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☕ Palantir for the win

Jun 20, 2024

Good morning! 👋

Wall Street is on the move in early going, and stocks are headed for another winning week. So much so, that the S&P 500 just took out my 2nd (already revised higher) annual target of 5,500 before retreating a skitch.

How high can it go?

I’m thinking 5,750 is in the cards and probably without much trouble. (Watch)

There are caveats, of course.

Nothing moves in a straight line, especially the stock markets.
And all bets are off if the Fed throws a spanner in the works and cooler heads don’t prevail in the Middle East.

Meanwhile and to a point I make often... you’ve got to be in to win or you won’t... win!

Here’s my playbook.

1 – Nvidia still has plenty of room to run

Investors continue to pile in and the spill over into other stocks is happening exactly as I suggested it would.

There were only a few use cases for AI when we started talking about it just a few years ago. Now there are hundreds. Next year, there will be thousands.

Every $1 spent brings back $5, soon to be $7+ imho.

The naysayers still can’t believe it, but that’s their problem.

Not ours.

$200 - $230.

Oh, I almost forgot – NVDA just surpassed Microsoft to become the world’s most valuable company. (Read) At the same time, Super Micro and Dell are on the move as Unka Elon calls both suppliers for xAI. (Read)

Keith’s Investing Tip: If your financial adviser told you not to buy or add to Nvidia when it began its pre-split run under $200 – and many did - because it was “expensive”, I submit you may want to rethink that relationship. Missing opportunity is always more expensive than trying to avoid risks you can’t control.

2 – Crude at $81

US crude topped $81 a barrel which puts it on target for a 2nd consecutive weekly gain.

Investors are wondering if they should buy oil ahead of the summer driving season.

No.

Buy energy and line up a great dividend for the next 10 driving seasons.

Just sayin’

If you’d like some help figuring out which stocks may be best, I’m here. And if you have this covered, groovy.

3 – Boeing gets blasted on the hill

Boeing CEO Dave Calhoun was in the hot seat this past Tuesday when he faced a senate subcommittee on safety, whistleblower testimony, and even his own pay package. (Read)

About time.

I can’t imagine how he has a job, but that’s just me.

I had hoped that Calhoun would provide something ... anything ... however tiny ... that would indicate Boeing is capable of a turnaround, but I didn’t hear it. Just more buzzword bingo.

Continue to short, avoid, or buy putskies.

And, btw, the pairs trade idea (long Airbus and/or Embraer while short Boeing) I suggested a while back continues to play out as expected. Both Embraer and Airbus have pulled decisively ahead while Boeing has all but flat lined.

If the markets were an ER and Boeing was on the table, I’d be looking for the defib paddles right about now. 🤦‍♂️

MyPOV: I continue to hear from folks who think that Boeing and Airbus are still only game in town (therefore Boeing’s “safe”). That’s misguided and I urge you to reconsider. Loads of people thought Detroit carmakers were “safe” in the late 1960s when Japanese cars showed up out of nowhere and changed the game forever. While we’re at it, don’t forget that China will field a competitive long-haul aircraft within the next 5~10 years max... pun absolutely intended.

4 – Enzo's probably rolling over in his grave, investors could be laughing to the bank

Ferrari will reportedly launch a $535K EV in late 2025. Options and personalization will probably add another 15-20% to the tally. (Read)

I’ve got to imagine that Enzo, who last worked on the astoundingly powerful, all analog F40 before he died, is probably rolling over in his grave.

Investors could be laughing to the bank.

It’s tempting to dismiss Ferrari as a simple luxury play, but that’d be a mistake.

Ferrari is one of the world’s most valuable brands.

What catches my attention is that the new EV plant being built specifically for this car will apparently allow Ferrari to produce about 20,000 cars a year, up from 14,000 units last year.

RACE has settled in the low $400s but this could put $500 a share on the map.