The highest price target I’ve ever set
Sep 24, 2021Good morning!
The overnight markets have been jumpy. I think we may have a red day on our hands by the time you read this.
Here’s my playbook.
1 – China’s latest crypto-crackdown could be GREAT for bitcoin
China’s central bank makes ALL crypto-currency related activities illegal.
Shares of Robinhood (HOOD) and Coinbase (COIN) are down by 2% and 3.6% respectively. Not surprisingly, as I’ve said for several months now, this leaves the digital-yuan as the last crypto standing in China.
China wants to unseat the US and is becoming increasingly aggressive about doing it.
Even so, the latest move could be GREAT for bitcoin, if history holds.
2 – Nike just didn’t do it and I’m not either
Global apparel juggernaut Nike cut guidance because of supply chain woes, forecasting mid-single digit growth for fiscal 2022. That’s down from previously double-digit forecasts. Not surprisingly, shares are down more than 4% in premarket trading.
Owning Nike shares at this point could be riskier than many think. I’m not keen to go bottom fishing yet because the next 12 months are going to be super tough.
3 – No surprise here: Evergrande misses bond payment, markets roiled
I’ve told you repeatedly that discussions about how the company would “make” its payments earlier this week were a distraction. I’ve said the same thing on national television, too.
This from Twitter …
Then, again in yesterday’s Five with Fitz …
What happens next depends entirely on “cross-default” risk and how much of their leverage is in our financial system.
**Note: I’ll be sharing my thoughts later this morning in today’s AMAs … why you should care, what it means to your money and the moves you need to make next, etc. If you’re part of the One Bar Ahead™ Family, make sure you check your email in a few hours.
Meanwhile, I sure as hell would not buy any Chinese stock. I’d also keep a close eye on the likes of Caterpillar and McDonald’s which are dependent on Chinese growth.
4 – Buy shares of this company on any pullback
Costco beats “2X” – meaning top and bottom line
Super simple thesis here. The company beat on both the top and bottom line and shares rose in the overnight. I’d be looking to buy on a pullback if it gets swept up in any downdraft today.
5 – Amazon CEO Jassy’s “charm” campaign is a sign of things to come
Newly seated Amazon CEO Andy Jassy has launched a charm campaign on Capitol Hill this week and I think it’s a sign of things to come. Amazon is too critical to get battered. Breaking it up may sound appealing but would only unlock value rather than destroy it. The company is accelerating distribution, footprint (nearly 300 million feet of infrastructure), and hiring.
One day delivery is key, but I believe 5 hours or less is the target. My son could get stuff he ordered via Amazon Japan delivered to his apartment in 2 hours in Tokyo!
My new target is at least $4,500 a share, up from $3,850 where I have it now.
Bottom Line
Why not YOU??!!
The markets are full of opportunity.
Reach for it (or somebody else will)!
I’m with you every step of the way.
Now, let’s finish the weak strong.
Keith :-)
