RJ Hamster
🦉 The Night Owl Newsletter for November 30th
Unsubscribe 3-Letter ticker can give your weekends breathing room (From DTI)Worried About Inflation? These 3 ETFs Offer Real ProtectionWritten by Nathan ReiffThough inflation has improved, it remains one of the most significant threats to an investor’s accumulation of wealth. Combined with stock market volatility and broader economic uncertainty, and investors find themselves in a risky environment. To protect against inflation, consider devoting a portion of your portfolio to assets specifically designed as a hedge. These can include tangible assets like real estate as well as commodities, precious metals, and so on.Investors may overlook bonds, though they are an important part of this list of inflation-hedging vehicles as well. One of the easiest and most effective ways of building exposure to bonds is with the help of an exchange-traded fund (ETF). ETFs make the bond purchasing process incredibly easy and have an added bonus of providing built-in diversification as well. Though they do carry annual fees, these are often low enough that they do not diminish a fund’s value proposition or inflation hedging potential. The three inflation-blocking ETFs below may be a good place to start.ETF Access to TIPS For Low-Risk Inflation ProtectionFor assets that provide inflation protection, one of the best options is TIPS, or Treasury Inflation-Protected Securities. These specialized bonds have been around for nearly three decades and have amassed a following of investors looking to guard against the erosive power of inflation. As inflation increases—as measured by the Consumer Price Index (CPI)—TIPS adjust their principal value upward and also pay out more in interest in order to keep pace with this rise.The iShares TIPS Bond ETF (NYSEARCA: TIP) is among the largest TIPS-focused funds available to investors, with about $15 billion in invested assets. It is also one of the most liquid and has a one-month average trading volume above 3 million. Despite this liquidity, many investors will want to hold on to TIPS (or an ETF that holds a basket of them) for a long time in order to maximize their capacity to guard against inflation.TIPS are considered very low-risk assets, and as such have minimal growth potential. Investors will benefit mostly from the distributions this ETF makes, rather than by price appreciation; it has a dividend yield of 3.13%, making it an attractive source of passive income given its expense ratio of 0.18%.Multi-Commodities Fund Gives Access to More Than a Dozen Commodities FuturesThe Invesco DB Commodity Index Tracking Fund (NYSEARCA: DBC) is a unique commodities ETF in that it tracks an index of more than a dozen different commodities futures. It is thus a go-to and convenient method for investors seeking broad exposure to the commodities space as a means of branching out from a traditional stocks-and-bonds portfolio.Commodities are tangible materials that tend to provide a buffer against inflation. As the purchasing power of the dollar decreases with inflation, the price of these tangible goods may increase. Of course, DBC does not hold physical commodities, but rather invests in commodities futures for products such as oil, natural gas, gold, corn, and cattle. This makes the fund speculative and, depending upon the market conditions, somewhat volatile. It also has a fairly high total expense ratio of 0.89%, so investors should expect to pay a bit for this all-access exposure.Ultrashort T-Bill Fund Guards Against Inflation and VolatilityWith close to $44 billion in managed assets, the SPDR Bloomberg 1-3 Month T-Bill ETF (NYSEARCA: BIL) is a popular choice among investors looking to guard against inflation. As the name suggests, BIL offers exposure to U.S. Treasury Bills (T-Bills) that have remaining maturities between one and three months. By limiting its holdings to T-Bills with a short duration, BIL can help control for the risk associated with shifting interest rates; these rates are less likely to change over a 1-3 month period than over a longer duration.BIL tracks an index of all investment-grade, fixed-rate, U.S.