A Pot O’ Gold, Copper, And Profits

This St. Patty’s Day, gold’s not the only treasure waiting to be discovered. Follow us to the profits at the end of the rainbow! March 17, 2022 [Turn on your images.]( A Pot O’ Gold, Copper, And Profits Welcome to Money Moves, the pot of riches at the end of your financial rainbow! But this St. Patty’s Day, gold’s not the only precious metal waiting to be discovered. Even with the value of our currency dropping, the value of those measly pennies in your pocket is GROWING. Here’s why copper might soon be worth its weight in gold. For golden profits of another kind, look no further than Amazon’s proposed stock split. This astounding 20-for-1 split is set to dramatically increase the supply of Amazon shares available to retail investors…and if the market-beating trend of stock splits continues, shareholders will be dancing a happy jig very soon. And for anyone looking for a riskier venture, grab your lucky clover and dive into the world of sports betting as March Madness—the other major event this month—kicks off. Record numbers of bets are being placed this year…and you can make money off of much more than just a winning bracket. --------------------------------------------------------------- [Turn Your Images On] [Copper Is Back: Why It’s Worth Picking Up Lost Pennies]( Shawn Ambrosino When I was a kid, if a coin wasn’t silver, I didn't think it was worth anything. When I was given pennies, I would either leave them on the counter or flick them at my friends. Very rarely did I stick them in my pocket. But that all changed one day when an outing with my grandfather taught me a very valuable lesson: it’s all worth something. As a kid, I spent a LOT of time with my grandparents. They were more like second parents to me, and I would spend every summer with them in our hometown of Gasport, New York. Now, if you know anything about Western New York, you know that it was once a booming industrial region of our country…but like all manufacturing areas, things started petering out in the 70s. And even though my grandfather was a union guy that worked for GM for decades and made decent money during that time, he and my grandmother came up through the Great Depression and they made sure to keep a tight grip on their finances. My grandparents never bought anything on credit, nor did they ever buy anything they couldn’t afford because they remember the hardships of those desperate times… Everything Has Value Well, one day, my grandfather and I stopped to get gas and I saw him bend over to pick something up. When he got back in the truck, I asked him what he found. He opened his hand and showed me three pennies and said, “When I was a kid, I could have bought a loaf of bread for this.” He slid the three coins into his pocket and off we went to visit my great grandmother. It was that day that I realized that everything has value–even if it’s sentimental. That’s even more true right now, because those measly pennies are actually worth more than just the “one cent” that is printed on them. While all other currency is dropping in value, those discarded pennies are going UP–and it’s all due to the amount of copper that is each one. In fact, each penny may be worth about DOUBLE the value of the coin because of the rising cost of copper thanks to the inflation-born commodities boom. While most people are focused on oil and gold, there’s a savvy collective of investors making money hand over fist on metals like copper–and with the rest of the world focused on more popular commodities, they’re doing it under the radar. So, while most of Wall Street is mesmerized by gold and oil, there are some companies creating fortunes from lesser-known profit opportunities. One company in particular is looking to make its mark in the metals world–and copper is leading the way for them. But why copper and not gold? Well, copper is already used for all kinds of goods, but mostly what makes it stand out is how integral it is to the EV market. Electric cars use three to five times more copper than their fossil-fuel-burning counterparts–which is where Rio Tinto comes in. Rio Tinto (RIO) is a mining and processing company focused not on gold, but rather on the profits that metals like aluminum, copper, titanium dioxide, salt, iron ore, and uranium offer them. Sure, they dabble in gold, as every mining company does, but they see the real value in copper. That’s why Rio Tinto is making a push in a Canadian copper field that could put the company in the driver’s seat of the industry. Turquoise Hill Resources (TRQ) is a Canadian mining company of which Rio Tinto already owns 51%, but Rio Tinto just offered to buy the rest of the company for $2.7 billion–which is actually 32% more than the remaining 49% was worth. Can you guess WHY Rio Tinto is willing to pay more than the asking price for the rest of