 Once again, ladies and gentlemen, boys and girls and children of all ages, you are now tuned into the Investor's Show as always. This is Grace's host, the Prince of Investing, Prince Dax, coming to you guys and girls' lab all the way from the beautiful city and state of Denver, Colorado via the beautiful city and state of Honolulu, Hawaii. Don't forget to do that, like, subscribe, comment, and share button. And as always, I don't have a lot of time, and I definitely, you guys and girls don't have a lot of time, so we're gonna jump straight into it. So the first thing that we wanna do and bring up to you guys and girls is we talked about the day topic is gonna be the Prince of Investment. We're gonna be talking about President Biden. It's official, President Biden has one day election, he has one day to go to college and he's due to take over the presidency come January during his inauguration. Now to think about it, we wanna talk about stocks to watch under President Biden. We don't wanna be behind the curve, we wanna be in front of the curve. Being behind the curve is waiting to the market hits an all time high. Now you wanna invest in December versus March when we hit the fastest stock drop of ever, of all times nobody wanted to invest. So we wanna be in front of the curve to see what is coming next. So let's talk about, so in this episode we're gonna talk about President Biden's beliefs and then we're gonna talk about President, how they affect the economy with their beliefs and then we're gonna get into some sectors to watch. Then we're gonna talk about some stocks to watch and then inside of those stocks to watch I'm gonna give my, what I'm looking for for companies and things like that or whatnot or whatever the case can be. Something that can help you out. So y'all stay tuned, we have a great conversation on what's to come next. All right, so the first thing is President Biden, his belief is he wants us to, he wants us to move forward. He wants us to build infrastructure, build, replace our roads, build new, we see, we wanna rebuild the roads infrastructure, right? Also he believes in pushing the envelope and getting us away from oil and using more things like green energy, things like solar panels and electronic vehicles and things like that. So he's big on that, he's big on infrastructure, he's big on energy saving, renewable energy. So renewable energy is big, what he's big on and he also is big on rebuilding our infrastructure, giving us those new roads, building new buildings, things like that. The number three thing which is right now, dominating the headlines of what's got us all into this is healthcare, always talking about who's gonna do healthcare, what's gonna do healthcare, having healthcare for the elderly, think about it, the baby boomers are getting older and older and older and the baby boomers are moving to things like assist in living, they need more medication. So he's talking about re-energizing healthcare. So with that being said, ladies and gentlemen, that kind of leads it to what sectors we're gonna look at but we have to look at why, how does the president affect the economy, right, with his policies? So for prime example, we have a great election coming up here for Congress, which is more important. We already know the house is already majority Democrat. The president is Democrat, but now you have Republicans that's in the Senate. So we have a big Senate vote that's coming up here in January, which I think your Republican remains Senate strong, but if it does flip to Democrat, that means that President Biden can get his policies by quick and faster without having to stumble through the Senate. But even when if the Senate remains, he's still gonna have major influences. He's the president and he does have the house. He's gonna have a major influence in being able to push different policies that he wants to be seen. Now with this being said, it comes down to money, policies and funding. So policies and funding is what politicians do, they affect policies and different types of policies as we saw what happened with Uber, the government came out and said, hey, you know what? You must now classify your contractors as workers. That itself would have ruined Uber, not good for Uber at all. But in the reverse way, look what President Trump did and I think President Biden, not President Biden, but President Obama may have started it, but we have a tax break for renewable energy. So they signed into law. If you go get solar panels on your house and they say the solar panels cost $10,000, we're gonna reward you $5,000 just for doing it, tax breaks. So that's the number one way the government can affect, can write policies to be able to give tax breaks to people that buy your product. Hey, if you turn green, you get a tax break. If you're building infrastructure for the federal government, you can get a tax break. You can get what they like to call tax credit. Remember everybody said, why did President Trump only pay $700 in taxes? Because he received a lot of tax credits to build certain infrastructures. I won't say all of them. I don't wanna go deep into that, but I'm just speaking of how it works. For prime example, I'm a politician. I want a bar to come to my city or I want to re-energize my city. I'm to incentivize people to move to my city. I may give them a tax credit on local taxes. I may give them a tax credit on the water. Like, hey, if