As we move closer to earnings season for our portfolio holdings (really gets underway the week after next) we see many small-cap growth names (and growth stocks in general) recovering nicely from the drawdowns in late September.
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The biggest stories this week weren’t all that different from last week, namely supply chains, interest rates/inflation, and Covid. But this week has a decidedly different feel to it, possibly because we’ve added earnings season into the mix and, so far, that’s going well...
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Time for a Rocket
This week, I was tempted to recommend another cyclical energy name as I tend to believe we are in the early innings of an energy crisis.
Soaring commodity prices and low equity valuations should result in some explosive returns. But we have...
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The Big Idea
If given a choice between taking a drug via pill or needle, how often would you choose the needle?
If you said never, congrats. You’re human.
Nobody in their right mind says, “I’ll just take the shot doc.” Unfortunately, there are still tons medications...
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After a delayed rection to last week’s Fed commentary Treasury yields have shot up (though they are still very low). To put it in mortgage rate terms a 30-yr. refi has gone from around 2.875% to 3.0% over the last week.
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The big developments over the last week have been the situation with the potential failure of Evergrande (Chinese property developer) and interest rates. As of mid-morning Thursday, we appear to be moving past these potential issues.
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The S&P 500 has finally failed to make a new high every day lately and is 2% below the high-water mark! That doesn’t seem like it should be news but in this market it’s worth noting.
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Despite more grumblings out there about how “we are due for a pullback,” stocks continue to hold up. In fact, many growth stocks have done far better than that and are jumping higher on almost a daily basis.
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Back to School
My daughter started kindergarten last week while my son will be starting his second year of pre-school next week.
School starts with half days, but by next week, we will be on to full days and back in the swing of things.
While is...
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The Big Idea
Whenever a lawsuit is filed the first thing that happens is lawyers on both sides go through a discovery process.
This means searching for relevant information, facts, and evidence. It requires sifting through tons of materials – emails, documents, financial statements, mail, etc...
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We’ve seen a nice little rally as we head into the waning weeks of summer. The S&P 500 has been incredibly strong and even the S&P 600 Index, which hasn’t made any net new progress since March, popped off last week’s low and back...
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With economic data pouring in amid a slew of earnings reports there is a lot going on out there. The resulting stock price movements often drive a combination of heartache and exhilaration, and that has certainly been the case for us over the two...
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“Trades” vs. “Core Positions”
My favorite stock to recommend is a growth-at-a-value-price name like Performant Financial (PFMT), my recommendation last week.
These companies are great because they can grow revenue and earnings significantly, and also benefit from a valuation multiple re-rating.
This is what can generate or...
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The Big Idea
Covid-19 has changed the way we live and work, what we do for activities, and how we interact with friends and family. Some changes will be transient, while others will hang around for a while.
Two notable trends that should have staying are...
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The U.S. economy is growing more quickly than before the pandemic, both the S&P 500 and S&P 600 are up modestly over the past week and, so far, this earnings season has been a massive improvement over the train wreck of the first-quarter season...
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The market got off to a horrible week as stocks sold off Monday, but things have been a lot better since and the S&P 600 Small Cap Index is now back above where it closed last Wednesday (6% below all-time highs). Stepping back, see...
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The big picture this week is much the same as last week. In fact, the S&P 600 Small Cap Index closed today just a fraction off where it closed last Thursday. The same applies to the Nasdaq, while the S&P 500 is up modestly.
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Growth at a Value Price
If you’ve been a subscriber for a while, you’ve heard me say it before.
I love micro-caps because you can buy growth stocks at value prices.
In large-cap land, you can buy growth stocks for growth (expensive) prices and value stocks value...
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The market, and especially the small-cap index, has been a little soft after the Fourth of July holiday weekend, but all things considered it’s hard to say anything is wrong. The move down in U.S. Treasury yields is a bit of a head-scratcher the...
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The Big Idea
It used to be that sales and marketing teams relied on conferences, cold calls, mass mailings and in-person networking events to engage with business clients.
Then the internet arrived, and a lot of this activity moved online. That was great … for while.
But...
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