Market Talk
With the Fed reducing interest rates, some stocks would seem to be geared up to possibly do well. Refer to the prior post on further views here at StocksTOwatch.
Stock Talk
Before covering specifics, there are things happening in the world that bring to mind a few stocks and symbols, These are presented here for the reader, if interested, to explore on their own. Most with the exception of GEV and URAX have been presented in previous posts.
URA, PLTR, MO, KGC, IAG , highlighted recently
DVN, VTLE, Energy. oil and nat gas reserves in America.
URAX, double bull nuclear play, maybe short term
GEV , spinoff of GE in natural gas turbines, above the typical sp range of stocks here but watching for dips.
speculative Biotech : ONCY , just a "some" stock highlighted here near a buck.
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The advent of AI onto the world's table has created new perceived needs by the data centers required to support AI. One such need based on demand is the humongous cry for energy required. To address that question, I inserted a query into the number 1 AI application used today, Chat gpt itself:
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"The energy required for a ChatGPT query versus a Google search can differ significantly due to how each system operates.
Google Search: Typically, Google searches are computationally lighter since the system mainly retrieves and ranks web pages. The process involves web crawling, indexing, and retrieving information from pre-built data structures (search indexes). Google also optimizes for energy efficiency across its vast data centers.
ChatGPT Query: Large language models like GPT, on the other hand, are more computationally intensive because they require processing vast amounts of data in real-time. When you make a query to ChatGPT, the system runs a neural network with billions of parameters, generating a response from scratch rather than retrieving it from a pre-built index. This makes the energy consumption higher compared to a search engine query.
Estimations
- Google Search: A single search typically consumes about 0.3 watt-hours of energy (based on estimates for the infrastructure and network energy use).
- ChatGPT Query: Estimates for a single inference from large models like GPT-3 can range between 10 to 100 times more energy than a Google search, depending on the model size and the complexity of the query.
The specific energy difference varies based on factors like data center efficiency, model size, and the complexity of the query." Chat gpt response to query on 09/24/24
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one energy ETF to watch- URA
Using the above energy example points to a huge need for increasing energy capacity, an ETF on Nuclear energy may be one to watch with an over 6 % dividend is - URA.
A Tech stock to consider: Palantir Technoligies (PLTR)
This tech stock is in the news as a leading AI company that is embedding their predictive and planning AI software into government computers. Their software has been helping the Ukraine. It is starting to gain traction into industry and from watching company leaders, PLTR is very American in support of liberty and freedom and helping defense from our adversaries and enemies. The company has positive earnings, albeit a small eps of 0.17 and a PE of 216 -so far. PLTR presents as a leading growth stock in the AI sector to possibly start inching into with "some" shares as it joins the S&P 500.Other Stocks to Watch in this market?
Altria Group, Inc (MO) : MO already has one of the highest paying dividends in the entire market. MO has been consistently increasing their dividend to shareholders year after year. With the Fed signaling lowering interest rates in September - MO continues to be a stock to watch. After shareholders get their dividends some bail. It went ex dividend yesterday. On the other hand, the Fed is cutting rates this week, making high dividend stock like MO look better to be in some. Watching MO for a dip may be opportunity to inch into one of the highest dividend paying stocks with positive eps.
The
analysts compare estimates vs actual and rate stocks. MO has shown
consistent earnings, but if they miss by a just a few pennies, the
market gets skittish. The last quarter MO missed by a few cents but
actually showed very good $1.31 eps, the same as last year. When the
daytrader's knee jerked sold - the dip created a buy opportunity in the
high 40's. Watch MO for "buy some" opportunities if interested in one
of the highest dividend paying stocks in the market.
Kinross Gold (KGC):
The fiat currencies in the US and the world are being devalued by
increasing money supply and inflation. Gold has NOW recently passed the
stubborn $2600 / Oz level. Kinross Gold has been highlighted here
showing the mining footprint that spans Canada and the Americas.
Suggested in the 6's, the current times of loose fiscal policy to buy
votes point to staying the course with Kinross because support and a
next level run on surging Gold, along with a stable dividend makes KGC a
relatively solid stock to hold some. I'm staying / holding some stock
in Kinross. May add more KGC on market dips. The BRICS moves towards a
digital currency could seriously threaten the US dollar. Gold could
easily double and more in the not too distant future and a Gold miner
like Kinross with already growing eps and dividend could earn reward in
share price.
https://stockstowatch.blogspot.com/2024/04/
https://finance.yahoo.com/news/why-kinross-gold-corporation-kgc-215737497.html
IAMGOLD (IAG):
Another stock to keep an eye on is IAG with trending higher earnings,
similar to Kinross. However, IAG offers no dividend and is about $5 at a
recent high. Keep an eye on the gold prices over the next month
because IAG earnings as well as KGC could surge if Gold starts climbing
higher as predicted by many economic pundits.
If interested in other current watch stocks recently opined on here, scroll back to see posts on other stocks we are watching.
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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