Market Talk
The market and world remain in somewhat tumultuous times. The indices have climbed to all-time highs, yet volatility still lingers. Some Jones watch stocks were pointed out at much lower levels than where they sit today. Even now, some still seem tradeable, but the same buy-and-hold or trading approach doesn’t always feel right. At times, taking a gain — or cutting a loss — or trimming some to generate income may be the better course.
New positions should not be jumped into willy-nilly. Some stocks can be good long-term holds, but this market may not forgive overexposure or being overweight at the wrong time. For many retail investors, higher-priced names may be better approached one share at a time — just to get involved. Having some skin in a new issue can also help get a feel for how it trades. Owning a few shares of Intel at 30 is quite different than taking the same position near 100. If FOMO exists, even a very small starting position — a share or two — can scratch the itch without taking out hide. Dollar-cost averaging may be the better way to navigate this market.
Trimming into strength can also make sense. Taking something off after a gain — while holding a core position if conviction remains — can help manage risk while still participating if the move continues.
The watch stocks here are, for the most part, potential long-term holds, but each carries its own dynamics and market perception. As such, changing tact — managing reward and risk — becomes an individual strategy. This is why the Jones Report does not make buy or sell calls. However, the Jones Watch stocks chosen tend to have particular aspects that can allow them to stand out, sometimes sooner rather than later.
Stock Talk
A few names worth watching:
- Intel Corporation (INTC) — continues to find its footing as the data center and AI buildout evolves. CPUs still matter.
- Navitas Semiconductor (NVTS) — a Jones watch stock that was pointed out earlier, tied to the power side of the AI buildout. The story has been outlined in prior Sunday Editions. The market may be starting to get the flick, but as always, sizing and timing matter.
- GlobalFoundries (GFS) — another Jones watch name, tied to the U.S. manufacturing side of next-generation chips, including power. A quieter player, but part of the broader theme that has been building.
- V2X Inc. (VVX) — has shown strong and fast earnings growth in recent quarters. The coming report on May 4 will be watched to see if expectations — which have also grown — are met, along with future guidance. The Tempest buggy may play into it, though the market does not appear to be watching that angle yet. In a volatile market, often demanding perfection, it’s hard to predict. That said, VVX has attributes — earnings and growth — that make it an interesting stock to watch.
- AeroVironment (AVAV) — no longer just a drone story. LOCUST, a mobile laser to track and take down drones, has moved beyond concept with real deliveries and testing. Initial systems have been procured, with further deployments being looked at. The BlueHalo acquisition brings enhanced RF detection to get the ones that belie radar. The system is designed to evolve, allowing for sensor upgrades over time. As pointed out, AVAV sits in a volatile range — interesting, but maybe a one share at a time.
- Kinross Gold (KGC) — solid earnings and still looks undervalued at these levels.
- Hecla Mining (HL) — still waiting on silver to get some respect.
- Kratos Defense & Security Solutions (KTOS) — shares have faded recently, now around the low 60s. Interesting prospects and contracts, but the market appears to be waiting to see if earnings can catch up with some of the more “science project” programs.
Wild Card Biotechs — Speculative Corner
Two biotech stocks in the “spec” category remain watch stocks — perhaps a little “some” stocks.
- Oncolytics Biotech (ONCY) — sitting just under $1. The CEO has been pointing toward a strategy that leans on big pharma for implementation. The market appears to be watching it on a bit of a see-saw — with the prospect of a partner on one side, and the possibility of dilution on the other. One to watch. The science, as highlighted in a prior Sunday Edition, keeps the interest here. The reality of the effort involved keeps it measured in “some.” (The Trinity Approach)
- Annovis Bio (ANVS) — focused on Alzheimer’s and Parkinson’s, with buntanetap showing signals in early studies, including a recent publication in a Nature portfolio journal. Still early and very speculative, but one that continues to surface.
Bonus Round — A Few Higher Dividend Names
In a volatile market, sometimes it’s worth looking at a few higher dividend names — even if they sit at higher price ranges than typically mentioned here.
- Kimberly-Clark (KMB) — steady name with a long dividend history.
- Procter & Gamble (PG) — another staple that tends to hold up when things get choppy.
- Altria Group (MO) — still offers yield, and perhaps more interesting if it finds its way back into the 60s rather than the 70s.
With names like these, it may simply be a matter of picking up a share or two over time.
Close
The market will do what it does — we watch, adjust, and stay involved.
Size it. Trim it. Add on dips when it feels right. Manage the risk. Keep dry powder.
Stay Watchful.
- Jones Report
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More later so ....Stay tuned, if you dare!
For now, we close by noting that any view on the market and stocks on any particular day may change in the days to come. That is why we watch and see how our views match up with reality. Looking ahead a few months may be a way to do things - but thinking too deeply about world events and the recent alliances forming, can make projecting ahead a dicey endeavor.
All in all - we use the word maybe "some", not "too much" and play it accordingly. Never get arrogant in our notions because things do change - and individual stocks are subject to many factors outside 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.
