The Motley Fool's Weekly Editors' Picks
Aug 18th 2012 1:37PM
Updated Aug 18th 2012 1:46PM
Fools were out and about this past week in an investing world jam-packed with actions and ideas. Here are three articles you might find useful as you decide how to invest your money.
7 Products, Concepts, and Ideas That Won't Exist by 2025
Will there be 3-D televisions in 13 years? Energy drinks? Credit cards? A United States Postal Service? Fool analyst Sean Williams thinks these things will be gone by 2025.
Sean said he doesn't consume energy drinks but understands their broad appeal. However, he thinks it's likely the FDA will start muscling in on the beverages in terms of their safety, ingredients, and manufacturing within the next decade. "That could be a crushing blow for energy drink giant Monster Beverage (NAS: MNST) , which generates more than 90% of its sales from its energy drinks," Sean wrote.
The move from paying with credit cards to paying with near-field communication devices will happen because NFC payments are "more secure, quicker, and more convenient for users," Sean wrote. He noted that investors might want to keep an eye on NXP Semiconductors (NAS: NXPI) , which makes the chips used in NFC-enabled mobile devices, and on Dolby Laboratories, whose Via Licensing subsidiary owns all NFC patents.
Read the article to get Sean's full rundown on what the future might hold, and check out the comments section on that page to see what other Fools think.
3 Reasons a Perfect Storm May Be Brewing for Mortgage REITs
Fool analyst Amanda Alix warns investors about some rumblings that all is not wonderful in the high-yield world of mortgage real estate investment trusts (mREITs).
The refinance boom, which benefits borrowers and banks, is "a bad omen" for mREITs, Amanda wrote. Mortgage REITs make money by borrowing at low short-term rates and then buying assets with higher long-term rates. Unfortunately, "refinancing presents a ... problem when higher-rate mortgages are paid off as the borrower takes out a new loan at a lower rate," Amanda noted.
FBR Capital Markets downgraded Annaly Capital Management (NYS: NLY) , a REIT that yields 13%, Amanda reported, because of its higher-than-average exposure to mortgage loan prepayments. "This is due largely to its size," Amanda wrote -- a market cap of more than $16 billion, wrote Amanda.
American Capital Agency (NYS: AGNC) has made a point of concentrating on purchasing mortgage-backed securities that it believes will have a low prepayment rate, Amanda wrote. "It seems that American Capital's game plan has paid off, particularly when you consider that the market for MBSes has heated up in general, and for certain types of mortgage bonds in particular."
Read the article for Amanda's analysis of the pros and cons facing mREITs.
Why Investors Should Continue to Love Coke
Leading off Fool analyst Andrew Marder's assessment of Coca-Cola's (NYS: KO) strengths is the soft-drink maker's brand. "Coke's branding is known the world over and is so ubiquitous that it doesn't even need to mean anything anymore," Andrew wrote. "With its strong brand and massive footprint, it can take on all comers and make investors a boatload of money."
However, Coke is no angel, Andrew noted. It's faced accusations of human-rights violations over the years, and Coke's nutritional profile upsets many people. And soda's not the only bad guy. "Coke's Minute Maid orange juice only has three fewer grams of sugar per serving than Coke," Andrew wrote.
But all in all, Andrew's sold on Coca-Cola as an investment: "The company needs to better monitor its international operations, and I sincerely hope it moves away from high fructose corn syrup," he wrote. "But in the end, it produces a product that millions of people can enjoy in a healthy manner, and it has produced great returns for investors."
Read the article for more insight into Coke.
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The article The Motley Fool's Weekly Editors' Picks originally appeared on Fool.com.Fool online editor Kris Eddy owns no shares of any stocks mentioned in this article. The Motley Fool owns shares of Annaly Capital and Coca-Cola. Motley Fool newsletter serviceshave recommended buying shares of NXP Semiconductors, Dolby Laboratories, Coca-Cola, Monster Beverage, and Annaly Capital. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.
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