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Morning News: January 4, 2022
Posted by Eddy Elfenbein on January 4th, 2022 at 7:19 amLondon’s Fintech Boom Opens the Door for Dirty Money
China’s Anti-Graft Crackdown Has Ensnared Over 20 Finance Officials So Far
JPMorgan Strategists Say Global Stock Market Party Far From Over
Democrats Blast Corporate Profits as Inflation Surges
Customer Service at the IRS Is So Bad, Even Tax Pros Are Fed Up
What Investors Learned From the Elizabeth Holmes Trial: ‘Zero’
COVID-19 Loss of $44 Billion Is 3rd Largest Catastrophe Cost to Insurers
AT&T and Verizon Agree to New Delay of 5G Rollout
Your BlackBerry Dies Today: End of an Era for Iconic Handset
Apple’s $3 Trillion Valuation Should Unnerve Investors
Toyota Poised to Dethrone GM in 2021 as U.S. Sales Leader
Ford Doubles Lightning Production as Electric Truck Battle With GM Heats Up
Covid Brings America’s Beer-vs.-Liquor Rivalry to a Head
Office Attire That Makes a Statement: ‘OK, Let’s Hug’
These Were the Worst Predictions About 2021
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First Trading Day of the Year
Posted by Eddy Elfenbein on January 3rd, 2022 at 12:01 pmIt’s the first trading day of 2022. Historically, this has been a good time for the stock market. Today is a good example of a contra-trend day. That’s a fancy term for “all the stuff that’s been lagging is leading, and all the stuff that’s been leading is now lagging.”
As I write this, the S&P 500 High Beta is up 1.21% while the S&P 500 Low Vol is down 1.59%. That’s a wide spread for one day. To give you an example of the high betas, Tesla has been up as much as 11% today. Elon Musk’s net wealth increased by around $20 billion this morning (although he’s been dumping shares recently so I don’t know the exact amount).
While last week was very slow for economic news, this week will have a lot more. Of course, the big jobs report is due out this Friday. On Wednesday, the ADP report is due out as are the minutes from the Fed’s last meeting. Also, the ISM Manufacturing Index is scheduled to come out tomorrow.
One report this morning came from the Census Bureau. Construction spending rose by 0.4% in November. In the last year, construction spending increased by 9.3%.
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Morning News: January 3, 2022
Posted by Eddy Elfenbein on January 3rd, 2022 at 7:11 amSingapore’s 2021 GDP Grows at Fastest Pace in Over a Decade
Sprightly European Stocks Greet New Year By Hitting Record High
Europe Plans to Say Nuclear Power and Natural Gas Are Green Investments
Trump-Appointed Chairman’s Resignation Hands Control of FDIC to Democrats
Here’s (Almost) Everything Wall Street Expects in 2022
Goldman Sachs Follows Wall Street Rivals in Asking Staff to Work From Home
Why Does Goldman Sachs Fund An Economics Department?
A Former Facebook Executive Pushes to Open Social Media’s ‘Black Boxes’
Verizon and AT&T Decline Regulators’ Request to Delay New 5G Services
Tesla Reports 87% Increase in 2021 Deliveries
Hyundai, Kia Expect Auto Sales Jump in 2022 Amid Chip Shortage
LG Energy Solution Opens Books for South Korea’s Largest IPO at Up to $10.8 Billion
China Evergrande Shares Halted, Set to Release ‘Inside Information’
Lab-Grown Shrimp’s Price Tag Shows Long Way Ahead to Mass Market
WW Failed to Cash In On the Diet Craze in 2021
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The 2022 Buy List
Posted by Eddy Elfenbein on December 31st, 2021 at 9:15 pmHere are the 25 stocks for the 2022 Buy List. It’s locked and sealed, and I can’t make any changes for 12 months.
For tracking purposes, I assume the Buy List is a $1 million portfolio that’s equally divided among 25 stocks. Below are all 25 positions with the number of shares for each and the closing price for 2021. Whenever I discuss how the Buy List is doing, the list below is what I’m referring to.
