Facebook, Alphabet, Tesla, Intel, Biogen, Gilead, Oil – The Daily Rundown June 18
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN SHARES OF TSLA AND GOOGL
The stock market had another back and forth session with the S&P 500 trading lower on the day, but it was Technology, Energy, and Biotech that finished the day in the green. S&P 500 continues to demonstrate a substantial amount of resilience testing and retesting support at 2,760.
Big-cap technology continues to rally with shares of Facebook rising to nearly $200. The trend for Facebook remains strong, with no obvious signs of slowing down. We should remember quarter end is fast approaching, and some of these companies may see a considerable boost in prices in anticipation of strong results. Remember Facebook trades at a relatively cheap one-year forward PE ratio of 22.3.
Alphabet shares crossed over resistance at $1170, that should be a positive sign for the stock continuing its rise. Alphabet is another of these technology giants with a reasonable valuation at 24.7 times 2019 earnings estimates.
Tesla crossed over $363, and that may pave the way for a rise back to the all-times around $385. I have no idea what is going on with all these email leaks at the company it is kind of crazy. Elon might be better off just posting them all on Twitter at this point.
It is a joke, to be honest, and I can’t understand how that happens.
Part of me is playing the skeptic with the latest run of corporate espionage and sabotage at Tesla; I’m just praying they aren’t setting this up to have a scapegoat if they don’t hit 5,000 Model 3’s per week.
But not all was positive with shares of Intel falling to the uptrend. We have been talking about this one for some time with the bearish setup. I’m just wondering how much more there is to drop or if this is the bottom, I can make a case for both a further fall or bounce back.
The large-cap biotech stocks struggled today, with Biogen getting hit after a competitor released positive results in a trial result. The stock is in limbo right now, and I can see it easily refilling the gap up at $300, or falling further to $280.
Gilead continues to struggle, and finally, the buyers gave up at $72, and shares are trending lower with the potential to fall back to $66.75. There is nothing to like about this stock, technical or fundamentally. Sorry folks. I’m not into that whole declining revenue and earnings thing. I love companies that are growing, not shrinking.
I know it only trades at 10.6 times 2019 earnings estimates of $6.46 per share. But…
Its earnings are expected to fall by over 30 percent in 2018, and its revenue is set to drop by over 21 percent! Then, of course, we get the huge bounce back in 2019, with earnings climbing a massive 5 percent, on 1.5 percent revenue growth. It is overvalued even at 10.6 times 2019 earnings.
I’m just trying to help, don’t hate on me. Maybe I will be wrong. I’d love for the stock to go up for the long holders, but the company needs to do more to reignite growth, and buying Kite was not enough.
By the way, I have zero, no, none positions in Gilead, long/short, calls/puts. Nothing. And haven’t since selling it around $100 in April of 2016.
AT&T Is near a significant support level at $32, and if that cracks, it has further to fall. A lot more to fall.
Finally, I know Oil was up today, big deal. The chart looks gross.
It is almost as bad as the financials :). Sorry I couldn’t resist.
You know how stupid I will look if the banks actually rise! Geez. Yeah stupid.
Hope you enjoyed!
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.