the company? Well, if you’ve been reading any of my articles over the past few months, then you know I’m a straight shooter. The answer is what we’ve been talking about here today: copper. Rio Tinto Makes A Play For Total Control Turquoise Hill owns 66% of Oyu Tolgoi, a major copper mine in Southern Mongolia, and that means that Rio Tinto owns a piece of that piece–but Rio Tinto wants more than a sliver; they want the whole enchilada. After delayed expansion, Rio management wants to start new mining right away, which will net the company 500,000 tons of copper a year, thereby making Oyu Tolgoi into one of the biggest copper mines in the world today. And since mining on a whole is on the rise (up 18% so far in 2022), it’s not a bad idea for Rio Tinto to add it to their portfolio. This alone could make Rio Tinto a hot prospect for your portfolio… [But once you look at their StockPower rating, you’ll see why you might want to jump on this opportunity right now!]( [Turn Your Images On] [(Click here to view larger image.)]( This could be one of the big movers of 2022… But it’s good to see that all commodities are moving and not just oil and gold. It’s going to open up all kinds of opportunities for investors looking to add value to their stock portfolio… And as we established earlier, everything has value… It’s just that some things are more valuable than others. --------------------------------------------------------------- [Turn Your Images On] [Why Stocks That Split Consistently Beat The Market]( by Shawn Ambrosino For those that don’t know, I’m not just an associate editor for Money Moves. I’m also a martial arts instructor. My martial art of choice has been dubbed the most practical fighting art on the planet: Brazilian Jiu-Jitsu. What makes it different from most other fighting styles is the fact that Brazilian Jiu-Jitsu–or BJJ for short–is a ground- and grappling-based martial art that consists of controlling another person’s body and then using up a joint lock or choke to incapacitate your opponent. Our sparring (which we call “rolling”) consists of two guys trading techniques until one gets caught in a submission hold of some kind. The fight is over once the trapped opponent “taps out” or goes unconscious. [Turn Your Images On] The goal is to win…and oftentimes BJJ practitioners win with the same technique over and over again. My first instructor once told me something that I tell my students to this day: “To be good at jiu-jitsu, you only need to REALLY know ten moves. Just ten. Know them like the back of your hand. However, if you want to be GREAT at jiu-jitsu…you only need to master five of them.” There are guys that are so good at BJJ that even when an opponent knows what they’re looking for, the guy still pulls off the win. That's a master. [Turn Your Images On] The same thing holds true for winning in the market…and that can be a kind of battle in itself. I say that because there are some techniques that can consistently beat the competition, just as there are certain moves a company can make to beat the market consistently. How To Beat the Market Consistently One technique that a company can perform that will help them do exactly that is splitting their stock. It’s a well-known fact that stocks that split tend to outperform the market significantly in the next 12 months. That goes against intuition, right? You would think that if there were more shares of the same company, they’d become less valuable because of the increase in shares–but that hasn’t ever been the case. Most investors believe that stock splits don’t actually affect the fundamentals of a company, and so they shouldn’t be taken into account when making investment decisions. That makes sense, doesn't it? A stock split simply redistributes shares; it doesn’t change the actual percentage of the company that investors own. For example, let’s look at [Amazon’s proposed 20-to-1 split](. The split will take each of the company's shares–currently going for almost $3,000 apiece–and turn them into 20 shares worth $150 each. So, while yes, investors do get more shares, they’re at a proportionately lower price, so it seems pretty useless. There’s no reason to believe that a split will boost a company’s revenues, profits, or dividends either–but it ALWAYS does. Why is that? For the most part, comes down to opportunity. Why Stock Splits ALWAYS Win There are two theories about why companies that split tend to beat the market so substantially. The first theory is that a lower price means more retail investors will be able to buy the shares. Right now, Amazon’s shares cost about $3,000 per. If you as an investor wanted a piece but you didn’t have the ability to buy fractional shares through your broker, you’d probably have to pass on the stock entirely. But, by reducing the price of a share through a stock split, more investors get