|Day Low/High||183.61 / 186.74|
|52 Wk Low/High||123.02 / 218.62|
It's time to reconsider Facebook, Apple, Amazon, Netflix and Alphabet/Google in the New Year.
In December I highlighted my two contrarian large cap picks for this year - Goldman Sachs and Facebook . GS traded great off of the Christmas low and, not surprisingly, is giving a little back (-$1.40) on profit taking. FB continues to trade higher ...
For the second time in two weeks we saw over 90% of the volume on the upside.
First off, in full disclosure, I am flat the name right now.
Sorry, purists, but the market has become downright dysfunctional on a regular basis.
After two chaotic days, Wall Street is trading relatively calmly, creating opportunities for individual names to show life.
Whether this is the end of the slump is still up for debate, but the crash since October has been brutal and all bear markets end the same way.
Evidence has been mounting even among the tech giants that stock valuations should be lower based on companies' diminishing growth prospects.
My friend Andrew Left at Citron Research does a good job in making the case for Facebook . With his permission, here is his analysis. I placed FB on my Best Ideas List in late November, 2018 at about $137 a share.
Amazon's competitive threats seem surmountable and its market share appears to have a widening moat.
* Amazon's business moat is deep and secure * The threat of increased regulation continues to exist - but it is likely to be modest in scope * The recent share price drop has provided a good entry point on the buy side * I am a buyer on any further ...
The issue is that we do not have any individual buyers to speak of.
This tech rout is real and the dollar amounts of shareholder value that have been destroyed are spectacular.
The image-sharing platform is reportedly prepping an early-2019 IPO. Working in its favor: Healthy user and revenue growth, unique demographics and a clean image.
Thursday's stock market rout is just another reminder that flat yield curves and equity investing do not mix.
Given the oversold nature of the market in general, a diagonal put spread may be the best approach.
Fed Chair Jerome Powell appears intent to reverse a near decade's worth of policy in just a couple of years.
My strategy is to find stocks that are as weak or weaker than the overall market, but are not completely beaten down -- and Facebook is a good example.
Remember, though, playing defense is very different than leaving the stadium altogether.
These are currently situations where companies are facing serious lawsuits.
We should once again learn from the dramatic drop in share prices of former market darlings.
* Resist the self confident consensus and "Group Stink" * Do your own homework - don't rely on "talking heads" or hedge fund titans * Learn from history - it's the easel of investment education "When a cyclical investor hears that there are too many...
Buoying RMPIA during the first half of December were shares of Broadcom, Facebook and PayPal.
Late last week I sold half of my Facebook and Twitter after good runs. I plan to add back to FB at about $138-9 and Twitter at about $32-3.
Look for the big-cap stocks that only come in on tough days -- and take advantage of their weakness at the open.
Amid the recent pullback you should be asking pointed questions.