Life By The Drop
Hello there, my old friend — Wall Street’s calling for the bull market end!
We traded outside in the tech gains. With 2021, the market started over again. We’re living a dream — oh, we’re on top. Portfolio’s aching, and Lord, it won’t stop.
Great Ones … that’s how it happens living life by the drop.
The market’s been crazy lately, and judging by our inbox, some of y’all are feeling more than a little pain. Maybe you’ve felt like Great One Carolyn C. did here last week:
I’m somewhat new to investing; however, I do understand the volatility and corrections that occur at varied times. I follow both Paul ’s and Ian Dyer’s portfolios and advice.
I’m still holding all my stocks, but all my friends say that was wrong. They took the losses and got out before stocks got bloodier (which they have). Will I be able to see my tech stocks recover in a few months?
— Carolyn C.
We all need friends in this market, Carolyn. And so, I reached out to Paul today on your behalf — and all y’all Great Ones, of course — to get his “Strong Hands” take the situation.
I mean, we could all use some of that -level optimism. Time’s been between us, a means to an end. God, it’s good to be trading together, my friend:
Hey, Great Ones!
We know that our stocks were being bid down last week — and naturally, it’s disappointing to see gains that we had locked in go away.
Yet … absolutely nothing has changed for us. And my outlook on the incredible potential of our America 2.0 stocks is the same — bullish, optimistic and positive (#BOP).
There’s also the emergence of amazing new industries: space exploration, the adoption of 3D printing, electric vehicles and new energy — you name it, and we have exposure to nearly all of these mega trends across all my services.
Let me be clear: We’re simply in a period where, after nearly one year of uninterrupted, phenomenal gains … big investors are reallocating their portfolios. During that reallocation, big money managers have to sell a large number of shares in the market.
When they do this, they go to sell the stocks that have run up the most — growth stocks. When these investors sell huge positions, market makers force them to take low prices. For us, this means that we see our America 2.0 stocks get bid down.
We saw the same thing at the end of 2018, and I don’t have to remind you where we were this time last year. To me, the most important part of those downs is that we came out EVEN HIGHER than before. And I believe that will happen again.
Until then, do what we do best: Tune out the noise and keep holding Strong Hands!
— Paul ,
I know what you’re thinking: Optimism? In my Great Stuff?
Yeah, it is more likely than you think. Maybe I’m a bit spoiled with getting a healthy dose of Paul’s bullishness in my inbox on the regular. But amid last week’s chaos, I did tune in to see what Paul thought about the bloodshed (OK, after I shared a few masochistic memes with the Great Stuff crew).
As you can see, Paul’s already looking for the next rebound to ride … and I have to admit, this #BOP thing is infectious. And, after all, we’re living our dreams … that’s how it happens living life by the drop.
Paul has kept investors in bull markets each time the media and talking heads were warning it was over and investors should sell, giving those who listened the opportunities for life-changing gains.
And there’s one single investment he feels every American must own right now for the lion’s share of gains in the days to come — an opportunity he believes could generate north of 1,460% in gains for you and your family over the next 12 to 36 months.
Good: All The Right Moves
Pachter doubled his price target on AMC this morning from $2.50 to $5, citing AMC’s dedication to proper reopening precautions. According to Pachter, those include high-quality air filtration systems, reduced seating and more stringent cleaning.
It’s these customer-reassuring moves that Pachter believes allowed AMC to boost attendance lately, despite nationwide COVID-19 restrictions.
However, Pachter reiterated his hold rating on AMC, citing concern about the company’s future growth. “AMC may take years before it is able to revisit its prior growth strategy as it repays its growing mountain of debt,” he wrote in a note to clients.
There’s no doubt AMC has its work cut out once everything goes back to normal — a new normal in many ways. Surviving COVID-19 is a big deal for AMC, but what it does with that new lease on life will be even more critical once the pandemic passes.
Better: The EYES Have It!
Are y’all ready for cyborgs? No? You better get ready because we’re at the cutting edge of real sci-fi here.
Last week, the FDA approved a revolutionary new device from Second Sight Medical Products (Nasdaq: EYES). The Argus 2 is a retinal prosthesis designed to treat retinitis pigmentosa (RP) — a rare genetic disorder that breaks down the retina and eventually leads to blindness.
Second Sight’s Argus 2 combines a video camera mounted on a patient’s glasses with an array of electrodes implanted in the retina. The video data is sent wirelessly to the implanted electrodes, allowing the patient to regain some visual function, according to Second Sight.
We’re not talking X-Men level Cyclops beams or Terminator T-800 kinda target analysis here, but the tech is certainly exciting. And the possibilities down the road are impressive.
