Markets rallied on Thursday, recouping some of Wednesday's losses, with the S&P rising .98%. Asia stocks closed lower overnight while Europe indexes are in the the red this morning. U.S. futures are pointing to a lower open as I write this, while the Dollar, Yields, Oil, and Gold are all higher.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/friday-morning-reads-172/
The drama continues with GME, Reddit, and the markets. The story is everywhere... even my wife is sending me texts. Hopefully this exposes any shenanigans that have been going on in the markets for years... and if anything, benefits the retail trader. Yesterday fintwit was blowing up as brokerages started limiting trading in the volatile names like GME, AMC, KOSS, and others. Would think most of that has to do with capital requirements from the brokerage houses and they are protecting their butts. If that was the case, the communication could have been much better. Instead, RobinHood and others are being forced to go on TV to explain their decisions after the fact, not a good look by any means and just emboldens the retail traders argument that the market is rigged against them. Will be interesting to see how this all plays out. The irony is seeing folks like Cooperman going on CNBC saying this will end in tears for many: https://www.cnbc.com/2021/01/28/leon-cooperman-on-gamestop-reddit-speculators-im-not-damning-them-but-it-will-end-in-tears.html .. when retail trades and loses they are screwed. When funds trade and lose, they get bailed out. Nothing to see here...
Enough of that rant...
With the short squeeze names finding some pressure I went and closed the last of my OTRK calls. Still like the story and may revisit at some point but will wait for the dust to settle:
Gold rallied right at the bell, and the miners went with it, killing my DUST lotto calls. Gold is up another 1.5% as I write this so will likely wait for another entry:
CMG received another upgrade this morning, this time it was Keybanc raising their PT $150. CMM reports on Tuesday so could see some upside today. Will be watching for some lotto opportunities, likely $1500/$1505/$1510 calls. Too pricey for my blood on calls into next week with strikes over $1700 going for $4:
MITK reported earnings after the close yesterday that bested estimates. They also reported 40% growth in their identity verification segment. May look for some Feb calls today on any strength over $17.75 for a move to $20 in the coming days:
Will be eyeing some lotto's in TEAM, V, MA, BIIB, and W.
Here are the analyst changes of note for today:
| Skyworks price target raised to $225 from $195 at B. Riley Securities | |
| B. Riley Securities analyst Craig Ellis raised the firm's price target on Skyworks to $225 from $195 and keeps a Buy rating on the shares following the company's better than expected fiscal Q1 results | |
| MarineMax price target raised to $51 from $45 at B. Riley Securities | |
| B. Riley Securities analyst Eric Wold raised the firm's price target on MarineMax to $51 from $45 and reiterates a Buy rating on the shares following the company's "beat and raise" quarter. The analyst says new boat demand and MarineMax's order backlog remain robust | |
| Airbnb price target raised to $195 from $175 at Baird | |
| Baird analyst Colin Sebastian raised the firm's price target on Airbnb to $195 from $175 and keeps an Outperform rating on the shares. The analyst noted mobility trends suggest stabilization during Q4 despite recent lockdowns. He is encouraged by the trends and remains comfortable with his inline estimates. He believes they will be a key beneficiary this year from improving travel trends | |
| Sherwin-Williams price target raised to $806 from $765 at RBC Capital | |
| RBC Capital analyst Arun Viswanathan raised the firm's price target on Sherwin-Williams to $806 from $765 and keeps an Outperform rating on the shares after its Q4 earnings beat. Viswanathan is positive on the company's positioning heading into FY21 given the continued robust demand in DIY, its ability to offset cost inflation with higher prices, and the eventual recoveries in businesses tied to re-openings such as industrial, P&M, refinish, and interior paints | |
| Stitch Fix downgraded on valuation after 'short squeze' at Baird | |
| Baird analyst Mark Altschwager downgraded Stitch Fix to Neutral from Outperform with a price target of $85, up from $60. The analyst is making a "tactical downgrade on valuation" but remains bullish on the Stitch Fix business model and its ability to capture market share and deliver stronger margins over time. The recent surge in shares, which can be partly attributed to a "significant short squeeze," results in a balanced risk/reward in the near term, Altschwager tells investors in a research note | |
| Capri upgraded to Outperform on multi-year recovery at Baird | |
| Baird analyst Mark Altschwager upgraded Capri Holdings to Outperform from Neutral with a price target of $58, up from $48. Following a period of brand resets and sharp revenue declines during the pandemic, Capri is positioned to capitalize on a multi-year recovery in global fashion and luxury demand, Altschwager tells investors in a research note. Further, the company will benefit from a leaner cost structure and a more disciplined growth strategy at Michael Kors, adds the analyst. He thinks Capri shares can sustain a valuation above pre-pandemic ranges as earnings contributions from luxury brands Versace and Jimmy Choo increase over the next several years | |
And here is what I am watching today: CMG. MITK, MED, EVBG, TEAM, V, MA, BIIB, and W.
Let's have a GREAT DAY!
-JB