"10 BEST CHEAP DIVIDENDS STOCKS TO BUY INDER $20" , BY U.S. NEWS, 28 JULY

 The U.S. economy is on shaky ground and headline inflation levels remain historically high, having risen 4.9% year over year in April. One way for investors to offset the negative effects of inflation is to generate regular income via dividend stocks. Historically, dividends have accounted for about 40% of the total stock market return since 1930, but they have accounted for more than half of the market's total return during decades in which inflation was high, according to Fidelity. 

Fortunately, there are plenty of dividend stocks out there that don't cost an arm and a leg. Here are 10 of the best dividend stocks under $20, according to CFRA Research:

STOCK	YIELD
Vale SA (ticker: VALE)	4.9%
Ford Motor Co. (F)	10.5%
Kinder Morgan Inc. (KMI)	6.7%
Manulife Financial Corp. (MFC)	5.4%
Orange SA (ORAN )	5.7%
Telefónica SA (TEF)	7.5%
Nokia Corp. (NOK)	2.8%
Regions Financial Corp. (RF)	4.9%
Huntington Bancshares Inc. (HBAN)	6.3%
Host Hotels & Resorts Inc. (HST)	2.7%

Vale SA (VALE)

Vale is a Brazilian miner and is one of the world's largest iron ore and nickel producers. Analyst Matthew Miller says Vale has an impressive free cash flow profile that helps the company fund its dividend. Miller says Vale faces ongoing risks associated with the 2019 Brumadinho dam disaster in Brazil, but the company has taken appropriate measures to reduce the risk of future ruptures. He says Vale has a strong balance sheet and the stock is undervalued given its potential for capital returns. CFRA has a "buy" rating and $18 price target for VALE stock, which closed at $14 on May 10.

Ford Motor Co. (F)

U.S. auto giant Ford reinstated its dividend in late 2021 after suspending it in 2020. Critics of the move question Ford's focus as the company has also pledged to invest $50 billion in vehicle electrification technology through 2026. Analyst Garrett Nelson says Ford shares are attractively valued and the company has turned a corner from an operational standpoint. Nelson says the company's ongoing restructuring plan should help reduce operating costs and improve productivity, and investors get paid a solid dividend for their patience. CFRA has a "buy" rating and $16 price target for F stock, which closed at $11.89 on May 10.

Kinder Morgan Inc. (KMI)

Kinder Morgan is one of the largest U.S. midstream oil and gas companies, focused primarily on natural gas. Analyst Stewart Glickman says Kinder Morgan's strategy of taking a conservative approach to operations served the company well during the 2020 energy market downturn, and the company is now positioned to generate enough operating cash flow to cover its major 2023 outlays. Glickman says liquids demand has nearly recovered from pre-pandemic levels, and European imports of liquefied natural gas should boost LNG demand. CFRA has a "buy" rating and $21 price target for KMI stock, which closed at $16.79 on May 10.

Manulife Financial Corp. (MFC)

Manulife Financial is one of the world's largest insurers and wealth managers. Analyst Catherine Seifert says Manulife's revenue growth may slow in coming quarters, but the stock's modest valuation and peer-leading operating revenue growth should support the stock. In addition, Seifert says rising interest rates, easing pandemic restrictions and a rebound in asset values will be growth tailwinds in 2023. She projects 4% to 7% segment operating revenue growth in 2023 and between 5% and 8% growth in 2024. CFRA has a "buy" rating and $23 price target for MFC stock, which closed at $19.62 on May 10.

Orange SA (ORAN)

Orange is a diversified French telecommunications company. Orange shares are up 29.5% so far in 2023 through May 10, the best performance of any stock on this list. Analyst Adrian Ng says Orange's overall revenue growth of 1.3% in the first quarter was driven by repricing in Europe and strong performances in Africa and the Middle East region. Looking ahead, he expects the Spain market to stabilize, roaming revenues to recover and services revenue to remain stable. CFRA has a "buy" rating and $12.50 price target for ORAN stock, which closed at $12.79 on May 10.

Telefónica SA (TEF)

Spain's Telefónica is another attractive international telecom dividend stock trading under $20. Ng says Telefonica has made several key restructuring decisions to improve its balance sheet, including buying E-Plus in Germany and GVT in Brazil, and exiting the Central American market. In addition, Telefonica is combining its U.K. assets with Liberty Global PLC (LBTYA, LBTYB) in a joint venture deal that will generate roughly $3.1 billion in cash for Telefonica. CFRA has a "buy" rating and $4.50 price target for TEF stock, which closed at $4.40 on May 10.

