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TOP PICK

Main street capital corporation (nyse: main) is a principal investment firm that provides long-term debt and equity capital to lower middle market companies and debt capital to middle market companies. main street’s portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors. main street seeks to partner with entrepreneurs, business owners and management teams and generally provides "one-stop" financing alternatives within its lower middle market portfolio. main street’s lower middle market companies generally have annual revenues between $10 million and $150 million. main street’s middle market debt investments are made in businesses that are generally larger in size than its lower middle market portfolio companies. Social media mentions are up 300% in the past 24h.

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🔒 Premium Content Alert – This buzzing stock opinion is accessible only to Premium members

Discover an exclusive list and analysis of the stocks that are trending on social medias—accessible only to our Premium subscribers. With a keen focus on the stocks that are setting social media ablaze, this weekly feature offers an invaluable lens through which to evaluate market movers. Say goodbye to the endless scroll through social media timelines; we curate the buzz so you can invest your time as wisely as your money. Unlock Premium Now.

TOP PICK

British American Tobacco plc is a British multinational company that manufactures and sells cigarettes, tobacco and other nicotine products. The company, established in 1902, is headquartered in London, England. As of 2019, it is the largest tobacco company in the world based on net sales. Social media mentions are up 300% in the past 24h.

COMMENT
S&P 500.

The word of the last several months has been resilience. Still elevated inflation and relatively higher interest rates, yet global markets are still up 11% YTD. Technology and the S&P 500 have done even better than that.

We have to talk about the strength of the US economy. The consumer continues to be very strong, and corporate earnings continue to be very solid. Unemployment rate is near decade lows. He's very optimistic about the rest of the year. Based on the magnitude and length of this bull market, 20 months or so, we're probably in the 4th-6th inning at this point. 

COMMENT
US interest rates.

We're probably going to see 1-2 cuts by the Fed by the end of the year, depending on inflation numbers. Going back a month, predictions were for no rate cuts; now we're looking at potentially 2 cuts based on futures markets. Have to remember that there's still a lot of money sitting in money market assets, about $6T USD.

Once rates start coming down, investors might be encouraged to move money into better-performing areas such as risk assets like equities. 

COMMENT
With growth slowing, increased chop and consolidation?

Pullbacks and corrections are par for the course. It's the price of admission to the stock market. Looking back to 1950 for the S&P 500, there are three 5% pullbacks on average in any given year, and one 10% correction. Look for those to add to good-quality holdings. Always pay attention to total asset mix and allocation in your portfolio.

It's almost a given that choppiness will come, and you want to take advantage of those times.

COMMENT
Portfolio tilt right now.

Not all-in on AI. Go back to 2000, when we knew that the internet would be a big part of the future. But lo and behold, not every internet company survived. Tech market was down 82-83% for 2.5 years. AI is a very important part of our future and of investing today, but be cautious about buying everything in that space and only in that space.

His tilt is still secular, long-term growth companies. Very little competition, duopolies or oligopolies, such as COST or ASML. Really command the market and have pricing power, such as MA or Visa.

WEAK BUY

Chart's improved, 200-day MA starting to move a bit higher. Price moved above 200-day late last year. Those are good signs technically. Great dividend, about 7.3%, fairly safe and in fact sees 4% growth. Spinning off liquid pipelines, should unlock shareholder value. Lots of exposure to nat gas, and those prices seem to be bottoming. Good for yield and steady growth.

He owns ENB instead.

DON'T BUY

A stock trading well below the 200-day MA prevents him buying. Better-than-feared guidance going forward. Around 23x forward PE. Shares look fair now, but not cheap given the 8.5% growth rate. Trends can change, and some people don't like to pay for expensive clothes that you just sweat in.

BUY

Lots of competition. He bought it as it came down to the 200-day MA. Still trading around the 200-day, but that continues to move higher. Long term, no doubt that cybersecurity is important. One of the better secular growth spaces.

Leads the area. Not necessarily inexpensive, but an important place to be because of its leadership and the industry it's in. Outperformed the S&P since early 2020. Has come off this year, but trendline is still moving higher.

COMMENT
Overblown fears that software demand, ex-AI, is cooling?

Yes. Companies will go through quarters where they'll hold off and not spend on something for now. But when it comes to cybersecurity, it's not something they can hold off on spending for years or even several quarters.

SELL

He took profits not too long ago. Likes the name longer term, demographics speak to more travel. He'd prefer a name like BKNG, which takes away cost of ship maintenance, etc.

The leader among the top 3. Chart's a bit extended, overbought. He'd consider it at a lower valuation.

WEAK BUY

He has very little EM exposure. But compared to developed markets, EMs have gotten very cheap on valuation and price. Likes EMs, and India is one of the leaders in that space. This ETF has performed well, up 21% in past year.

Note that you can buy a similar ETF, INDA, in USD for a cheaper MER.

BUY

He has very little EM exposure. But compared to developed markets, EMs have gotten very cheap on valuation and price. Likes EMs, and India is one of the leaders in that space. 

A cheaper MER than the similar XID.