Apple Iphone X

Apple and Suppliers, Plus Previewing Facebook, Tesla

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.

Otherwise, enjoy the column!

Subscribe to the Monster Stock Market Commentary and join the 2,513 subscribers getting it for FREE every day!


Apple and The Suppliers

At first, there was no demand; now there is too much demand. This is why you just have to love the stock market. According to reports, Apple ($AAPL) iPhone X pre-orders could hit 50 million. The result, Apple’s stock surged over 2 percent hitting a new all-time high. It wasn’t just Apple; those Apple suppliers got a boost too, Skyworks ($SWKS), Broadcom ($AVGO), and Qrovo ($QRVO) with all three jumping by more than 3 percent.

[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_tweetmeme type=”follow” follow_user=”michaelmottcm” show_followers_count=”true” large_button=”true”][/vc_column][/vc_row] Get This In Your E-Mail Subscribe

AAPL Price Chart

AAPL Price data by YCharts

Unfortunately, this what makes investing so hard, rumors fly around, and stock move on a whim, but until verified it just a tale. Just look at some of the volatility in these stocks over the past few weeks.

[poll id=”8″]

Skyworks is now basically kissing it’s all-time and likely to break out. It is due to report results on November 3, after Apple.

Broadcom Apple Skyworks

Broadcom is the same boat as Skyworks, and the chart looks pretty much the same, recently. Broadcom likely won’t report till sometime in December.

 

Premium Content:

Facebook, Alibaba, Apple Earning Preview

What Good Are The Analyst Worth!

Dollar Breakout, Bad For Euro

GE And Celgene, Plus FAANG’s

Tech, Biotech, And Why BofA Can Go To $40

Biotech Could Falter

Facebook

Facebook consensus estimates are calling for the company to report that third-quarter revenue grew by 40 percent since last year, to $9.844 billion, while EPS is expected to have increased 17.5 percent to $1.28. The important measurement for Facebook, the number of active users, and average revenue per user. The November 17, long straddle options strategy is pricing a move of 6 percent for Facebook, based on the cost $10 to buy one call and one put.

facebook

The chart looks very strong as well, with the stock breaking out on Friday. Could strong result be enough to carry Facebook to $200? Perhaps.

Tesla

Surprisingly or not, options in Tesla are pricing in about 9.5 percent in the shares of the stock, using the November 17 long straddle. Wall Street is expecting revenue for the third quarter of $2.928 billion, and loss of $2.81. Of course, cash burn will be of the most significant importance as well, Tesla had cash and equivalents of nearly $3.0 billion. Which for any typical company is a lot, but for Tesla, one never knows. Capex has now gone expotential.

TSLA Chart

TSLA data by YCharts

Tesla’s stock continues to hug the 200 day moving average, which has to be encouraging for the bulls.

Tesla

Biotech

For now, the biotech group as measured by Nasdaq Biotech ETF ($IBB) looks to have found a short-term bottom. We are going to want to see the ETF retake $322.

Back tomorrow

 

Free Articles Written By Mike:

Amazon, Alphabet And Microsoft Simply Crushed It

Why Mastercard’s Stock Could Rise 15%

Why Amazon’s Earnings Aren’t As Strong As They Look

Qualcomm Deal With NXP Will Eventually Get Done – M…

Celgene and Biogen May Be Signalling A Biotech Bottom

AMD Could Rise 10% Despite Results, Trades Indicate

Why Tesla’s Stock Is Breaking Down

Why Is McDonald’s Valued Like a Big Tech Stock?

Why Biogen May Sink Biotech Sector As Earnings Beat

Netflix Stock Likely to Rise as EPS Estimates Jump

Bank of America Could Rise Nearly 50%: Technical Analysis

AMD Could Break Out After Results

Qualcomm’s Bid For NXP Still Lacks Investor Support

Celgene’s Sharp Sell-Off Is Likely Overdone

Procter & Gamble Continues To Have Two Big Problems

GE: Getting Excited For The Future

Why IBM’s Big Stock Rally Won’t Last

Allergan Shares On The Verge Of Further Breakdown

We offer a lot of great commentaries all week talking about the major and relevant market events. Be sure to subscribe to get this all and of all free commentaries sent directly to your inbox or follow us on Twitter.

-OR-

[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_tweetmeme type=”follow” follow_user=”michaelmottcm” show_followers_count=”true” large_button=”true”][/vc_column][/vc_row]

Michael Kramer and the clients of Mott Capital own shares of TSLA, SWKS

Photo Credit via Flickr

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.