In fact, the Argus 2 is designed to integrate with Second Sight’s Orion Visual Cortical Prosthesis System, which sends electrical pulses directly to an array on the brain’s visual cortex.
Yes, I’m geeking out a bit here, but this technology is that revolutionary — especially since it now has FDA approval to treat RP patients. But I’m not the only one geeking out: EYES shares have skyrocketed since the announcement, up more than 730% since Thursday!
Now, I need to give you my usual spiel about not chasing these rocketing stocks — you’ll likely get burned by a pullback. However, the potential applications of the Argus 2 outside of its RP designation are huge.
So, if you are interested in EYES stock, wait for a pullback. There will be profit-taking, and any drop below $10 could offer opportunities. That said, Second Sight’s sight-seeing might just be the start of a whole new boom in connected medical tech.
It’s called the IoMT … the Internet of Medical Things, if you will. And it’s already disrupting an industry worth $3.7 trillion! This new technology is projected to soar 2,125% over the next five years, but don’t just take my word for it…
Best: It’s A Post-COVID World After All
If you’re a Walt Disney (NYSE: DIS) investor — and if you read Great Stuff Picks, you should be — you probably can’t wait for the “Great Reopening!” Well, Great Ones, Disney is one step closer to that reality.
California health officials announced over the weekend that Disneyland could reopen as early as April 1. No foolin’!
Officials state that if businesses limit public attendance and their operating counties are no longer “purple,” or high risk, they can reopen at 15% to 35% capacity. Good news for the Mouse’s House.
Elsewhere, Wall Street is making a fuss over Disney’s Raya and the Last Dragon. The movie brought in lower-than-expected box office sales of $8.6 million in North America this weekend. Analysts expected $12 million in sales … though, why they expected that is anyone’s guess.
First, we’re in a pandemic, and many theaters are closed or have limited seating. Second, Cinemark (NYSE: CNK) refused to show the film because Disney streamed Raya on Disney+ at the same time. Way to read the writing on the wall, Cinemark. It’s not like you needed the revenue anyway, right?
What all this doesn’t take into account is how many people streamed Raya at home for $30 a pop. I know at least one household that did … mine. It was definitely cheaper than going to the theater with a family of four, that’s for sure. And Disney kept all that dough for itself.
So, let Cinemark hold its breath and throw a tantrum in the corner. It won’t be long before Cinemark turns blue and lets go of its crusade … or passes out completely.
Meanwhile, Disney continues to rock and roll, with DIS up more than 4% today.
Great Ones, we’re almost through with earnings season … almost.
The relentless revolving door of earnings reports never quite ends, you see, and this week’s roundup puts much of the Street’s smallest fry up in the spotlight. In other words … we’re set for a ho-hum Campbell’s Soup and Tupperware level of excitement this week in the earnings confessional.
Take a look for yourself, courtesy of Earnings Whispers on Twitter:
I’ll admit: I’ve never looked forward to AMC’s earnings quite as much as right now.
I don’t personally care whether or not AMC successfully survives the pandemic — Disney’s already ruined me on the direct-to-streaming front — but I gotta see this cinema’s comeback by the numbers to really believe it.
Does AMC have the wherewithal to pay down debt and continue reopening? Does it have the optimism carry on like the pandemic never happened? Inquiring minds want to know. (You can tell me your thoughts on AMC right here, by the way.)
Now, Dick’s gained traction early on in the pandemic, what with everyone setting up home gyms and longing for exercise routines that didn’t involve bicep curling bags of rice. And Dick’s has capitalized on that demand brilliantly in the year since our two-week lockdowns started, with DKS chugging its steady way ever higher.
Personally, I don’t think Dick’s will disappoint the Street with its report this week, but anything’s possible in the dicey game of “How Low Can Your Expectations Go?” That’s one game that Ulta hasn’t played so well in the pandemic, disappointing analysts with pitiful year-over-year results even amid an online shopping boom.
Both Dick’s and Ulta have roared up 354% and 171% respectively since last March’s lows. But both pale in comparison to Party City’s 2,655% moonshot into lunacy since we last checked in on the celebration supplier almost a year ago.
Sure, AMC’s insane rally could be explained away by pure meme-fueled gambling, but what the [redacted] did I miss with Party City? How many “end of the world” parties did y’all throw over quarantine, honestly?
Party City has some ‘splaining to do this with this week’s report. I want figures — data. What’s been going down over there at the PC?
Also … what’s been going down over by you? Any trades in your sights or rants in your mind? We want to hear it all!
GreatStuffToday@BanyanHill.com. Drop us a line anywhere, anytime with your earnings thoughts and any burning questions you may have.
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Until next time, stay Great!
Editor, Great Stuff