📊 Navigate the Markets! From Bold Bets to Stock News and Geopolitics 🌍

This issue of Investing Intel presents select stock ideas, leading investment news, and the week's key discussions.

Feb 19, 2024

Market Snapshot (Past Week)

S&P500: $5,005.57 (-0.42%)
Dow Jones Industrial Average: $38,627.99 (-0.07%)
Nasdaq Composite: $15,775.65 (-1.28%)
Russell 2000: $2,032.74 (+0.90%)
S&P/TSX Composite Index: $21,255.61 (+1.16%)
PHLX Gold and Silver Sector: $107.86 (-1.31%)

The Biggest Investing Stories From the Last 7 Days

Explore the latest investing highlights, covering the biggest stories from tech surges to strategic shifts in the financial landscape over the past week.

❤️ Orphan Designation Granted

Cardiol Therapeutics CRDL 0.00%↑ secures FDA ODD for pericarditis treatment, paving the way for innovative therapies and investment potential in this underserved market.

Cardiol Therapeutics Receives Orphan Drug Designation for Pericarditis Treatment —>

💻 Tech Investment Surge

Hedge funds show growing interest in tech stocks, specifically AI-related companies like Amazon AMZN 0.00%↑, Intel INTC 0.00%↑, and Nvidia NVDA 0.00%↑.

Tech Surge Drives Hedge Fund Investments in Q4 —>

🇨🇳 Burry's Chinese Gambit

Michael Burry increases bets on Chinese tech giants Alibaba BABA 0.00%↑ and JD.com, defying market downturn.

Michael Burry's Bold Bet on Chinese Tech Amid Market TurmoiL —>

🛢️ Occidental Refocuses Strategy

Occidental Petroleum OXY 0.00%↑ reduces spending on US shale, shifts focus to improve cash flow and repay debt.

Occidental Petroleum Cuts Spending on US Shale —>

🚖 Lyft Margin Misstep

Lyft's mistaken margin projection causes LYFT 0.00%↑ stock to plummet, emphasizing the need for accurate financial reporting in investor decision-making.

Lyft Surpasses Revenue Expectations Amid Margin Mix-Up —>

🚀 Robinhood's Soaring Success

Robinhood HOOD 0.00%↑ leads with higher revenue and user growth, offering more access and innovation in investment.

Robinhood Shares Soar as Revenue Beats Expectations —>

📈 January CPI Surge

January CPI spike affects stocks and rate expectations. Discover how tech investments are shaping market trends.

January CPI Surge Triggers Stock Pullback —>

✈️ Icahn Targets JetBlue

Carl Icahn's recent investment in JetBlue JBLU 0.00%↑ signals a pivotal moment for the airline and its investors. Uncover the implications of this strategic move and how it could drive shareholder value and reshape JetBlue's future.

Carl Icahn Takes Major Stake in JetBlue, Eyes Board Representation —>

PRESENTED BY QYOU MEDIA

India's Youth Surge Fuels Digital Explosion

QYOU Media Inc. (TSXV: QYOU) (OTC: QYOUF) is an India-focused entertainment business that combines social media stars with a wide-reaching network of television channels. QYOU’s experienced and connected leadership team anticipates significant opportunities in India's future and is determined to seize them. If you’re looking for investing ideas in the media and entertainment industry this is one stock you want on your radar.

Explore this Growth Opportunity Now —>

Hot Topics

The upcoming week will focus on the Federal Reserve's minutes for insights into monetary policy, pivotal earnings reports from Nvidia NVDA 0.00%↑ and Walmart WMT 0.00%↑ amidst AI and retail sector scrutiny, and global PMI data to gauge economic strength. Additionally, the reopening of Chinese markets post-holiday and their response to recent regulatory changes will be closely watched for potential impacts on global financial stability.

Bezos Share Sales: Jeff Bezos capitalized on Amazon.com Inc.'s AMZN 0.00%↑ recent surge by selling shares worth over $6 billion in February. This followed his announcement to sell up to 50 million shares, estimated at $8.4 billion in value. It also marked his first sale since 2021. The three share sales were strategically timed after Bezos relocated to Miami from Seattle, likely saving him millions in capital gains tax due to Washington state's 7% tax, absent in Florida. This move could save him over $600 million if he proceeds with the proposed sale of all 50 million shares. The move underscores the financial strategies used by high-net-worth individuals to minimize tax liabilities.

Geopolitics: The escalation of conflict in the Middle East, particularly concerning the Red Sea and geopolitical tensions, has emerged as a significant concern for businesses and investors alike. The situation has led to disruptions in shipping routes and supply chains, contributing to increased costs for companies and posing risks to global stock markets, which have been enjoying a record rally. The analysis of earnings calls from major corporations reveals a marked increase in discussions about these geopolitical risks, underscoring the growing apprehension among CEOs and investors.