the opportunity to participate, which often increases the demand for the stock, hence the price uptick. However, the second theory says that the price jump after a split happens because lower-priced stocks are more likely to be added to an index. Index inclusion is often based on price and stocks with a high price are unlikely to be added. However, a lower price will make a stock more likely to be included in the Dow, S&P, or NASDAQ. Therefore many investors anticipate changes in those indexes, making the stock even more attractive. All that being said, I have my OWN theory… I think lower price stocks are simply CHEAPER to trade. Whereas larger-priced stocks come with larger-priced fees, split stocks are cheaper and easier to trade. That’s what increases demand and that’s what drives up stock prices. Regardless of which theory you believe, the bottom line is that stocks that split tend to beat the market on a consistent basis–so if you hear news of one, the smart play would be to jump on now before the split happens. Amazon has already announced one for June, so if you have the ability, it may be prudent to pick up some shares now. Look, we already know the price is going to go up…so why wouldn’t you go with a sure thing? If I had one technique to beat my BJJ opponents every time, you can bet your bottom dollar that I’d be using it EVERY time I could. It’s about winning, folks. And you’re getting an advanced warning on all-but-guaranteed profits. Doesn’t it just make sense? --------------------------------------------------------------- [Turn Your Images On] [Americans Go MAD For Sports Gambling During March Madness]( by Ryan James It’s March Madness time! Ah, yes, that time of year when we gorge ourselves on wings, drink too much beer, and fill out our bracket for the company office pool. And that’s not all. Oh no, we’re just getting started! [Turn Your Images On] Thanks to a 2018 Supreme Court ruling, sports gambling has been legalized in dozens of states across the country— 30 states in total, including 18 states that allow online gambling— which means between sips of your favorite beverage, you can place bets on the game you are watching in real-time. [Turn Your Images On] And this new form of mobile sports gambling is big business, too. According to the American Gaming Association (AGA), Americans will wager $3.1 billion during this year’s men’ college basketball tournament. That total is predicted to include 45 million Americans— 17% of U.S. adults! Our Puritan ancestors would be ashamed of us! The only event larger for sports gambling is the Super Bowl. According to CBS News, $7.6 billion was wagered on the big game this year which saw the Los Angeles Rams defeat the Cincinnati Bengals. However, there will be more total Americans— 45 million as opposed to 31 million for the Super Bowl— who will be placing bets on March Madness, but they will be making micro bets. 21 million Americans say they plan to make bets that do not involve filling out brackets that predict the winner of each game. Bracket challenges are so 2020…keep up with the times, boomers! [Turn Your Images On] According to a Morning Consult poll, it is projected that three-quarters of the total amount bet on the tournament will not involve brackets, an increase of 55% from last year. Instead of betting on the winners of games, gamblers can also bet in real-time. The bets can include things like who will make the next shot or how many points a certain player can score during the first half. Anything, it seems, is up for a bet these days. It is a way to keep viewers engaged from opening tipoff to the final buzzer. Gone are the days when you had to travel to Las Vegas or call your bookie to place a bet, now you can just take out your smartphone and place bets on your own time without having to hop on a plane. Heck, you can place several bets between the time you place your Uber Eats order and when those wings or pizza arrive at your front door. Times sure have changed, haven’t they? And the sports gambling industry is only going to continue to grow. Goldman Sachs is predicting that online market could reach $39 billion in annual revenue by 2033, which would be a whopping 39x the current online betting revenue stream. Now that is a good chunk of change! So, as you eat your wings and drink your beer while placing bets on your phone this March Madness, you can also impress the bros with your deep understanding of the sports gambling market. [Turn Your Images On] You’re welcome. And may your bracket forever yield office bragging rights. --------------------------------------------------------------- For more quality content like this, and to learn more about the Money Moves team and the Green Zone Rating System, [CLICK HERE]( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. 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