Stock Opinions by Bryn Talkington

COMMENT
crude oil bull

She gets it: if we go into a hard landing and recession, there will be pain in oil prices. She sticks by oil this year, though, by adding to your position, or sell calls and collect the dividend. A lot of this current weakness is overblown. Over 18 months, the price of oil will be fine.

Unknown
SELL
Apple Inc
She sold calls yesterday

Apple reports tomorrow. The stock is up 30% YTD. Incredible. Expects revenues to be -4%, and earnings -6%. They buy back a lot of shares. A great company. She sold the August $180s and collected $5.30. It won't trade that high into August. Doesn't see them beating earnings; doesn't see a rise in iPhone sales.

electrical / electronic
BUY

She's very bullish healthcare. Buy it at $83. She's selling the $90 September calls, collecting $3.25.

E.T.F.'s
COMMENT

It's a plus that the Fed has come out to say they are data-dependent, because the Fed is no longer behind inflation, but we're still at the mercy of the market saying, Maybe Powell has more rates to come.

Unknown
COMMENT
Tesla Inc

Falling below $100 was too much, too fast and too low after Musk had to buy Twitter, which destroyed investor sentiment. The price cut in China EVs was very smart. The US comprises 9% of world EV sales, Europe 24%, and China 50-60%, so Musk is gaining traction in China. She bought at $120 and sold calls at $150, so she is capped out at $160. $190-200 is a good price now. The fundamentals have to follow through. She also drives a Tesla. 

Consumer Products
BUY
Diamondback Energy

Just bought it. The energy in pullback was overdone. FANG offers secular growth, making good, strategic acquisitions and want to distribute 75% of their cash flow to investors through dividends and buybacks, plus a variable dividend. She bought around $139. China is not yet reflected in energy stocks, and today Russia announced energy output cuts.

0
BUY
Walmart Inc

Prefers this to, say, Target, in discretionary. WMT is attracting higher-end customers. If the economy weakens, people will go long Walmart and short Target.

department stores
BUY
Roblox Corporation

Likes it. Earnings are coming and the street wants to know their daily active users number. In December, they had 65 million, up 18%, but the average booking for daily users is $7. These shares range between $30-40, so she sells calls close to $40, then closes it out closer to $30. They have cash flow and revenues, but remain in the growth stage.

Technology
COMMENT
United States Steel

$25 is support and could bounce off this. Sell the July $34 call, collect $1.45 and use that premium to fund your July put.

steel
BUY
BHP Billiton

An Australian copper and coal miner that is very tied to China. Pays a 9.6% dividend.

other mines
BUY
Energy companies are paying down debt and giving back to shareholders. This sector is now the 4th-biggest on the S&P
E.T.F.'s
BUY
Lennar Corp.
She sold it, expecting shares to come down, but they never did. Home builders continue to be strong stocks since their October lows.
REAL ESTATE
BUY
Paid a 10% dividend last year and will pay more like 6-8% this year. Strong free cash flow and are paying down debt. Are doing all the right things.
Energy
COMMENT
There's a sentiment shift from negative to more positive as the market sees peak inflation. Caveat: August volumes are light and can be volatile. We're not out of the clear yet.
Unknown
SELL
She just sold it. In December 30, she reduced her ARKK holding and wanted small-cap value stocks--which actually give you high correlation to an expanding economy. SVAL in 2021 was up 33% vs. Russell 2000's 14%. He loved this ETF then. However, we're now later in the cycle, so it was time to sell SVAL. Instead, she just bought COWZ which offers equal weighting across industries and focuses on high-quality companies with good free cash-flow yields.
E.T.F.'s
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