you use water in my city, the city controls water, the city controls local taxes. We can give you a tax break if you bring your business to my city. So local government does it all the way to the federal side. But on the federal side, those are huge tax breaks. So for prime example, in renewable energy, if you get a green energy car, you can get a tax break. If you get a solar energy, if you get solar, if you take your house green, you can get a tax break. Also, they could say, hey, for infrastructure, if the government can start now putting out contracts, say, hey, we want to put $10 billion into rebuilding Washington, D.C., and they can do that rather easy by saying, hey, we're gonna issue a government contract to a company that can help build the infrastructure, whatever the case may be. So now companies can go on and work for the government to help build the infrastructure, whatnot. So right now infrastructure stocks are very big. So we're talking about President Biden, how his policies can affect the economy. That's why it's so important, and this can help you get in front of the ball. So since we know he's big on infrastructure, renewable energy, and healthcare, and things like that, and we know we have a bunch of baby boomers that are getting older, it would be, it would behoove us to do what? It would behoove us to look at the infrastructure sector, which is consumer material, no, construction materials. So let's look at the construction materials sector. Also, let's look at the renewable energy, and let's look at healthcare. So the sectors we're gonna zoom in on are construction material, consumer, renewable energy, and also healthcare, right? So now when we break those down, now we know the sectors. Now we said, well, Prince, this is a huge sector. There are hundreds of stocks there, whatever companies or whatever, how do we find a company to invest in? Now there are a million ways you can do it. There are a million different type of ratios, but I'm gonna give you five little simple things that you can start with when analyzing. Number one, I'm gonna look at the fundamentals of the company. Knowing the fundamentals of the companies will help me sleep at night. So if I know a company has $1 billion in cash, and they only have $100,000 worth of debt, I can sleep a little bit easier at night versus a company that has $1 billion in cash and $10 billion in debt, that's current. That's number one way, looking at those total current assets, not having to work in capital, right? So for prime example, so what I'm gonna look at, I want the company to be profitable. I want to be profitable. Number one, you gotta be profitable because in this entire sector, there are plenty of companies that are profitable in infrastructure. There's plenty of money in the renewable energy sector that's already profitable, and there are plenty of healthcare companies that are already profitable. So if you're not profitable in the space, why aren't you profitable when all your brothers and sisters are profitable? And I like companies that are turning profits because when you're returning profits, that can increase your retained earnings. And the more money that you retain as retained earnings, that can be a great indicator of expansion in the future. So I want to see those profitability coming in. I want to see that retained earnings, retaining higher and higher and higher to be able to expand into the future. So that's not the only thing, but that's why profitability is so important. Number two, the debt to equity ratio, a debt to cash. How much money do you have on hand in total current assets are in cash? How much total, what's the total liabilities you have? Because, or how much debt or long-term debt you have, because we all know it's not about how much money you make, it's how much money you keep. So if you have a high amount of cash that's coming in, but then you also have a high amount or even higher amount of debt that's going out, that affects your retained earnings. Let's walk through it. I make a million dollars a year, but then again, I spend $900,000 to live my life. That means I'm only walking away with $100,000 and retained earnings every year versus somebody else who makes a million dollars a year. Somebody else can make $500,000 a year and only spend $100,000 and $100,000 or $100,000. And guess what? They have $400,000 left over versus the other company only had $100,000, right? So you get that. It's not about how much you make, it's about how much you keep. And that's what you can tell by looking at the current liabilities and the long-term liabilities as well. And you relate that to cash. So people are looking at return on assets. People love to look at working capital, which is total current assets versus total liabilities. So that's one thing, debt-to-equity ratio. How much cash do you have? How much debt do you have as well? I wanna see that ratio be a little on the lower end to debt-to-equity. Now you gotta worry about the next thing. Now if you have great fundamentals, there are plenty companies out there with great fundamentals, but they just don't have that magic to move. It's a company movement. For prime example, everybody knows Coca-Cola is a great business. It's a great company. It's not going anywhere, whatnot. But you don't see Coca-Cola really take off and do big things, right? And that's for two reasons, you know? The number one reason