Out Fox The $treet

This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   Update - Jan 25 Truth Social is DOA now.  Meta Platforms ( NASDAQ: META ) is  reinstating Donald Trump's accounts  on Facebook and Instagram after two years of suspensions spurring from the U.S. Capitol attacks on Jan. 6, 2021. Digital World Acquisition Corp. ( NASDAQ: DWAC ), the blank-check company tied to  Trump's Truth Social media efforts, has  fallen 3%  postmarket. Update Dec. 16  Not a good sign to have this many executives and board members fleeing already. The stock has absolutely no reason for still trading this close to $20.  -Trump SPAC Digital World Acquisition (NASDAQ:DWAC), which is taking Trump's social media company and Truth Social app public, fell 4% after disclosing the company's chief financial officer resigned last Friday. -Luiz Philippe Braganza resigned as CFO last Friday, according to an 8-K ...

This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   Update - Jan. 25 LendingClub reports after the close with focus on 2023 with the pre-announcement: -The consensus EPS Estimate is $0.22 -The consensus Revenue Estimate is $258.37M (-1.5% Y/Y). Original article was posted on Jan. 14 LendingClub reported preliminary Q4'22 numbers right on estimates. The fintech reported disappointing loan originations to impact '23 numbers leading to an opportunistic workforce reduction of 14%. The stock is cheap trading below TBV and at just 6x EPS targets for '22. The current tough macroeconomic backdrop makes analyzing most equities very difficult. In the case of  LendingClub  ( NYSE: LC ), the fintech faces a hiccup in investor demand due to the rapidly rising interest rate environment impacting financing costs. My  investment thesis  remains ultra Bullish on the stock trading below $10 due to the norm...

HEXO has seen a massive rally this year following the stock price collapsing in December during a reverse split. The Canadian cannabis company has cut the adjusted EBITDA losses, but the company faces deteriorating sales due to the reduced spending levels. The stock has a minimal market value of $70 million, but the large convertible debt level makes the stock a Sell into the rally. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   HEXO  ( NASDAQ: HEXO ) has been on a hot streak since the stock collapsed following a reverse split in December. The Canadian cannabis company has substantially cut costs leading to a major dip in revenues in the last few quarters. My  investment thesis  is Bearish on the stock with a questionable path forward following a major restructuring. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for mor...

  Nike has rallied back to $130 without a snapback in earnings being reported. The athletic footwear company has already seen a large boost in sales during covid and a huge risk is the company giving back some of those sales. The stock is priced for near perfection at 27x FY25 EPS targets while the market appears to ignore the worse case scenario where massive EPS growth doesn't occur. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   The market often falls in love with stocks and  Nike  ( NYSE: NKE ) is one of the prime examples in the current market. Despite the weak apparel retail market and the fact the footwear giant was  one of the worst offenders with over ordering, the stock is one of the priciest in the market. My  investment thesis  remains ultra Bearish on the rally back to $130. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please...

This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   Update - Jan. 20  SoFi has started the year in a very bullish manner. The stock has reclaimed $5 and all of the key moving averages are starting to turn upwards. Not to mention, all of the recent insider purchases by CEO Noto are now in the money.  Update - January 9 SoFi has made a nice bounce back to $5 today. This level was previous support for the fintech and could quickly signal a breakout once the stock reclaims the levels.  Original article published on Jan. 4 SoFi is constantly dumped on for not being profitable, yet the company is very profitable when excluding non-cash charges. The fintech should be valued based on adjusted EBITDA due to the metric approximating adjusted profits. The stock trades at 15x '23 EBITDA targets for a business set to double and triple EBITDA in a short period. The recent volatile market has whips...

Update - Jan. 17 Huge month from Roblox  with bookings in Dec. up nearly 20%. The stock was a buy in the $20s, but Roblox gets fully priced in the upper $30s.  -Roblox shares surged almost 14% Tuesday as investors responded positively to the gaming platform company's strong December results. -Prior to the start of trading, Roblox said that in December it had 61.5M daily average users [DAU], up 18% from the same month in 2021, while engaged hours of users climbed 21% from a year ago, to 4.7B hours. -Roblox said its revenue continued to show the effect of a strengthening U.S. dollar against currencies such as the British pound and the euro. In addition to its overall revenue being impacted by currency levels, Roblox (RBLX) said its average bookings were between $6.99 and $7.14 per daily user, which, depending on final results either slipped by 1% or rose as much as 1% from December 2021. -Total bookings for the month were strong, as Roblox said bookings came in between $430...

