Author: Dorian Holden

Apple and Tesla just split.

And both are already ticking higher.

Apple just split 4:1 to $125, and is now up to $127.81, and could easily run back to $150 this week, in our opinion.  Better, Apple could soon become a $3 trillion company.

According to Wedbush analysts, “By 2023, we believe given super-cycle potential and services business,” Ives said. “While the soft macro and COVID backdrop are weighing on near-term consumer demand trends, Apple has a ‘once in a decade’ opportunity over the next 12 to 18 months as we estimate roughly 350 million of Cupertino’s 950 million iPhones worldwide are in the window of an upgrade opportunity.”

Apple earnings are likely to stay strong, too.

In its most recent quarter, Apple  posted EPS of $2.58, which was better than estimates for $2.04.  Revenue of $59.69 billion beat estimates for $52.25 billion. iPhone revenue soared to $26.42 billion, as compared to estimates for $22.37 billion. Services revenue jumped to $13.16 billion, as compared to expectations for $13.18 billion.

Tesla Split 5:1 to $444.88

Tesla split, and is already up $16 a share to $458.65.  We wouldn’t be shocked to see TSLA closer to $500 this week with big momentum behind it.  With this stock, we wouldn’t even be shocked if it ran back to $1,000 by September 2020 on the EV boom.

According to a new study from the Boston Consulting Group, by 2025, EVs could account for a third of all auto sales.  By 2030, EVs could surpass internal combustion engine vehicles with a market share of 51%.   

Plus, experts say by 2030, electric cars will make up 58% of the light vehicle market.

And, according to analysts at Wedbush, “We continue to believe [electric vehicle] demand in China is starting to accelerate in July/August with Tesla competing with a number of domestic and international competitors for market share with Giga 3 remaining the linchpin of success which remains the prize that [Chief Executive Elon] Musk and Tesla are laser focused on capturing.”

It’s tough to ignore these powerhouse stocks, post-split.

The post Two Top Stocks that Could Easily Double Again, Near-Term appeared first on Morningology.

Online learning is on the rise.

All thanks to the pandemic.

In fact, many students are being shifted into video chats, conferences, and classrooms to limit exposure to the virus.  We’re seeing it in grade schools, and in colleges, like Temple University, where many are demanding that the school move to all-virtual classes this semester.

“Leaders of the Temple Association of University Professionals (TAUP) said roughly 92% of the union members who participated in the recent vote agree with their stance, which argues the dangers of bringing any faculty to campus far outweigh any benefits. About 50% of the union’s 2,600 members participated in the vote,” according to the Philadelphia Business Journal.

Schools such as Michigan Stat and Ithaca Colleges scrapped plans to reopen with the virus, too.  Harvard University is holding online courses this semester, as will the University of North Carolina at Chapel Hill.  

With that, some of the top online education stocks to keep an eye on include:

Chegg (CHGG), which provides digital and physical textbook rentals, online tutoring, and other student services.   Piper Sandler just initiated coverage of the stock with a $90 price target and an overweight rating, as noted by CNBC, adding, the company was a “leader in digitizing the student experience” and would be a “primary beneficiary” of the shift to online education.

2U Inc. (TWOU) offers online degree programs.  Since bottoming out at $12.50 in March 2020, TWOU rallied to $39.  It’s now consolidating just above $39, and could potentially break out to re-test a high of $50.

Pluralsight Inc. (PS) develops a cloud-based technology learning platform that provides a range of tools for skill assessments, library of courses, learning paths, and business analytics.  Since bottoming out at $7 in March 2020, shares of PS have exploded to $20.73.

Perdoceo Education Corporation (PRDO) offers quality education to a diverse student population in a variety of disciplines through online, campus-based and blended learning platforms.  PRDO is another one that has exploded since its March 2020 low of $8.  It now trades at double bottom support at $14.36.

The post Back to School: The Top 4 Ways to Profit as Schools Go Virtual appeared first on Morningology.

Nio Inc. (NIO) could be the next EV success story.

For one, the industry shows no signs of slowing.  

Global demand for such vehicles is only expected to grow.  In fact, according to the International Energy Agency, we could see about 130 million EVs on the road by 2030, a monumental move from 5.1 million in 2018.  

Plus, according to Wedbush analyst Dan Ives, “We continue to believe [electric vehicle] demand in China is starting to accelerate in July/August with Tesla competing with a number of domestic and international competitors for market share with Giga 3 remaining the linchpin of success which remains the prize that Musk and Tesla are laser focused on capturing.”

Two, Nio is seeing a good deal of upgrades this week.