Nokia Corp. (NOK)

Nokia is a telecom equipment and digital map data vendor that also licenses intellectual property to third parties. Analyst Keith Snyder says 5G wireless network upgrade investments in North America and China are boosting Nokia sales, and he anticipates the 5G cycle will be larger and last longer than previous upgrade cycles. Nokia hopes to regain Mobile Networks market share losses in 2023, and Snyder says the company's sales and margin guidance suggests this year will be a rebound year for Nokia. CFRA has a "buy" rating and $6.50 price target for NOK stock, which closed at $4.08 on May 10.

Regions Financial Corp. (RF)

Regions Financial is a U.S. regional bank providing consumer and commercial banking, real estate and mortgage products, and wealth management services in 16 U.S. states in the Midwest and South. Regions has taken a big hit in recent months as a string of bank failures have investors concerned about the stability of the financial sector. Analyst Alexander Yokum says Regions is well positioned to navigate the unpredictable deposit environment given its small average account balance. Meanwhile, the stock's underperformance has pushed its dividend up. CFRA has a "buy" rating and $23 price target for RF stock, which closed at $16.09 on May 10.

Huntington Bancshares Inc. (HBAN)

Huntington Bancshares is a U.S. regional bank offering full-service consumer and commercial banking, insurance, brokerage services and investment management, mostly in the Midwest region. Huntington shares are down 32.1% year to date through May 10 amid the banking crisis, the worst performance of any stock on this list. However, Yokum says the weakness is a buying opportunity. He says Huntington is relatively well positioned to navigate the crisis given 69% of its deposits are insured, suggesting the bank faces less deposit outflow risk than peers. CFRA has a "buy" rating and $14 price target for HBAN stock, which closed at $9.58 on May 10.

Host Hotels & Resorts Inc. (HST)

Host Hotels & Resorts is a real estate investment trust, or REIT, that owns a portfolio of luxury hotels in North and South America. Analyst Michael Elliott says business and group travel demand is still recovering from the pandemic in 2023 but will likely not make it back to 2019 levels this year. In addition, he says Host's destination properties are better positioned to weather a U.S. economic downturn than most hotels. He projects 4% to 6% revenue growth in 2023. CFRA has a "buy" rating and $19 price target for HST stock, which closed at $17.32 on May 10.

https://money.usnews.com/investing/stock-market-news/slideshows/best-cheap-dividend-stocks-under-20

MARKET ANALYSYS OF NASDAQ: " DIVIDENDS", 28 JULY

https://www.nasdaq.com/market-activity/dividends

"WATCH BETWEEN NOW & MONDAY" BY WOLVERINE, 28 JULY

 Wolverine: “Watch between now and Monday.”

The General Public Tier 5 could exchange currency at the new rates at a bank beginning on Thurs. 3 Aug. …Bruce

We are in a critical time frame window of the Great Wealth Transfer until Wed. 9 Aug. …BoPolony

On Wed. 23 August the new gold/asset-backed Quantum Financial System would be made public. …Bruce

“The RV will happen after a Global Financial crisis.” …Charlie Ward

"THE PROJECT TO DELETE ZEROS STILL EXISTS", 28 JULY

 OPENS 8 FILES WITH THE GOVERNOR OF THE CENTRAL BANK

The Governor of the Central Bank, Ali Al-Alaq, revealed today, Wednesday, measures that will contribute to the stability of the exchange rate, and while revealing the diagnosis of those involved in speculation in the market, he announced the delay in printing a new currency of the 20 thousand dinars category.

(Folks, they are NOT going to print the new 20k notes EVER!)

Al-Alaq said in an interview with the Iraqi News Agency (INA): “The Central Bank continues to provide the dollar at the official rate and cover all legitimate transactions for the purchase request, including remittances and credits for various imports.”

The rise in the exchange rate is temporary. (really? You said this months ago)

He added, “What is being talked about in terms of a rise in the exchange rate does not mean that there is a rise in the official rate, which is still the same formal sale required by the new system.

And he continued, “Merchants, in addition to other categories, cannot enter the platform because they do not practice legitimate activities and operations, and our role in the Central Bank is to push everyone who needs to buy dollars to enter the legal and correct path, and the process today is in fact a process of reorganizing the movement of trade and funds, which makes these operations subject to local and international controls and standards, which leads to an effective implementation of the Anti-Money Laundering and Terrorism Financing Law No. 39 of 2015.

