This market crash appears destined to follow the same path. The Covid-19 crisis has caused a massive spike in unemployment. Even if conditions normalize rapidly, consumers will be significantly more cautious throughout the year to come.

Another trend-to-thrift movement should occur regardless of when the current market crash ends. As evidenced by previous downturns, consumer confidence can take a long time to revert to normal levels. This bear market will be no different.

So, Dollarama could ultimately benefit from this market crash. That fact hasn’t stopped shares from sliding alongside the rest of the market. In recent weeks, Dollarama stock has dropped 20%.

Dollarama looks like a great way to capitalize on the frugality of consumers, but it also has a secret growth opportunity that will persist long after the coronavirus crisis is over.

Market crash shopping

Dollarama stock now trades at 20 times trailing earnings — its cheapest valuation in years. And despite the market crash, profits should still rise this year.

The existing Dollarama business alone is trading at a bargain price, but its the future business that is most lucrative.

Last year, Dollarama acquired a majority control of Dollarcity, a discount retail chain that runs Dollarama’s exact strategy. But rather rather than focusing on Canada, Dollarcity is launching stores in high-growth markets across Latin America.

These regions have very little competition. Dollarcity today is very much like the Dollarama of 10 years ago, just before the stock went on a huge run.

By 2029, the company wants to open more than 600 new Dollarcity stores. Note that Dollarama has just 1,200 stores in Canada, so Dollarcity will provide a huge growth tailwind.

In summary, Dollarama’s business could ultimately benefit from the market crash. But the Dollarcity opportunity makes this stock a buy long after the coronavirus crisis passes.

Remember that this isn’t the only buying opportunity following the market crash. There’s never been a better time to find cheap stocks with exciting futures. Build your watch list today and be prepared to strike.

Just Released! 5 Stocks Under $49 (FREE REPORT)

Motley Fool Canada’s market-beating team has just released a brand-new FREE report revealing 5 “dirt cheap” stocks that you can buy today for under $49 a share.

Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.

Don’t miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.

Claim your FREE 5-stock report now!

Fool contributor Ryan Vanzo has no position in any stocks mentioned.

from https://ift.tt/2UHLMGA

2 Dividend Stocks to Buy During the Market Crash

Timor Invest

Dividend stocks can protect your portfolio from the market crash. These companies deliver a regular stream of income that can be crucial during a bear market. You can use the cash dividends to supplement your income, or you can redirect the capital to buy even more stock.

Dividend stocks aren’t foolproof. Many companies masquerade as reliable dividend payors when times are good. But during a market crash, the payout vanishes.

The goal should be to find dividend stocks that can deliver a regular stream of income regardless of what happens with the global economy. The following two picks have a proven history of doing just that.

Never sell this stock

Brookfield Renewable Partners LP (TSX:BEP.UN)(NYSE:BEP) is a stock you want to own for the next 30 years. It’s also the perfect stock for a market crash.

As its name suggests, Brookfield is a renewable energy company. It owns renewable energy assets around the globe. Its 18,900 megawatts of capacity includes solar, wind, hydro, and battery storage facilities.

Renewable energy assets produce — you guessed it — renewable energy. That energy is critical to the communities that buy it. That’s why entire regions commit to multi-decade contracts that ensure they get access to the energy production.

For example, Brookfield recently purchased $1.2 billion of solar and wind assets in Spain that have 100% contracted cash flows. Highly visible cash flows like this help support a 6% dividend — a payout that has grown every year since the company was founded.

The best news as that the renewable energy boom has just begun. Over the last five years, $1.5 trillion has been invested worldwide in renewable energy assets. Over the next five years, $5 trillion is expected to be invested. The next decade should bring in another $10 trillion.

Brookfield stock can deliver a rock-solid 6% yield throughout the market crash. Long-term growth will be icing on the cake.

Market crash safety

Canadian Utilities Limited (TSX:CU) is yet another example of a bulletproof business. There are few other stocks I’d want to own during a market crash.

Like Brookfield Renewable, Canadian Utilities is focused on low emission fuel sources. Around 75% of its energy comes from natural gas, with the remaining 25% coming from hydro. It also focuses on projects with high cash flow visibility. Roughly 90% of its portfolio is underpinned by long-term contracts.

If you want to understand just how reliable this company is, just look at its dividend history. Canadian Utilities has raised its dividend for 48 consecutive years — the longest uninterrupted streak of dividend increases in Canadian history.

Following the market crash, the dividend yield has risen to 5.2%. But if previous downturns are any indication, Canadian Utilities will emerge unscathed.