it has a very low beta. And the number two reason it pays a nice dividend. So I wanna look at something with a higher beta, a high beta. A beta of one means it's just as volatile as the S&P 500. I want a little spice on mine. I want you to go up a little bit higher. By going up a little bit higher, it doesn't say you're wrong. It's just saying that you have the possibility to move. I want stocks that's gonna be able to move into the future. The next thing I'm looking at is, what is my benchmark? If I have 10 stocks in my portfolio and I'm looking at adding an infrastructure stock, I'm gonna say, okay, well, is this stock beating the stocks that I currently hold in my portfolio? If they are, then why? Number two, are you beating the number one reason when we take this back to number one, let's revert back. Number one, are you outperforming the S&P 500 index? I can do that with simple look at a chart, right? Are you outperforming the S&P 500? The reason why that is so important because if you're not outperforming the S&P 500, if your individual stock is not outperforming the S&P 500, which is the top 500 companies in America, then I might as well just get the top 500 companies in America because the likelihood that the top 500 companies in America will have a significant decline versus your individual on the performance stock is greatly different. So my first thing is, are you outperforming the S&P 500 when I place you on the chart? The next thing is, I'm gonna look for is, I don't like companies, this one may sound a little crazy, but because I used to be very big on this, I used to be very, very big on dividends. Now I'm not as big on dividends because of my personal life. Why do I need to collect a dividend that's gonna be continuously repaid? Some people like dividends because they like to return on investment. Some people like dividends because they need a cash flow. Some people have so many other reasons that they like dividends. But I noticed, companies that pay a heavy dividend, like you look at a lot of your AT&T companies, you look at a lot of your Coca-Cola companies, companies that pay heavy dividends usually don't really go that fast or high. You look at a company like Verizon, AT&T, Coca-Cola, these companies don't run very fast or run very high, right? Why is that? Why they don't run very fast? Why they don't run very high? They don't run very fast or run very high because of the cash just coming in. A lot of that is going to dividends. Look at all the airline companies that had to pay millions that were paying millions and millions of dollars every quarter and to shareholders dividends. With me, and somebody said, hey, Prince, you invested $100,000 into my company. I have a dividend checkup, $5,000, that's going to come your way. And they said, hey, I can send you this $5,000 so you can have to go buy whatever you want to buy or I can keep this $5,000 and grow the company even more. So we're going to turn your $100,000 investment to a million dollars or whatever case can be. I like that. That's what I want to have. I would rather the company retain more of its earnings and expand in the future. Also by a company not paying you their dividends to a shareholder, this is a way to defer taxes. So for prime example, let's take someone who owns Coca-Cola and they earn a million dollars in dividends. Guess what? At the end of the year, when it's trying to pay taxes, they're going to have to pay a million dollars on, they're going to pay a million dollars on the dividends that they receive versus take someone else who invested into Google. They didn't pay any dividends. They weren't paying any dividends. They didn't sell the stock. They just held the stock. Guess how much they're going to owe in dividends? Zero. And on top of that, I'll probably have to tell you guys and girls, but you already know that Google probably outperform Coca-Cola anyway. So, excuse me, technology companies that don't pay dividends usually grow faster and put more money in my pocket. But what we're going to do, we're going to take a quick break. And I mean a very quick break. And after this break, we're going to come back. We're going to do a little review that we already talked about. Then we're going to break it down into the actual stocks that I've seen that you can take a look at and how to find a particular stock. That's what we're going to get into after the break. How to find the exact stocks in the sectors we just named on the President Biden. But we're going to take a quick break and we will be right back. Ladies and gentlemen, boys and girls and children of our ages, we are now back live on The Prince of Investment. I'm your host, Prince Dykes. I'm going to give a little review for anybody that may be tuning in now or may be catching it live. And so that if you, maybe if you were sleeping in the beginning that you can catch live what we have now. But the first thing is that we talked about. We talked about infrastructure. We talked about, we talked about, well, let's get back to very, very beginning. This whole episode of stocks to watch upon the President Biden and the stocks that we came up with to watch on the President Biden, we talked about why his, what his opinions were. And we said it was infrastructure, renewable energy and healthcare. On top of that, we looked at how does the President affect companies in the stock price? We'd love to look at the fundamentals