Cody Kiss & Tell: Path of least resistance plus stock q’s and a’s
Yo, let’s rock. Ask me anything.
We are hard at work on the new, upgraded version of TWC that will also have an app for your iPhone and Android.
Q. OK, market has been bubbling; we are in the last week before labor day; what do you see as the path of least resistance for our stocks over the next six weeks until earnings begin again?
A. For stocks, path of least resistance is sideways, bouncing around the 2000 S&P level for the next few weeks.
Q. Similar question for gold: what do you see as the path of least resistance over the next six weeks?
A. Path of least resistance is probably slightly upwards for $GOLD for now. I think by year end it’ll be 5-10% higher than its current quote. Not that I’m making any kind of bet on that though. Just owning my physical gold.
Q. Hi just got on. Am I mistaken or have you sold all your $AAPL calls?
A. Yes, that’s correct. Read this. “It’s the end of the rope for our July call options. We made 400% gains on the remaining $AAPL July call options that we bought near its annual lows a few months ago and we took sizeable profits already along the way as its risen. Selling the last of them today.” http://tradingwithcody.com/2014/07/18/trade-alert-two-sells-and-codys-latest-positions/
Q. What are the ‘revolutionary’ stocks we should be investing in today for above average returns in short to medium term?
A. Read this please: “If you’re new to TradingWithCody or if you’ve been a subscriber for a while but haven’t acted on much of my strategies yet and/or if you haven’t been in the markets, but you’re sick of getting 0% on your CDs, Treasuries, savings, checking, etc while the markets have been continually hitting all-time highs this year, what should you do now? First, step back and catch your breath before moving any money anywhere and make sure you’re not about to make any emotional moves with your money. If you haven’t yet read “Everything You Need to Know About Investing” then spend a couple hours doing so, please. It’s a quick read but chock-full of important ideas, concepts and strategies that amateurs and pros alike should understand. Then, take a look below at my own personal portfolio’s Latest Positions and slowly start to scale into some of the ones you like best and/or the ones I have rated highest right now. I’d look to start scaling into a few of the many stocks in the Latest Positions that are at all-time highs along with a couple that we’ve recently featured in our Weekly Trades that I’ve personally been scaling into.” You can find an archive of Trade Alerts here – http://tradingwithcody.com/category/trade-alert/.
Q. Hi Cody. What are your thoughts on $YELP? It has had a big move in a short period of time… thnx.
A. Still holding my $YELP Position steady, long and strong. I think it can get back towards $100 in a bubble-blowing bull market in a hurry.
Subscriber comment: I agree. I also think it makes sense for several companies to acquire it. Maybe for $120 or more. Depending on possible bidding process.
Q. Cody, Re $IXYS: this stock has been lethargic since it was added to the portfolio and there were some comments earlier last week – some saying they saw nothing near term to move the stock. Do you agree with that? Buy, hold, sell here?
A. $IXYS – Look, the company’s not got any obvious catalysts to pop in the near-term, but is that why we’re buying it anyway? No. We are slowly scaling into it as the world needs ever more OLEDs and power control of devices. THat’s a 5-10 vision. $IXYS dominates OLED in many markets. Management has to execute but that’s not a big update really — all management needs to execute. https://www.google.com/#q=ixys+oled
Q. Cody, thoughts on $MRVL at these levels?
A. Here’s JPM’s analysts latest on $MRVL. I’m not on top of it right now. “Marvell reported July-Q results with in-line revenues but a strong beat on EPS as the company continues to be on a solid trajectory driven by its product and design-win execution within storage, networking, and mobile/wireless businesses. Growth in the July-Q was driven by better-than-expected demand from storage (+6% Q/Q –despite flat HDD TAM), networking (+6%Q/Q) and 4G LTE (double digit Q/Q unit growth)/connectivity, offsetting weakness in its 3G mobile business (Samsung and waning global 3G smartphone demand). As anticipated, the company is guiding for sequential growth of 2% in F3Q (October quarter), driven by HDD, SSD, 4G TD/FD-LTE, and connectivity chipset shipments, but somewhat tempered by the well documented but continued weakness at Samsung and legacy 3G chipset shipment/ASP declines. The ramp of its quad-core 3/5 mode 4G TD-LTE chipset is underway and drove growth in Q2 and is expected to grow again in Q3 with design wins ramping with multiple tier-1 (and now tier-2) China OEMs (ZTE, Yulong Coolpad, Lenovo, HiSense, Samsung, and China mobile-branded phones) and although the threat of Mediatek looms in Q4, we think the team has a solid line-up of new products (64-bit multi-core 4G solution ramping in Q4 and ultra low-cost 4G platform ramping in Q1 of next year).”
Q. Cody: What are your thoughts on $SNDK? The commercialtimes says: — NAND flash prices to show upward trend on supply shortage due to iPhone 6 density increase to 128GB and OEMs launching tablets/ultrabooks with $INTC 14nm Broadwell that comes with SSD storage of at least 256GB, per CommercialTimes. This strong inventory pull-in may result in upward contract prices.
A. I’m holding my $SNDK steady too and I think it can rally to new all-time highs into $110s by year-end. Have to be careful with SNDK in particular around earnings season though, as usual, as it often gets crushed on its report only to rally on back in the months afterward.
Q. Hello! great to be catching up /back following TWC after several months in Asia (Bangkok and Indonesia, v interesting ..) : I have a quick question just about Cody’s posts, trade alerts etc : I can’t seem to see the dates on them ?
A. The theme I’ve used for TWC somehow took away that Date function on the published posts, but you can always see the date in the URL itself. For example, today’s column has its date in there: http://tradingwithcody.com/2014/08/25/trade-alert-hedging-my-fruit-and-a-new-way-to-think-about-your-money/ In our new TWC site and app, we’ll make sure the date is easy to see right on top of each column.
And welcome back! Hope you had a great trip and learned a lot.
