Update -

Earnings Season Is off to a Grand Start

I said it last week. I’ll say it this week. And I’ll probably say it again next week.

It’s a great time to be an investor.

At the same time as Washington is rushing its plans to dump another trillion or more into the economy, Europe just announced a massive $800 billion stimulus plan of its own.

That means in the span of just a few weeks, some $2 trillion to $3 trillion will be looking for a new home.

And judging by the record highs on Wall Street this week… it’s safe to say we know where much of the cash is headed.

If we’re strategic about our moves and invest in the right companies, clearly, this could be one of the best times ever to be an investor.

Never before has so much freshly printed money been up for grabs.

We’re seeing the good news in our portfolio.

Smashed Expectations

Take my latest recommendation, for example… Logitech (LOGI). It’s a direct beneficiary of many of the dollars Uncle Sam has stuffed into mailboxes.

As countless Americans work from home, they need upgraded computers and communications equipment – things like microphones, headsets and webcams.

Many companies are using money given to them by the government to fund these purchases. And many workers, too, are using their own stimulus cash to get an upgrade.

We got the proof yesterday…

That’s when the Swiss company opened its books and gave us a glimpse of its fiscal first quarter results.

They were quite good.

Profits per share soared to $0.64, nearly doubling Wall Street’s best-guess estimates of $0.34 per share. Sales, too, topped expectations… by more than $100 million.

Better yet, in the sort of move that really charges long-term share price, the company raised its outlook for the year. It now expects sales growth as high as 13% for the full 12 months… That’s up from a single-digit growth expectation earlier in the year.

We’ve owned shares of this company for only three weeks, and already we’re up by double digits.

It’s going to be a big winner.

But one booming stock doesn’t make for a bull market. Fortunately, there are plenty more winners.

Streaming Profits

You may recall that I sent you a link a few weeks ago that pointed to a new report I posted on the website. The report detailed a little-known tech company… Limelight Networks (LLNW).

It, too, reported earnings yesterday. And it, too, crushed expectations.

In fact, it was the company’s best-ever second quarter.

Non-GAAP earnings came in at $0.03 per share… easily beating estimates of $0.01. Overall, sales jumped by 28% from the same period last year.

This is the sort of stock that we buy and forget that we own (which is why it’s not in our official portfolio). It’s a longtail play that’s a bet on the future of streaming TV.

Take Disney+ for instance. It’s a big game changer for the streaming world. It used Limelight’s technology.

And, sparking quite a positive trend, so did Peacock. That’s NBC’s brand-new free streaming service.

Clearly, streaming content is a trend that’s not going away… and neither are Limelight’s offerings. The more the industry expands, the more this small company’s products will be in demand.

It started the year with an ambitious goal – to achieve 100 terabits per second of capacity.

Even with the vast challenges all businesses have faced this year, it announced during last night’s earnings call that it’s on track to meet or exceed that goal in 2020.

It’s a strong company, doing good business.

If you haven’t yet bought shares of the company, do it now. They’re down today on some post-earnings profit taking. They won’t be cheap for long.

Read This Today

Finally, as if a free report that details a stock set to double isn’t enough, I’ve got another link for you today.

This isn’t new, but somebody reminded me of its import this week.

Our nation is going through some tough times. We’ve got tough decisions to make.

And I’m not just talking about an election-time decision. But every day we’re making decisions about our health (Should we wear a mask?), our wealth (Is this rally for real?) and our Liberty (Can they make us do that?).

That’s why I think it’s important to read or, hopefully, reread this compilation of essays about Ben Franklin and his virtues that I published.

It’s called Be Good, Be Wise: Using Ben Franklin’s 13 Virtues to Become a Better Man.

It’s one of the most popular books we’ve published. Its timeless message is for everyone… whether you’re young or old… male or female… rich or poor.

And it’s yours free for being a Manward Letter subscriber.

Here’s a link.

I hope you enjoy it.

Be well,

Andy