Today, October 12, I’m making Nidec, the Japanese company that is the leader in the market for small electric motors and a growing presence in the market for motors and drive trains for electric vehicles, the second pick in my Special Report: 10 Contrarian Bargains to Buy Now.
a lot of individual stocks are cheap right now, I’d argue. 180 of the 500 stocks in the S&P 500 trade now at the same or lower price that they commanded a year ago. And for many individual stocks the performance is even worse. For example, Luminar Technologies (LAZR), a maker of LIDAR safety and navigation equipment for cars, is down 40% in the last three months. Albemarle, the world’s leading supplier of lithium, is off 27% in the last three months. Nidec (NJDCY), a Japanese maker of small electric motors and electric vehicle drive trains, is down 13% in the last three months. I’d argue that these and the rest of the 10 Contrarian bargain stocks that I’m going to recommend in this Special Report share a number of characteristics that have led to their losses over the last few months or longer.
When I started Special Report for how to Buy on the Dip, What to Buy on the Dip and When to Buy on the Dip I was only looking to have three strategies (and 10 picks). The more I look at the current market, the more complex it seems with more moving parts that could generate an Oh, No! moment for this stock or that stock. Which is why I’ve added a fourth strategy, one I’m calling “The China bomb” and four more picks to my Buy on the Dip Special Report.
Yes, we want to buy on the dip. Whenever we get a significant dip. (And significant to me is 5% or more in the major indexes–and 10% or more in specific sectors.) But, we need new strategies for buying on the dip that take into account the market’s valuation problem, the central bank tightening that looks to be in the cards, and the real possibility of a dip in growth below forecasts in 2022. I’ve got fouir strategies to suggest for buying in this market on these dips. And 14 picks to use to execute those strategies.
I’m starting up my videos on JubakAM.com again–this time using YouTube as a platform. The sixteenth YouTube video “3 electric vehicle picks” went up today.
Nidec (NJDCY) shares gained another 7.69% today, after the maker of electric motors for hard drives, robots, and electric vehicles, raised its annual outlook for the fiscal year that ends on March 31. The new outlook forecasts operating income of 155 billion yen ($1.5 billion) versus the older forecast of 140 billion yen. The company authorized share buybacks of up to 50 billion yen, or about 0.7% of the company’s stock.
So where are your profits going to come from in 2021 and indeed for the next 10 years? Not, I’d argue from a bounce in the consumer stocks that got crushed by the coronavirus pandemic shutdowns. For the next few months, I think you’ll be able to score big profits in airlines, retailers, restaurants and other stocks that have been hammered in the coronavirus economy. It’s already been quite a bounce. And there’s still more upside as coronavirus vaccines get rolled out.But after that? Pheh! Not in those sectors. Airlines haven’t shown a net profit during the life of the airline industry. The retail sector was “over-stored” even before the coronavirus. The restaurant sector was busy devouring its own young. And just how many chicken sandwiches can America eat? No, the really big long-term profits aren’t going to come from a bounce in distressed sectors. But from the invention of whole new products and industries and sectors. They’re going to come from electric cars, artificial intelligence, climate change, and distributed-work software to name just four big but already discernible future trends.
