Daily Digest:
w/c 4 March 2024: US stock averages higher again to end the week, prodding at record levels; upcoming week's focus on the Fed's Powell testimony before Congress and the US Employment report

Business


Intermediate

Will No Price Competition in China Benefit Or Damage Tesla?

Tesla (NASDAQ: TSLA) has agreed, with all the other EV manufacturers in China, not to engage in price competition. They all are, instead, to engage in socialist competition. The supposed meaning of this is that they compete by quality, by service to the consumer and so on. The actual meaning is more often not to … Continued

Intermediate

What do the ASOS results mean for Boohoo?

ASOS (LON: ASC) reported results – or at least a trading statement – last week and the interesting thing here is what is this going to mean for Boohoo (LON: BOO)? For whatever reaction there was going to be to those ASOS results has already happened – but we might be able to position ourselves … Continued

Intermediate

Can Meta depose Twitter with its new ‘Threads’ launch?

Zuckerberg seems keen to steal at least some of Musk’s lunch. What are his chances of success? Long-time readers will know my investing strategy — invest a sizeable chunk of my excess income into blue chips within a SIPP, and the rest into high-risk small-cap shares in an ISA. I usually cover the small caps … Continued

Beginner

FAANG earnings: one lesson from each NASDAQ 100 stock

FAANG stocks are reporting positive earnings so far in Q1 2023. Each holds a useful insight for long-term investing. The FAANG stocks are a long-term investor’s ultimate quandary. All have seen huge growth and market dominance during the decade or so of ultraloose monetary policy; and as interest rates rise and the money supply contracts, … Continued

Intermediate

US tech earnings provide a welcome boost to a sagging rally

Last week, I discussed whether the US growth stocks that had driven the rally on Wall Street could keep up the pace. Despite the big tech stocks doing the heavy lifting, there are increasing signs that the Wall Street rally is sagging. Yesterday’s earnings from the tech giants, Microsoft and Alphabet have provided a welcome … Continued

Intermediate

Ferrexpo, FXPO, is surviving but when will it thrive again?

Ferrexpo (LON: FXPO) is a Ukraine based iron ore producer undergoing some obvious problems at present. Actual fighting isn’t quite the problem but the effects of it are. The share price is down from over £4 to the current just above £1 as a result. So, the big question is not the why – that … Continued

Beginner

How Well Are The Airlines Recovering? IAG, EZJ And Wizz All To Report

That the airlines have done badly these recent years is obvious – international lockdowns are going to cause problems. The question we actually want the answer to though is how well are they going to recover? For it’s possible that we all lost the desire to travel through loss of practice. Or, perhaps, we’re all … Continued

Beginner

How Worried Should We Be About Darktrace?

Whether we should be worried about Darktrace (LON: DARK) is an interesting question in itself. As we’ve noted before about DARK there’s some market concern over the aggressiveness of revenue recognition at the cybersecurity expert. All are agreed that the basic model, the use of AI to monitor networks for security breaches, has a sense … Continued

Beginner

Lake Resources, Lithium, And Aren’t Americans Odd About Penny Stocks?

Lake Resources (OTCQB: LLKKF) (ASX: LKE) is a perfectly respectable looking junior lithium miner. Junior, here, means “someone not producing yet”. Junior miners is also where all the excitement is in the mining world – who is exploring, who finds what, who gains finance to actually mine and so on. Some such projects have a … Continued

Intermediate

What Really Went Wrong With The Credit Suisse Takeover By UBS?

UBS (NYSE: UBS) took over Credit Suisse (NYSE: CS) and thereby prevented a bank collapse. More, a bank collapse in one of the world’s top 30 systemically important banks. This stops another Lehman Brothers moment leading to the collapse of the financial system – and yet all other banks equities fell as a result, why? … Continued

Beginner

Silicon Valley Bank: three-minute weekend digest

Silicon Valley Bank collapsed after investing too much money in long-term investments dependent on loose monetary policy. This may just be the start. Silicon Valley Bank — the 16th largest in the US — failed less than a week ago.  The tech-focused bank was the financial institution of choice for more than 50% of venture … Continued

Intermediate

As Silicon Valley Banks Shows, Stablecoins Aren’t, In Fact, Stable

One of the more surprising outcomes of the Silicon Valley Bank (NASDAQ: SIVB) collapse and bankruptcy is that stablecoins are not, in fact, stable. The reason being that there’s just no good place to put piles of billions of dollars. Nowhere that’s absolutely, 100%, safe that is. There are varying levels of safety, true, but … Continued

Intermediate

Contango Holdings: will the Lubu project be sold off soon?

Contango’s Lubu Coal Project in Zimbabwe has commenced first production and sent off a coke sample to a ‘multi-national company.’ Time to connect the dots. Contango Holdings (LON: CGO) is the typical FTSE small-cap rollercoaster stock. At 5.42p, CGO shares are both down by 19% over the past year and up by 20% over the … Continued

Beginner

Ordinals – NFTs Come to Bitcoin

The NFT craze ran its course over the last couple of years on Ethereum, where smart contracts enabled people to attribute unique digital signatures to off-chain pictures of monkeys and lions. Some of the resulting jpeg images sold for hundreds of thousands of dollars in a flare-up of frenzy reminiscent of other crypto-driven fads like … Continued

Beginner

AstraZeneca shares: Laffer Curve in action

The government professes that it wants the UK to become a life sciences superpower. But its policies are having the opposite effect. The Laffer Curve was first described by American economist Arthur Laffer in 1974, where he presented the idea to US President Gerald Ford that taking more money from a business in the form … Continued

Beginner

Why Did Shell Raise the Dividend 15%, Exxon Only 3%?

