Cody Kiss & Tell: Stocks and stocks
Here is the transcript from this week’s live Q&A in the Trading With Cody Chat Room.
Q. Can you give us your thoughts on the PI quarter?
A. Steady with $PI. Still far from being a de facto standard in RFID and if it ever gets there, it will be a 5-10 bagger from here. If it fails to become a de facto standard, it could head lower from here still. Patience for now. 3-5 year time horizon.
Q. In the past you have mentioned you were going to look at the optics stocks, including $AAOI, $LITE, $ACIA, and others. With their recent drop, do you think this is a good time for entry?
A. I just can’t get warmed up to the optical stocks. I might end up nibbling the “best of class” in the sector if I can decide which one it is, but I’m not excited enough about the sector to buy a basket of them.
Q. Today $BABA announced their earning. What is your thoughts on $BABA and TenCents?
A. $BABA and Tencent are okay, but I just don’t like the corporate governance at either, I don’t trust the Chinese system of finance and business and I prefer to stick with US-based companies.
Q. Thanks for the new eBook. In it, you mention you would buy more $AMZN if it fell to $850, but you don’t think you will get the chance. Based on your projections for Alexa/smart speaker growth in the next few years, why would you want to forego adding only if it drops 15%?
A. I already own $AMZN from much lower levels that $850 or today’s $950 and I can be patient and watch for another pitch, if it is to come.
Q. $DIS recently announced that it will be pulling all its content off of $NFLX in 2018 to start its own Disney streaming service. Disney owns all its classic titles, Pixar, Star Wars, ESPN, Marvel movies, among others. I am thinking $DIS is a good buy today at $102. I doubt it will impact $NFLX much if at all.
A. $NFLX doesn’t need $DIS and $DIS probably doesn’t need Netflix. I’ve been a Disney bull since I held up a sign with on Kudlow & Co back in 2006 when the stock was barely $20 a share. But I don’t like it enough to buy it personally.
Q. Rumors are Retail Companies are moving their Cloud business from AWS to Microsoft. They may be asking their suppliers to do the same. Would that make Microsoft cloud more attractive?
A. I don’t think any retailer’s supplier is going to care what the retailer thinks about who the supplier should be getting their cloud services from. Microsoft’s cloud business is about the only thing that’s got any long-term meaningful upside as far as I can tell, as that’s not enough to get me excited about the company or its stock.
Q. Thanks for the ebook. Would you be tracking these 50 slots here in term of performance?
A. We’ll be tracking the highest-rated stocks in the eBook.
Q. Any thing entice you about $KEM?
A. I don’t know $KEM but just looking it over, it’s interesting. The stock has gone from $1.50 to $21, but it’s market cap is still just $800 million. Looks like the stock could easily be manipulated though it does look like a real company so I don’t think the stock IS being manipulated. Nothing entices me about the stock as a long though. Maybe as a short, but nah.
Q. Hi, Cody. $QCOM was rated 6 and $INTC, rated 8, in the Voice Rev list. What major advantages do you feel $INTC has over $QCOM in the near future? They seem to compete tech wise pretty well.
A. So much difference between $QCOM and $INTC, it’s hard to say they have similar technology road maps. On top of that, there’s the fact that $QCOM‘s IP business is in big trouble and under attack by Qualcomm’s customers who are suing Qualcomm.
Q. Right now is not a good time to buy more of NVDA?
A. No I don’t think now is the time to buy $NVDA. More in the Latest Positions write up coming later today or tomorrow morning.
Q. Thoughts on CSCO? They report tonight.
A. Bored with $CSCO. But would rather be long than short it.