(This last statement by Ali-Alaq explains why they are selling the dinars still outside of the electronic system. But he must wise up. This is where they are getting the dollars from….hello!!! anybody home! This is how the markets are manipulating the currency. There must a HARD crackdown or they will never control the dinar.)

Al-Alaq pointed out, “The process of implementing the new system in reorganizing the movement of trade and funds requires the cooperation of multiple parties, and we expected that the issue would receive support, implementation, and interaction from the official and popular parties to support the Central Bank in achieving the goal of this system to make the movement of funds proceed in legal contexts and correct criteria to avoid any internal or external risks.

The Bank’s actions need to be supported by all parties.

He stressed, “The international financial system is integrated, coherent, and interdependent, in which some influence others, and all financial institutions in the world deal with the movement of funds with caution within an accurate assessment of risks and verification of the sources of funds and their beneficiaries. Iraq is part of this system, and we must achieve a high degree of compliance with the standards.” The international financial system to ensure the integrity of our financial system, and this, as we indicated, requires great support for the Central Bank, and for each party to take its role.

And between the Governor of the Central Bank, that “regulating foreign trade falls outside the control of the Central Bank and requires the cooperation of multiple parties concerned with this file, such as the Ministry of Commerce, the Border Crossings Authority, the Customs Authority, the security services, and other parties, and what we are doing serves all parties, the country’s economy and its general situation, and therefore there must be solidarity.” Collaboration and interdependence between everyone with the Central Bank to achieve the goal of the system.

He pointed out, “We often hear observations about the dollar sale process and currency movement, and today when the Central Bank assumed this great responsibility to reorganize it and put it in its correct contexts, the issue cost a great effort of human resources to monitor the process and ensure its safety with the application of electronic programs that cost the bank large sums.” of investments, and we seek the assistance of an international auditing firm to review and verify operations, and here there must be support and backing to achieve the primary goal.

He pointed out, “Prime Minister Muhammad Shia al-Sudani personally is one of the main supporters of the campaign to support the Iraqi dinar.”

Regarding the experience of generalizing electronic support, Al-Alaq explained that “the issue receives great interest from the Central Bank, and now a meeting has been completed with an international company for electronic payment, and there is progress, but it depends on expanding the circle of culture in this aspect.”

And he indicated, “The experience of electronic payment for citizens against government institutions has begun to succeed, and there are many departments that have joined, and we are working on a very important step, which is conducting transactions by paying via mobile phone, that is, a person can pay as soon as the other party has a (code) where any A person holding this code can pass the code on the device and enter his account, which is an advanced step even from using cards.”

IRAQ’S DEBTS

Regarding the size of Iraq’s debts, Al-Alaq indicated, “The internal volume of Iraq’s debts is about 65 trillion, of which 46 trillion belongs to the Central Bank, and the rest belongs to government banks, and is paid in the form of payments, while the external debt is about 20 billion dollars, while the reserve is The Iraqi reserves are more than 113 billion dollars,” noting that “the adequacy of the Iraqi reserves is high, and it guarantees foreign currencies and gold.”

RIYADA INITIATIVE

And Al-Alaq continued, “The Prime Minister launched a leadership initiative to qualify young people and enter them into small projects, and to embrace their capabilities and innovations,” pointing out, “The Central Bank entered as a financing party by launching a project to establish Al-Riyadah Bank, in order to absorb and finance these capabilities.”

And he indicated, “The Central Bank is in the process of establishing this bank, and there is great interest from us and private banks, indicating that the bank has various initiatives, including financing small and medium projects and the ongoing housing lending initiative through the Real Estate and Housing Bank, as well as we have an initiative to support the use of solar energy, and there is an initiative related to The displaced, in partnership with the international institution, and we have financing previously funded industrial and agricultural projects, and the bank is working to complete its financing while it is re-studying the initiative related to the industrial sector.

He pointed out, “It has been dismissed from printing the category of twenty thousand dinars because of the existence of a category of 25 thousand dinars, and we do not wish to expand the current categories, because the project to delete zeros still exists.”

Regarding the structure of government banks, Al-Alaq said, “There is now coordination and focus on this file, and great interest from the Prime Minister personally, and periodic meetings in this field, and we have some ideas about these banks that we are working on implementing at the present time.”