During the latest financial crisis, for example, Canadian Utilities stock outperformed the market by double-digits. At the start of 2008, just before the volatility began, Canadian Utilities stock was priced at $24. By the end of 2010, shares had surpassed $27. And don’t forget that dividends continued the entire time!

Throughout one of the worst market crashes in history, Canadian Utilities shareholders generated positive annual returns of around 7%.

While there are dozens of other deals worth pursuing right now, Canadian Utilities is simply the best dividend stock you can own during a bear market.

Just Released! 5 Stocks Under $49 (FREE REPORT)

Motley Fool Canada’s market-beating team has just released a brand-new FREE report revealing 5 “dirt cheap” stocks that you can buy today for under $49 a share.

Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.

Don’t miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.

Claim your FREE 5-stock report now!

Fool contributor Ryan Vanzo has no position in any stocks mentioned.

from https://ift.tt/2yiKVob

Big Tech in Blockchain: Comparing IBM, Microsoft, Apple, Google and More

Timor Invest

The world’s largest technology companies have made concerted efforts to investigate and integrate blockchain technologies over the past few years. Partly driven by a massive boom in interest caused by Bitcoin’s stellar bull run in 2017, blockchain technology quickly became the new catchword in tech. A swathe of startups entered the fray during that period as entrepreneurs looked to cash in on the hype in the space.

Bigger companies that weren’t looking into the benefits of the technology faced the risk of being left behind and began to carefully explore solutions to their own business mechanisms. Others had already begun exploring the potential benefits that blockchain could bring to various systems. That included some of the biggest names in the tech space, including IBM, Samsung, Google, Sony and Apple. 

IBM

American tech giant IBM has made waves in the space for filing a multitude of patents that use blockchain technology. The company has been a leader in adoption since 2014, putting it well ahead of most when it comes to developing and using blockchain-based solutions. 

One of IBM’s earliest forays into the technology was exploring the capabilities of blockchain technology to power the Internet of Things. The Address Energy in Parallel Technologies project, or ADEPT, was born in collaboration with Samsung, which allowed domestic appliances to autonomously interact with its environment. 

The project’s use case was proved by a Samsung washer autonomously ordering its own detergents and replacement parts. The ADEPT concept used Telehash for communication, BitTorrent powered its file sharing, and the Ethereum blockchain was used for functions that required more in-depth contract capabilities.

The company’s most defining work came in 2015 with the launch of the IBM Blockchain. The platform is built on the Linux Foundation’s Hyperledger Fabric — which IBM contributed to developing alongside a host of other companies.

The IBM Blockchain is an enterprise blockchain solution aimed at large scale businesses and corporations. The platform allows users to join existing blockchains or even create new platforms suited to their needs. The IBM website estimates that it has over 500 live, working blockchain projects. These projects cover a broad spectrum of industries, including trade finance, supply chains and identity services. 

Notable blockchain projects include supply chain management platform TradeLens, which was developed by shipping giants Maersk together with IBM. The system tracks real-time data of shipping transactions and progress in a permissioned network.

Related: Walmart’s Foray Into Blockchain, How Is the Technology Used?

IBM’s Food Trust Blockchain is another notable platform that has onboarded some major conglomerates over the past two years. The blockchain-based food tracking platform is being used by the likes of Nestle and Unilever, as well as America’s leading retailer, Walmart.

Microsoft

Since its inception back in 1975, Microsoft has been a leader in the IT and technology spheres. It’s operating systems have made it famous, but the company has branched out to provide a wide range of technology goods and services. Blockchain technology has not gone unnoticed by the company either. Although like IBM, it has focused on the development of private enterprise solutions as opposed to open-source, decentralized blockchains.

Microsoft’s Azure cloud computing service is the backbone of its move into the space and allows businesses to build and manage applications to improve a wide variety of internal and external services. A branch of the platform is the Azure Blockchain Service, which allows users to create their own consortium networks and applications using prebuilt networks and software. 

The Azure Blockchain Workbench allows developers to deploy a network, using existing infrastructure that is touted to reduce the amount of development time it would take to create an in-house solution. This includes automatic ledger deployment, network construction and pre-built blockchain commands.

The platform has been employed by a number of companies around the world. American coffee company Starbucks deploys the Azure Blockchain platform to track coffee beans from its source farmers to its many stores around the world. 

Global aviation company GE Aviation also uses the Azure Blockchain service to record and track the details of aviation parts. The process has traditionally been done on paper, which is both time consuming and costly. The likes of Singapore Airlines, the Nasdaq, 3M and Xbox have used the Azure Blockchain platform for various offerings as well.

Samsung

South Korean tech giant Samsung has played an interesting role in the cryptocurrency and blockchain space for a number of reasons. Samsung is a major player in the electronics manufacturing industry in particular, and this has also spilled over into the cryptocurrency sector. The company is among the top producers of smartphones and semiconductors — two products that are actively used by crypto enthusiasts. 

