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This company is +91.9% off 52-week lows-I hope you own shares!

Feb 23, 2023

Good morning! 👋

Recession?

Plenty of companies didn’t get the memo.

Investors and traders would be wise to pay attention, for two reasons.

First, I have repeatedly said there will be no warning bell when traders get on the gas, which is why I’ve encouraged you to do so. Anybody who’s waiting for one has already missed a 11.6% jump off lows last October (using the S&P 500). They’re now trapped on the sidelines, which means FOMO could boost the upside for everybody who’s “in to win.” (OBAers… this is YOU!)

And second, the best companies are still putting up GREAT numbers despite it all.

Here’s my playbook.

Rolls Royce reinventing itself

Rolls Royce is usually associated with extraordinarily luxurious cars, but there’s another side worth your time.

Two, actually.

The company crushed earnings, reporting a 57% year-on-year jump in underlying profits driven by—you guessed it—a recovery in civil aviation.

What interests me more, though, is RR’s power systems because I think the company is getting ready to reinvent itself.

Hmmm.

Might be worth a punt or at least some further examination.

NVDA: Anybody not paying attention needs a head check

How many times have we talked about NVDA chips and the critical role they play when it comes to AI?

Plenty!

Digitalization may be one of the largest investing trends in human history.

NVDA shares are already +91.9% from their 52-week lows.

I hope you’ve been buying all along as I’ve repeatedly encouraged.

I can easily envision $300 within the next 12–24 months, and I’m not alone in my thinking. The average price target is $214.41, according to Yahoo! Finance, but Rosenblatt’s Hans Mosesmann reiterated $320 earlier today.

OBAer Action Item: Get ready to convert to a FreeTrade. And if you don’t know what that is, but would like to... Upgrade to Paid

Food inflation is creating another generation of millionaires

Consumers continue to cut back on “nice to have” items like clothing, toys and spiffy new home goods to carve out room in the budget for “must have” schtuff like... oh, I dunno... food! (Read)

The news portrays what’s happening as a huge negative, and that’s certainly true from a lifestyle perspective.

Savvy investors smell opportunity.

Especially when it comes to companies like General Mills, which I recommended to the One Bar Ahead® Family a while back as a way to capitalize on the chaos.

Why?

Simple.

The company has 9 billion-dollar brands in its portfolio, including: Betty Crocker, Cheerios, Old El Paso, Pillsbury, Nature Valley, Häagen-Dazs, and Blue Buffalo.

GIS shares have tacked on 46.72% over the past two years while the S&P 500 has gained just 4.72% over the same time frame. That’s a 9.89X performance advantage, according to Yahoo! Finance.

Grinning is optional if you own shares.

Investing Note: People ask me frequently if it’s really necessary to “buy the best and ignore the rest.” The answer is yes. Companies like GIS make this abundantly clear. Not only do they tend to be more stable when the SHTF, but many offer solid dividends and growth, which is why I recommend ‘em.

Tempted to buy BABA?

Chinese Internet giant Alibaba reported Q3 earnings and a massive beat. Shares are up 6%. (Read)

I’ve got 8 words for anybody thinking of buyin’…

Accounting transparency
Weather balloons
Intellectual property theft
Taiwan

‘Nuff said.

An alternative investment you may have never thought of

Valuable (first) editions of classic books, especially children’s books, may become even more valuable now that we’re seeing retroactive censoring of popular classics to appease the woke and eradicate such deplorable things as fat-shaming, ugly-shaming, and anti-feminist notions. Exercise, gender, and other topics are also being removed by sensitivity readers. 🤦‍♂️

Puffin Books—a Penguin Books imprint for children—has set a dangerous precedent in rewriting Roald Dahl’s classics like Charlie and the Chocolate Factory, The Witches, and James and the Giant Peach. The Guardian found hundreds of words that were changed to make the books “more acceptable to modern readers.” (Read)

Words like “fat,” “ugly,” “black” (for a monstrous tractor) were removed, and a witch posing as an ordinary woman is now not a secretary or supermarket cashier, but a scientist or business owner. I’m sure I don’t have to explain how Orwellian the idea of retroactively “correcting” books of the late great authors is. We can probably expect more of the sort.

But there’s another side, and it’s one that could pay off handsomely for savvy investors.

Classic originals becoming ever more valuable in the face of prose being “wokinated.”

It’s already started: The New York Post stated that “‘Unedited’ versions of the classic children’s novels have reportedly been listed for as much as $7,000 on eBay.” (Read)

I’ll be checking my shelves and going to a few garage sales!