of a company, how much money they make and things like that, right? So the President would be in a position and Congress would be in position to open up the banks. They can write government contracts. They can give tax credits. They can do all type of things to incentivize people to buy particular products. Prime example, the government wants to fix the roads. They can allocate money and move money around to give to cities and counties and states to help fix the roads. And the companies that do fix roads that put them in a position to capitalize. So that's how the President affects the economy. The third thing that we talked about was the particular sectors. We looked into the sectors. We looked into the sectors of infrastructure, renewable energy and healthcare. The President made it very clear that he was the Vice President of Obama who created Obamacare. So he's very big on Obamacare. And the second thing is we have a lot of baby boomers that's moving right into that older age of where you don't need more healthcare. The next thing was renewable energy. We see that renewable energy companies like Tesla is taking off solar panel companies. They're having great years. So green energy is another one and infrastructure that we already spoke about. So those are the sectors. Then we talked about inside of those sectors, what do you look for in a stock? And I said, I want profitability, low debt-to-income ratio, a high beta. I'll perform the S&P 500 and that pays no dividends. They have, I want the income steadily growing, their revenue streams are steadily growing, gross profits steadily growing, retained earnings steadily growing. So I'm looking for companies that are growing where, and I'm not grading them by what they said or do, I'm looking at their numbers, are their numbers increasing year over year? How does their debt look? Is that debt increasing? If it is, is gross profits increasing? So looking at that income statement, looking at that balance sheet and also paying attention to the cash flow. So with that being said, now we'd say before the break, we talked about the sectors, how do we find somebody in the sector? So the first thing you can do, there are plenty of ways. If you have Robinhood, not Robinhood, I'm sorry about that, I don't know Robinhood, it's having a crazy day today, but we're talking about if you have maybe like an E-Trade or a TD Ameritrade or maybe like a simple Google search, you can find some of the top companies in the infrastructure arena. So how do you find a top company is you can search by their market capitalization. Market capitalization is the share, how many shares are outstanding times the share price that's gonna come up with market cap. So you have mega cap, mega cap, mega large companies, you have large cap companies, mid cap companies, if you have small cap companies, this is how they rank companies, how big they are or whatever the case may be. So the thing about it is, first I wanna start with the big boy, the biggest and the baddest in the sector. Once I list out your market capitalization, are you the biggest and the baddest in the section? Now you're gonna fall into, are you profitable? Usually the biggest and the baddest company is usually profitable, you usually have good debt to equity ratio. Then I'm looking at stock price and I'm looking at this beta and then I'm looking at, how does it compare to the S&P 500 and does it pay dividends? And then if none of that happens, if all of that happens to line up, then I may go with that company, I may not go with that company. Then I may look at who else is in that sector, who's the top three, right? Now I'm looking at the performance too, I'm looking at the performance, who's performing what? If they are performing very well and they're doing very good and things like that, then I may go with that particular company. Now when I look at the stocks, so first I go to the section, I go to the sector of, let's say infrastructure. Let's say for infrastructure, I may go to the construction section inside the construction section, I may look at construction materials, who's selling the materials to be constructed upon, right? So when I do that research and I find, okay, boom, I pull out a list, now I fill that list down to market cap. Now I have the market cap, I can see the big companies, now I can do a quick search and look at the PE ratio. I look at the PE ratio and it's negative or it's zero, I know that company's unprofitable at least within the last 12 months. Go to a way, I don't wanna pay attention to it. Then look at the debt-to-income ratio, how much cash do you have on hand? What are your total assets? What are your total liabilities? What is the ratio? Just because you have a lot of debt, do you make a lot of cash? Is your income steadily growing? Is your income growing? Are you decreasing debt over time? So I'm looking at that gross profit, right? You know, we love to get sometimes as investors, we look, oh, this company makes this much money, but I wanna see how much money is the company taking home? And I can stroll all the way down on that income statement, on that balance sheet, and I love to look at those retained earnings. And also shareholder's equity. I love to look at the total assets, minus the total liabilities, comes up with a network, AKA shareholder's equity. The next thing is, okay, great financial, fundamental company, but now does this