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The best reason yet to buy this stock

Nov 23, 2021

Good morning!

Stocks are more or less stable after yesterday’s tech rout.

Here’s my playbook.

1 – About yesterday’s brutal tech sell off

The story is that rising yields suddenly spooked traders who promptly unloaded tech stocks which are presumably more interest rate sensitive.

That’s convenient but not accurate.

The brutal and very confined nature of the selling makes me think a major fund let go deliberately or blew up because of a margin call a la Archegos. In case you don’t recall, that was Bill Hwang’s shop and it failed to meet several margin calls which, in turn, caused a massive $20 billion fire (stock) sale last march in – you guessed it – tech stocks. (Read)

I’m going shopping ... starting with Apple!

2 – Zoom, boom and … doom?

Zoom shares have tanked 15% this morning after the company detailed a continued revenue slowdown when compared against the Covid-19 numbers it put up early on when the world locked down.

Is anybody surprised??!!

The “stay at home” trade died a long time ago and the re-opening trade is fading. Remote working is here to stay, no doubt about it. But the reason why Zoom is doomed is because the competition has had a year and a half to catch up. (Read)

3 – The best reason yet to buy big oil

One of the best ways to rack up big profits is to buy stocks when they are beaten down, unloved or simply out of favour. Especially if they’ve got a strong tailwind.

Big oil certainly qualifies.

President Biden has stomped all over US oil producers at a time when we desperately need ‘em to counter rising prices. Begging for help and tapping the Strategic Reserve will not help because it does nothing to encourage investment. Basic Econ101. (Read)

Big oil stocks are going to run higher for a long time to come.

Chevron (CVX) is a long-time favourite of mine for three reasons: a great portfolio, a quality dividend and one of the best breakthrough energy portfolios in the business. Anybody reading One Bar Ahead™ and following along as recommended is enjoying returns of 18.21% versus 3.94% from the S&P 500 over the same time period.

4 – AMC: Getting ready for a big move

Reports show that AMC insiders have sold more than $70 million worth of AMC stock this year led by CEO Adam Aron who unloaded $25 million all by his lonesome for “estate planning.” CFO Sean Goodman, however, dumped ALL his AMC shares while offering only the thinnest of consolation comments saying he has the chance to be awarded more in the future. (Read)

I was born in the middle of the night, just not last night.

BTW - I recently spent about 90 minutes with some super smart Apes via Twitter Spaces. Our discussion was wide ranging and covered a scenario exactly like this one. If you’re out there and reading along, this is the kind of news that should send you right to the charts and hunting for the volatility compression we spoke about.

Case in point, AMC stock has formed a nearly textbook perfect “pennant pattern” which suggests that there’s a big move coming. The direction isn’t yet clear, though. Either way – up or down - get ready!

5 – An IPO worth keeping your eye on

Samsara (I really don’t know how they come up with these names) makes fleet management software and it’s filed to go public. I’m interested for two reasons.

First, anybody who can wrangle data and turn it into actionable intelligence is going to make it big. With advances in IOT (internet of things) and more autonomous delivery mechanisms on the horizon, it only makes sense to tap into a company that specializes in that.

Second, legacy physical delivery operations still have a lot of room for improvement. For example, one large freight company using Samsara’s software was able to save nearly 150,000 gallons of fuel which equated to over $500,000 annually. All by connecting dots that hadn’t been connected before.

The IPO date is to be determined, but the ticker will reportedly be IOT. Oh, and by the way, the company was last valued at $5.4 billion in 2020. (Read)

Speaking of IPO’s, One Bar Ahead™ readers had the opportunity to make a quick 52.5% on Rivian (RIVN) without getting run over using a special order type perfectly suited for quick moving stocks and IPOs. Now, they’re looking to do it again. Give me 12 months, and I’ll show you 5 stocks with that kind of potential, perhaps more.

Get the details