Category Archives: Tematica Investing

Weekly issue: Downside Protection Critical Amid These Uncertain Conditions

Weekly issue: Downside Protection Critical Amid These Uncertain Conditions

With the stock market seemingly once again ignoring the growing risks that could lead to a rocky March quarter earnings season, we are making sure subscribers have downside protection amid their holdings.

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Weekly Issue: Talking Thematics, Boeing and Retail Sales

Weekly Issue: Talking Thematics, Boeing and Retail Sales

The driver for the market so far this week has been retail and Boeing, and we tackle what’s going on with both. We’re adding a new Disruptive Innovator to the Select List and holding steady with Del Frisco shares following good earnings, but not a word on its strategic initiatives.

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Doubling Down on Digital Infrastructure Thematic Leader

Doubling Down on Digital Infrastructure Thematic Leader

Last week’s economic data confirms the global economy continues to slow, and for now, the US remains the best economy on the block. Through the first two months of 2019, the domestic stock market has been on fire even as earnings expectations and dividends continue to be cut. As earnings season fades, time to watch insider selling activity to gauge what lies ahead. Following last week’s earnings report and subsequent drop, we’re doubling down on a Digital Infrastructure Thematic Leader.

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Weekly Issue: Factors making the stock market melt up a head-scratcher

Weekly Issue: Factors making the stock market melt up a head-scratcher

In this week’s issue, we dig into the latest shareholder letter from Warren Buffett, examine the growing number of dividend cuts and other factors make the year to date melt up in the stock market something of a head-scratcher. That best performance in 20+ years hinges on a successful trade deal with China, but there are other factors that we need to examine so we don’t fall prey to a “buy the rumor, sell the news” scenario. We recap the sharp move in Universal Display shares following its latest earnings report and touch on favorable news emanating from Mobile World Congress 2019 for Nokia.

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WEEKLY ISSUE: Companies continue to serve up weaker guidance

WEEKLY ISSUE: Companies continue to serve up weaker guidance

Another week of the stock market melting up as December quarter issues continue to fall the wayside. Yet, companies continue to serve up weaker guidance leading earnings expectations to fall. There are fresh concerns over the speed of the domestic economy, which continues to look like the best one on the economic block. We break down recent positive data for Amazon, Google, and Costco Wholesale, and discuss what’s ahead with Universal Display and Mobile World Congress 2019.

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Weekly Issue: Streaming Services and the Middle Class Squeeze

Weekly Issue: Streaming Services and the Middle Class Squeeze

As we approach the halfway market for the current quarter, stocks continued to rally as December quarter concerns appear to melt away. While the market is hopeful, we will continue to focus on the details and nitty-gritty. Several Thematic Leaders continue to trounce the market and upcoming economic data should put some favorable context around Costco Wholesale (COST) shares. With Middle-class Squeeze consumers struggling, we take a look at LendingClub (LC) shares.

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SPECIAL ALERT: Seizing the opportunity in USAT shares

SPECIAL ALERT: Seizing the opportunity in USAT shares

We view today’s sharp drop in the shares of USA Technologies (USAT) that comes on the back of what we see as no new developments in the Board’s previously announced accounting investigation as an opportunity to improve our cost basis in teh shares. Not should we not be surprised by the resignation of its auditors, one would have expected it several weeks ago. Moreover, the revenue called into question is a modest amount vs. reported revenue for the quarters in question.

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Weekly Issue: Del Frisco’s Sends Strong Signals of Potential Take Over Bid

Weekly Issue: Del Frisco’s Sends Strong Signals of Potential Take Over Bid

The US stock market rallied in January and continues to move higher in February even as earnings expectations for the market continue to slump. While caution is warranted near-term, opportunities are emerging with Thematic King Amazon being a shining example. A Board additional to Living the Life company Del Frisco’s signals it is seriously evaluating takeover bids.

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Weekly Issue: As earnings season continues, the market catches a positive breather

Weekly Issue: As earnings season continues, the market catches a positive breather

The market catches a positive breather following Apple’s not as bad as it could have been December quarter earnings report. We still have several hundred reports to go, and the preponderance of companies are issuing weaker than expected guidance. As we navigate upcoming reports and puzzle what they mean for 2019 earnings expectation, the Fed will emerge from its latest monetary policy meeting today, and later this week we should learn how the latest round of US-China trade talks went. Verizon is bulls up on 5G, and that along with issues for China mobile company Huawei as well as bullish earnings report from Ericsson pave the way for a solid one from Disruptive Innovator Leader Nokia.

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Weekly Issue: Earnings expectations take a dive

Weekly Issue: Earnings expectations take a dive

As earnings expectations get cut for the first half of 2019, we remove Altria (MO) from the Thematic Leaders and discuss takeout speculation on USA Technologies. With earnings season kicking into high gear over the next week, volatility is likely to ensue and that keeps us on the sidelines this week.

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