Shell (LON: SHEL) raised its dividend 15% at the last results, Exxon (NYSE: XOM) raised by only 3%. In there is the proof of one of the background features of stock markets. It’s worth our pottering through this to see what is happening. After all, both Shell and Exxon are in the same business- crude … Continued

Beginner

Inflation And The Supermarkets – Who Will Win?

UK inflation is currently rather high, higher than it has been in a couple of generations in fact. It depends upon whether we use the CPI, RPI, or possibly the food index, but levels – in order – of 10, 11 and near 15% are bandied about. This poses both a problem and an opportunity … Continued

Intermediate

Blencowe Resources: my final small-cap graphite stock for 2023

BRES shares are admittedly highly speculative, but a speculative position could prove lucrative for small-cap position investors. Blencowe Resources (LON: BRES) shares constitute my fourth and final small-cap graphite stock to consider for 2023. Like many small caps on the UK’s most volatile index, the sub-£10 million graphite explorer has sent long term investors on … Continued

Beginner

Rolls-Royce shares: the tech power of Tesla without the make-up

Rolls-Royce is developing multiple innovative technologies, any one of which could see its share price rocket over the medium term. Rolls-Royce has long been hailed as the ‘jewel in the crown’ of British engineering, a hallmark synonymous with quality and lasting endurance. But the company has struggled in recent years. Its most lucrative division, civil … Continued

Beginner

Now The Tesla Meme Is Over What Happens Next?

An unfair but possibly true statement would be that Tesla (NASDAQ: TSLA) has just been through the mother of all meme bubbles over the past few years. There is a major difference against the others, Gamestop (NYSE: GME), AMC (NYSE: AMC) and so on, most especially Bed, Bath and Beyond (NASDAQ: BBBY). The most obvious … Continued

Intermediate

GENinCode shares: still a buying opportunity after rising by 180%?

GENinCode’s share price may have risen sharply, but the long-term prospects for the biotech stock could leave it undervalued even now. GENinCode (LON: GENI) launched its IPO near the height of the growth stock bubble in July 2021, pricing shares at 44p apiece. Raising £15.3 million net cash, the company began public life with a … Continued

Beginner

Copy Trading’s Really Great – Often, But Sometimes It’s Not

Copy trading is the simple enough idea that some people are better at trading than others. So, those less good should follow – copy – the trading of those better. Put like that it’s both a simple enough idea and one that’s obviously sensible. There are problems though when we explore the details. Newspaper Tip … Continued

Beginner

The Rise and Fall of Beyond Meat And Plant Based Foods Companies

Warren Buffett (of Berkshire Hathaway (NYSE: BRK.A) fame of course) is able to tell us why companies like Beyond Meat (NASDAQ: BYND) and Oatly (NASDAQ: OTLY) have been such successful destroyers of shareholder capital – they ain’t got no moat. That is, of course, something that in itself needs explaining. Buffett’s point is that it’s … Continued

Beginner

Bidstack shares: a prime beneficiary of the Microsoft-Activision separation?

BIDS shares could be an undervalued tech play to further diversify my portfolio for the 2020s and beyond. Bidstack (LON: BIDS) shares could be one of the best undervalued tech stock opportunities to consider in 2023. Growth stocks in the tech sector have seen their share prices devastated in 2022, as tightening monetary policy saw … Continued

Three Stocks to Buy and Two Stocks to Stay Away From

The New Year is just around the corner and so it is quite an appropriate time to take stock and consider what trends may shape our investment outlook heading into 2023. One cannot say that COVID-19 and/or its variants has fully been vanquished. Coupled with the risk of a larger scale war in Europe, a … Continued

Is Copy Trading any good?

In recent years there has been a rise in the popularity of “Social Trading”. That’s where traders get together on social and trading platforms to discuss investment ideas with each other. If Social Trading is a more general area, “Copy Trading” goes one step further and is far more specific. In Copy Trading, traders will … Continued

Beginner

What Are the Ten Greenest Shares to Buy Right Now?

Which are the best and greenest shares to buy rather depends – are we to judge on how well they’re going to aid the world in going green? Or in how we’re going to make money out of them? Of course, we’d like to do both but that does mean that we’ve got to distinguish. … Continued

Beginner

What Should I Do With My Current Investments In This Market?

This is not exactly a new question – what should I do with my investments in this market? For markets always change, so what should be done in them changes as they do. This is, from the grander economic point of view, rather the point of using markets in the first place – things change, … Continued

Beginner

Should I Invest in Today’s Stock Market?

There are really only two possible answers to that question, should I invest in today’s stock market? After all, a maybe would be rather dodging matters. The answer is yes – because that’s what investing is. The aim is to build a source of wealth and independence. That’s something that requires continued addition to the … Continued

Beginner

10 most valuable companies in the world

The world’s largest companies greatly affect global markets. It is therefore imperative as a trader to have an understanding of these companies and how they operate. These companies are also among the most traded, so having a solid knowledge of them is important in order to invest and trade effectively. How do we calculate the … Continued