This stock just smashed earnings (again) and I hope you own it

Good morning!

And the rally looks set to continue!


I maintain that it’s time to get on the gas, especially if you have a 3 to 5-year horizon and know which companies to buy.  


My colleague, the esteemed Dennis Gartman, stuck to his guns, saying he prefers to lighten up this morning when we both took to the air for the Word on Wall Street with Maria Bartiromo. (Watch)


Here’s my playbook.

UBER: the dog still has fleas

Wall Street is fawning all over the company this morning. Shares were up 9% as I took to the air shortly after CEO Dara Khosrowshahi spilled the beans and posted the company’s latest earnings report. (Read)


More buzzword bingo. Khosrowshahi noted that the company is “well positioned to deliver expanding profitability over the coming quarters.” That’s Wall Street Speak for, “at least the lights are on.”  


Let’s call UBER for what it is. A dog. Uber LOST $1.2B, greater than expected. I won’t get near it when truly great (and profitable) companies like NVDA are on sale.


And of course …

Pfizer a “double”

Why people constantly hunt for chump change on the fringes is stupefying.  


The best companies are often right in front of ‘em the entire time. Case in point, Pfizer beat earnings and revenue – a “double” to my way of thinking. Then, raised guidance (again). (Read)


I know what I’ll be doing.


You?

REIT Investors: buy this NOT that

Income investors beware - not all REITs are equal. In fact, some are decidedly at risk, which of course we’ve been talking about for months now. (Read)


You must think differently. Cash flow is king and there are simply no two ways about it. More isn’t better like people think, though.


Stability in the face of rising rates is key. My favourite is performing as expected; critically, it has a stable cash flow projected through at least 2030.  


If you’ve got this covered, cool! If not or you’d like a little help, Upgrade to Paid

Palantir finally ready for the big leagues?

Palantir is certainly one of the most frustrating stocks I’ve owned in a long time. But I am not giving up the ghost.


BlackRock, Vanguard and State Street loaded up, which we’ve talked about since Q1 when I told you they’d be on the hunt and keen to use lower prices the way I’ve suggested every interested investor should.


More recently, Chairman Peter Thiel and Hyundai CEO Chung Ki-sun announced a big data joint venture. Among other things, Hyundai Heavy Industry Group intends to use “Foundry” – Palantir’s corporate big data platform – to create the foundation for an autonomous shipyard. That’s already under development, BTW. (Read)


Keith’s Corner. Shipyards are highly unionized here in the US so there may be a nascent opportunity to buy something there. Stay tuned!

Users leaving Fubo so fast it makes Meta look good

Unprofitable businesses without a clear path to profits should be the last choice for investors. Yet, they’re drawn like moths to a light anyway. (Read)


Take FUBOTV, for example. Sell side analysts are falling all over themselves because, “there’s a path to profitability in 2025” or something similar. The clickbait artists aren’t helping matters much, except possibly to reinforce my point.


Buzzword bingo is not an investment strategy. Customers are complaining that delivery stinks, about poor service and more. The only platform they’re leaving faster is Meta.


I’d consider shorting but at $3.66 a share, it’s already down -89.6% and there’s just not enough “left” to make that compelling when I can buy far superior stocks for a fraction of the risk.

Bottom Line

This isn't rocket science.  


Have impossibly high standards for the stocks you own.  


Or don't own 'em.


Let’s get out there and MAKE it a great day!


Keith 😊