The #1 catalyst for this week

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JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, The #1 catalyst for this week Wall Street is now settling for a new reality where rate cuts will not be as many as previously expected, but it could change when inflation data comes out on Thursday. Economists expect the data to show the biggest jump in a year. However, Fed Reserve officials are unlikely to panic. Fed Governor Michelle Bowman said yesterday that she expected inflation to keep falling with rates remaining at the current level. But she also said it was too soon to start cutting rates. Some analysts believe the stock market ran up too quickly even on subpar news. - “I just don’t think you chase at this point,” said Drew Pettit, director of U.S. equity strategy at Citi. - “A lot of good news is getting priced in – we are actually trading up even though the reporting season really hasn’t been great; we really haven’t had a lot of broad beats and broad raises.” Drew Pettit, director of U.S. equity strategy at Citi (Photo: CNBC) Today, we will receive earnings results from TJX and Viatris in the morning and Salesforce after the bell. The CRM leader will shed some light on the state of tech spending, and it will be important since tech is responsible for the bulk of the stock market gains in the last few months. Wholesale inventories will be out today. But of course, the eyes will be on the personal consumption expenditure reading for January due to be released tomorrow. Stay tuned. Own This Boring Business With Big Free Cash Flow Today’s Pick: Celanese Corporation ([CE]( Want to see the power of compounding? Believe it or not, you just need 25.89% annual growth to achieve 1,000% growth in the next ten years! Think about this: Why would you bet on a risky stock with a 0.1% chance of reaching 1,000% gain… when… you could easily invest in a wonderful business that grows 15-20% a year with little risk? This concept is so simple, don’t you agree? Jeff Bezos asked the same question to Warren Buffett. Mr. Bezos couldn’t believe how simple Mr. Buffett’s investment thesis was. Why doesn’t anybody just copy Buffett? Buffett answered, “Because nobody wants to get rich slow.” Because you are a subscriber of TradeAlgo, you’re one of those savvy investors who understand the magic of compounding interest. And that’s what we have for you today. Namely, how do you like the idea of earning about 7% annually from shareholder yield only? This means, of course, dividends and share repurchases. Just look at the graph from Celanese’s last Investor Day back in 2021 (which was the most recent presentation slides that they had): (Source: Celanese) Now, do you see the number inside the orange box above? Over $6 billion returned to the shareholders over the last decade. Once again, Buffett loves companies that generate plenty of free cash flow. Sure enough, Celanese expects to generate about $1.3 billion in free cash flow this year – or 10.8% of its market cap! Now, what is this business? Celanese is a chemical company who produces chemical substances and materials. These are key ingredients in countless of products in paints and construction materials, clothes, medical devices, pharmaceuticals, electronics components, even food. About 95% of Celanese's products rank either first or second in their markets. Their chemicals have thousands of end users: (Source: Celanese) A perfect dividend stock: Celanese has a current dividend yield of 2.38. What makes it remarkable is that its dividend per share was $0.27 for the year of 2012. Fast forward to 11 years later. It has forward dividend of $2.80 per share. That’s about 1,000% growth in dividend per share! And here’s another good news: Celanese is trading at a P/E of 7.17 You will not need to pay through the nose for this boring, but wonderful company. A recent acquisition: Celanese is in process of swallowing a whale in 3M’s M&M (Mobility & Materials) business. The size of the acquisition is a whopping $11 billion. That’s nearly the full size of Celanese’s current market cap of $14 billion. As a result, Celanese expects this acquisition to help the company doubling its free cash flow over the next 5 years, according to its investor presentation. Plus, it expects the acquisition to add extra 5% to its 5-year sales CAGR. (Source: Celanese) Bottom line: You can’t ever go wrong with Celanese. It has extremely stable earnings with dozens of earnings streams in various industries. Most importantly, it generates massive cash that delivered a 1,000% growth in dividends per share in only ten years. With its recent acquisition, the growth is sure to accelerate but Wall Street hasn’t valued this yet. The stock is still down from its pre-pandemic level, so you can grab this stock at a bargain price.   [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](     © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](