Trade Alert: Whipsaws, fear, two nibbles, one sell
Whipsaws and fear are prevalent in the market today. I did a little nibbling on QCOM. Yes, the company has been anti-competitive, but most of what the judge was upset about is exactly what Qualcomm’s new deal with Apple addressed. Meanwhile, this remains a very cheap stock, trading at about 10x next year’s earnings with a 3.5% dividend right before The 5G Revolution, of which it is perhaps the primary early beneficiary, is about to hit.
I also, yes, nibbled a little more Tesla today. Don’t try to pick the bottom, but if the company survives the next 12 months and sells 350,000 cars, the stock will be fine. If not, like I’ve said all along, there’s probably more down side. If the company sells 400,000 or more cars this year, the stock will likely be up pretty good from here. I believe Tesla will sell enough cars and this is a truly Revolutionary company. That said, it sure hasn’t been fun owning the stock so far. Be careful out there.
I also have let go of my COMM. I’d just recently added to the position, but I’d rather own QCOM or TSLA than COMM, for example, and I just want to continue to be ruthless in cutting losses and keeping my positions tight.