This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   Update - Jan. 13 Comical that $ AAL  is down on this guidance from $ DAL . Delta lost a lot of money last Q1 and the airline is still guiding to a $7+ EPS in 2024. The stock should hit $100 next year, yet investors aren't sure whether to pay $40 fro Delta... pure insanity.  -Delta Air Lines (NYSE:DAL) stock slipped in premarket trading on Friday after the carrier offered lighter than expected Q1 EPS guide. -For the fourth quarter reported on Friday, the Atlanta-based airline posted $1.48 in adjusted earnings per share and $13.44, both of which cruised past the analyst consensus. The carrier also noted an adjusted operating operating margin of 11.6% for the quarter and $10.89B in passenger revenue, above the $10.6B consensus expectation. -“As we move into 2023, the industry backdrop for air travel remains favorable and Delta is well positioned to d...

Update - Jan. 11 Luminar hit bottom right after Citron publicly released the short attack... hmm Original article posted on Jan. 7 Luminar Tech. confirmed the Lidar sensor company achieved a 60% boost for the forward-looking order book. The company now has a order book topping $3.4 billion, nearly double the current market cap. The stock is cheap, but the company gets no respect for the potential order book size in a few years. After another strong quarterly update,  Luminar Technologies  ( NASDAQ: LAZR ) shareholders still find the stock floundering. The Lidar sensor company continues to line up a massive forward-looking orderbook absolutely ignored by the market. My  investment thesis  is  ultra Bullish on the stock after the dip below $5 corresponds with a flip in the calendar one step closer to full production on multiple automotive programs. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page f...

  Knightscope has started announcing a long list of new contracts with a large amount of machine orders. The autonomous security robots offer a promising business model, but the company has so far failed to generate material financial results. The stock isn't appealing at this valuation closer to 10x sales until the company can start topping financial targets with material organic growth. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   As the world moves towards autonomous vehicles and robots,  Knightscope  ( NASDAQ: KSCP ) offered one of the most promising investment options in the space. Unfortunately, the company came out extremely promotional while lacking contracts in scale to build a meaningful business. My  investment thesis  is shifting Neutral on the company following the announcement of a long list of new contracts. Read the full article on Seeking Alpha.  Disclosu...

Updated - Jan. 6 People not buying FCX  the last couple of months missed out big time. The copper miner appears headed to $50 and even $60.  Freeport McMoran ( NYSE: FCX )  +6%  in Friday's trading, placing it near the top of the day's S&P 500 leaderboard and capping an 11% gain for the week, as copper prices rise on hopes that China's efforts to  boost its economy  will improve demand for metals . Comex copper for March ( HG1:COM ) delivery recently  +2.5%  to $3.917/lb, while the most-traded February copper contract on the Shanghai Futures Exchange ended  +1.5%  to 65,060 yuan/metric ton ($9,460). Original article posted on Dec. 18 Green energy demand will continue to push copper prices higher over the next decade. Freeport-McMoRan is already highly profitable at current copper prices and the path appears for record prices above $5/lb in the years ahead. The copper miner could produce $12+ billion in EBITDA. The stock is cheap at o...

Update - Jan. 5 Looks like Jefferies is the grinch with the downgrade of CrowdStrike after the stock had fallen to nearly $100. The cybersecurity stock isn't a buy until it turns on such news.  -CrowdStrike — Shares of the cloud-based software company slid more than 8% to hit a new 52-week low after Jefferies downgraded CrowdStrike to hold from buy. The Wall Street firm said 2023 “will be a more challenging fundamental year for growth names.” Update - Dec. 30 The stock still appears headed lower with decisive new lows in the last week.  CrowdStrike has fallen nearly 200 points from the peak, but Wall Street analysts remain very bullish on the cybersecurity specialist. The company faces sales cycle delays, questioning how crucial the cybersecurity products are for customers. CRWD stock trades at 8x FY24 sales targets suggesting Grinch has yet to steal the presents for shareholders. This idea was discussed in more depth with members of my private investing community, Out Fox The...