Long-term bucket pick #4: Visa (V). Think of Visa not as a credit card but as a network. We know from watching other networks–Amazon (AMZN) and Apple (AAPL), for example that a the more customers are plugged into a network, the more attractive that network is for merchants, and therefore the more convenient the network is for consumers. All this adds up to extraordinary profitability with operating margins of 65% in 2020
I hope it’s no surprise to you–I’ve been yammering away on this topic for the last two weeks after all–but next week is a big week for earnings from bellwether tech companies. The market reaction to those earnings will determine whether the current earnings based rally goes on for a while or if, instead, we get a sell on the news retreat. Tuesday, April 27, is the first big day with Apple (AAPL), Advanced Micro Devices (AMD), Alphabet (GOOG) and Microsoft (MSFT) all reporting.
After picking up; 1.3% yesterday, shares of Microsoft added 1.23% today, Friday, July 23, as Wall Street analysts raised earnings estimates ahead of the company’s July 27 earnings report. It’s a tried and true earnings season game: No analyst wants to be on the wrong side of a strong earnings report so the days before a company is due to report earnings brings a raft of new, higher target prices.
On Thursday, July 15, Taiwan Semiconductor Manufacturing (TSM), the world’s leading chip foundry, reported earnings of 93 cents a share for the second quarter, up 18% year over year. That was inline with analyst estimates. Sales rose 28%. The company raised its revenue guidance for the third quarter to a range of $14.6 billion to $14.9 billion. The midpoint of that range, $14.75 billion, was above the Wall Street consensus estimate of $14.57 billion. Sales in the third quarter of 2020 are $12.4 billion.Taiwan Semiconductor said that it now expects sales to grow more than 20% this year, an increase from the 20% target announced earlier in the year. For 2020-2025, the company raised its revenue forecast to a compound annual growth rate of 15% from a previous target of 10% to 15%. But the stock dropped 5.5% on July 15 and fell another 1.52% on Friday, July 16. Why?
I’m starting up my videos on JubakAM.com again–this time using YouTube as a platform. My thirty-fourth YouTube video “QuickPick: 3 reasons to buy Deere” went up today.
Special Report: 5 Post-Pandemic Picks and 5 Post-Pandemic Pans for a “New Normal”–my third pick Lululemon
In this Special Report: 5 Post-Pandemic Picks and 5 Post-Pandemic Pans for a New Normal I’m going to highlight 5 stocks that will see big benefits from changes in behavior after the pandemic and 5 stocks that are looking at negative after-effects. I started with two picks for what I called the wonderful world of logistics, Applied Materials (AMAT) and Zebra Technologies (ZBRA). For this post I’m going to move on to one of the key, and maybe surprising, features of the Post-Pandemic economy: The pandemic and the measures implemented to recover from the Pandemic recession of 2020 have exacerbated an already huge wealth imbalance in the U.S. economy. My pick for the very unequal, Post-Pandemic New Normal is Lululemon Athletica
More on why I added Zebra Technologies, my second Post-Pandemic picks for a New Normal, to my Jubak Picks Portfolio on June 28
On June 28 I added Zebra Technologies (ZBRA), my second pick in my Special Report: 5 Post-Pandemic Picks and 5 Post-Pandemic Pans for a New Normal, to my Jubak Picks Portfolio. In that day’s update on this Special Report set a target price of $596. (The shares closed at $510.65 on June 25 and at $539.94 on July 2.) Today let me give you some more of my logic behind this pick as well as an update on why the stock climbed 1.49% on July 2.
Trick or Trend: A huge ransomware attack says “Buy another cybersecurity stock” and I’ll post my pick on Tuesday
Another day; another ransomware attack. This one is being called the largest non-national-state supply-chain cyberattack ever seen (and possibly the largest cyberattack ever, period.)
Yesterday in my video “3 Picks for an Earnings Blowout” I argued the case that even the 61% second quarter year to year jump in earnings in the Wall Street analyst consensus was understated.. There’s a very high likelihood that we’ll see lots of positive earnings surprise in the second quarter earnings season the begins on July 13 when JPMorgan Chase reports earnings before the market opens. In that video I suggested three stocks JPMorgan Chase (JPM), Taiwan Semiconductor (TSM) and Advanced Micro Devices (AMD) as picks to play that second quarter earnings surprise. Today I’m adding one of these Advanced Micro Devices to my online portfolio with shares in my 12-18 month Jubak Picks Portfolio and Call Options in my Volatility Portfolio.
Special Report: 5 Post-Pandemic Picks and 5 Post-Pandemic Pans for a “New Normal”–my first three picks
The pandemic is over. (I’ve got my fingers crossed, I’ll admit, about a resurgence in the winter.) But it has left behind a changed world. The new normal won’t be exactly like the old normal in big and critical ways. For investors. Think of the pandemic as a really painful test for the global economy and individual companies. (As well as a global horror that killed more than 3 million people.) Some companies passed the test with flying colors–and in fact came out of the pandemic with stronger prospects than ever. Others saw the pandemic expose expected or unexpected weaknesses. In this Special Report I’ll be putting together a list of 5 picks and 5 pans for a Post-Pandemic economy.
On Monday, June 28, I’ll be adding shares of Martin Marietta Materials (MLM) to my Jubak Picks Portfolio to increase my exposure to the infrastructure sector after the Thursday, June 24, announcement at the White House of a bipartisan infrastructure deal. You should think of this producer of construction aggregates–used in highways, for example–as a version of aggregate producer Vulcan Materials (VMC) with a different regional profile. Whereas Vulcan is strongest in the Southeast and Texas, Martin Marietta has just acquired the assets of Heidelberg Cement in Arizona and California.
I’m starting up my videos on JubakAM.com again–this time using YouTube as a platform. The twenty-ninth YouTube video “5 stock picks for the infrastructure deal” went up today.