Dear Subscriber,
Thank you for your continued support of Stellan Investments over this first year. Stellan Investments will provide free advice to subscribers for the time being until a designation is completed.
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Please note the disclaimer on each page. Continue on for our picks…
Picks as of January 6, 2021
Airlines. If you can handle the pressure then invest in the top airlines. Check out United Airlines , Jet Blue Airlines , and Delta Airlines (in that order). These stocks are very cheap right now and are prime to recover as the world becomes vaccinated.
Oil. Another hard hit stock ready for a comeback. These stocks could be short term or long term plays. Most of the big players in this space offer a strong dividend. Check out Chevron , Shell , BP , and Exxon Mobil Corporation .
Options. Oil options are extremely cheap. Buying call options for 6 to 12 months out that are in the money or close to in the money are likely smart plays.
Thinking Ahead about EV. It’s all about EV, Tesla, battery power, going green, becoming renewable these days. Well, there are many articles about how much electric power is really needed when there is a full migration to electric cars. It’s a huge amount. I feel like the big electric companies could double or triple in revenue over the next 5 years. Many of these companies are great dividend stocks. Check out Eversource , NextEra Energy , and Dominion Energy .
Thinking Ahead about 5G. Another hot topic is 5G. Check out AT&T
, Verizon Communications
, and T-Mobile
. There is a bidding war over rights and billions of dollars involved. Will 5G be a revenue point for these companies? No one seems to ask that question. How long before people figure out how to get 5G on an older phone – likely just a matter of time like everything else.
Investments
Overall, Stellan Investments has done well over the last year. Beginning with investing in large known companies and recently becoming more interested in options. Specifically, call options make the most sense to me. Not sure if options are just a pandemic phase or not. Time will tell.
Gains of Note for 2020
| Ticker | Company Name | Type | Gains |
| Bally's Corporation | Bally’s Corporation | Stock | 221% gain |
| Discover Financial Services | DFS | Stock | 253% gain |
| AT&T Inc. | AT&T | Options | 750% gain |
| Shell plc | Royal Dutch Shell (A) | Options | 550% gain |
| Cenovus Energy Inc. | Cenovus Energy | Options | 300% gain |
Stocks mentioned in this newsletter
| Ticker | Company Name | Price * | Thoughts | Keep For |
| Tesla, Inc. | Tesla | $755.98 | No | |
| Exxon Mobil Corporation | Exxon Mobil | $44.61 | Consider | 1m-1y |
| Chevron Corporation | Chevron | $89.80 | Buy | 1m-1y |
| BP p.l.c. | BP | $23.42 | Buy | 1m-1y |
| Shell plc | Royal Dutch Shell (A) | $40.29 | Consider | 1m-1y |
| Shell plc | Royal Dutch Shell (B) | $38.74 | Consider | 1m-1y |
| Cenovus Energy Inc. | Cenovus Energy | $6.70 | Consider | 1m-6y |
| United Airlines Holdings, Inc. | United Airlines | $43.54 | Buy | 3m-1y |
| JetBlue Airways Corporation | JetBlue Airways Corp | $14.57 | Buy | 3m-1y |
| Delta Air Lines, Inc. | Delta Airlines | $40.38 | Consider | 3m-1y |
| Eversource Energy | Eversource Energy | $89.13 | Buy | life |
| NextEra Energy, Inc. | NextEra Energy | $78.43 | Consider | 3m-5y |
| Dominion Energy, Inc. | Dominion Energy | $74.56 | Consider | 3m-5y |
| AT&T Inc. | AT&T | $29.83 | Buy, Div | life |
| Verizon Communications Inc. | Verizon Communications | $59.29 | Buy, Div + Growth | life |
| T-Mobile US, Inc. | T-Mobile | $131.53 | Pass | |
| Bally's Corporation | Bally’s Corporation | $49.63 | Consider | 1y-3y |
* as of Jan 7, 2021
Thanks again for reading.