March 27, 2021 | Daily JAM, Friday Trick or Trend, Jubak Picks, Top 50 Stocks |
Car makers have put investors on notice that a severe shortage of chips is forcing them to curtail production. Volkswagen, Toyota, and General Motors have all reported halting production due to a shortage of silicon and the companies have suspended forecasts of manufacturing volumes because of the shortage. Volkswagen, for example expects a drop in production of 100,000 cars in the first quarter. Electric car maker Nio has suspended production at its Chinese plant for 5 days due to the shortage. And the shortage looks to be getting worse.
February 25, 2021 | AMAT, Daily JAM, Jubak Picks, Short Term, Volatility |
I’m very reluctant to go bottom fishing here–since I can’t tell where the bottom might be and the one-day losses are significant here. Tesla (TSLA), for example, was down 8.06% TODAY. That’s $59.80 dollars a share. Teladoc (TDOC) dropped 13.74% or $34.98 a share. Guessing wrong on a bottom could be very expensive here. But I am willing to try a few trades. Nothing fancy. Very short-term. But using stocks with very strong longer-term stories that make me feel good about the longer-term prospects for the stocks. And to believe that there are significant numbers of potential bargain hunters hiding in the bushes. So, for example, I’ve been trading in and out of the Call Options on Applied Materials (AMAT).
February 19, 2021 | AMAT, Daily JAM, Jubak Picks |
Given how strong the earnings beat was for the last quarter and how big the increase in guidance was for the next quarter from Applied Materials (AMAT) after the market close last night (February 18) today’s stock gain of 5.19% was actually rather modest.
January 14, 2021 | AMAT, Daily JAM, Jubak Picks, Top 50 Stocks |
As I noted in my January 13 video “4 picks for the chip shortage,” investors are looking at shortage of silicon chips that has hit the auto industry especially hard and that argues for a multi-year increase in capital spending to expand chip production at foundry companies such as Taiwan Semiconductor (TSM). As the world’s largest supplier of semiconductor manufacturing equipment, Applied Materials will see its revenue climb as a result of that capital spending. The company’s equipment can be found at almost every major step in cap manufacturing (with the exception of lithography) from chemical and physical vapor deposition to etching to defect-inspection scanning electron microscopes. The stock is up 60.04% in the last year, as of the close on January 13 with most of that gain coming in the last 3 months where the stock is up 51.9%. The shares are already a pick in my long-term 50 Stocks Portfolio where they’re up 91.8% from December 31, 2017. Today, I’m adding Applied Materials to my Jubak Picks Portfolio.
June 22, 2020 | Daily JAM |
ASML is my third pick for my Special Report: 10 Stocks to Beat Amazon. What's the market value of an effective monopoly on a cutting edge technology in demand by all the world's biggest chip-makers? Morningstar calls shares of ASML (ASML) almost 50% over valued at the...