IRAQ NEWS BY IQD IRAQ & VND VIETNAM, 28 JULY

 Without siding with the region… Political efforts to legislate the oil and gas law

7-27-2023

Without siding with the region... Political efforts to legislate the oil and gas lawInformation / Bagdad …

Today, Thursday, a member of the Al-Fateh Alliance, Ali Al-Zubaidi, confirmed the existence of political movements and endeavors to legislate the oil and gas law and ensure fair distribution of oil revenues and wealth without siding with the region in this file.

Al-Zubaidi told Al-Maalouma, “There are vigorous moves to pass the oil and gas law in a fair manner for all, so that it regulates the relationship between Baghdad and Erbil and the distribution of wealth is fair, provided that the central government distributes the revenues coming to it, whether from Erbil or elsewhere.”

He added, “The oil of the areas under the control of the terrorist ISIS in the past period was sold to the region, in addition to the region’s smuggling of oil extracted from the fields of Kirkuk, and therefore the need has become urgent to pass the oil and gas law.”

And that “the legislation of the aforementioned law will make the oil wealth in the interest of Iraq as a whole and not only in the interest of the region, but it will legalize the oil file.”

Al-Zubaidi indicated that “resolving the law may take more time before it is legislated within the House of Representatives.”

almaalomah.me

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The dollar exhausts the dinar.. the suffering of citizens continues, and an economist proposes a “crazy solution”

2023-07-27 | 05:48

The dollar exhausts the dinar.. the suffering of citizens continues and an economist proposes a crazy solutionThe repercussions of the high exchange rates of the dollar in the Iraqi markets against the dinar and its effects on the Iraqi economy continue to exhaust economists and the political class and increase the suffering of citizens.

Despite the many measures taken by the current government, through theCentral Bank of Iraq, all that he has worked on will not be able to confront the rise of the dollar and will not be able to stop the series of bleeding the local currency.

The new rise in the Iraqi markets came after the imposition of new US sanctions on 14 Iraqi banks, which caused a big jump in the exchange rates of the dollar, in light of the growing demand for it in the local markets during the past week.

As the purchase price of the dollar inBaghdad157,500 per 100 dollars, i.e. an increase of 3000 dinars from yesterday, while the selling price of the dollar amounted to 155,500 per 100 dollars.

Economists and government advisors proposed a number of solutions, but most of them did not reach the point of solving a problem that threatened the Iraqi economy from time to time. However, what the economist put forward,Nabil Al-MarsoumiIt might be considered a “crazy solution”.

Says the economistNabil Al-MarsoumiIn a follow-up postAlsumaria NewsThe only solution currently available to address the current exchange rate crisis is to return the dollar exchange rate to the pre-pandemic levelcoronaThat is, to the level of 1180 dinars per dollar.”

And he adds, “This solution is economically insane and at a high financial and economic cost,” pointing out that “it is a temporary solution that will not address the essence of the problem, but it will stop the continuous bleeding of the Iraqi dinar and give the monetary authorities an opportunity to search for serious solutions to the origin of the crisis.” instead of unenforceable promises.”

And the economist asserts, “This idea will be violently rejected by economists, and politicians will implement it, even after a while; Because the current battle goes beyond the exchange rate to breaking bones.”

alsumaria.tv

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Almost complete suspension of applications of the dollar exchange in Iraq

7-27-2023

Almost complete suspension of applications of the dollar exchange in IraqInformation / Baghdad..

On Thursday, the electronic “stock exchange” applications witnessed a halt in displaying updates of the exchange rate of the dollar in the parallel market.

Experts point out that the mobile applications that promote local exchange rates (black market exchange rates) do not reflect the real demand in the market, such as a real electronic auction or stock exchange, but are merely a means of media display.

Earlier, experts warned against using these applications as a tool to change the direction of the market, due to its wide spread and the degree of dependence of markets, traders and merchants on its presented data, through the imaginary effect on exchange rates and the impact on the markets.

The dollar exchange rates recorded high levels in recent days, until they reached levels of 157 thousand dinars per 100 dollars, amid punitive measures imposed by the United States on some private banks.

almaalomah.me

Coffee with Militia Man, MarkZ and Mr. Cottrell 07/28/2023

Thank you MarkZ for all your time, and encouragement daily….. PDK

MarkZ Friday Update- Some highlights by PDK-Not verbatim

MarkZ Disclaimer: Please consider everything on this call as my opinion. People who take notes do not catch everything and its best to watch the video so that you get everything in context.  Be sure to consult a professional for any financial decisions

Member:  Good morning MarkZ and friends

Member: Welcome to another weekend

Member: And the Dog and Pony show continues……….

