Written by: Keith Fitz-Gerald | Keith Fitz-Gerald Research
Howdy!
SOSDD...
Same Old Story, Different Day.
The markets are down this morning in early going as traders await the Fed’s next follies.
We spoke about how to prepare for that yesterday, so I’m not going to bore you with a rehash this morning.
Please, just stay frosty.
The only thing that matters is how JPow sees the future of rate hikes and inflation and the commentary he uses to convey his thinking.
Remember… amateurs focus on being “right” whereas the world’s most successful investors focus on being profitable.
Here’s my playbook.
Apple could tack on another 68.15% from here
Goldman Sachs says that iPhone demand will outstrip supply and sees 20% upside for Apple shares as a result. (Read)
Gee, where have you heard that before?!
This is a world-class problem, not to mention a great catalyst for the stock.
Contrary to what the naysayers think or at least want you to think, Apple is not going to slow down.
In fact, the company will continue to accelerate. Don’t forget that Team Cook now has an installed base of over 2 billion iPhones, 1 billion subscription-paying customers, and continues to roll out profitable new products at a speed that other competitors only wish they could achieve.
BTW, I believe Goldman’s target of $216 is low, as is Wedbush’s $240 a share.
I put $300 a share on the map last July, and I’m sticking to it. That’s roughly 68.15% higher than where shares are trading now as I type.
Disney: Buy, sell, or hold
Disney was a favourite of mine for years, then… sigh.
Now the company says it’s planning to nearly double investments over the next decade to expand parks and cruises. Some $60B, according to the NY Times. (Read)
That’s a smart move because the parks, experiences, and products divisions have carried the company while it continues to struggle with media.
Will this move the needle?
Technically, there’s a good case for buying at least a few shares as the company stumbles along in the mid-$80 range, but I’m not inclined to do so personally until after Disney can refocus and shed the media that’s held it back.
MyPOV is that there are bigger, more profitable, less controversial stocks to buy, substantially all of which have less upside resistance.
Still, I sense a trade, even though I don’t see an investment; perhaps a few LEAPs options meanwhile to keep costs down and risks low?
No schizzers: EV charging needs big improvements to work
I could only shake my head this morning when I read the headline.
Car makers are spending billions to bring EVs to market over the next few years. Ford’s on the hook for $50 billion, VW is up for $200 billion through 2028, and GM will toss in $35 billion by 2025. (Read)
Yet, the vast majority of buyers are not stepping up because of concerns over charging, according to studies from Cox Automotive, Consumer Reports, and the Energy Policy Institute at the University of Chicago, among others.
No schizzers!
That and oh, I dunno, the fact that the average EV costs more than many Americans make in a year! [face palm]
There is one exception, of course.
Tesla.
BTW: I profiled one of the most innovative income strategies I’ve seen in years related to Tesla stock in last month’s issue. If you’re an income-oriented investor and can stomach a bit of extra volatility, it could be a phenomenal choice. Upgrade to Paid
Unpopular opinion: Lithium prices could tank
A new report suggests that a new lithium deposit discovered in the McDermitt caldera, which borders Nevada and Oregon, may be the biggest ever found. (Read)
In fact, it may be 700% larger than the recently discovered largest-known deposit in India’s Kashmir region, “40 million metric tons, 13 million more than the known reserves of every lithium-producing mine on Earth.”
If that’s right and the reserves do play out, that’s enough lithium to change the global market.
Prices could drop radically.
Lithium has been a “darling” investment in recent years because of the demand for EVs, a widely spread story about scarcity, and Chinese market control.
Reminds me of cannabis markets before and after legalization (when supplies suddenly increased).
Oh, and not to beat a dead horse here, but imagine what will happen to Tesla’s margins if lithium costs suddenly decline!
Skechers may be on to something
This makes me smile because there’s nothing I like more than an underdog.
Skechers was founded in 1992 and is the 4th largest US sneaker company.
The company just launched a very Costco-like concession called the “Food Spot” at its Gardena, CA location. And apparently, customers are lining up around the block. (Read)
Talk about outta-the-box thinking!
Makes me wonder if there’s going to be a new trend emerging here.
Skechers trades at $47 a share or so, but this could be good for a quick $5–$10 a share into the holiday season if the concept has legs and the investing public latches onto the idea.
Hmmm.
Fries with new sneakers… who knew?
The Bottom Line
There’s somebody out there living the life you want.
Because they invested.
Just sayin’.
As always, let’s MAKE it a great day!
You got this.
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