UBS analyst Paul Gong upgraded the stock to the equivalent of a Hold from a Sell.  The analyst also raised his price target from $1 to $16, according to Barron’s.  

Then, just today, Morgan Stanley upgraded the stock from Equal Weight to Overweight, noting the investment from the Hefei government “not only removes funding risk but also advances Nio’s vehicle profitability and cash flow,” as quoted by Seeking Alpha.  The firm also raised its price target from $12 to $20.50 a share.  

Three, Nio is still seeing solid sales growth.  

For July 2020, the company quadrupled its EV sales.  Sales were up 322% to 3,533 vehicles – its second best month ever. 

For June 2020, the company sold 3,740 EVs for the month, up 179% year over year.  

The post This Could be the Next Success Story after Tesla appeared first on Morningology.

Two of the best stocks that belong in all portfolios are Apple (AAPL) and Tesla (TSLA).

At the moment, Apple is up to $476 a share, and could easily hit $500 ahead of next week’s 4:1 stock split. Once that split knocks the price down, we could see a quick return of $400 a share with patience.  Nothing, it seems, can keep Apple down.

“Apple’s $2 trillion valuation represents about 10 percent of GDP for the U.S. and about 7 percent of the S&P 500,” said David Kass, professor of finance at the University of Maryland’s Robert H. Smith School of Business. “Its iPhone is ubiquitous. It has transformed the way we live. Its ecosystem is self-sustaining.”

Better, Apple could be on its way to becoming a $3 trillion company.

According to Wedbush analysts, “By 2023, we believe given super-cycle potential and services business,” Ives said. “While the soft macro and COVID backdrop are weighing on near-term consumer demand trends, Apple has a ‘once in a decade’ opportunity over the next 12 to 18 months as we estimate roughly 350 million of Cupertino’s 950 million iPhones worldwide are in the window of an upgrade opportunity.”

Tesla (TSLA) is still rocketing to new highs, too.

At the moment, the stock is up to $2,030, and could hit $2,100 before its 5:1 stock split.  This is another hot stock that could quickly rally back above $1,000, post-split.  

Helping, Wedbush analysts also noted, “We continue to believe [electric vehicle] demand in China is starting to accelerate in July/August with Tesla competing with a number of domestic and international competitors for market share with Giga 3 remaining the linchpin of success which remains the prize that [Chief Executive Elon] Musk and Tesla are laser focused on capturing.”

The post Two of the Greatest Stocks that Belong in All Portfolios appeared first on Morningology.

This shouldn’t come as a shock.

But Apple (AAPL) just became the most valuable company in the world with a market cap of $2 trillion.  With the popularity of its iPhones, its upcoming 4:1 stock split, solid earnings, and the 5G boom fueling momentum, there’s more upside ahead.

Once the stock does split later this month, we could easily see it rocket back to $400 fast.

“Apple’s $2 trillion valuation represents about 10 percent of GDP for the U.S. and about 7 percent of the S&P 500,” said David Kass, professor of finance at the University of Maryland’s Robert H. Smith School of Business. “Its iPhone is ubiquitous. It has transformed the way we live. Its ecosystem is self-sustaining.”

Earnings are likely to stay strong, too.

In its most recent quarter, Apple  posted EPS of $2.58, which was better than estimates for $2.04.  Revenue of $59.69 billion beat estimates for $52.25 billion. iPhone revenue soared to $26.42 billion, as compared to estimate for $22.37 billion. Services revenue jumped to $13.16 billion, as compared to expectations for $13.18 billion.

At the moment, Apple also has $193.82 billion in cash on hand.

Better, it’s stock apparently doesn’t know the meaning of down – with the exception of falling with the market earlier this year on pandemic issues.

The post The Most Valuable Company in the World appeared first on Morningology.

When it comes to trading biotech and pharmaceutical stocks, there’s always reason to be careful – especially when the US FDA is set to decide.

You want to invest in the anticipation of potential news, and always look to sell prior to any news from the FDA for two reasons.  One, we have no idea what the FDA could decide.  And two, we can often see a sell the news reaction after a decision.

Some BioMarin Pharmaceuticals (BMRN) just learned that the hard way.

Just moments ago, BRMN plummeted nearly $40 a share from a high of $120.22.  

All after the company received a Complete Response Letter (CRL) to the Company’s Biologics License Application (BLA) for valoctocogene roxaparvovec gene therapy for severe hemophilia A on August 18, 2020.  The FDA issues a CRL to indicate that the review cycle for an application is complete and that the application is not ready for approval in its present form.

While BMRN may look attractive on the plunge, wait for the bad news to be fully priced in.

Then, keep an eye on it, as the company plans to meet with the FDA on next steps.

