Market Talk
Well folks, the signs were coming of a market correction in some of the high flyers. Here at the Jones Report , the mode has been stay circumspect. The other day, China by making a Large Language Model (LLM) available - threw cold water on the prevailing thesis that AI requires entirely new power plants dedicated to drive AI data centers. Further, it tossed the notion on the table that high powered and expensive GPU's running in the data centers may not be needed as much as previously thought. The market responded by punishing tech stocks fueled by the perception that AI energy and processing needs can be reduced by more efficient deep learning LLMs software such as what China's DeepSeek is now making available .
There are a few cautions on using China's DeepSeek App. One is that it relies on data within the Chinese internet ecosystem with their official government sources. However, the specific new LLM techniques advanced by intense Chinese government investment are appearing as a breakthrough. The result was that American based companies, like Nvidia and Micron got a hard dose of cold water thrown on them as their stocks took a very hard hit.
In the few days since, the stocks are trying to comeback. But the impact of better, faster, cheaper notions of AI services are still being absorbed.
For now, eyebrows are being raised by analysts, traders and investors in stocks. Some stocks may yet be priced to perfection.
At
the end of every post here at the Jones report, the note about seeing
how our views match up to the reality of the time. Recent events show how fast things can change in a world where everything is relative to everything else in value.
What action YOU may take is up to YOU. As a few notes:
From a trader view- sometimes it's right to lighten up in some stocks while the dust settles. Sometimes it's right to add on the dips of the stocks that are in the right spot of growing fundamentals as well as sustainable growth.
From an investor view, sometimes it's right to just sit tight and do nothing. However a trader would tell the investor a long can turn into a "good trade -gone bad". A long would retort - "just wait - and look what the market has done over time". To that all we will say is- it depends. On Just WHAT, Spider J Jones? - you may be asking. The answer may be again - "It depends". and THAT is up to us to try to figure out. Are we having fun yet?
and, there is NOTHING wrong with conserving some dry powder in times of serious uncertainty.
Stock Talk
While sometimes it seems like "risk off" in certain spec stocks , there are a few stocks here we hold some:
Kratos Receives $1.45B MACH-TB 2.0 Contract
https://finance.yahoo.com/news/kratos-receives-1-45b-mach-130000098.html
Stocks we stay the course in some.
Kratos Defense & Security Solutions, Inc. (KTOS)
KTOS was recently selected as the lead prime on a hypersonic test bed. Subsequently, a $34.8 M contract was awarded to continue mission integration and testing of KTOS drones to help maintain the balance of power with adversaries.
The conviction level on KTOS remains.
Kinross Gold Corp (KGC) : Gold mining with steady earnings and a divy too.
Permian Resources (PR): With easing of past natural gas restrictions, a new renaissance back to cleaner and reliable energy that nat gas brings. PR with Oil and
Natural gas co in the Permian basin of America. Drill baby drill staying
the course with some PR.
Altria Group, Inc (MO) : Steady earnings and a near 8% high dividend to reinvest.
_________________ If you dare ... Stay tuned and aware ....
For now, we close by noting that any view on the market and stocks on any particular day may change in the future days to come. That is why we watch and see how our views match up with the reality of the time. But trying to look ahead a few months into the future may be a way to do things. If you think too deep about world events and the recent alliances forming, projecting ahead can be a dicey endeavor. In all - we use the word maybe "some", not "too much" and play it accordingly. Remember, never get arrogant in our various notions because things do change in the market and individual stocks are subject to many factors outside of our control.. So we try to -stay aware.
With all the above caveats and attempted prognostications, I will close this post. Stay tuned for more opining on the market and stocks to watch.
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