• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

Decision Time -- for These Stocks, at Least

While the market appears to be enjoying the election results (so far), here's my take on electric vehicles, health care, metals and restaurants.
By TIMOTHY COLLINS
Nov 04, 2020 | 12:13 PM EST
Stocks quotes in this article: VFF, CRLBF, KNDI, NIO, MPLN, UNH, ANTM, CI, CNC, CVS, NEM, GOLD, FNV, PAAS, SBUX, DPZ, CMG

Do you really want to hear anything else about the election? Me neither, but you're getting my initial quick-hitters, anyhow.
 
The market appears to be loving the results thus far. I think that is because we're avoiding social unrest (thus far) and the end results project a stasis in terms of what gets done. Little will change in the House/Senate while the White House swaps parties ... probably.
 
Where does that leave us for 2021 and beyond?
 
I continue to think cannabis and electronic vehicles. That hasn't changed. Many EV names are feeling the love, while cannabis is seeing some profit-taking. The split in power probably keeps cannabis a bit contained, but we're seeing solid state-by-state progression of legalization and decriminalization. Within the next four years, the majority of states will have approval even if the Fed is slow to act. The dips are worth buying, especially in a name like Village Farms ( VFF) and Cresco Labs ( CRLBF) .
 
As far as the EVs go, I wouldn't be chasing here. Seeing Li Auto (LI:Nasdaq) up 14%, Kandi ( ( KNDI) ) up 28%, Nio ( NIO) up 9%, and Xpeng (XPEV:NYSE) up 16%, I would either be selling calls against the names or looking to collar them. Taking a few profits wouldn't be the worst thing in the world, either.
 
While I'm not in the infrastructure camp, given the lack of a "blue wave," I do think health care needs to be examined. I could see a name like Multiplan ( MPLN) doubling over the next four years, with Biden in office. We're already seeing UnitedHealth ( UNH) , Anthem ( ANTM) , and Cigna ( CI) blast off. Double-digit moves on those aren't worth chasing. We need to have a little patience and wait for entry opportunities rather than chasing. Instead, today, I'd look at MPLN or Centene ( CNC) or even CVS Health ( CVS) , if I want to be involved immediately. Should we see consolidations or pullbacks in the bigger moves, then I'd consider getting involved.
 
Lastly, I still like gold and gold-related names based on what we're seeing. Although the metal has stalled, the setup for a big push higher exists. You can kind of take your pick as Newmont ( NEM) , Barrick Gold ( GOLD) , Franco-Nevada ( FNV) , or even Pan America Silver ( PAAS) for silver exposure, all have similar setups.
 
Lastly, I don't think a Biden White House would play out well for travel and leisure over the next year. I expect a more conservative White House, which could spell problems for airlines, hotels, restaurants, and in-person entertainment. If you've caught some big bounces in those areas, then I would keep close tabs on your positions. Ironically this will be a positive for the biggest names like Starbucks ( SBUX) , Domino's Pizza ( DPZ) and Chipotle Mexican Grill ( CMG) .
 
That's the quick and dirty instant reactions, so take them for what they are worth, but for me, they provide a starting point.
 

(SBUX and CVS are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells these stocks? Learn more now.)

 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, Timothy Collins was long LI, MPLN, VFF.

TAGS: Investing | Options | Stocks | Electric Vehicles

More from Stocks

Does the Big Bounce Mean More to Come? Let's See What Drove the Move

James "Rev Shark" DePorre
Jun 24, 2022 4:42 PM EDT

Much of the rally can be attributed to structural reasons, not fundamentals, technicals, or even macro ones.

MongoDB Is Poised for a Rally

Bruce Kamich
Jun 24, 2022 2:15 PM EDT

Here's our initial upside price target for MDB which provides a general purpose database platform.

See That Down the Road? It's the Big 'Green' Bubble, Ready to Pop

Jim Collins
Jun 24, 2022 1:30 PM EDT

Environmental, social, and corporate governance has created a monster and gullible investors should hit the brakes on their EVs and run from the Washington technocrats while they have the chance.

When Times Are Tough, These 3 Mega-Caps Should Deliver the Dividends

Bob Ciura
Jun 24, 2022 1:00 PM EDT

Here's why in recessions and bear markets, the right mega-cap stocks can offer security -- and good yields.

Atlassian Is Now in the Latter Stages of Its Decline

Bruce Kamich
Jun 24, 2022 12:22 PM EDT

Let's check the charts and indicators.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 08:55 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The 10 personality traits of successful traders an...
  • 12:08 PM EDT STEPHEN GUILFOYLE

    Stocks Under $10

    As a Portfolio Name Agrees to a Merger, Here's Our...
  • 10:44 AM EDT PAUL PRICE

    My Very Best Pick for the Next 12 Months

    American Woodmark . It rarely gets better than th...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login