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Stock Opinions by Steve Grasso

DON'T BUY
Amazon announced a 20-1 stock split He's shocked that they're doing it now. This was a pandemic stock. We're coming out of Covid, so the stock split is another lever to pull. It feels like Amazon is doing this out of weakness, not strength.
specialty stores
BUY
Down 14% this year and shareholders are unhappy that the CEO isn't taking a public stance against Florida's anti-gay legislation Prefers Disney over Netflix, because people want to get out and experience things. The theme parks generate $16 billion revenues in a normal time. He's back long Disney. It will go much higher. Technically, this is where it bounced in July.
entertainment services
BUY
He's still long on this. Management screwed up on pricing. He's nervous because this company has no earnings, but the upside is more likely.
Automotive
BUY
Some stocks have oversold and are now a bargain. This fell from the $70s into the $40s. A no-brainer.
clothing
HOLD
Shares soared after earnings He bought this when it went public as a SPAC, and it's down nearly 80% since then. The fundamentals such as net income--$90 million against a loss of $3 million--their iGaming up 50% YTD and adjusted EBITDA is up 11%. Their last earnings cycle was horrendous, but this one is a bounce. He's holding it because there's a disconnect between the fundamentals and the share price. What ruined PSFE was the SPAC attack (which ruined all SPACs). PSFE should be trading back at $18. Their digital wallet and acquisitions make this investible.
Technology
BUY
Their theme parks will revive shares and Disney+ will help. This stock popped on earnings, fell on the Russian invasion and now it will rise to complete a round trip.
entertainment services
COMMENT
Reduce the balance sheet or raise rates? And which is worse? The market is digesting this choice. Value should outperform this year. The whole market--value and growth--will move lower. We saw that today. Value isn't big enough of the index to lift the market. Who knows what will happen with Covid and the markets in the next six months. He thinks we'll be talking about something completely different in a week after the markets digesting today's Fed news very quickly.
Unknown
COMMENT
Do tech stocks end the year higher, meaning the Nasdaq 100? No. What kind of tech? The top names can be higher, and the bottom lower. He owns value stocks, so he wants to the 10-year above 2%, though he predicts it'll end 2022 at 1.5-1.6%. Inflation is still transitory.
Unknown
DON'T BUY
Inflation will be transitory. Alcoa is hitting 2018 resistance, and won't move much past $62.
non-base metal mining
DON'T BUY
$53 is your lid. You face long-term resistance here.
department stores
DON'T BUY
The retail investor decides when the market goes up or down, but they haven't been as empowered as now, to sell and buy so quickly. AMC remains highly volatile. His takeaway: shorters have always been a risk to the market. The real change made by retail investors is to tell shorters, You cannot short like you used to (or you'll get squashed when a stock rips up).
entertainment services
BUY
Year-end seasonal trades Sonos. headwinds were supply shortages, but are now settled. Also, travel names and Costco will rally. People are planning vacation 6-9 months out in airplanes and hotels. For cyclicals, buy banks if you think interest rates will rise.
communications / media
BUY
Year-end seasonal trades Travel names and Costco will rally. People are planning vacation 6-9 months out in airplanes and hotels. For cyclicals, but banks if you think interest rates will rise.
department stores
COMMENT
We should test that 10-year yield level of 1.74%, the high earlier this year, and probably surpass it. Then, there'll be a lot of fanfare, yadda yadda. Actually, he thinks we won't see a lot from the Fed for the rest of 2021 apart from doing a few things around the edges, but nothing to hamper the rally. The large tech names will be fine. Mega-growth names will continue to fade. A concern is if the cyclicals move forward during deflation vs. inflation; he expects there'll be a little rotation. Overall, markets go higher.
Unknown
BUY
All the airlines look like they're reading to bounce. Expedia ran from $157 to $188, then stopped on a dime right at the 50% retracement, so it looks due for a run up.
merchandising / lodging
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