Are you ready for 2018?
I’ve been ready…
And optimistic for what the next year holds for investors like us.
Well, cautiously optimistic. Because as much hype as the markets have been getting lately, the bottom line is, we never know what’s going to happen on any given day.
Whether it’s political drama, financial decisions or a gigantic fluctuation in cryptocurrencies – any one of these could wreak havoc on the markets!
Which is why when I keep seeing more and more proof that all of the hype is justified – well, I can’t help but get a little giddy.
Which is exactly what happened when I read, what could be, one of the biggest financial news stories of the whole year – in just the first week of January…
And if we take advantage now, we could end up putting a lot of green in our pockets.
While perusing the financial news sites earlier this week – I came across one of the most intriguing headlines I’ve seen in weeks.
You may have read it yourself. However, when I saw it – my brain immediately started spinning at the possibilities and implications of what would happen if this headline turned from speculation into reality.
“There is a 40% chance Apple(AAPL) will acquire Netflix(NFLX)”
If you’re reading this for the first time, you’re probably having a lot of the same thoughts that I did.
Man… isn’t capitalism awesome?
Not a bad way to start January off, if I do say so myself.
According to some Citi analysts, the 40% likelihood of Apple acquiring Netflix could be made possible from the $220 billion in cash Apple can now bring back to the US under the Trump tax cut.
According to Citi, “The firm has too much cash – nearly $250 billion – growing at $50 billion a year. This is a good problem to have. Apple has avoided repatriating cash to the US to avoid high taxation. As such, tax reform may allow Apple to put this cash to use. With over 90% of its cash sitting overseas, a one-time 10% repatriation tax would give Apple $220 billion for M&A or buybacks.”
Corporate tax cuts coupled with the one-time cash repatriation allowance for companies that have cash stored overseas, would give Apple the cash flow it would need to make this acquisition happen.
It would only need about $70-$85 billion to grab Netflix.
This is HUGE!
And this is something that Apple needs to move forward into the future…
Content, and all ways to stream it are the way of the future. People have all of the devices and goods they can carry – but more and more – content is how these companies are going to make money in perpetuity.
And Apple has struggled to find a way into this side of the equation. As popular as iTunes is – it’sbasically having to give away a lot of profit in order to sell other people’s content and it’s losing customers in droves to other streaming services like Netflix and Hulu – because people want to be entertained.
And while Apple is trying right now to produce its own content –it’s not easy.
Think about it, imagine if Zenith or GE (GE) went from making TV’s to producing television shows – same universe, different worlds.
So, it actually makes a lot of sense that Apple would shell out the big bucks in order to own one of the biggest content producing companies on the planet.
The only question is…
Is it GOOD for business?
It seems more and more that many different companies are finding ways to get into more and more businesses…
And it seems that the word “monopoly” is being thrown around a lot these days.
The way things are going – it seems like we’ll only have 3 places to get our goods and entertainment: Apple, Amazon (AMZN), or Wal-Mart (WMT).
Let’s just hope Wal-Mart stays in its own lane…
Now… with this information in mind, there are a few ways we can prepare for this potential buyout.
Buying shares of either company would put you in a position to profit – but that doesn’t mean there aren’t other ways we can get in on the action.
There are TONS of backdoors into Apple profits and with just a little bit of research – you’ll find that there are plenty of publicly traded companies that could get you a piece of this multi-billion-dollar pie.
And those are the stocks that I love finding for my GorillaTradessubscribers…
The companies that nobody is looking at, that have the potential to profit fast – where we have the chance to get in and get out if we need to.
2018 should be another banner year for GorillaTrades and I’m hoping that you’ll be along for the ride…
So please, consider subscribing to GorillaTrades today – that way – you’ll be on the list for our next recommendation.
However, regardless of you taking us up on our offer or not, do yourself a favor and keep an eye on this Apple/Netflix story…
It could be something big in 2018.
“Wide horizons lead the soul to broad ideas; circumscribed horizons engender narrow ideas; this sometimes condemns great hearts to become small minded. Broad ideas hated by narrow ideas – this is the very struggle of progress.” – Victor Hugo