Time to add an airline stock? I’d say yes: Adding Delta to Jubak Picks

Time to add an airline stock? I’d say yes: Adding Delta to Jubak Picks

January 31, 2022 | Daily JAM, DAL, Jubak Picks | 6 comments

When airline stocks come off a bottom, they come off fast and big. And I think that’s what we’re going to see over the next few quarters of 2022. Which means it’s time to buy. I could be early but the extreme volatility of stocks in the sector means that if you wait too long, you’ll miss the juiciest gains. Tomorrow, February 1, I’ll be adding shares of Delta Air Lines (DAL) to my JubakPicks Portfolio with a target price of $46. That’s just below the 200-day moving average and slightly further below the March 7, 2021 high of $49.83 highlighted in my last revision of the Dip-O-Meter this morning, January, 31.

Buying Wells Fargo in Jubak Picks ahead of earnings

Buying Wells Fargo in Jubak Picks ahead of earnings

January 12, 2022 | Daily JAM, Jubak Picks, Stock Alerts, WFC | 0 comments

Wells Fargo (WFC) is scheduled to report fourth quarter 2021 earnings on Friday, January 14. The bank is expected to be one of the few big money center banks to show a significant increase in earnings for the lat quarter of 2021 from the fourth quarter of 2020 (when numbers were elevated by a big recovery from the Pandemic bottom.) The Wall Street consensus projects fourth quarter earnings of $1.09 a share, up from 64 cents a share in the fourth quarter of 2020. (I’d note that the bank has delivered a positive earnings surprise above analyst projections in the last 4 quarters.) This is a good time to buy bank stocks.

Remember that volatility creates volatility–time to look to some tax loss selling (like Nektar)

Remember that volatility creates volatility–time to look to some tax loss selling (like Nektar)

December 8, 2021 | CHPT, Daily JAM, Morning Briefing, NKTR, Short Term | 4 comments

With the VIX “fear index” falling back closer to “normal” levels–it dropped to 21.89 yesterday from 31.12 on December 1–it sure feels like the extreme volatility of the end of November and early December is on the ebb. The move to yesterday’s 21.89 close from December 1 was was a surge of 30% in the CBOE S&P 500 Volatility Index in a week. This move away from panic follows on a jump in the “fear index” in the week from November 24 to December 1 of 67% in the opposite direction. I’d be surprised if we don’t see another surge in volatility in the rest of December or in January with what promises to be a crazy earnings season, but even if volatility holds at something like today’s level–slightly elevated from the historical averages but in the rough ballpark–don’t forget that volatility has a long tail. Volatility, in fact, creates volatility. And not least of all in individual stocks.

Adding Bristol-Myers Squibb to my Jubak Picks Portfolio tomorrow

Adding Bristol-Myers Squibb to my Jubak Picks Portfolio tomorrow

December 6, 2021 | BMY, Daily JAM, Jubak Picks, Stock Alerts | 0 comments

As I noted in my posts over the weekend, I think that along with all the general volatility and the rotation away from high moment and higher price-to-earnings ratio technology stocks, the last week or so saw a rotation into “safe” haven stocks such as utilities and Big Pharma. Which is one of the reason I’m adding Bristol-Myers stock to my Jubak Picks Portfolio as of December 7