Latest Stock Buy or Sell? Make More Informed Decisions!
Today, Michael Hakes - CFA, MBA commented about whether ZLNDY-OTC, TWLO-N, LVMUY-OTC, F-N, NVEI-T, WMT-N, DOV-Q, CS-N, DB-N, FSR-N, SHOP-T, CTS-T, MA-N, CMCSA-Q, DLTR-Q, VALE-N, AC-T, AMC-N, ISRG-Q, NTR-T, V-N, MA-N, AXP-N, WELL-T, AMZN-Q, BABA-N are stocks to buy or sell.
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COMMENT
Market challenges. The Fed has its hands full. CPI hitting 4.9% in November, 30-year highs. Unemployment levels at 4.2%. Going forward, have to look at pricing power. Brand strength is vital to maintaining margins and market share. Key to strong businesses is being able to raise prices without losing market share. For example, some global consumer products companies, such as UL, may lose pricing power because they're up against private label penetration in key categories such as food or home care. This is a red flag for next year if you think prices are going higher, which could motivate people to substitute private labels for brands names.
COMMENT
Key to 2022. Brand names, with higher margin businesses and sustainable business models are key. Short term, 2022, we'll see higher prices from "transitory" inflation. In 2020, things were fine, and then the world stopped working. Easy to stop, but harder to bring the world back up to speed. So we're seeing shortages and backlogs. It'll take 6-12 month to resolve, you have to be patient.
DON'T BUY
Well off highs. Missed last earnings forecast in November. Margins were weak. Market's worried about continued fragmentation of e-commerce in China. Management missteps, Chinese political situation is dicey at best, Jack Ma is in the penalty box. Stay away. He owns AMZN, as it's well positioned for the future.
