Louis' Blog Archive
Weekly Upgrades and Downgrades
June 21, 2021
During these busy times, it pays to stay on top of the latest profit opportunities. And today’s blog post should be a great place to start. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Portfolio Grader recommendations for 104 big blue chips. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.
Why I Believe NIO Will Beat Out Tesla
June 19, 2021
Super fans of the latest and greatest high-end Tesla, Inc. (TSLA) model received some disappointing news a week ago when CEO Elon Musk abruptly canceled the release of its highly anticipated Model S Plaid Plus with a Tweet on June 6. Musk wrote there was… “No need, as Plaid is just so good.” As a way to “sugar coat” its flip flop, Tesla said the Model S Plaid is just as fast as the Model S Plaid Plus and $20,000 cheaper. Humm.
How to Benefit from Company Buybacks and Earnings
June 18, 2021
The first quarter wasn’t just a record one for earnings and sales growth. It was also a record quarter of stock buybacks. More than $500 billion in stock buybacks have been authorized in 2021 so far, which represents the fastest pace for stock buybacks in 22 years, according to the Wall Street Journal. Interestingly, this “buyback bonanza” isn’t showing any signs of abating any time soon either. Stock buybacks are anticipated to increase by at least 35% year-over-year in 2021.
Why Wall Street Overreacted to the Latest Fed Announcements
June 17, 2021
The Federal Reserve’s Federal Open Market Committee (FOMC) met Wednesday and said they’ll continue to maintain a zero percent interest rate policy and the $120 billion per month in quantitative easing purchases. If there was a surprise in the Fed’s announcements, it was that 13 of the 18 FOMC members expect key interest rates, known as the federal funds rate, or the rate banks can charge each other to borrow or lend excess reserves overnight, will go up in late 2023.
Is There Still Upside Potential for Novavax Stock?
June 15, 2021
It’s been a wild year for Moderna, Inc. (MRNA), Pfizer Inc. (PFE), Johnson & Johnson (JNJ) and Novavax, Inc. (NVAX) since the four companies started vying for the number-one spot on the COVID-19 vaccine list. As you may recall, PFE, which partnered with BioNTech (BNTX), and MRNA both received an emergency use authorization (EUA) from the FDA in early December 2020 for their mRNA vaccines. PFE’s vaccine was found to be 95% effective at preventing symptoms of COVID-19. Moderna’s vaccine was said to be nearly as effective, at about 94%. Both vaccines required two doses.
Weekly Upgrades and Downgrades
June 14, 2021
During these busy times, it pays to stay on top of the latest profit opportunities. And today’s blog post should be a great place to start. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Portfolio Grader recommendations for 155 big blue chips. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.
One Specialty Retail Play for the Housing Boom
June 12, 2021
The real estate market hit new records in May. According to Redfin, the median home sale price rose 24% year-over-year to a record-high of $354,250. Asking prices were also at records, climbing to a median $361,875. Another new record includes the fact that 51% of homes sold above their initial listing price, a 26% year-over-year increase. Redfin also noted that houses sat on the market for an average 17 days, down from 36 days a year ago.
What’s Behind the Latest Inflation Numbers
June 11, 2021
Inflation has arrived in a big way. The Labor Department announced Thursday that the Consumer Price Index (CPI) climbed 5.0% over the last 12 months, the largest bump since the 5.4% increase for the year-long period ending August 2008. The core-price index, which excludes categories with high volatility like food and energy, increased 3.8% in May from a year prior. That was the largest such increase since June 1992.
Finding the Best Semiconductor Stocks Amidst the Chip Shortage
June 10, 2021
The semiconductor chip shortage that’s been frustrating a wide swath of businesses around the globe — from automakers to household electronics manufacturers to video game makers — may soon diminish. In fact, the world is likely in the deepest part of the shortage right now, according to industry analysts at The Goldman Sachs Group, Inc. (GS), and we’ll likely see shortages ease toward the second half of the year.
Here’s What Happens When the Value “Rally” Fizzles
June 8, 2021
To be fair, on the surface it looked like value stocks had been on a tear since mid-February. However, if you dive a little deeper into the numbers, you’ll see that it wasn’t a value rally but rather a “mean reversion rally,” which is when a rising tide lifts all boats. Although this mean reversion can be interpreted as a value shift, the value stocks without strong forecasted sales and earnings are expected to stall out in the upcoming weeks.