Straight to your inbox from Keith himself!

*Trusted by tens of thousands of savvy investors and traders around the world every day

☕ 3 stocks with new targets the bears still don’t understand

Nov 25, 2024

Good morning! 👋

Holiday-shortened weeks were something you didn’t want to mess with for much of my career.

The spreads – meaning the difference between buyers and sellers – typically widened out, volume dried up and price efficiency stalled.

The rapid rise of computerization has negated much of that these days which is why, perhaps not surprisingly, holiday shortened weeks can now be a great opportunity to do a little extra shopping.

At least in the markets anyway as I noted in last night’s short. (Watch)

Here’s my playbook.

1 – 3 stocks with new targets the bears still don’t understand

No explanation needed.

Smiling, though, is optional and encouraged given that I’ve had ‘em on your radar for quite some time now and they’ve returned 248.35%, 49.08% and 20.34% YTD. (Watch)

MyPOV: Many investors have great intentions but fail anyway because they lack the long-term perspective needed to see past short-term market noise. They have dreams, not objectives. Flip that around and suddenly you’re on track or at least moving in a direction that can have life-altering impact.

2 – Intel close to finalizing the CHIPS Act grant

Intel, yeah, remember those guys?

The ones who largely missed mobile, missed AI, and who insisted they want to be the AI of desktop PCs…

Apparently, Intel and the Commerce Department are close to finalizing an $8 billion grant as part of the CHIPS Act according to CNBC, citing persons familiar with the matter. (Read)

Shares are up a skosh.

Should you buy?

I wish I could, but I probably won’t any time soon.

Intel is trying desperately to grow its fab business, but customers don’t want what it does or have already gone to competitors.

This is a perfect example of an “n+1” business, not the “Zero to One” alternatives I prefer.

Pass.

3 – Super Micro continues its charge

Up another 14.7% as I came off camera this morning.

Technically speaking, I can’t tell if what’s happening is a simple “short-burn” or there’s serious upside. That gives me pause but I’m super happy for any trader who’s jumped on board.

Investors, on the other hand, still have a long way to go before they make up lost ground at a time when the industry is changing radically.

If anything, it makes me want to take a hard look at Dell which arguably makes as good or better servers, racking and storage without the overhang of questionable numbers.

Super Micro is still ~68.88% off its 52-week high. Dell, meanwhile, has returned 32.47% over the same time frame.

Hmmm.

Keith’s Investing Tip: Many people desperately want to achieve success in the financial markets but then, in the same breath, fear taking action. That’s okay… and a totally fixable problem. Learning to be consistent – in analysis, in tactics, in the approach you take - is the first step. Why? Because that’s how you make more informed decisions and avoid wasting time and resources on strategies that are unlikely to be successful. We talk about that a lot in One Bar Ahead® because probabilities are very different from possibilities… and, dare I say it, more profitable over time, too. (Learn more)

4 – Cook joins 20 other execs for a meeting with China’s premier

Apple CEO Tim Cook gets around. (Read)

This is the 3rd time he’s in China this year which speaks volumes about how he sees China when it comes where the world is going and to ensuring Apple has a seat at the table.

The Dragon is coming to dinner and the only decision you’ve got to make as an investor is whether to be at the table or on the menu.

Cook is one of only a handful of Western executives with the kind of deep, intuitive, grasp needed imho. And I’ve spent a lot of time in mainland China over the years so I make this observation based on first hand perspective.

You know what to do.

5 – Looking beyond dinosaur juice AND nukes

Many folks are focused on a resurgence of nuclear power and the re-engagement of dinosaur juice now that the EV kerfuffle is fading and AI is on the uptake.

That’s almost always a great time to do a little extra research in sectors that are all but ignored… especially when they’ve had a big run up and could retrace.

I find myself looking at Bloom Energy with that in mind this morning. (Read)

Bloom makes solid oxide fuel cells that produce electricity, and the stock has gone bananas, rising sharply to $25+ after scraping along in the $10-$15 range for a long time.

The increase appears to be driven by a new agreement with American Electric Power to supply up to one gigawatt of fuel cell power for AEP’s new AI data centers.

Now and to be fair, I could care less about the deal itself. It represents about 75% of all the business Bloom’s done… ever.

What catches my attention is that this kind of speculative price spike tends to run its course quickly so a LowBall Order makes sense… back down in the $10-15 range.

You never know.