Company Ticker Price Shares Balance Abbott Laboratories ABT $140.74 284.212022 $40,000.00 AFLAC AFL $58.39 685.048810 $40,000.00 Broadridge Financial Solutions BR $182.82 218.794443 $40,000.00 Carrier Global CARR $54.24 737.463127 $40,000.00 Church & Dwight CHD $102.50 390.243902 $40,000.00 Danaher DHR $329.01 121.576852 $40,000.00 FactSet FDS $486.01 82.302833 $40,000.00 Fair Isaac FICO $433.67 92.236032 $40,000.00 Fiserv FISV $103.79 385.393583 $40,000.00 HEICO HEI $144.22 277.354042 $40,000.00 Hershey HSY $193.47 206.750401 $40,000.00 Intercontinental Exchange ICE $136.77 292.461797 $40,000.00 Moody’s MCO $390.58 102.411798 $40,000.00 Miller Industries MLR $33.40 1,197.604790 $40,000.00 Otis Worldwide OTIS $87.07 459.400482 $40,000.00 Reynolds Consumer Products REYN $31.40 1,273.885350 $40,000.00 Ross Stores ROST $114.28 350.017501 $40,000.00 Science Applications International SAIC $83.59 478.526139 $40,000.00 Stepan SCL $124.29 321.827983 $40,000.00 Sherwin-Williams SHW $352.16 113.584734 $40,000.00 Silgan SLGN $42.84 933.706816 $40,000.00 Stryker SYK $267.42 149.577444 $40,000.00 Thermo Fisher TMO $667.24 59.948444 $40,000.00 Trex TREX $135.03 296.230467 $40,000.00 Zoetis ZTS $244.03 163.914273 $40,000.00 Total $1,000,000.00 The five news buys are Carrier Global (CARR), Fair Isaac (FICO), Otis Worldwide (OTIS), Reynolds Consumer Products (REYN) and Science Applications International (SAIC). Fair Isaac is a returning member. It was on our Buy List in 2006 and 2007.
The five sells are Ansys (ANSS), Cerner (CERN), Check Point Software (CHKP), Disney (DIS) and Middleby (MIDD).
Only AFLAC (AFL) and Fiserv (FISV) have been on the Buy List all 17 years. This is Stryker’s (SYK) 15th year.
Thermo Fisher Scientific (TMO) is our largest stock with a market value of $263 billion. Miller Industries (MLR) is by far our smallest with a market value of $381 million. Stepan (SCL) is our second smallest and its market value is more than seven times that of Miller.
Here are the corporate descriptions of our five new stocks:
Carrier Global Corporation is located in Palm Beach Gardens, FL, United States and is part of the Ventilation, Heating, Air-Conditioning, and Commercial Refrigeration Equipment Manufacturing Industry. Carrier Global Corporation has 56,000 total employees across all of its locations and generates $17.46 billion in sales (USD). There are 1,495 companies in the Carrier Global Corporation corporate family.
FICO powers decisions that help people and businesses around the world prosper. Founded in 1956 and based in Silicon Valley, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, manufacturing, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 120 countries do everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of airplanes and rental cars are in the right place at the right time.
Otis is the world’s leading elevator and escalator manufacturing, installation and service company. We move 2 billion people a day and maintain approximately 2.1 million customer units worldwide, the industry’s largest Service portfolio. Headquartered in Connecticut, USA, Otis is 69,000 people strong, including 40,000 field professionals, all committed to meeting the diverse needs of our customers and passengers in more than 200 countries and territories worldwide.
RCP’s mission is to simplify daily life so consumers can enjoy what matters most. RCP is a market-leading consumer products company with a presence in 95% of households across the United States. RCP produces and sells products across three broad categories: cooking products, waste & storage products and disposable tableware; that are sold under iconic brands such as Reynolds and Hefty, as well as under store brands that are strategically important to RCP’s customers. Overall, across both branded and store brand offerings, RCP holds the #1 or #2 U.S. market share position in the majority of product categories in which it participates.
SAIC® is a premier Fortune 500® technology integrator driving our nation’s technology transformation. Our robust portfolio of offerings across the defense, space, civilian, and intelligence markets includes secure high-end solutions in engineering, digital, artificial intelligence, and mission solutions. Using our expertise and understanding of existing and emerging technologies, we integrate the best components from our own portfolio and our partner ecosystem to deliver innovative, effective, and efficient solutions that are critical to achieving our customers’ missions.
We are more than 26,000 strong; driven by mission, united by purpose, and inspired by opportunities. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $7.2 billion.
The 2021 Buy List
Posted by Eddy Elfenbein on December 31st, 2021 at 5:53 pmThe 2021 trading year is on the books!
It was a good one for us. Our 2021 Buy List gained 21.25% this year. Including dividends, we were up 22.25%. This was one of our best years ever.
Trex (TREX) repeated as our top-performing stock, with a gain of 61.29%. That was followed by Middleby (MIDD) at 52.62% and Danaher (DHR) at 48.11%. We had seven stocks up more than 40% this year.
Zoetis (ZTS) was our best turnaround stock. By March, it was a 12% loser, but it finished the year up 47.45%. I’m glad we held on.
Our biggest loser of the year was Disney (DIS), which lost 14.51%. That happened despite the company’s reporting massive earnings surprises in February and May.
Check Point Software (CHKP) was our second-biggest loser, with a loss of 12.30%. Miller Industries (MLR) was our worst turnaround story. It ran out to a 24% gain by April but finished the year down 12.15%.
The 2021 Buy List
Here’s a breakdown of how our Buy List performed in 2021. For tracking purposes, I assume the Buy List is a $1 million portfolio. All 25 stocks are equally weighted at the start of the year.
Eddy Elfenbein is a Washington, DC-based speaker, portfolio manager and editor of the blog Crossing Wall Street. His