I posted Friday, June 11, that investors looking for a theme to buy in an expensive market had turned to Cyber Security stocks. Makes sense, I noted, with ransomware attacks running at a fast pace and forecast pointing to even more attacks on corporate and government systems in the months (years?) ahead. I wrote that in this sector I already owned Palo Alto Networks in my Jubak Picks Portfolio where the stock is up 79% since I added this position on June 27, 2019, and in my 50 Stocks Portfolio where it is up 50% since I added this position on January 21, 2020, and in my new Millennial Portfolio where the position is up 0.94% since I added it on May 21, 2021. And that I would be adding another Cyber Security stock, CrowdStrike Holdings, to my Jubak Picks and Millennial portfolios on Monday, June 14
Oil prices have bounced back big time and with them the prices on oil stocks. I still think the long-term trend is against oil producers as efforts to combat global warming lead to lower consumption of fossil fuels. And I’d prefer not to own any oil and natural gas shares–even in as “progressive” a company as Equinor. I’m going to take advantage of the rally in oil prices to sell these shares out of my Jubak Picks Portfolio with a small 0.9% gain since I established that position in May 2012.
Applied Materials “stomps” Wall Street earnings projections: I’d use any post-earnings weakness to buy
The chip shortage that has hurt technology companies such as Apple (AAPL) and hammered auto producers continues to pay dividends to Applied Materials (AMAT), the dominant manufacturer of equipment used to make semiconductors. Yesterday, May 20, after the market close in New York, Applied Materials reported fiscal second-quarter adjusted earnings of $1.63 a share against 89 cents a share in the second quarter of the last fiscal year. Revenue rose to $5.58 billion from $3.96 billion in the second quarter of fiscal 2020.
Owners of AT&T (T) have been willing to overlook the company’s lack of growth, its “amusing” strategic plan, and its wandering goals because, hey, the shares paid 6.45%. That’s a dividend to make up for a multitude of corporate sins when the 10-year Treasury is yielding just 1.65%. But today owners discovered that as part of its deal to spin off and combine its Warner media assets with Discovery into a new company WarnerMedia/Discovry (AT&T shareholders will own 7%) AT&T will “reset” its dividend to 40% of free cash flow.
Wheat prices hit new highs at $7.46 a bushel at the end of April. That the highest since February 2013. Corn climbed to a new eight year high. The day soybeans rose for a tenth straight session to reach on eight year high.
When the prices of farm commodities climb, it’s tough times ahead at the grocery store for consumers. But it’s good times ahead for farmers and that means increasing sales of tractors and other farm equipment for Deere (DE). I’m adding the shares to my 12-18 month Jubak Picks Portfolio
Yesterday, April 20, after the market close Intuitive Surgical (ISRG) reported first quarter GAAP earnings of $3.51 a share, $1.47 a share above Wall Street estimates. Non-GAAP earnings of $3.52 were 89 cents a share above analyst expectations. Revenue for the quarter climbed to $1.3 billion, up 18% from the first quarter of 2020. In 2020 sales of the company’s robotic surgery systems, dropped to $4.4 billion from $4.5 billion in 2019 as hospitals halted elective surgeries during the pandemic. I added the shares to my Jubak Picks Portfolio on February 15, 2021 on expectations with in a post-vaccine global economy sales of its da Vinci Surgical Systems would rebound strongly. In the first quarter the company shipped 298 de Vinci systems versus 237 in the first quarter of 2020. As of 3:45 p.m. New York time today, Intuitive Surgical share were up 9.50% to $888.10. That exceeds my target of $860 a share and I’ll be looking to sell the shares sometime in the next couple of weeks after I’ve received the full benefit from a positive earnings season for BIG TECH stocks.
Thinking of buying VW on its push into electric cars? But which class of VW shares? Here’s the one I’m buying tomorrow for my 50 Stocks Portfolio
You could buy VWAGY, trading today, April 5, at $37.00, up 4.27% or you could buy VWAPY at $29.27, up 2.92%. (A search for VW ticker will discover another 21 symbols on various European exchanges but for U.S investors these two ADRs are the major choices. Both are ADRs (American Depositary Receipts) on Volkswagen’s German shares. But there’s a considerable difference between these two ADRs. For example, on April 5 VWaGY showed an average daily trading volume of 1.34 million shares. VWAPY, on the other hand, showed an average volume of just 232,327 shares. So what’s the difference?
Not all stock selling is about rising bond yields–for example, Tesla announced genuinely bad news today
Today, February 25, Bloomberg and Reuters reported that Tesla had told its workers that the company could halt some production at its car-assembly plant in California for about two weeks. Staff on a Model 3 production line in Fremont were told their line would be down from February 22 until March 7. Tesla is battling supply-chain issues resulting from backlogs at ports, severe snow storms affecting ground transport, and shortages in some semiconductors used in the its cars.
Intuitive Surgical Pick #10 for my new Millennial Portfolio (for investors who have more time than money); also adding it to Jubak Picks
In my first 10 (actually to be 11 since I’ve got another pick up my sleeve) picks for my new Millennial Portfolio (for investors who have more time than money) I’ve been on the hunt for shares of companies with long, long revenue and earnings growth runways ahead of them, with short-term catalysts that might produce enough of a gain in the near term to keep investors on board for the long run, and some bad news in the present that been negative enough to take a bite of the stock price. Today, February 15, I’m adding Intuitive Surgical to my Millennial Portfolio and to my Jubak Picks Portfolio
Disney shares drop 1.7% today as traders take profits after yesterday’s beat on fourth quarter earnings and revenue
In today’s YouTube Video “Avoiding Di-Worsification in 2021 in argued that the trend toward high yields on long-dated Treasuries–and thus lower prices for those bonds–should prompt investors to look beyond bonds and gold in their efforts to build diversified portfolios. I’m adding a copper miners ETF to my Millennial Portfolio tomorrow as a replacement for gold and to profit from the increased copper demand resulting from larger numbers of electric cars on the road over the next decade
I thought there was a possibility that Vaxart (VXRT) would recover from yesterday’s 60% drop on data from the initial Phase 1 trials of its coronavirus-vaccine-in-a-pill candidate. Especially because the initial reaction over-emphasized, in my opinion, the negatives in that data. But I suspected that yesterday’s downward trend would continue for at least another day and therefore chose to sell Vaxart shares out of my Volatility Portfolio.