Kevin Simpson

The market is up so much since the Oct. 27 lows. History says that we are due for a correction and tech is vulnerable. He's sell tech (take profits). The markets are 100% frothy.

He's now bullish after exiting last November. They just announced AI innovations, which is a tailwind, though he's not that concerned about China pushing its own smartphones. They have $100 billion of free cash flow--they print money and he likes that.

He just started a position. Everything that Boeing is doing well, aerospace companies like this benefit. Also, they're streamlining their business, starting with aerospace, and can benefit from the infrastructure play. Pays a 2.2% dividend, bug share buybacks and solid dividend growth. He's expecting a breakout after sluggishnes.

He's selling calls on this. The volatility spike is giving him opportunities to write calls for a $57 strike two weeks out (11% annualized). 

His price target is $300. Has owned this for over a decade, a great dividend compounder, but he wouldn't rush into it now.

It reports next week. Is hitting a 52-week low today. He bought it higher, at $470, last month. Don't buy ahead of earnings. They're taking punch after punch. He's close to being stopped out of his position. He will watch for guidance. If it's a sell-the-news event, he might sell.

They report on Tuesday. He sold it and would avoid it. Has no expectations for it.

Wait till they report earnings next week. He expects sell-off the week after. Buy then.

Pays a 3.2% dividend and trades at a 14x forward PE.

He took some profits right before they reported (shares are down today despite them beating). Loves the company for its diversification and still holds a small position. Revenue expectations had exploded from $38 billion to $50 billion. At 10x sales, that's a $1,300 share, but historically it trades 7x and $900. There should be an AI premium, but the stock now is fairly priced. Shares are up 51% in 3 months, so he took profits. He would buy them back on a pullback at $900, where it should be.

Sold some AVGO to buy this recently. It trades at under 3x sales. Free cash flow has grown in the last 6 quarters from $7 billion to $12 billion, which he loves. Wants to see the 3% dividend grow. They get AI exposure through Red hat and Watson X. Shares have done nothing for 3-5 years, but the last quarter was excellent. It's old-school tech, but more conservative than AI stocks and is dividend-focused. It's not the old IBM. Very optimistic.

Up 51% since Nov. 1. Any position that rises 5%, he will trim as part of his portfolio management. Will also trim MSFT which as climbed 24% in this time. However, AVGO is a small position that he's recently added, so he won't sell it yet.

Any position that rises 5%, he will trim as part of his portfolio management. MSFT has climbed 24% since Nov. 1. 

He just bought it. Since 2021, they've bought nearly half their shares. Been buying aggressively and will buy another $5.9 billion. They're printing cash by generating so much cash flow. They increased their dividend by 10% with a forward PE of 11x.

Loves it. Loves their subscription model. Likes today's price increase by Wall Street. Generates tons of cash and can withstand a consumer slowdown. He own Walmart for similar reasons.