-dollar-denominated T-Bills in this duration window. By keeping risk extremely low, BIL acts as a compelling safe haven during periods of near-term market volatility. On the other hand, investors should not expect it to deliver on returns as a result. The appeal of BIL lies in its distributions; the fund pays a dividend yield of 4.19%, which is quite strong given its expense ratio of 0.14%. READ THIS STORY ONLINEBuy this Gold Stock Before The New Year (Ad)A major shift is coming to the gold market — the world’s largest gold buyer is preparing to launch a new way for everyday Americans to invest in gold with a click, and when it goes live in 2026 it could unleash a wave of demand unlike anything we’ve seen. Garrett Goggin believes one $1.60 gold stock is positioned to be a prime beneficiary of this surge — a move where even a small price jump could mean a meaningful gain — along with several other miners set to ride the same trend.CLICK HERE TO SEE THE $1.60 GOLD STOCK AND GARRETT’S FULL LIST OF RECOMMENDATIONSIntel’s Black Friday Breakout: Apple Rumors Fuel a Holiday RallyWritten by Jeffrey Neal JohnsonPost-holiday trading sessions on Wall Street are historically sleepy affairs. With many traders away from their desks and markets closing early, volume typically dries up, and significant price moves are rare. However, this Black Friday proved to be an exception for one technology giant.Intel Corporation (NASDAQ: INTC) defied the low-volume trend, rallying 10.5% to catch the broader market by surprise.The stock closed the session at $40.67, marking a new 52-week high and swelling its market capitalization to approximately $194 billion. This double-digit jump wasn’t just random volatility in a thin market; the volume was significant, indicating institutional participation rather than retail speculation.The move represents a fundamental repricing event triggered by rumors of what many consider the Holy Grail of chip manufacturing: a potential partnership with Apple.For much of the year, Intel has been a show-me story, with investors waiting for concrete proof that its manufacturing turnaround is real. Friday’s price action suggests that for many, the waiting period is over. The combination of technical breakouts and high-level strategic rumors has forced investors to rapidly recalculate the value of Intel’s manufacturing assets and its execution trajectory heading into 2026.The Apple Stamp of ApprovalThe primary fuel for Friday’s rally was a report from renowned supply chain analyst Ming-Chi Kuo. According to the report, Apple is actively exploring Intel Foundry’s advanced 18A process technology for future M-series chips. The speculation suggests these chips could be destined for high-volume devices like iPads or MacBook Airs, with a potential production timeline targeting 2027.While Apple has not confirmed these discussions, the strategic logic behind such a move is compelling. Currently, Apple relies almost exclusively on Taiwan Semiconductor Manufacturing Company (NYSE: TSM) (TSMC) for its cutting-edge processors. Given rising geopolitical tensions and Apple’s growing chip requirements, finding a viable second-source manufacturer is a matter of supply chain security. Intel, with its aggressive expansion of factories in the United States and its new National Treasure status, is the only American company building a manufacturing capability that could, in theory, meet Apple’s rigorous demands.Crucially, this rumor links directly to operational milestones that have been achieved since the release of the Intel 18A Process Design Kit (PDK) 1.0. A PDK is essentially the instruction manual that allows outside chip designers to build products for a specific manufacturing process. Without the final PDK, a company like Apple could not seriously evaluate Intel’s technology. The release of the PDK 1.0 signals that the technology is commercially ready for design work, making the timing of these rumors logical and grounded in operational progress. Winning Apple as a customer, even for lower-end chips initially, would be the ultimate seal of approval for Intel’s manufacturing quality, validating the foundry business with the rest of the market.Wall Street Chases the PriceThe stock’s rapid ascent has created a glaring disparity between the market’s pricing of Intel and the models currently used by Wall Street analysts.As of the market close on Friday, Intel shares are trading at $40.67—significantly higher than the average analyst price target, which sits at approximately $34.84.This creates a tension that often resolves to the upside: when the price disconnects from the consensus, analysts are forced to upgrade their targets to align with reality.The gap highlights a familiar dynamic in turnaround stories: Wall Street models are often lagging indicators. Analysts tend to be slow to trust a recovery narrative until the financial results are undeniable. However, stock prices move on future expectations, not just past results. The market is currently pricing in a successful execution of the foundry strategy faster than analysts can update their spreadsheets.It is worth noting that, while the average target lags, the Street High price target is $52.00. This widespread sentiment suggests that the most bullish analysts see significantly more room for the stock to run if the turnaround continues to gain traction. Additionally, short interest in Intel remains elevated