What stocks am I buying/selling today? 2–11–22
If you’re not listening to the podcast, please do. I go over a lot more information on the podcast and these are meant to compliment each other. (https://anchor.fm/dailystockpick/episodes/NVDA-and-ROKU-earnings-are-next-week--When-am-I-buying-and-other-market-updates-for-2-11-22-e1e8k4e)
$CLF — Cleveland Cliffs
They reported earnings and are slipping slightly in premarket — most likely people taking profits like I did. Costs got in their way, but I still think you’re looking at a $22 stock at some point this year so I think you’re safe if you’re still holding. Just watch the downside if something political happens.
$UA — Under Armour
They reported and costs plus supply chain inventory got in their way. They are down to $16 in trading today, but I do think this very well could be a reopen trade. I did not dip my toe in the water on this one as it had just run up too much before I started watching.
Here are my plays for earnings that are coming up:
$ROKU
I think anything under $160 is a good buy for this one. If it pulls back to the $140’s, even better. The PE is 80 on this so it is still extended, but with Omicron, I believe their Q4 report may be better. It’s going to be more about guidance on this one though. With this one being beaten up so much I think you can get a good entry before earnings. I would NOT hold this one over the weekend unless you’re planning on holding for a very long time. This weekend in particular is going to be volatile I think.
$NVDA — NVIDIA
This one is just clinging to that 200 day moving average. We just had a death cross so tread lightly, but in my mind if you can get this below $250, buy it. The PE is high, but I think this company will grow in to it. They are a leader in next generation chips so I think this is the Apple/Google/Amazon of the 2020s. Earnings next week should provide some good guidance, but with rising interest rates, I’m just not that experienced (and nobody managing money really is) in this type of market. I do think the technical with a high RSI and the MacD going up indicate it could pull back prior to earnings though — that’s why I say — wait and be patient.
$SQ — Square
This one looks juicy, but it’s also faked us out all the way down. The worry is that Apple coming in with touch to pay is going to take business away from Square’s dominance in the small — medium business category. It’s probably overblown, but the PE is 114 right now which is bloated and high. This could see more pullbacks, but with the MacD low and crossing up, the RSI right now being a little high and earnings coming up, this might be a good play.
$FB — Facebook/Meta
This looks like an opportunity to me. With a PE of 16, that huge gap that’s above, the MacD crossing up, the RSI so low, I think anything under $220 in this name you buy. This is probably not necessarily a trade for me (my average purchase price is $323 right now) and instead I’m going to dollar cost average this one as I’m assuming it’s still a growth stock. They will continue to have huge spending, but there is no better place for advertisers. They’ll figure out a way around the IOS privacy settings and I think you’ll see this one return to a FANG multiple of 25–26.
