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 SHARES OF AAPL, TSLA, ACAD
The Day Ahead – November 27
Futures are pointing to a lower open to start the day on Novmber 27. The S&P 500 futures are implying a drop of roughly of 12.50 points. Not a big deal. The futures falling on the prospect of a 10% iPhone tariff and the potential for higher tariffs against China in January, as noted by the WSJ yesterday article.
I’m not surprised by the news of potentially more tariffs, especially ahead of the G20 summit. This is pretty much what Trump does, ratcheting up the tension before an event.
Apple’s stock is trading slightly lower after the iPhone reports to around a price of $171. Although this presents a short-term overhang for the stock, I don’t think it changes things much at this point. The stock has already been trending towards $164.
Additionally, DigiTimes is reporting that Apple cut the number of iPhone orders for a second time. One should also expect to see the Apple suppliers struggle today as well.
Tesla is also falling in the pre-market, down about $7 on news its China sales plunged 70%. This should not be a be a surprise considering Tesla had already announced it was cutting the prices on S & X models.
Micron is falling today after UBS slashed its price target to $41 from $52. I think $41 is probably even too high. Believe it or not, the average price target on the stock is still $63.39, so there will be plenty of more price target reductions to come.
If the stock falls below $34, then $32.50 is next.
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Acadia announced it was doing a $200 million secondary offering last night. Although I can’t say I’m shocked, I am surprised to see them doing it now. Doesn’t seem like the ideal price.
I’m just wondering if this gives the company a chance to reset the shareholder base and tell their story again. I also think it provides the Bakers the potential to buy even more stock at lower prices than what they would not be able to buy in the open market. How the stock acts today will tell us how demand is shaping up for the deal. Let’s see what happens today and more critical the color that comes out tonight about the size and the pricing of the deal.
Alibaba is falling today as well, not sure if it has to do with the news that Jack Ma is part of the communist party in China? Anyway, if that is the reason the sell-off shouldn’t last. Can’t say the news surprises me. Support remains around $150.
Oil is still below resistance at $52. The trend is even lower.
Good Luck Today!
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sp500, apple, acadia, micron, oil, alibaba, tesla