q=%24UAL&src=ctag&ref_src=twsrc%5Etfw">$UAL and positive corporate news.
-reached an agreement with Boeing and Wisk to enter into autonomous flight collaboration and settle litigation matters. -Midnight… pic.twitter.com/wUgEajcMD0— Stone Fox Capital (@Stonefoxcapital) August 11, 2023
As we've reported in the past, Junk bond funds such as the Lehman High Yield Bond ETF (JNK) continues to rally higher as the stock market pauses at the June and August highs. Sure its people desperate for higher yields then the absurdly low Treasuries and even high grade corporates. The reality though is that it signals too many people placing emphasis on the direction of the stock market has how it relates to the economy. Investors wouldn't rush into JNK unless they were confident of a stable economy. Weakness in the stock market has much more to do with structural changes away from stock investing.
This is just another signal that any pause at the 1130 range in the SP500 will likely be short lived. An assault on the April highs of 1220 is likely around the corner towards year end.
Stocks to watch at week end: Lyft (LYFT) - the launch of Lyft Rentals isn't smart. The ridesharing service appears set to create another way to lose money. A prime benefit of the service is the door-to-door service where customers get a $20 ride credit each way. In essence, Lyft is giving away rides where the company already loses money in order to obtain what might only be a daily rental for $35. A lot of the service appears better for consumers, but the company is actually offering these ride credit discounts. Until Lyft can charge premium fees, avoid the stock. Canopy Growth (CGC) - the Ontario govt has approved a plan to license 20 stores a month starting next April. Canopy Growth expected 40 stores per month starting in January leaving a 300 store gap from expectations. This stock is still headed to $10. More research: Canopy Growth: Constellation Bid Appears Unlikely, For Now Stitch Fix (SFIX) - here comes the expected dip following another solid quarterly report.
Kohl's has activists wanting the company to spin off the e-commerce division to unlock value. The company already has plans to grow the business and activists have yet to show how a full omni-channel business can operate as two different companies. The stock is absurdly cheap at 7x EPS targets and Kohl's will repurchase over 15% of the outstanding shares this year. Looking for more investing ideas like this one? Get them exclusively at Out Fox The Street. Learn More » After an outstanding quarter with business booming, Kohl's ( KSS ) faces activists wanting to break up the business. The omni-channel retailer is facing the same pressure as other department stores to separate the e-commerce business in what amounts to financial engineering. My investment thesis remains very bullish on the retailer as the company reinvents the shopping experience. Read the full article on Seeking Alpha. Disclosure: Long KSS. Please read the disclaimer page for more details. Update -
Update - Mar. 27, 2023 Ouster missed a great opportunity to promote the combined business of Velodyne Lidar and Ouster and the company decided to pass. The stock trades below $1 for this reason and management has to own this incompetence. -Q4 GAAP EPS of -$0.23 misses by $0.03. -Revenue of $10.94M (-7.7% Y/Y) misses by $4.9M. -Secured company record $70 million in bookings in 2022 - Q1'23 revenue guidance of $15 to $17 million, excludes Velodyne revenues through merger close on Feb. 10. The Q4 revenue total was closer to $25 million and the Q1'23 pro-forma revenue total was probably closer to $21 million. Update - Mar. 15, 2023 Pretty nice deal here with 100 Lidar sensors shipped at the end of '22. Ouster shouldn't be trading back below $1. -Fieldin has already deployed dozens of kits at its customers’ farms and plans to deploy over 100 autonomy retrofit kits on tractors, each equipped with an Ouster OS1, to major customers across the United States in 2023. Ouster