This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.
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Michael Kramer and the clients of Mott Capital own Acadia, Netflix, Disney
Stocks finished the day higher with the S&P 500 rising by over 60 basis point. Finally, the S&P 500 managed to push above resistance at 2,891. It makes 2915 the next and last resistance level before we are talking about all-time highs.
It has been a long journey. If you want to know just how long, take a look at the chart below, you can see how much work we have done along the way. By the way, when I say we I mean me and you (the read), because it takes a tremendous amount of dedication on my part, as well as a tremendous amount of commitment on your part to read these write-ups and then go through the process of figuring if you agree or disagree with me.
What a mess!
Disney had a big day. The strength was surprising with shares rising nearly $14, more than 10%. The stock blew right through the old all-time highs and resistance, increasing to $130. You can see on the chart; I circled, the stocks journey over the past four years just how much it rose today.
Netflix, shockingly fell by nearly 5% today. I’m not sure what the thinking here is. I will be shocked, shocked if Netflix sees any impact from the Disney product. Disney has a niche streaming service for viewers that specifically only want to watch Disney content. Unless you are just watching Disney content on Netflix, there would be no reason to cancel.
Stop and think about it, you can buy Netflix and Disney, and pay a monthly rate of about $22?! It cost me about $60 to go to the movies with my family of 4, just for the tickets. Even combined these two services are a deal. Netflix reports next week; it will give them the opportunity to discuss these concerns. I talk about this more in a premium video. Disney Vs. Netflix
JPMorgan had an enormous day following it beat on top and the bottom lines. $113.50 appears to be resistance.
Roku fell today, and I continue to think this one head to around $52.
Acadia has started breaking down here, and I can figure out why? The stock appeared to have broken out, and since the 9th the stock has begun turning lower. The 9th was the day the company present at the Needham healthcare conference. I listened to the meeting and didn’t hear anything disturbing, but you should listen starting around the 26-minute mark. That is when gets exciting, and if you know the company well and you listen to Steven Davis, the CEO, you will notice his response. They aren’t negative, oh no, they are very positive in my opinion. It makes me believe the drift lower may be sector related that than stock specific.
Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future results.