- Page 4/5
- Next Page
Nobody monetizes content better: filmlibrary, theme parks, Star Wars. Has been going sideways, but enjoyed a big beat recently. Media overall isn't a neighbourhood he loves. They have a major overhang: ESPN and cord-cutting.
You're taking a bit of a gamble here, though he loves the company. They're in transition. Wait.
Not much has changed since the early-February correction. This consolidation is a multi-month process. Patience and process matter in this volatile climate, like caller last month who takes a half-position then waits one month for fear of catching a top. He's largely invested, but at over 22% cash currently. Lofty valuations in parts of the market now, so there's risk. Stock volatility has returned. He's watching bond spreads. Small caps are starting to outperform--good. We're in a mishmash with little sector rotation. So, he waits.
Bank of America or Wells Fargo? Both are well-diversified and have interest rate sensitivity. BAC has better capital markets exposure, which he likes. Wells Fargo is in the doghouse with leadership, namely with regulatory problems. This hamstrings WF management. This is a big knock against them. Definitely prefers BAC.
Bank of America or Wells Fargo? Both are well-diversified and have interest rate sensitivity. BAC has better capital markets exposure, which he likes. Wells Fargo is in the doghouse with leadership, namely with regulatory problems. This hamstrings WF management. This is a big knock against them. Definitely prefers BAC.
(A Top Pick April 6/17, Up 22%) Today's news: It's a big issue about how people's data is being used, referring to Russian meddling in the 2016 U.S. election. Is this a data breach? Is this noise? This is tough for FB to defend. Enjoys huge user growth and revenue per user is up 28%. They're killing it, doing everything right. They have $42 billion USD in case to repatriate, so they have enormous cash flow. But he needs to see the smoke clear and wouldn't step in now. Very well set-up for secular growth.
Semi-conductor stocks move so much in a week, though Applied has shot up. Tech (computer chips) is broadening across many industries and applications--where there's a huge secular theme. Trading at only 12-13x, so it's not expensive. But this is a cycle, so beware of a sudden breakdown in the market when this will certainly go down. He's stepped out of semis last summer and entered instead the internet. They just started another buyback, so they're doing everything right. This is a high-beta name.
How do you use volume in technical analysis? In a nutshell, looks at buy volumes and sell volumes with thresholds of 80% and 90%. A real wash-out is an exhaustion of selling pressure to look at 90% down days, based on volume traded. Say,100,000 shares are traded with 90% were sold, so that's a a sign of exhaustion, though typically you need to see two in a week. It's a great tool to watch flush and wash-out. (He also combines it with declining and advancing issues.)
The Amazon of China, covering all the right bases. Valuation is okay. You're buying secular growth at 25%. The relative strength is great. It has consoliidated for a while. Downside to $170 and upside to $200, so that's your range. If ir breaks above $200, you're up up and away. Secular themes are great.
Has dominant 70% market share of global search and ad revenue which is growing 20% a year. 32 quarters of revenue growth over eight years. But need to get spending under control (in machine learning, autonomous driving and the Cloud, for example). They have scads of cash. (Analysts' target of $1,277)
