Moderate and Mellow Market Methods

Sector Spotlight

Earnings Power

Since going public back in 2015, Hydro One Ltd. (TSX:H) has been going steady. After all, that’s exactly what most would expect from a power utility company. Not too flashy, but Ontario’s largest transmission and distribution provider doesn’t give investors a whole lot to worry about either.

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That was exactly the case this week as Hydro One reported strong fourth quarter earnings, announcing a 10% increase in fourth quarter profits compared to last year. Revenue totaled $1.86 billion for the quarter, up from $1.78 billion a year earlier, while revenue, net of purchased power, was $967 million, up from $865 million. Shares of Hydro One were little changed following the earnings release and while it remains down slightly on the year. When it comes to diversification, holding a position in established utilities companies can provide income while reducing downside risk and volatility in your investment strategy.

Meme Stock Stalkers

Book It

It seems like it was just yesterday that Airbnb Inc. (NASDAQ:ABNB)went public via initial public offering (IPO), and it didn’t take long after that for the meme stock crowd to take notice of the new stock on the market. The hype was real as Airbnb soared more than 50% in its first couple months of trading, but per usual, the hype didn’t last and Airbnb has fallen more than 40% since peaking back in 2020.

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Now, the meme stock is on the rise once again, but this time for a more logical reason. Airbnb exceeded analysts’ expectations this week, posting record fourth quarter revenue and profit and achieved its first profitable year to boot. Shares jumped nearly 10% in after hours trading following encouraging results. While shares of Airbnb are now up more than 40% in 2023, it still has a ways to go before climbing back to its IPO price, let alone its all-time highs from 2021.

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ESG

Green Goals

This week, Telecom giant Verizon Communications Inc. (NYSE:VZ)committed to a new type of coverage! No, we’re not talking about 7G or whatever number they’re on now. Verizon revealed that it is on track to exceed its goal to source or generate renewable energy to 50% of its total annual electricity usage by 2025, and announced a new target to have 100% of electricity usage covered by renewable energy by 2030.

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Financial Jargon Word of the Week: For investors, death spiral financing is nearly as scary as it sounds. Death spiral financing refers to debt that is financed through the use of a certain type of convertible bonds or convertible stock resulting in an increasing number of outstanding common shares. This waters down the value of each individual share and can often result in bankruptcy for a company. ​ ​ In a sentence, please! Companies who use death spiral financing are a big red flag for me as an investor so I try to keep my distance. ​ ​ ​ ​ ​ ​ ​ ​ ​ Discover your Investor Profile and get customized free, action items specific to the way you invest! Every week, we will be talking about the latest market news and strategies, aligned to keep you sharp and armed for opportunity and volatility. This newsletter is geared to YOU, based on your own Finliti Investor Profile! We believe that every investor is unique and therefore, should be aware of their actual risk tolerance. If you’d like to know yours, please find out here: Finliti Investor Profile. Get actionable insights into your personalized faction once you discover your inner wealth warrior! Understanding your personal risk tolerance is one of the key first steps before embarking on an investment or trading strategy. It tells you your location on the GPS tracker to your financial destiny! Thank you for joining the Finliti Community! Finliti Disclaimer 1. Finliti’s newsletter is published as an information service to our subscribers and may contain references to stocks, bonds, mutual funds, ETFs, cryptoassets, etc., but this should not be construed as direct or indirect advice or recommendation to any reader to buy or sell these assets. 2. Finliti believes the sources it quotes to be reliable, but does not guarantee their accuracy or completeness. 3. Finliti is not paid by any company to recommend its stocks. 4. Employees or publishers of Finliti’s newsletter may own the assets discussed in the publication for their own investment purposes. 5. Past results are not necessarily indicative of future performance. 6. The information provided is for general information services to our readers as a convenience the materials are not a substitute for obtaining professional advice vis-a-vis your personal situation. 7. Given the time critical nature of the market, the information in this article may become outdated and Finliti has no obligation to change the article. 8. Finliti Corporation is not a registered Investment Advisor or Broker Dealer. This newsletter relies on the “publisher’s exclusion” from the definition of Investment Advisor under Section 202(a)(11)(D) of the Investment Advisors Act of 1940and its corresponding state securities laws and on the exemption from registration under Section 34 (1) (1) of the Securities Act (Ontario) and its equivalents in Canada. Tell your friends about us! Unsubscribe | Update your profile