I’m starting up my videos on JubakAM.com again–this time using YouTube as a platform. My thirty-sixth YouTube video “Is China un-investable?”-went up today.
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.
Chinese regulators gave unconditional approval Tuesday to Tencent Holdings (TCEHY) to acquire Sogou, China’s second-largest search engine company. That was a huge relief to investors who in recent weeks have seen Beijing crack down on the country’s big Internet companies. Tencent shares were 1.44% on Wednesday after climbing 4.23% on Tuesday. Ali Baba, which gained 3.40% on Tuesday, added 0.95% today.
I’m starting up my videos on JubakAM.com again–this time using YouTube as a platform. And, with this week, I’m adding a second shorter video (market events permitting) that will focus on a single stock or two. The thirty-first YouTube video “QuickPick: Buy Tencent after the fine” went up today.
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.
News that White House and Senator group have struck a deal on infrastructure sends the usual suspects higher today
The White House has announced that it has struck an infrastructure deal with a bipartisan group of 10 Senators. There are almost no details on the deal and it’s not at all clear that President Biden will be able to convince the progressive wing of his own party to support the deal. On the other side of the aisle, Republican Senate Minority Leader Mitch McConnell has not endorsed the deal. As I do the math, if only the 5 Republican Senators who were part of the negotiating group vote for the deal in the Senate, it will fail to clear the 60-vote threshold necessary for passage if McConnell and other Republicans decide to filibuster the legislation. All that aside, today the usual infrastructure stocks gained.
Copper stocks have been moving steadily higher recently in anticipation of a turn in the eight week downward trend in the price of copper itself. Today, the price of copper is showing some of the upward movement that the rally in copper stocks anticipated.
If you’re building a portfolio and want e-commerce exposure, you buy Amazon (AMZN). For smartphones, you buy a stake in Apple (AAPL). For electric cars, it’s Tesla (TSLA). There’s a small group of stocks that are “must own” stocks for any growth portfolio because they encapsulate a key growth trend. I’d now add Nvidia to the list.
Nvidia’s (NVDA) board has declared a 4 for 1 stock split effective after the close on July 19. Assuming that share holders approve at the company’s June 3 annual meeting. (Gee, you think shareholders would vote against a split?) The stock is up 4.1% today, May 24, at the close. On first look, it seems that news of a split still boosts the price of a stock. But the Nvidia story is a bit more complicated than that.
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.
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