Member: I always thought a great time to release the RV is when all the markets close on a Friday night…….

Member:  Give us some good news Mark!!

MZ: MilitiaMan may pop in today and Mr. C will be with us today. I have no intention of having a podcast tonight unless breaking news happens and am hoping we go from this evening to Monday morning where we usher in a golden age when I return.  I need the down time and some rest. 

Member: Bo Polny " saying This Event is about to Happen

Member: Hope you have an Awesome Weekend everyone!! Relax on Saturday!!

MZ: I have some Redemption Center contacts who are on call this weekend, but not scheduled to work. 

MZ: Nothing from bond folks or CMKX. It’s very quiet and I continue to believe this is an indicator on how close we are. I don’t think they can keep this many people quiet without a great amount of anticipation.  

                         

MilitiaMan joins the stream……

MM: Good Morning everyone…..Thanks for having me Mark. 

MM: There have been some exciting things happen this week. I would have to say that the actions of the central bank ….The black market/parallel market is in the news and them focusing on finally telling everyone the truth of the matter is the black market is illegal. 

MM: This morning they talked about the black market rates are imagineary…And the citizens are getting hit hard too.  We believe this illegal black market is going to cease to exist. 

MM: Once they go to an international effective exchange rate –the balck market is going to go away as they know it. 

MM:  And Al Alaq ( governor of the CBI) has come out and stated that the “Project to delete the Zeros” still exists. And he goes on to say they are NOT going to produce 20K notes….and they are not going to produce any more categories of notes that are in existence now. (25K notes?) 

MZ: Also I saw that there is advancement with the whole Kurdish region ….and the dollars there

MM: If I’m not mistaken – they are the worst offenders of the black market. But they are fully on board with the HCL oil and gas law…so that is heavy duty and big….We should see more on that soon….in the coming days.

MM: I think what everyone is waiting for is the exchange rate. The HCL is going to need it. The 2023 budget allocations to start spending for projects is going to need it. The salaries to be paid to the Kurdistan region is going to need it. 

MM: I think that is where we are. 

Member: We all need it too!!!!!

MZ: They are being extremely secretive about corrections and guarding them greatly.

                            

MM: They did not broadcast it when they changed the rate to 1310 ahead of time…

MZ: No they didn’t but they did signal a change to support value…and then BAM.

MM: And Sudani did say the Dinar will be stronger than the dollar. There is a lot of talk about the dinar –on the streets and everywhere. It’s all about the exchange rate. This is definently a big topic…even on the streets. 1132 is not going to help them

MM: To me……they are keeping this correction hush, hush….we saw the Arabic side of the budget was published and read by people  at 1.3. A Forbes article said 1.3 and they have been keeping it tight. 

MM: I do not think this 1310 or 1.3 means $1.30 cents. I think it’s a reciprocal of 1 to 1 and that would be about .77 cents …like dropping the 3 zeros. That is what it will be like. Then once they apply the REER (Real Effective Exchange Rate) the game is going to change. Their purchasing power is going to change. Their projects in the budget are going to be funded.  

MZ: They told us they are at least going 1 to 1 as a bare minimum. I still expect considerably higher.  Thank you very much MM for joining us today …Be sure to follow MilitiaMan and Crew and like and share their videos. 

MM: Appreciate you guys very much. 

Member: Thanks Mark, MilitiaMan and Mr. C for your time and encouragement. Have a great weekend everyone. 

Member: We will miss you Mark !! But, you need the rest, have a quiet weekend!

Member: In a blink of an eye! It’s time ! We have made it ! Harvest time ! This is are award for our hard work!

Mr. Cottrell also joins the stream today. Please listen to the replay for his and Militiaman’s full information and opinions.

“THE INFORMATION IN THIS PODCAST IS FOR GENERAL & EDUCATIONAL PURPOSES ONLY. NOT INTENDED TO PROVIDE ANY PROFESSIONAL & LEGAL ADVICE.” PLEASE CONSIDER EVERYTHING DISCUSSED IS IN MARKZ’S OPINION ONLY.