Inflation: With CPI and PPI coming in hot, inflation may not be dead after all. Yet, the broader theme of disinflation remains intact, as evidenced in the latest quarterly earnings reports. However, this has led to a more cautious approach from the Federal Reserve regarding policy changes, bringing back worries about when and how it will adjust its monetary policy stance.

Small-Cap Strength: Small-cap stocks have shown resilience, outperforming despite a significant selloff, highlighting a shift in market dynamics and investor sentiment towards these companies.

Chocolate Crisis: The cocoa industry, largely sustained by smallholder farmers in West Africa, faces a paradox of plenty, where the abundance of cocoa has historically kept prices low, making it a "poor man's crop." This dynamic has allowed consumers worldwide to enjoy chocolate at relatively low costs, but it has also prevented the development of cocoa into a more commercially viable plantation crop due to the unattractive pricing structure of the past decades. Now global chocolate demand is outpacing supply, leading to a shortage unseen since the 1960s. The Meltdown in Chocolate Is Coming.

VTM Stock Picks

This week, VTM's stock screeners have identified several promising stocks, with a focus on value, growth, and dividend potential.

💎 Value Stock Picks 💎

HF Sinclair Corporation (NYSE: DINO)

P/E Ratio: 5.2
PEG Ratio: 0.8

HF Sinclair Corporation DINO 0.00%↑ has an exceptionally low P/E ratio, indicating it is undervalued relative to its earnings. The PEG ratio under 1 also suggests the stock is undervalued when factoring in its growth potential, making it a prime choice for value investors.

Nutrien Ltd. (NYSE: NTR) (TSX: NTR)

P/E Ratio: 11.8
PEG Ratio: 0.6

Canadian fertilizer company Nutrien Ltd. NTR 0.00%↑ marks a potential choice for those seeking value investments in the non-energy materials sector. Its P/E ratio suggests that it is undervalued relative to its earnings. And a PEG ratio below 1 indicates that the stock may be attractively priced considering its growth prospects. Additionally, a high dividend yield of 4.1% makes it an appealing option for investors looking for both value and income.

Magna International Inc (NYSE: MGA) (TSX: MG)

P/E Ratio: 13
PEG Ratio: 0.6

Magna International Inc MGA 0.00%↑ is a Canadian parts manufacturer for automakers. With a reasonably low P/E ratio, a PEG ratio at 0.6 and a solid dividend yield of 3.3%, Magna offers a balanced opportunity for investors interested in value and growth.

🚀 Growth Stock Picks 🚀

Aptiv PLC (NYSE: APTV)

ROE: 25.4%
Mean Sales Growth Rolling 12 Months: 11.3%

Aptiv PLC APTV 0.00%↑ is an Irish-American automotive technology supplier and a compelling choice for growth investors, thanks to its impressive return on equity and significant earnings per share growth. This performance highlights Aptiv's strong position in the consumer cyclicals market and its potential for continued expansion and profitability.

Applied Materials, Inc. (NASDAQ: AMAT)

ROE: 43.8%
Mean Sales Growth Rolling 12 Months: 7.5%

Chip supplier Applied Materials, Inc. AMAT 0.00%↑ continues to look an attractive growth stock due to its exceptional return on equity and positive sales growth. The company's efficiency in generating profits from its equity and its capacity to increase earnings make it a promising investment in the technology sector. AMAT considers Intel INTC 0.00%↑ and Taiwan Semiconductor Manufacturing TSM 0.00%↑ as customers.

🏦 Dividend Stock Picks 🏦

Barrick Gold Corp (NYSE: GOLD) (TSX:ABX)

Dividend Yield: 4.3%
Dividend Payout Ratio: 55.4%

Barrick Gold Corporation GOLD 0.00%↑ presents a moderate dividend yield with a relatively high payout ratio. This indicates the company commits a significant portion of its earnings to pay dividends. Its involvement in the non-energy materials sector, particularly gold mining, offers a hedge against inflation and economic volatility, which can be appealing to investors looking for stability in uncertain times. Barrick is starting a new share buy back program. Stan Druckenmiller's Duquesne Family Office recently added GOLD stock to its portfolio.

Coca-Cola Company (NYSE: KO)

Dividend Yield: 3.3%
Dividend Payout Ratio: 74.5%

Coca-Cola KO 0.00%↑ has a reasonable dividend yield and high payout ratio, indicating it returns a large portion of its earnings back to shareholders as dividends. As a leading name in the consumer non-cyclicals sector, Coca-Cola benefits from strong brand recognition and a global distribution network, ensuring steady demand and financial stability. This makes it a reliable pick for investors seeking consistent dividend income from a company with a long-standing history of profitability and dividend payments.

Investing Intel