034: Semiconductor stocks continue making gains

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Financial Movers Podcast #34

(08/03/20)


PODCAST OUTLINE

Welcome to the Financial Movers Podcast. (today is, and this is episode # …. , and I’m speaking to you from ...) No matter if you’ve been listening to this podcast since episode 1, or this is your first time listening, OR you’re somewhere in the middle of those two, I promise you'll finish this podcast today with more knowledge than you started it with. 


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Also, if you want a visual aid to better understand the strategies and indicators I'm using then you can follow along on my Youtube channel @FinancialMovers where I have this episode posted with a screen recording in video format of what I'm doing this entire episode. Similarly, I have all of today's notes posted on the Financial Movers website, so if you're a cliff notes type of person then the outline will serve you well. 


Today’s Agenda:

  1. Earnings this week/ Clorox reported today

  2. Semiconductor companies such as AMD, NVDA, and TXN

  3. My setups for the week that I’m swinging 


1. This week's earnings report:

  • Clorox (CLX) reported in the morning:

  • Beat earnings estimates

  • Reported a 22% sales increase, double digit growth across all reportable earnings, and 28% increase in diluted EPS

  • "I'm pleased that we've delivered a quarter of exceptional results, fueled by strong demand for our products that we've been privileged to provide in support of public health and to serve some of the essential needs of consumers as they've had to stay at home more," said Clorox Chair and CEO Benno Dorer. "These results could not have been possible without dedication and strong execution by our people, who have always been guided by our core value Do the Right Thing."

  • Stock price still fell today (....) because of 2021 guidance:

  • Flat to low single-digit increase in sales (flat to low single-digit increase in organic sales growth) 

  • Mid-single-digit decrease to mid-single-digit increase in diluted EPS

  • Trader Psychology. Everyone expected a beat. Stock rose (+5.36%) over past two weeks before falling today

  • This stock has been a beast since March lows of $156.58. Its gained (+47%) since then

2. Semiconductor run-up: Episode #22 (07/01/20) They’ve only gone up

  • NVDA: +143% since March lows

  • AMD: +111% since March lows

  • MXIM was pumped 18.5% over the course of three days (July 9-13) 

  • TXN: +25%

  • Stop at Friday’s low $125.43 

  • Reported earnings on July 21, beat, and only dropped since then from $137.65 to $129.32 (-6.05%)

  • TXN supplies semiconductor chips for everything from smartphones and tablets to automobiles. 

  • Personal electronics sales rose +20% bc of the shift from office to remote work environment. 

  • I believe its trading down bc of news about China potentially growing its own semiconductor industry, but CFO Rafael Lizardi said that the company still has a competitive edge and is in a good place to compete against any challenges.

- Corteva (CTVA):

Materials Sector: Agriculture (earnings coming up this Wednesday, Aug 5)

  • Stop at Friday’s low $27.70 (risking -2.62%)

  • Target $30 (+5.18%)

  • 2:1 Risk/Reward ratio

- Lockheed Martin (LMT):

  • $LMT on nearing reversal

  • Riding on all EMA support

  • Bounce off 50 RSI

  • BULL tick (long legged doji)

  • Stop at today's low $371.45 (risking 1.5%)

  • Targeting $390 and potential breakthrough (+3.38)

  • 2:1

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