Stock Opinions by Jim Lebenthal

SELL
Boeing

They have a long-term big problem. He won't touch it. He sold it right after the Alaska Airline fiasco. The CEO isn't the solution or problem. Production is declining and cash flow and profits will be crimped.

Transportation
BUY ON WEAKNESS
PG&E Corp

A defensive play. Buy on a correction.

electrical utilities
PARTIAL SELL
NVIDIA Corporation

At some point, this will correct, but nothing worse. Bears point to the 35x forward PE, but this is growing into its earnings 50% year over year. No sign of inventory gluts. He expects dip buyers to swoop. At some point, you need to trim this, and tomorrow's CPI figure could be the trigger.

computer software / processing
BUY ON WEAKNESS
Apple Inc

He'd buy mor at $160, but the technicals are ugly, that its 200-day moving average is about to roll over as the market has been rallying. The 50-day wants to cross the 200-day--and you don't want that.

electrical / electronic
HOLD
Oracle

They had a bad quarter due to the impact of data centres they're building to fuel future growth. He wants an update about this and its effect on their margins. These centres are key to their long-term growth. A good hold now.

computer software / processing
BUY

A new holding and doesn't expect any surprises either way in this week's report.

specialty stores
BUY
Walt Disney Co.

Quietly, the streamers are showing some life and DIS is the safest way to play it. Disney+ is projected to show a profit by end-September.

entertainment services
BUY
NVIDIA Corporation

Trades at 32x PE, but consistently outperforms earnings, and growth estimates are above 50%. Not expensive. There's room to run in AI stocks and not in a bubble.

computer software / processing
DON'T BUY
Boeing
News that Boeing will buy Spirit Aerosystems

America needs Boeing to succeed. A private Chinese company wants to take market share from them. But the more Boeing screws up, the more that door opens for this Chinese company. Whatever happens, Boeing's profits will decline, because to fix its ongoing problems, Boeing needs to spend money to assure quality control.

Transportation
BUY
Citigroup Inc.

He is bullish the big banks, including this. He is bearish the regional ones.

banks
BUY
Citigroup Inc.

Was upgraded today. That's a long-time coming. The new CEO is cutting costs and raising profits. So, shares should keep climbing, It's trading at 65% tangible book value.

banks
WATCH
Cisco

It reports later today and he's nervous. Has bad news been priced in? Probably. The last report wasn't good and last week they announced staff cuts, which you don't do if you're in a position of strength. Trades at 12.5x forward PE and pays a 3.5% dividend as estimates have declined since the last quarter. A consistent company, but there's still room for downside.

electrical / electronic
COMMENT

He owns Wynn. Despite beating earnings today, MGM shares are down. The report was fairly positive, like Macau and the Superbowl. MGM has a big online sports betting book. Doesn't understand the selling.

entertainment services
BUY
Walt Disney Co.

The narrative has changed. Buy.

entertainment services
PARTIAL SELL
NVIDIA Corporation

$600 billion of market cap has been added to its market cap over the last 5 weeks, but nothing fundamental has changed with the company, not even close. It's down to exuberance. He isn't selling now, but is waiting for a rollover day to do so.

computer software / processing
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