Daily Talk

Buy VALE for the Coal Rebound

April 10, 2017

The unthinkable has actually happened. A Democratic senator broke ranks last week to publicly compliment President Trump on his promise to get coal miners back to work. Some are wondering if it’s too late to save the industry, but I don’t think so at all. And one company that stands to benefit nicely is Vale (VALE).

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Feeling Whiplashed

April 8, 2017

One word can sum up this past trading week: whiplash, defined as the flexible part of a whip or something resembling it or injury caused by a severe jerk to the head, typically in a motor vehicle accident. In the investment world, we can define whiplash as a sudden jolt to monster rallies from exogenous news, like a wayward Fed statement or the drumbeats of potential U.S. military engagement. Or a monthly jobs report that came in well below expected.

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What’s Next for Trump and the GOP?

March 31, 2017

Wall Street has spent this week reacting to the drama in Washington, D.C., where the GOP healthcare replacement bill got caught between a rock and a hard place in the form of moderate versus conservative opposition last Friday. Now investors are left to wonder what’s next for the Trump administration.

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Quiet Strength

March 31, 2017

Don’t look now, but the market is coming back nicely. And it’s happening with little fanfare, which makes it even more impressive. For those concerned about the market coming on too fast, recently released data gives credence to the rally and even hints at more upside. I’m still optimistic about this rally. It will see its share of ups and downs, like any healthy bull market, but over time we’ll see higher prices.

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Trade of the Day: SWIR

March 28, 2017

Monday was an active day in the market as Wall Street reacted to the drama in Washington, D.C., but the orderly nature of the selling over the last two weeks underscores a lack of panic, even though the frustration is clear. For me, now is not the time to panic but rather to take advantage of opportunities. One I like right now is Sierra Wireless (SWIR)

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Could TIF Be a Diamond in the Rough?

March 24, 2017

Tiffany & Co. (TIF), a designer and retailer of fine jewelry, was off to the races last Friday after reporting fourth-quarter results that beat the Street, and strong guidance with “meaningful growth” was the icing on the cake. The rally was great for those who already own a position in the stock, but I have some concerns at current levels.

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The Clock Keeps Ticking

March 24, 2017

The drama in Washington, D.C. continues, and it’s not unlike the drama that ushered in Obamacare in the first place. The choice many in the GOP must make today is to accept that the bill isn’t perfect and pass it anyway to preserve the strength of the White House, even if it means feeling like promises are broken. Otherwise, it could spell the eventual demise of their own political careers.

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New Hurdle, New Anxiety

March 17, 2017

A day after Wednesday’s surge following the Federal Reserve’s decision to raise interest rates for the third time since the financial crisis, both the Dow Jones Industrial Average and S&P 500 finished yesterday lower, giving back the ground they had gained early in the day. On the other hand, the NASDAQ continued to ride the wave of hot tech stocks to finish higher. Today’s session has gotten off to an uneasy start, as what appeared to be early strength fizzled pretty quickly. Meanwhile, gold surged.

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INTC: Still Not Worth Buying After MBLY Acquisition

March 17, 2017

Mobileye (MBLY) is a company I’ve liked for a long time, and I’ve been pounding the table on it especially hard since January. It was a stock I wanted all of my subscribers to own, and owning it certainly paid off on Monday when it was announced that Intel (INTC) would buy the company for a 34.5% premium over Friday’s closing price.

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Oh SNAP!

March 14, 2017

There has been a lot of buzz around Snap (SNAP), more commonly known as Snapchat, since it went public last Thursday and traded more than its 200 thousand share float in just its first day. A lot of folks who bought the first two days are looking at losses, and shareholders who got in at the IPO price are hopeful that amazing debut doesn’t vanish into thin air. It’s too early to see where the company and stock might be a year from now, but there are cautionary tales from past hot tech IPOs worth visiting.

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