Louis' Blog Archive
Why These Tech Stocks Are Sitting Pretty Right Now
September 18, 2020
The major technology stocks have been in a washing machine market cycle lately — up one day and down the next. The tech-centric NASDAQ hit a new high on September 2, but then fell off in following days as investors pondered sky-high valuations for big names like Tesla (TSLA), which currently has a stratospheric price-to-earnings ratio of 1,118!
My Thoughts on the Election and the Market
September 17, 2020
It’s hard to believe that the presidential election is just 46 days away now. And I think it’s safe to say that this presidential election is far different from any other I’ve witnessed! The reality is the coronavirus pandemic threw the election cycle and the stock market for a loop, which, in turn, created a lot of uncertainty this presidential election year. And, as I’ve said before, Wall Street hates uncertainty.
The Winners of Merger Mania Monday
September 15, 2020
Following the four major mergers and acquisitions (M&A) announced on Monday, I think it’s safe to say that merger mania has officially commenced! In addition to the weak dollar, which is a windfall for multinational companies, companies are also refinancing their debt at ultralow rates. So, everyone’s out refinancing their debt, which improves cash flow. Some companies take that cheap money and buy their competitors.
Weekly Upgrades and Downgrades
September 14, 2020
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 80 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.
The Race to Delivery by Drone
September 12, 2020
Well, folks, every day there seems to be a new tech development that gets us closer to living in an episode of the futuristic show, “The Jetsons”! In this case, that tech development comes courtesy of Amazon (AMZN). The company recently received Part 135 air carrier approval from the Federal Aviation Administration (FAA) to deliver packages with drones.
Why Warren Buffett is Betting on This Cloud Computing IPO
September 11, 2020
It’s not every day you see Warren Buffett and his flagship investment firm Berkshire Hathaway (BRKB) take a stake in the initial public offering of an up and coming tech company. In fact, Buffett told CNBC last year that… “In 54 years, I don’t think Berkshire has ever bought a new issue. The idea of saying the best place in the world I could put my money is something where all the selling incentives are there, commissions are higher, the animal spirits are rising, that that’s going to better than 1,000 other things I could buy where there is no similar enthusiasm … just doesn’t make any sense.”
Investors Splurge on Shopify Shares
September 10, 2020
For millions of small businesses struggling to stay afloat during the pandemic, setting up shop online has been a must for survival. While researchers scramble to create a vaccine and other treatments for COVID-19, more people are turning to online shopping for their necessities. As a result, some internet companies are booming.
The Electric Vehicle Business Goes Into Overdrive
September 8, 2020
The markets slipped again today with technology stocks in the crosshairs as the NASDAQ dropped 4% and the S&P 500 and Dow slipped more than 2%. Tesla (TSLA), in particular, can’t seem to catch a break right now. As you may recall, the stock surged in the wake of its stock split early last week, but then fizzled out after the company announced that it would raise another $5 billion in secondary stock offerings to fund its new manufacturing operations in Austin, Texas and Berlin, Germany.
Weekly Upgrades and Downgrades
September 8, 2020
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 54 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.
The Factors Behind Zoom Video Communications’ Stunning Earnings Beat
September 5, 2020
By this point, you’ve likely at least heard of the go-to online communication platform, Zoom Video Communications, Inc. (ZM), which has made it easy for people to interact face-to-face with each other during the pandemic. As Zoom’s userbase has soared under lockdown, so too has the stock. As I talked about last week, I was expecting Zoom to post a blowout quarter. And it sure did not disappoint! ZM surged more than 40% after walloping analysts’ earnings estimates for its second quarter in fiscal year 2021.