Samsung’s processors became highly sought after during Bitcoin’s bull run in 2017, as users flocked to buy ASIC cryptocurrency miners. From the beginning of 2018, the company began designing and creating ASIC chips specifically designed for mining.

Samsung also integrated cryptocurrency support into its smartphones in 2019 with the launch of the Blockchain Keystore application market. The major application launched was a password wallet for users’ private keys. The functionality was rolled out with Samsung Galaxy S10 smartphones and is now supported on six of its devices, including the S10e, S10, S10+, S10 5G, Note10 and Note10+. A number of blockchain-based applications have been made available on the Blockchain Keystore since, and the Galaxy S10 smartphone now supports an even greater number of cryptocurrencies. 

Last but not least, Samsung SDS, the company’s IT arm, has also joined the fray in the enterprise blockchain space. The platform was launched in 2017 and competes with the likes of IBM and Microsoft’s enterprise blockchain solutions. The blockchain platform allows businesses to create and manage their own services for payments, supply chains, identity credentials and smart contracts.

Sony

Japanese IT firm Sony is well known for its electronics, but it’s made some interesting moves utilizing blockchain technology. The company has taken a slightly different approach in its appraisal of the possibilities of the technology and has earmarked areas that would benefit the most — education, music rights and sampling.

In 2017, Sony announced that it was exploring a pilot project with Fujitsu to record and manage educational subject matter, records and grades using the Linux Foundation’s Hyperledger Fabric. The platform allows educational institutions to virtually store and share academic learning records for individuals in a cryptographically secure, distributed blockchain network.

This allows educational institutions or companies to have access to verified, tamper-proof educational records of the respective applicant or student. Conversely, it allows students and academics to have real-time access to their own academic records.

Sony has also identified an interesting use for AI and blockchain technology in the music industry. According to their Soundmain description page, Sony began to make inroads in a particularly challenging space for artificial intelligence around 2013. In the field of sound and music production, differentiating different instruments and sounds in music is incredibly difficult for machines — it is a uniquely human capability.

However, Sony’s developments in AI have led to some breakthroughs in audio separation technology. Its Soundmain platform enables users to separate different sounds into multiple channels from source audio that has already been mixed down to single or double channels.

The software is intended to be used as a remixing and audio rights tool. Artists would be able to record a full set live and use the software to identify and mix the different instruments into individual sound channels afterward. Blockchain technology comes in to address issues around the rights to different music samples, enabling composers or individual musicians to be compensated if their samples are used by other production studios.

Google, Apple maintain distance

Google and Apple are undisputed giants in the IT space, but both companies have kept blockchain technology and anything specifically related to cryptocurrencies at an arm’s length over the years. Both companies have copped criticism from the cryptocurrency community for their tough stance toward decentralized applications that are listed on the Google Play and Apple App stores. In response, the companies said that they act in the interest of safeguarding users from malware.

The harsh stance has seen major exchanges like Coinbase have its cryptocurrency wallet DApp removed from the Apple Store over unresolved issues pertaining to developer guidelines. As recently as the beginning of March 2020, Google Play has even removed the applications of various cryptocurrency news platforms, including Cointelegraph’s app. Google had previously removed a plethora of cryptocurrency mining apps from the Play store.

Nevertheless, Google has provided infrastructure assistance to cryptocurrency software firm Blockchain.com. The company uses Google’s Cloud service to handle its various databases for its Blockchain Wallet and Explorer services. The platform handles an enormous amount of data across various databases and has switched over to Google’s Cloud Spanner to streamline its processes.

Meanwhile, Apple announced the development of the CryptoKit framework in 2019 that was initially met with much fanfare from the cryptocurrency community. As Cointelegraph reported at the time, the hype around the project was somewhat unjustified once the company gave some clarity into the project.

The CryptoKit tool allows developers to carry out a variety of cryptographic operations. This includes the use of public-key cryptography to create and manage digital signatures. The software effectively allows developers to improve authentication and encryption services to improve security.

from https://ift.tt/2WSx0PY

Gold Foiled In Its Fourth Foray For 1,700

from Metals Analysis https://ift.tt/3dFbwM8
via IFTTT

Silver March 30 Short-Term View

from Metals Analysis https://ift.tt/3dz1dtj
via IFTTT

Silver And Gold Mirroring 1999–2011 Again?

from Metals Analysis https://ift.tt/39qDFmT
via IFTTT

Gold March 30 Short-Term View

from Metals Analysis https://ift.tt/3bwjoOg
via IFTTT