"HOW THE TECHNOCHASM BECAME AN ABYSS" BY ERIC FRY FROM INVESTOR PLACE, 28 JULY

 How the Technochasm Became an Abyss

Eric Fry

Dear Reader, 

What is the "Technochasm", and why does it matter?

In a word, it's the "splitting" of America; it's the creation of "haves" and "have nots" right in front of our eyes. And it's driven by the ever-increasing speed, power, and progress of technology.

Because on one hand, America is a place of extraordinary wealth… a place where technology executives and investors see thousands-of-percent returns in their portfolios.

They can fly around in private jets and buy beachfront condos anytime they want – the American system is working great for these folks.

On the other hand, many Americans are struggling to make ends meet, no matter how hard they work. And to these folks, our system is a disaster.

In fact, a few years ago, a study found that Bill Gates, Jeff Bezos, and Warren Buffett have more wealth than the least wealthy 50% of Americans.

Let that statistic sit with you for a minute: THREE people have more combined wealth than 160 million Americans.

Unfortunately, most people don't know what's really causing this divide; they don't understand that no one – not you, not me – can stop this trend. Moreover, they don't know that the situation will only get worse over the coming years.

That's why it's critical for you to learn why technological progress is happening at a blistering pace…

And why you MUST learn how to structure your investments so you are on the right side of the "Technochasm."

And today, let's talk about how to do that.

The Great Divide

On the winning side of the Technochasm, we find thriving technology-powered businesses and professions.

On the other side, we find everything else.

And the COVID-19 pandemic has driven a massive wedge between these two sides to force them further apart than they've ever been.

The chart below tells the tale. The S&P 500 Software Index just hit a new all-time high, while U.S. employment plummeted from an all-time high to a 24-year low.

And the true employment picture is even uglier than the one above.

As the chart below shows, the percentage of the U.S. labor force that is currently employed just tumbled to its lowest level in at least 70 years.

Generally speaking, the 42 million newly unemployed Americans possess no techno-centric safety net. They cannot simply convert their bartending job, for example, into telecommute mode and serve virtual drinks until cyber-closing time.

Once the COVID-19 pandemic struck, nearly every industry or profession that involved direct human interaction found itself face to face with a shutdown order… and zero revenues.

From hairstylists to dentists, from cable installers to bowling coaches, the inability to transition from the normal, physical mode of business to a virtual mode caused a complete loss of livelihood.

Meanwhile, every individual who could shift to some sort of work-from-home lifestyle did so. Quite obviously, the types of businesses and professions that can operate out of a home office tend to be more technology-based than those that can't.

Our economy will always feature a wide array of enterprises – some of which require intense human interaction, and some of which require no interaction whatsoever.

A restaurant will always be a restaurant. It can't ever be a video game. A music festival will always be a music festival – never an iPhone app.

Farming will never become a virtual activity, no matter how technologically savvy we become. Perhaps squads of robots and drones will one day grow and harvest acres of corn, but they would still need seeds, soil, and water to do the job.

In other words, the Technochasm phenomenon does not imply that any one profession or industry is better than another; it merely highlights the vulnerability of non-tech-based professions and industries, relative to their tech-enabled counterparts.

The Technology Advantage

As a group, low-tech professions and industries are not as adaptable to economic shocks. Additionally, they cannot establish and fortify their competitive advantages as quickly or efficiently as their high-tech counterparts.

A low-tech company operating in the midst of rapid technologic innovation is like a human being swimming in the open ocean.

No matter how well that human might be able to muscle through the giant swells, a cruise ship can do it better… and faster… and more securely – while also serving up chardonnay and sushi.

The "cruise ships" of this metaphor are the companies that either develop new technologies or effectively integrate those technologies into their existing processes.

IndustryWeek observes:

The definition of a smart manufacturer can vary significantly from one organization to another. However, truly becoming a "smart manufacturer" often depends heavily on an organization's ability to seamlessly integrate the latest tools and technologies into existing production environments. And doing so in a manner that provides noticeable improvements in productivity, efficiency, and capability.

But integrating new technology is hard work, especially if you're a big, fat, happy U.S. corporation that has enjoyed decades of success. Often, the stewards of such corporations fail to recognize the competitive perils they face… and, therefore, fail to adapt quickly enough to save themselves.

Many great American success stories later become infamous American failure stories because they failed to innovate. As a result, they shuffled off into irrelevance and bankruptcy.