at around 101 million shares, representing roughly 2.3% of the float.As the stock breaks out to new highs, these bearish traders face increasing pressure to cover their positions to prevent losses. This dynamic can fuel further upside momentum as skeptics are forced to become buyers to close out their bets.Doing the Math: Margin of SafetyDespite a massive year-to-date rally approaching 103%, a look at the fundamental valuation metrics suggests that Intel is not yet expensive. The most telling metric for a capital-intensive manufacturer is the price-to-book ratio (P/B). Even after the 10% surge, Intel trades at a P/B ratio of roughly 1.53.To put this in perspective for investors, Intel’s book value per share (essentially the value of its assets minus its liabilities) is approximately $26.67. This means the market is paying only a slight premium over the company’s liquidation value. When investors buy Intel at roughly $40, they are mainly paying for tangible assets like factories, equipment, and intellectual property, rather than paying a massive premium for future growth hopes.This stands in stark contrast to Intel’s primary rivals. TSMC and fabless peers like AMD (NASDAQ: AMD) and NVIDIA (NASDAQ: NVDA) trade at massive multiples of their book value, often exceeding 10x or 20x. While those companies have higher margins today, the valuation gap suggests that Intel is still priced more like a distressed asset than a growth company.Investors are effectively buying a stabilizing PC business that generates revenue from the artificial intelligence (AI) PC cycle, a growing AI hardware division with the new Gaudi 4 accelerator, and a government-backed Foundry business, all at a low value multiple. This sum-of-the-parts valuation suggests that downside risk is cushioned by the company’s physical assets, while upside potential remains tied to execution.From Show Me to Watch ThisThe investment narrative for Intel has shifted significantly over the last quarter. It has moved from a skeptical show-me story to a momentum-driven watch this story. The convergence of three factors is driving this change: strategic validation from potential partners, market conviction as evidenced by volume, and fundamental safety provided by the valuation.The Apple rumors confirm that the technology roadmap is relevant to the world’s best tech companies. The heavy trading volume on a quiet holiday proved that big investors are eager to own the stock. And the low price-to-book ratio suggests a margin of safety that helps protect against downside risk. While execution risks remain, specifically regarding the ramp of the 18A process, the Black Friday breakout signals that the market is ready to view Intel through a new lens. It is no longer being valued solely as a legacy chipmaker, but as a critical infrastructure play for the next decade of computing. For long-term investors, the current levels may represent a compelling entry point into a re-rated American manufacturer. READ THIS STORY ONLINE3-Letter ticker can give your weekends breathing room (Ad)After 50 years in the markets, I’ve uncovered a simple three-letter ticker setup I call the “Weekend Income” play — a smarter path to potential income that takes just minutes to place and has shown striking accuracy without 60-hour trading weeks.SEE THE FULL BREAKDOWN OF THE WEEKEND INCOME SETUP HEREKlarna’s Crypto Play: A Plan to Fix Its Profit ProblemWritten by Jeffrey Neal JohnsonJust weeks after its first earnings report as a public company sent its stock tumbling, Klarna (NYSE: KLAR) has made a decisive move into the cryptocurrency space, announcing the launch of its own stablecoin, KlarnaUSD. The timing of this announcement is critical. The stock has seen significant pressure, trading well below its $40 IPO price after the Q3 report showed record revenue but also widening net losses.This has placed the company’s path to profitability under intense market scrutiny. Against this backdrop, Klarna’s entry into blockchain payments is not a speculative venture; instead, it represents a calculated, long-term strategy to build a more efficient and profitable financial infrastructure for its global operations.KlarnaUSD Is a Strategic Response to Margin PressuresKlarnaUSD is a stablecoin pegged to the U.S. dollar, designed to serve as a digital dollar for payments. This initiative is a collaboration with high-profile partners, including payments leader Stripe and venture firm Paradigm, and will be built on a new blockchain called Tempo. The goal is not to create a new product, but to re-engineer the costly backend of global finance.This move directly addresses the margin concerns highlighted by its recent financial report.While Klarna’s Q3 revenue hit a record $903 million, its net loss widened to $95 