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Buy this stock before another bull run

Jun 28, 2022

Good morning!

‍Bear market bounce or simply more bounce to the ounce?

Honestly, I could make the case either way.

I’ll take it, though.

Green on the screen is good because it helps build confidence, re-establish positive psychology, and build FOMO … all of which can lead a charge higher.

To a point I made during an appearance on Fox Business Network, savvy investors are moving in. (Watch)

Buy this stock before another bull run

Tech’s been shellacked and I won’t touch most of it.

I’ve got my eye on NVDA, though.

The average target 12 months out is $250 which implies a ~54% run higher from here according to Wall Street’s boffins.

I’m looking 3-5 years out and I think it may be more like $500 a share but that’s moot.

Price targets are like bellybuttons in that everybody has one.

Why you should focus: The company’s data centre growth is 83% YoY. Buying a few shares now makes all kinds of sense if for no other reason than you cannot put the genie back in the proverbial bottle.

The world is now creating 2.5 quintillion bytes of data a day, 90% of which has been created in the last five years.

That’s a hard number to get your mind around so chew on this:

1 quintillion seconds is 31,709,791,984 years – or more than the total amount of time passed since the Big Bang
2.5 quintillion pennies laid flat would cover the earth 5X

Any wonder I’m interested in data centres?

What members of Congress are buying now

Personally, I think it’s disgusting … Members of Congress are buying all sorts of stocks using information that the investing public doesn’t have, chief among which presumably includes knowledge of pending legislation, lobbyists sharing data (wink, wink) and more.

But I digress.

What’s on the shopping list: Several House members including Josh Gottheimer have purchased Tesla (TSLA) this month. Representative Marjorie Taylor Greens scooped up Costco (COST) while also snapping up Visa (V) … all of which suggest they think consumer spending will pick up.

No word from Speaker Nancy Pelosi on what her stock savant husband, Paul, has been buying though.

Sigh.

Good! – JPM doesn’t raise dividends

There’s quite a stink being made that JPM didn’t raise dividends when competitors did. (Read)

Think about this for a second.

The banks passed “stress tests” (that are a joke) then immediately raise dividends because they’ve got the “extra” cash??!!

JPM knows that times are rough and elected not do so because it’s prudently raising reserves in anticipation of harder times ahead. In fact, JPM CEO Jamie Dimon noted specifically, that the bank will retain capital to “fully satisfy … future regulatory requirements.”

It’s a prudent move and, practically speaking, no different than carrying a brolly because you see storm clouds on the horizon.

I’d expect nothing less, which is why I own the stock.

Why I don’t own Nike

I love the company and, in fact, wore Nike for years as a sponsored amateur triathlete. But I don’t like the company’s supply chain challenges and lack of pricing power in the face of raging inflation. Nor am I partial to the company’s prospects in Europe where war clouds loom and China where covid backlash continues. (Read)

Shares are down despite stellar earnings that beat expectations yesterday.

Putskies or a rebound?

Nike stock just doesn’t do it for me.

Crypto’s Lehman moment

Lehman Brothers blew up spectacularly in 2008 and, at the time, was one of the largest bankruptcies in American history.

For those who have forgotten their history or simply don’t know about it … Lehman was a household name having survived numerous crises, two world wars, the Great Depression and more. (Read)

Dare I say it, this is crypto’s “Lehman” moment.

Crypto capitalization worldwide has dropped from $2.8 trillion in 2021 to less than $1 trillion today.

Things are so bad that Goldman just downgraded Coinbase (Read) … after laying off 18% of its workforce and after the company merged Coinbase and Coinbase Pro. Both moves would have otherwise sparked glowing commentary a year or two ago as “reformative, rebound-inducing.”

No surprise, the stock is down -84.8% from 52-week highs.

If you’re gonna take a flyer, stick with Ethereum.

Better yet, an established stock like JPM which is moving into digital currency as a clearing tool using permissioned versions of blockchain. (Read)