Who’s buying Peloton and should I buy the stock there? Market update 2–7–22
Last week was the week that Facebook took down the market only to be saved by Snapchat, Pinterest and Google. We found out that the IOS privacy changes is a specific Facebook problem — not a market problem. If you’re not listening to the podcast, you should. 20 minutes a day released around 8:30am or 9am every morning — just in time for your commute.
Peloton
This one has been beaten down. Since the last earnings call, most people seem to own this stock between $25 and $27 which sets up a good floor. IF they come out with worse guidance (remember they’ve slowed production of their products based on inventory/demand issues, they’ve recalled treadmills, they are asking people to finance their bikes with interest rates rising therefore costing them money), that might be a good floor right now. This morning it’s rumored that Nike and/or Amazon are looking at the potential of buying PTON. If that happens my guess is that it’s a $40-$45 stock at that point. PTON board may want $60-$65, but right now I would doubt they could get it. Their margins are and will continue to shrink — so there’s nothing other than a trade on this one. Based on the run up — don’t chase it. Wait for $20-$25 to come in to play.
Cleveland Cliffs
This isn’t our algorithm, but it is a daily chart of Cleveland Cliffs and it looks good going in to earnings. We did have a death cross (50 day crossing under the 200 day — or blue under red), but the last time it did this around Sept 2020, it shot back up. Look at it around the earnings each time and I think anything under $18 on this should be a good buy. Don’t penny short this one and get a position. I do think you’ll be rewarded here. Do your research though — use www.finviz.com for your research. Here’s an article where they say hedge funds are getting out of CLF as well. https://finance.yahoo.com/news/smart-money-cleveland-cliffs-inc-212521384.html So get a position you’re comfortable with.
Ford
Ford gapped down on open with a sell in the algorithm as you can see above. I think this is a hype name and buying small positions on the way down will be good. They are halting production based on the chip shortage, but they have a supply problem — not a demand problem. I think with future press releases, Cramer on CNBC hyping the stock up every time Jim Farley the CEO texts him and any of the EV news that comes out, I think you’ll be back up at $20 by the end of the year so you can buy and hold this one.
Under Armor
I’m watching this strictly for earnings on Friday. It just had a MacD crossup at $15 on this, but the fundamentals on this one are tough. I’ll have to take a look at some of their peers and how they reported. UA should have had a good holiday season, but I did visit their outlet mall locations in 2 states and inventory was an issue. So were the revenues held back because they didn’t have the supply to sell? Is there inflationary pressure going forward? I like how far down it is, but it’s also one that has reported issues in the past and we might have a surprise from them.
Simon Property Group
SPG reports after the bell and I expect good news to come from this one. You should hear about recovery after omicron, holiday sales and traffic data along with store occupancy. BUT do your research on this because unlike my positive outlook for this and SPG’s history of doing well with earnings even during tough times, Staff believes it’s a stock to stay away from. https://www.fool.com/investing/2022/02/07/3-stocks-to-avoid-this-week/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
You can get a Trendspider subscription — follow this link to look at the chart above and subscribe. https://share.trendspider.com/chart/SPG/18946csu7b5
