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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5 Stocks To Watch Tesla, AMD, Intel, Alibaba, & SalesForce
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN SHARES OF TSLA
So now Tesla isn’t going private. I can’t wait to turn on the TV on Monday morning to hear more about this. I will admit being a Tesla shareholder these past few weeks has been the most challenging period for me. Thinking and questioning my position in the company. It seems that perhaps the shorts will likely have their chance once again to press the stock lower on Monday. The stock is likely to retest the low $300’s if I had to guess.
I know this isn’t some kind of valuable or in-depth insight, but as we have spoken about before the, only ones pushing the stock around most days are the short seller, whether shorting or covering.
AMD has been a torrid pace, since breaking out the stock is now nearly at $24. Can the stock go higher? It can because as we have seen in the past momentum and emotion can carry stocks far further than fundamentals. Although at current levels it would be much better for the stock to pull back some, and establish support around $20. The RSI is rising once again, but unlike the stock, it is not reaching new highs, and that suggests to me at least that the stock may be losing some of that bullish momentum.
AMD is now trading at more than 38 times 2019 earnings estimates, and for a chip stock that is very high. Considering the average one-year forward PE ratio of the top 25 stocks in the semiconductor ETF ($SOXX) is just 15.
Intel is has been going in the exact opposite direction, and the stock is in an awkward position here at $47.60. The trend is lower for the stock, but yet analysts estimate earnings and revenue are going higher. Analysts now see earnings growing by 20 percent this year, and the company is trading at only 11 times 2018 estimates.
A rise in Intel above $48, likely pushes the stock higher on towards $51. Should shares stay below $48, a decline to $42 becomes more likely.
Alibaba has had a rough time since reporting results, and I think that struggle may continue for the company, as investors begin to focus more on the company’s declining margins. For now, $164 offers sturdy support.
Salesforce broke out, rising above resistance at $149. I got this one wrong, I had didn’t think it would be able to break out, and was looking for shares to fall. The stock had struggled at that price for some time, and so a breakout ahead of earnings could be telling of what investors think about how those earnings may be. Next area to watch for comes around $160.
That is all for today. Back tomorrow.
Michael Kramer is the Founder of Mott Capital and the creator of Reading the Markets.
I started learning to invest when I was 16 years old. At 40, I have pieced together a long career on Wall Street, working as an analyst, and a domestic and international equity trader at two multi-billion dollar equity firms.
I started Mott Capital in 2014 to follow a passion and dream of being in control of my career path.
The idea behind Reading the Markets was to help both individual and institutional investors benefit from my experience in the business and my unique approach to dissecting stocks and the markets, which helped me become a great trader.
Reading the Markets is a combination of technical, fundamental, a macro market analysis, trying to piece together the clues the market is sending in its future direction.
Reading the Markets is unique, in that the video does not only serve as a means to deliver the content but to interact, making it a personal learning experience, while also showing the user how I go about finding my research and how you can use the process to do your work.
I want this product not only to be profitable and enjoyable but also affordable.
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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.
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.