“We remain committed to the hemophilia community and to leading the way to the first ever gene therapy in hemophilia A,” said Jean-Jacques Bienaimé, Chairman and CEO.  “We are surprised and disappointed that the FDA introduced new expectations for the first time in the Complete Response Letter.  We are confident in valoctocogene roxaparvovec gene therapy and its potential to redefine the treatment paradigm for people with hemophilia A.”

Gilead (GILD) Fell $2.77 on US FDA Rejection

Gilead just announced its application for filgotinib, an investigational treatment for moderately to severely active rheumatoid arthritis (RA) was rejected.  The company received a complete response letter (CRL) from the FDA that said the review cycle for an application is complete, but it’s not ready for approval in its current form.

“The FDA has requested data from the MANTA and MANTA-RAy studies before completing its review of the NDA. The MANTA and MANTA-RAy studies are designed to assess whether filgotinib has an impact on sperm parameters. The FDA also has expressed concerns regarding the overall benefit/risk profile of the filgotinib 200 mg dose,” says the company.

The post How to Successfully Trade Pharmaceutical Stocks appeared first on Morningology.

Gold just crossed $2,000.

In fact, it’s now up to $2,010.27, and could be headed to $2,500, near-term.

All thanks to further fallout from the coronavirus, economic fears, tensions with China, central banks pumping liquidity into markets, and fear ahead of U.S. elections.  Worse, the International Monetary Fund estimates the global economy could shrink by up to 5% this year, prompting central banks to pump billions into the financial markets.

“It’s all monetary policy,” Mathieu Savary, a macroeconomic strategist with BCA Research says, as quoted by The New York Times. “It’s very, very easy monetary policy as far as the eye can see and gold loves it.”

Helping, Warren Buffett’s Berkshire Hathaway is bullish on gold, having just bought shares of miner, Barrick Gold (GOLD).  “The 31% surge in gold prices this year has strengthened the foundation of Barrick’s business while reducing operating risk, increasing cash flow and bolstering its balance sheet. That has enabled [CEO Mark] Bristow to “fast track” his revised dividend policy, which will now be based on “some sort of ratio” whether it be net income or cash flow,” as quoted by Fox Business.

The last time we spoke about gold, we highlighted three opportunities.

Those included the SPDR Gold Trust (GLD), which has now run from $187.24 to $188.64, and could potentially test $200.  We also highlighted the Global X Gold Explorers ETF (GOEX) at $38.55.  It’s now up to $38.60 and could run to $45, near-term.  We also highlighted the VanEck Vectors Gold Miners ETF (GDX) at $43.36.  It’s now up to $43.92.

All are still solid opportunities as the new Gold Rush begins.

Going forward, gold could still run to $3,000, according to Bank of America.  We may even see $5,000., as estimated by billionaire Thomas Caplan.

“I do believe gold embarks on the next leg of its bull market and goes past $1,900 and ultimately $3,000 to $5,000, if not a lot higher, depending on macro circumstances that today seem dim but I can’t really quantify,” he says.

The post $2,000 Gold: Three Top Ways to Trade the News appeared first on Morningology.

With increased pressure on power grids, microgrids are taking center stage.

After all, utilities are realizing they can’t guarantee energy supply to customers.  We’re seeing far more power outages with wildfires, storms, earthquakes, and other disasters, like what we’re seeing in California with 130 degree heat, fire tornadoes, and blackouts.

The heat wave “is causing a strain on supplies, and consumers should be prepared for likely rolling outages during the late afternoons and early evenings through Wednesday,” warned the California Independent System Operator, as quoted by the Los Angeles Times.  They added there’s just not enough energy to meet the demand.  

And it may only get worse.

“Multiple daily heat records were set Saturday. The National Weather Service reported a high of 112 in Woodland Hills, breaking the record of 108 set in 1977, and a high of 92 at UCLA, breaking the record of 90 set in 2003. Downtown Los Angeles hit 98 degrees, tying a record set in 1994,” added the Los Angeles Times.

Even nations around the world are increasing their deployment of microgrid technology. In the U.S., for example, lawmakers could be a major catalyst for microgrid technology.  In fact, many are starting to incorporate microgrids into their climate strategies

Plus, up to 44% of businesses are considering using microgrids, according to a recent Deloitte report.  In addition, “In ‘Deloitte Resources 2020 Study,’ 54% of those considering microgrids said they have critical operations that require uninterrupted power supply, said Marlene Motyka, principal, Deloitte Transactions and Business Analytics.

With temperatures rising, far too much demand on the grid, and blackouts, microgrids could come under big demand.

The post This Could Become the Biggest Energy Opportunity of 2020 appeared first on Morningology.