million.This was mainly due to a $235 million provision for credit losses, an accounting requirement tied to the rapid growth of its expanding Fair Financing product. This expansion, although strategically vital, was punished by the market. The stablecoin initiative is a direct, forward-looking answer to this problem.Aiming to Disrupt the $120 Billion Cross-Border Payments MarketKlarna is targeting a massive opportunity in the global financial system. The stablecoin transaction market exceeds $27 trillion annually, and Klarna is specifically focused on disrupting the $120 billion in cross-border transaction fees collected each year.The current system for international money transfers, often reliant on the decades-old SWIFT network, is expensive and slow because payments move through multiple correspondent banks, each adding fees and delays.By establishing its own payment rail using a stablecoin on a modern blockchain, Klarna can bypass this costly infrastructure. This allows the company to handle its large annual transaction volume, which currently incurs $32.7 billion in fees, at a significantly reduced cost.Leveraging Scale to Disrupt the Old GuardWhile the immediate goal is internal cost savings, this launch signals a new competitive threat to the giants of the payments industry. The business models of companies like Visa (NYSE: V) and Mastercard (NYSE: MA), which are built on charging processing fees, are now in the crosshairs. Klarna’s move is a clear signal that it intends to challenge that high-fee structure from the inside out.What makes this threat credible is Klarna’s significant scale and growth. A new payment technology is only as powerful as the network that uses it, and Klarna’s is formidable.The company’s user base grew 32% year-over-year to 114 million active consumers, while its merchant network expanded 38% to 850,000 global partners. This provides the existing transaction volume needed to make a new payment rail viable and impactful. This initiative also fits perfectly into Klarna’s broader ambition to evolve from a payments service into an all-encompassing digital bank.The rapid adoption of the Klarna Card, which garnered 4 million sign-ups in its first four months, shows the company’s user base is eager to adopt new financial products. A proprietary, low-cost settlement layer like KlarnaUSD is a foundational piece of infrastructure for a future neobank that aims to offer everything from global spending to savings accounts. This launch represents one of the first major attempts by a consumer-facing financial institution to leverage blockchain at scale, potentially setting a precedent for the entire fintech industry.Why This Crypto Move Matters for ShareholdersThe financial benefits of the KlarnaUSD initiative are part of a long-term vision. The stablecoin is not expected to launch on its leading network until 2026, meaning it will not address the profitability concerns that have weighed on the stock immediately.However, this strategic groundwork is a critical signal to investors about the company’s future direction.Despite recent stock volatility, Wall Street analysts maintain a Moderate Buy consensus rating on Klarna, with an average price target suggesting a healthy upside from current levels.Klarna’s management is demonstrating a clear commitment to leveraging cutting-edge technology to expand margins.For investors looking past short-term market fluctuations, the stablecoin launch provides a compelling glimpse into a long-term strategy.This plan is designed to build a more defensible and highly profitable global payments ecosystem, making it a critical narrative for bullish investors to follow as Klarna continues its journey as a public company. READ THIS STORY ONLINEThis Weekend Only: Nvidia’s Dirty Secret (Ad)In 2026, Nvidia’s charging into two seismic tech frontiers projected to be worth over $24 TRILLION!But here’s the dirty secret Nvidia won’t admit… It can’t do it alone. Nvidia needs three Silent Partners… This weekend only, get access to the names of theLEARN MORE ABOUT NVIDIA’S THREE NEW SILENT PARTNERSThe Night Owl is a financial newsletter that provides in-depth market analysis on stocks of interest to individual investors. Published by MarketBeat and Early Bird Publishing, The Night Owl is delivered around 9:00 PM Eastern Sunday through Thursday. If you give a hoot about the market, The Night Owl is the newsletter for you.  View as a Web PageIf you have questions about your newsletter, please contact MarketBeat’s South Dakota based support team at contact@marketbeat.com.Unsubscribe © 2006-2025 MarketBeat Media, LLC. All rights protected. 345 North Reid Place, Suite 620, Sioux Falls, SD 57103. USA..Featured Link: These 5 Stocks Are Thriving Under Trump’s Presidency (Click to Opt-In) |
