Z-SYMBOLS
June 23, 2022 | Daily JAM, LNG, Videos, Volatility |
My Quick Pick this week is Cheniere Energy (LNG), a liquified natural gas producer that I currently own in my Volatility Portfolio on JubakAM.com and plan to add to my Jubak Picks portfolio as well. The stock has fallen as U.S. natural gas prices have taken a hit after a fire at the Freeport liquified natural gas facility that has caused a backup in U.S. LNG exports. I think it’s a great time to get in on this long-term story at Cheniere, which just announced that it had given the go-ahead to the construction of a new LNG chain at its Corpus Christi facility. That chain won’t be in operation until 2025 but I see the demand for U.S. LNG continuing to rise through then.
June 20, 2022 | Daily JAM, Dividend Income, PFXF, VGSH |
I’ve probably overstayed my welcome in the Vanguard Short-Term Treasury ETF (VGSH) and the VanEck Preferred Securities ex-Financials ETF (PFXF), but with the Federal Reserve accelerating its interest rate increases, I think selling these two members of my Dividend Portfolio is a bit more pressing right now.
June 20, 2022 | BKNG, Daily JAM, Jubak Picks |
As I noted in my Saturday Night Quarterback post, consumer spending on services is looking weaker by the day and consumers seem to be trimming plans for summer travel. Bookings are slowing at airlines and hotels, for example. And it looks like the summer travel rally that I’ve been looking for is going to be a damp squib rather than a Fourth of July rocket. So I’m beginning to sell some of the stocks that I added in anticipation of that travel rally.
June 19, 2022 | CHPT, Daily JAM, EVGO, Volatility |
Friday, June 17, was a modestly up day for most of the indexes. The Standard & Poor’s 500, for example, gained 0.22% and the NASDAQ was up a stronger 1.43%. (The Dow Jones Industrial Average lost 0.13% on the day.) But you’d never know that the indexes were up only modestly if you checked the gains on the most speculative stocks in the market. Meme favorites GameStop (GME) and AMC Entertainment (AMC) were up 7.48% and 6.28%, respectively. But the speculative gains didn’t stop there.
June 13, 2022 | BABA, Daily JAM, Videos |
My one-hundred-and-forty-fourth YouTube video “China Stocks Soar on End to Tech Crackdown” went up today. In the past few weeks–at least before the inflation/interest rate meltdown in U.S. markets,–I’ve seen an uptick in big China stocks like Alibaba (BABA), DiDi Global (DIDI), and JD.com (JD) on signs that Chinese regulators are easing up on tech stocks as the government tries to jump start China’s economy. If you’re looking for stocks that aren’t correlated to the U.S. economy and markets, I think this is a good time to revisit some of these stocks, especially JD.Com and the iShares China Large-Cap ETF (FXI)
June 12, 2022 | Daily JAM, Dividend Income, Stock Alerts, TFC |
On Friday in my Quick Pick video on YouTube (have you subscribed yet–why not? It’s free and that way you’ll know when a new video goes up) I said I would add Truist Financial (TFC) to my Dividend Portfolio on Monday. And so I will. My rule of thumb at the moment is to buy dividend-paying stocks when the yield breaks 4%. At the time I shot the video, Truist paid 4.1%. Thanks to Friday’s sell off and the stock’s 3.69% drop, the yield rose to 4.18%.
June 8, 2022 | AMAT, Daily JAM, Millennial, Top 50 Stocks |
My second Fundamental Value Pick in my Special Report 5 Fundamental Value Picks is Applied Materials (AMAT). Let’s go to the classic formula for calculating fundamental value of an asset, the Capital Asset Pricing Model, known affectionately by generations of MBA students as CAPM. Don’t worry. I’m not going to force you into the sometimes arcane mathematics of CAPM. Instead I’m going to use the formula as a framework for understanding what matters in calculating a fundamental value for a stock–as well for understanding how these factors fit together.
June 8, 2022 | Daily JAM, Millennial, Top 50 Stocks, TSM, You Might Have Missed |
Taiwan Semiconductor Manufacturing (TSM), the world’s largest independent chip producer, expects revenue to grow about 30% in 2022. Sales growth this year should accelerate from 2021’s 24.9% (in dollar terms), Chairman Mark Liu said at the company’s annual shareholder meeting on Wednesday, June 8. That’s a bump higher on company guidance in April of growth topping mid- to high-20% in 2022.
June 7, 2022 | Daily JAM, NTR, Top 50 Stocks |
Logic says that demand for fertilizer should be soaring as North American farmers look to increase production at a time when grain prices are near record highs thanks to the severe reduction in exports from the Ukraine and Russia. Logic, however, looks to be wrong. An article in the Financial Times on June 4 reports that demand for fertilizer is falling in response to record prices–for fertilizer. Farmers faced with higher costs for everything from fertilizer to diesel fuel are feeling themselves squeezed in spite of higher grain prices. So they’re buying less fertilizer and shifting away from crops such as corn that require heavy fertilizer use and toward crops such as soybeans, that require less fertilizer. U.S. farmers, the Financial Times reports, have told the U.S. Department of Agriculture that they intend to plant 4% fewer acres with corn n this spring and boost the number of acres dedicated to soybeans.
June 7, 2022 | COST, Daily JAM, Jubak Picks, WMT |
Target (TGT) cut its profit outlook for the second time in three weeks. The company will attack oaring inventories in discretionary categories such as home furnishings with price mark downs, cancelling orders from vendors, and “off-loading excess inventory. (To deep discount sellers, I’d assume.) Three weeks ago, on May 18, the retailer’s shares slumped more than 25% after reporting that net profit shrank 52% in the first quarter. In those quarterly results, Target said its inventory rose 43%, compared with a year earlier.
In its guidance for the second quarter on May 18 Target said operating margins for the second quarter would be in a range centered around 5.3%. In today’s inventory warning the company said that orating margin would fall to 2%. Target’s stock, which fell as much as 7% today on the news, closed down 2.22% today. Shares of competitors Walmart (WMT) and Costco (COST) were down only 1.24% and 0.15%, respectively.
June 6, 2022 | ALB, Daily JAM, Jubak Picks, Top 50 Stocks |
My one-hundredth-and-forty-first YouTube video “Trend of the Week: Danger of a Lithium Drought” went up today. My Trend of the Week video looks at the effects of Chile’s 15-year drought on global lithium production and prices. In particular, I look at Chilean-based national producer SQM in comparison with Albemarle (ALB.) Albemarle has more diversified production and I think it is a better bet due to this diversity of supply, but lithium will still be a volatile area for the short term. Albemarle is a member of my Jubak Picks Portfolio (up 162% from August 10, 2018) and my long-term, 50 Stocks Portfolio (up 180% from February 17, 2017.)
June 1, 2022 | CHPT, Daily JAM, Volatility |
Yesterday, May 31, after the close electric-vehicle-charging company ChargePoint Holdings (CHPT) reported a huge jump in revenue–way above Wall Street and management projections–but a big miss on earnings. Today, June 1, the shares finished down 2.66%. Sales for the fiscal first quarter of 2023 came to $81.6 million. The Wall Street consensus projection called for $75.7 million. Management had guided investors to expect $72 million to $77 million for the quarter. In the first fiscal quarter of 2022, revenue was $40.51 million. That’s a year over year revenue growth rate of 101% But…
