Market Talk
The markets have corrected some and are bouncing now. Will a bull rally continue into the year? Remember the Fed's intention to start the raise of interest rates in March. Further, the Russian bear is surrounding the Ukraine with military equipment and over 100,000 troops. The Olympics wind down in the Peoples Republic of China (PRC) around February 20. The Ukraine and Taiwan are not under the umbrella of NATO and Russia and the PRC are aggressors on the world stage. These are examples of macro factors that make me circumspect about many stocks, especially companies that may be enjoying nice runs but are dependent on a partnership with the PRC. My previous post still holds for me.
With the above overall market wariness, I will highlight a few stocks that are capturing my interest.
Stock Talk
Microchip Technology Inc (MCHP) was incorporated in 1989 and is headquartered in Chandler, Arizona. The global chip shortage has affected the supply chain of many industrial products such as Automobiles. While it appears that MCHP ($76) uses semiconductor wafers made in the USA, the specific chips are made in faraway places such as the Philippines. MCHP uses vendors to take their catalog and supply to manufacturers. There is a push for the big industrial companies to go deal directly with producers of chips and there is a push by the US government to produce the chips within the US. These are dynamics that make me believe that MCHP is a stock to watch.
Ford (F) is a company I have highlighted as a "some stock" since it was in the $11 range. It has since risen to the mid 20's and when it did, I suggested here that it may trade below and above the 20 range awhile. The above-mentioned chip shortage was and is one reason I believed Ford would remain range bound. Now that Ford has faded back to the 17's and 18's range it may be a buy some stock yet again.
Ford's electric vehicles like the maverick and the Lightning F 150 pickup are sold out for the 2022 models.
CleanSpark Inc (CLSK) - I have highlighted this bitcoin miner and energy related co in the business of microgrids. It has been volatile with what I viewed as excess insider feather bedding. However, CLSK's recent quarter may reflect a turning point and is bouncing off the bottom. I re- mention it today because they actually produced a pretty positive quarter in terms of reporting an eps of .35. I was disillusioned by management and sold CLSK stock in the 20's and it is now at single digits and bouncing. It may be a stock of interest as a speculation if bitcoin can hold levels.
"BRIEF-Cleanspark Reports First Quarter FY22 Financial Results
* CLEANSPARK REPORTS RECORD FIRST QUARTER FY2022 FINANCIAL RESULTS
* Q1 EARNINGS PER SHARE
* Q1 REVENUE
Dry Powder - I would not go all in on any stock with the macro dynamics of global strife and Fed tightening to address inflation. some? maybe.
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ALL in my humble opinion, scroll down and read more..
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