Good and Bad Business Investments for 2017

Many investors wish they could just predict how the market is going to perform so they can make the best and secure investment decision for their wealth portfolio. Unfortunately, no one has that kind of capability. However, it doesn’t cost a dime to listen to what experts say about how the markets are destined to perform. If you are in dilemma where to and where not to invest your money in 2017, consider the predictions below:

Good Investments – General Motors

No investor will ever forget the dark history of General Motors. The government of the day injected a staggering $50 billion during the biting financial crisis to bail out the company. The bailout has improved GM tremendously to date. In fact, in the 2nd quarter of 2016, the company recorded a net income of $2.9 billion. This is an increase of an incredible 157%. GM has about 4.8 dividend earnings which guarantee an appealing mix of income and value for investors. Whether you’re looking into commercial car insurance for your company’s fleet of vehicles, looking into General Motors may provide some high resale value because of this positive trend. While the market for vehicle sales is unpredictable, GM is best prepared now to ride the tide.

Physician Realty Trust (DOC)

Physicians Realty Trust is a healthcare Real estate investment trust responsible for leasing and managing healthcare properties. According to market outlook, it is one of the best investments to consider in 2017. What analysts find interesting about this investment trust is its trend continues to spiral up both medium and short term. It has also pulled back while, providing a less expensive entry point that enhances reward and risk for investors. If Physician Realty Trust can maintain the same upward trend throughout the electioneering period, it would be a good investment decision to make. Its 2nd quarter financial results postings indicated 79 percent revenue rise annually totaling $53.2 million.

Newmont Mining (NEM)

Newmont Mining is an enormous gold producer. The company might be impacted if the increase in interest rates proposed by the Federal Reserve is effected. Mining stocks have been slicing sideways in the past few months because of the pending decision. Experts are predicting that the Federal Reserve will not increase interest rates. If they don’t increase the rates, then it’s highly probable that Newmont Mining will catch steam after the elections offering a good investment platform for investors.

Bad Investments

Investing, in general, is shrouded with massive risks but some business investments are just downright risky. Concerning credit, soaring dilution, and fierce competition are some of the risk factors that could result in poor results. These poor results are awaiting those investors looking to invest in these businesses:

Invensense

This company centers on manufacturing motion-sensing chips that are utilized in an array of electronic devices including smartphones. The company’s fortunes have rocketed over the past few years which resulted in significant profit margins. Due to explosive growth, the stock’s price plunged for a particular duration. The Invensense seems to operate in a fierce market today, and it resorted to discounting it products to regain and capture more market share. This strategy seems to be short-term and might well affect the profit margins in the long run. This makes it not a viable business investment moving forward.

Vanguard Natural Resources

This company is between a rock and a hard place right now. The steady weak oil and gas prices over the last 2 years have sliced into the company’s cash flow not to mention the over reliance on bank credit facilities to finance its growth. These aspects have lead to a thin margin of error, which could well result in the company filing for bankruptcy if product prices fail to improve. To put a figure on it, Vanguard Natural Resources borrowed more than $1.424 billion that raised eyebrows after the banks sliced its credit availability to $1.325 billion in May. The banks’ acts rendered Vanguard Natural Resources with a deficit of $103.5 million which it’s supposed to pay back in 6 equal monthly installments. It’s thus not a smart move to invest in just yet.

Plug Power

Most people are tempted to invest in firms with groundbreaking technology and have the capability to disrupt the norm. Plug Power is investing in an ambitious project to develop hydrogen fuel cells that will replace traditional batteries and have made a name in the material handling equipment. Sales have been significant, and it has a huge base of customers that could propel it to greater heights. The only drawback is that the firm is constantly caught in-between cost issues. Each time Plug Power reports income, cost continually grow. To add insult to the injury, the firm has been watering down any return on investment for investors by issuing more shares to bridge its costs at substantial prices. Although experts predict booms in the energy sector for investors, Plug Power is not the best place to invest your money.

However, most investors do not have the cash on hand to invest in these businesses that are anticipated to boom in 2017. So, naturally, they go the credit way. But to get a loan from any financial institution, your credit score must be appealing for a business investment loan. But what if your credit score is not on par? You don’t need to worry; read about some of the best credit repair companies that you can leverage. A good credit repair company will eradicate negative aspects from your credit report and assist enhance your credit score making it easy to acquire a business loan. All you need to do is inquire about the local credit repair companies in your area, and you will get help.

 

By: Kevin Faber

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