stock even move? What is the beta? If the beta is one or above, or is one below, what is it, you know? I want something with a little bit of a higher beta, because if I'm right, I want the stock to move. So I'm gonna compare it to the S&P 500. Are you outperforming the S&P 500 year to date? Within the last year, two years, three years, because I know great companies that don't move that much. So I wanna look to see if you got a little asset on you. I can break that down. The next thing I can do is to see, are you paying a dividend? Are you paying a dividend? It's a very easy to look up. You can look at dividends, and also the dividend payment is also on the cash flow statement, and it's also on your income statement as well, right? So I can see how much money is being paid in dividends, even if it pays dividends, because instead of sending me a check for $100 or $5 or two cent or whatever, I really keep that money and continue to grow the company. Because when you pay me that money, first the company, once the company made the money, they gotta pay taxes. Then they pass it down to you, then you have to pay taxes. So you're being hit with taxes twice. I really the company continue to grow, AKA a company like a Tesla or a company like Amazon. I want that company to continue to grow. I don't have to pay taxes on it, and it continues to reflect and stop price of my value as it continues to grow. That's what I wanna see. The next thing that I want to, and those are like five general things that I can see by looking in that sector, looking in the renewable energy sector, who's there? Who's there? Who's the biggest one by market cap? What companies are moving? Are they profitable? Are they doing a debt equity ratio? And I can provide that to help here. So one company, this look at an infrastructure, you have a company like CaliPillar, CaliPillar, right? Now I have another company that doesn't have a big name, CaliPillar, you know, when you drive down that road, you see those big trucks and bulldozers and things like that on those construction sites, starting construction or whatever, that's a great deal. That's a great deal for CaliPillar. If we build infrastructure, we're probably gonna need some of their machinery that they make. That's one that you look at an infrastructure. Green energy. When you look at green energy, you have companies like Enphase, and you have companies like Solar Edge that are doing very good to have great finances and things like that. The next one is healthcare. One that I really like is Illumineer, right? I really like that one. It's a little bit on the high end. It's about 300 bucks, but it's a great company. It's in the healthcare industry. It's not just taking care of people, but it's creating technology. It's creating technology, diagnostics and things like that. There's another company I've found there, but it's a pretty known company. Who's making the technology? Healthcare technology. As clients get older and they need injectables, they have to take shots. They need to breathe the machine and the oxygen. Who's making the tubing? Who's making the machinery or whatnot, right? So this is the way you can find this out, but once you find a company you've never heard of, most websites, every publicly traded company has an investor relations division. So you go to the investor relations division, you can look up, okay, the SCC Founds, or you can look up their finances right off of the investor relations website. So like I just said, we have on infrastructure, we have Calpillar for renewable energy. We have solar edge and we have in-phase. In-phase is the one that I love the most, E-N-P-H and healthcare. You have Illuminaire, right? So when you look at all these particular companies, you have so many ways to profit and invest, right? You can align yourself to get in front of what the President Biden's presidency will look like in those particular sectors breaking down those stocks. So in this episode, quick recap, we talked about President Biden's belief and we talked about the three sectors that his beliefs kind of tie into. We talked about how does the president, how do they incentivize people to buy from companies, incentivize businesses. Then we looked at the sectors and inside those sectors, we looked at five things to look for in stocks. And then we found five individual stocks under President Biden's election that you can get in front of. Please do you do diligence. This is not me telling you to buy anything. This is just me giving you my opinion in a way that I kind of look at things like that. I do not hold Calpillar, I do not hold solar edge and I do not hold Illuminaire at this time. I do own in phase. I'm making sure I have the duty to disclose that too. So I'm not trying to influence anybody, go out here and buy something that I already own to run the price up. So got way more interior than that. Anyway, ladies and gentlemen, that's gonna conclude today's episode. Make sure you hit that like, subscribe, comment and share button and let all your friends know all your mom where you could come back here and get the Prince of Investing, catch us on YouTube, subscribe on YouTube, subscribe on the podcast or wherever you're catching us. Anyway, my name is Prince Dax. I'm the Prince of Investment. And to the next video, podcast, cartoon or whatever else crazy you seem to be doing around the globe, peace, be safe, I'm out and thank you.