That ignominious list of companies would include names like:

Blockbuster Video, the titan of home movie and video game rental services, is one of the most spectacular – and ironic – of American success-to-failure stories. At its peak in 2004, Blockbuster employed 84,300 people worldwide and operated more than 9,000 stores.

Just four years prior to this peak of prosperity, an up-and-coming company called Netflix Inc. (NFLX) offered to sell itself to Blockbuster for $50 million. But then-CEO of Blockbuster John Antioco dismissed Netflix as a "very small niche business" and rejected the offer.

Two decades later, Blockbuster is an extinct B-school case study in corporate hubris and managerial myopia. Netflix is a $191.1 billion juggernaut.

Since Blockbuster's demise in 2010, the retailing landscape has become even more treacherous for brick-and-mortar retailers. In 2019 alone, an estimated 12,000 retail stores closed. And the tally of store closures continues growing by the day. Investment bank UBS estimates retailers will shutter another 75,000 physical stores across the United States by 2026.

And yet, even while thousands of U.S. retailing operations are pushing up daisies, a few tech-savvy retailers are growing like redwood trees. And their share prices are performing even better than many of the stock market's leading tech stocks.

Brick and Byte Retail

For example, even though the coronavirus pandemic has dealt a setback to the physical retail operations of Nike Inc. (NKE), Lowe's Cos. Inc. (LOW), and Lululemon Athletica Inc. (LULU), the shares of all three retailers are now trading at or near all-time highs.

That's because each of these companies has developed robust direct-to-consumer (DTC) sales channels that generated strong sales through the worst of the COVID-19 crisis.

Nike's DTC division, Nike Direct, produced almost a third of the company's global sales in 2019. And Nike expects to boost DTC sales by at least 50% over the next two years. Its stock has soared 20% over the last 12 months and is trading within a whisker of its all-time high.

Lowe's is another DTC success story. Although the company was late to the game of developing a strong DTC channel, that channel is now flourishing and contributing to a rapidly growing percentage of the company's overall sales.

Lowe's stock has soared 19% over the last 12 months and reached a new all-time high in mid-October 2021.

Lululemon may be the poster child of DTC know-how. It was one of the first major retailers to emphasize online sales in conjunction with a network of physical stores. The company has created a vibrant DTC sales and is reaping the rewards of that forward-looking strategy.

DTC sales account for more than one-quarter of the company's revenue and more than one-third of its operating income. Its stock has soared 83% over the last year and is currently trading near a new all-time high.

You see, no matter how "old school" an industry might be, companies within that industry can still put themselves on the winning side of the Technochasm, simply by applying technology intelligently.

The copper mining giant Freeport-McMoRan Inc. (FCX) is just one example.

No industry is more old-school than copper mining. And yet, Freeport-McMoRan has been developing a sophisticated artificial intelligence (AI), or "machine learning," process at its Bagdad copper mine in Arizona.

This machine learning model uses data from sensors around the mine to "tailor" the ore processing method to each of the seven distinct types of ore that come from the Bagdad mine.

This innovation has been "a remarkable success," Freeport CEO Richard Adkerson says. So the company is now planning to roll out this new technology across all of its operations in the Americas.

By doing so, Freeport expects to increase its annual copper production by 5%. That number might not seem significant, but in an industry where a few cents per pound in the change of copper prices can mean the difference between profits and losses, 5% is a big number.

Freeport's new AI technology could not shield its stock from the COVID-triggered plunge in copper prices. But this new tech will help the company maintain its competitive edge as one of the world's lowest cost copper producers.

Freeport's cash cost of copper production is currently $1.75 a pound, which is about 10% below the global average. But the company expects to drive that cost down below $1.35 over the next two years.

The stock has staged a nice recovery from its March lows, and I expect it to continue moving much higher over coming months. As a result, Freeport-McMoRan remains a good "Buy" up to $13.

The Takeaways

Putting yourself on the right side of the Technochasm doesn't mean you invest in every tech stock that pops up on the market.

It means extrapolating which companies are ready, willing, and able to adapt to the massive technological shift happening across the world. That's what I'm here for.

We are seeing firsthand just how essential technological prowess has become for most companies. The Technochasm is gaining strength, and as it sweeps through the global economy, it will continue to reward technologically savvy companies.

And for those that are slow to adapt…

Well, it will bring destruction.

Now tomorrow, we're going to talk about gold. Love it or hate it, it doesn't matter. It still has a lot of life left in it… and that is key.

Keep an eye on your inbox.

Regards,

Eric Fry