Friday Feedback: The “Chips” Edition
Are you ready, Great Ones?
Aye-aye, Mr. Great Stuff!
Oooooh! Who writes about Wall Street in Kentucky!
Mr. Great Stuff!
Yellow absorbent and porous is he!
Mr. Great … wait, what?
It’s best if you don’t think about it too much…
It’s Friday Feedback, Great Ones! The day we riffle through the Great Stuff email inbox and answer your stock market, investing and assorted other questions. We take all kinds here … and there are no dumb questions, only dumb answers … provided by yours truly.
Wanna join in the conversation? Got a burning stock market question you’re dying to ask?
First, get some ointment for that burning sensation … then email us at GreatStuffToday@BanyanHill.com!
So, without any further nonsense … pitter-patter, let’s get at ‘er:
Chip stocks have been very good for me. In 2019, I came to the conclusion that they were going to be needed big time in the future. I started buying companies that were involved in them.
AMD and NVDA have been outstanding, but many others have done really well. INTC is the only one that has not been a winner for me, am about even on that one. Most any chip stock during this time frame has done well.
The following are companies I now own. AMD, QRVO, RMBS, INTC, ADI, SWKS, TER, MRVL, XLNX, LSCC, STM, MU, NVDA, TSM, TXN, SNPS, ASML and AMAT.
Yes, I agree with you, one needs more than two, three, four or even more during these times! I enjoy your Great Stuff, Thanks.
— Larry F.
Holy schnikes, Larry! That’s a lot of chip stocks. I mean, like … a lot.
Have you considered, maybe … I don’t know, investing in a semiconductor ETF? The iShares Semiconductor ETF (Nasdaq: SOXX), for example. Your portfolio is basically the SOXX already, man. Wow.
But, I get it. ETFs aren’t as exciting as individual stocks. You don’t get to fiddle with all the knobs, ditch the underperforming stocks … or turn up the volume on the big winners like Nvidia (Nasdaq: NVDA) and Advanced Micro Devices (Nasdaq: AMD).
It used to be that you’d invest in ETFs to avoid paying multiple brokerage transaction fees, but in the age of Robinhood and free trading, that’s not so much of a concern anymore.
I am a bit concerned about your investing mix, as being this heavily invested in semiconductor stocks leaves you very vulnerable to Wall Street’s infatuation with selling tech stocks amid rising interest rates.
Personally, given how in demand chips are right now, I don’t understand all the hubbub or why semiconductor stocks are falling … but then, as John Maynard Keynes said: “Markets can stay irrational longer than you can stay solvent.”
And therein lies the rub. I know this isn’t your entire portfolio, so I guess I’ll have to trust that the rest is a bit more diversified … for your sake.
That said, I believe you are correct, Larry, in that everyone needs at least three or four chip stocks in their portfolio. The Great Stuff Picks portfolio has AMD, NVDA and Applied Materials (Nasdaq: AMAT) … and I’m just waiting for the right time to jump into Taiwan Semiconductor (NYSE: TSM).
Thanks for writing in, Larry! With chips in literally everything right now — heck, I think my toaster even has semiconductors in it — investing in the right chip companies is just a no-brainer.
I mean, literally every technology you can think of runs off of these chips … and you don’t even need salsa for it!
Take lidar, for instance. Almost every car company is betting on this new tech: Audi alone is investing $16 billion … GM, $27 billion through 2025. BMW? $35 billion. In fact, Google, Amazon, Apple and even the U.S. Army are investing in it.
So, we just heard from Larry and his massive stockpile of chip stocks. Let’s see what else we have in the ol’ grab bag today:
No More Chip Stocks
I have TSM, Nvidia, Intel, AVGO and Marvell.
Thank you for the Great Stuff. I look forward to reading the next one
— Joji L.
Good to hear from you again, Joji! Thank you so much for your kind words and for reading Great Stuff.
And, point taken. I know that I have a thing for tech stocks, especially semiconductors.
Before I was the financial genius standing before you … making memes … I fancied myself as a bit of an IT guy.
I even had a company building my own custom PCs for a while … like waaay back in the day. The arrival of the Dells and HPs of the world kinda put that business out of business, though. (Yes, I’m that old … deal with it.)
Because of this, I tend to get a little bit hyper-focused on semiconductor and tech stocks. Not as hyper-focused as Larry up there, but clearly a bit too much for you, Joji.
Don’t worry. I always branch out eventually. Right now, though, with Wall Street having its little technology/inflation hissy fit, all these chip stocks are falling … and I just can’t help myself with all the bargains.
Remember, Joji, you can always email us at GreatStuffToday@BanyanHill.com and let us know what stocks or types of stocks you’d like to see covered more. We aim to please, after all.
Thanks again for writing in.
The Power Of Hydrogen Compels You!
How are ya now?
I think there is an outcome 3 for the SEC investigation:
3) SEC will “find” some past misstatement / exaggeration and fine HYZN a few million to cover the SEC’s time.
This will let the public believe that the SEC really does something constructive.
HYZN shares soar on the news!
— Gary W.
Not s’bad, Gary. Not s’bad.
So, you were eyeing the SEC while investing in hydrogen-powered fuel cells the other daaay…
I don’t think we’re supposed to say the quiet part out loud, Gary, but I’m pretty sure you’re on to something. In this age of SPACs and meme stocks, the SEC has to look like it’s doing something … and no company is perfect.
But, as you so eloquently said, the SEC will likely “find” something worth making headlines, slap Hyzon Motors on the wrist and go on about its day. And unless the slap is a big one, Hyzon will likely rally sharply on the news.
I mean, the company said it had about $517 million in cash on hand during its third-quarter earnings report back in August. That’s enough free cash flow to keep Hyzon operating through 2024 without selling additional shares. Investors gotta love that … but any SEC fine could put a damper on that.
It’s really the only risk I see for HYZN stock going forward. After all, Europe and Asia already know that hydrogen fuel cells are better for heavy-duty vehicles in the long run — especially in extreme climate conditions.
Mr. Great Stuff, your Hyzon position is so pathetic I get a charity tax break just by reading Great Stuff!
Shut up, Shoresy!
If you don’t like the risks surrounding HYZN stock, you don’t have to keep holding it. Just do like Great One Daniel P.:
Today was the last straw with Hyzon. I bought a year ago when recommended under DCRB. Lost money immediately and only lost more throughout the year. Only 87 vehicles?? Big deal! I booked my 50%+ loss and am ready to move on. This one was exhausting!
— Daniel P.
Sorry about the loss, Daniel. I admit that HYZN stock returns are taking longer to achieve than I expected. The market has been a bit of a mess lately, especially for SPACs and high-growth stocks like HYZN.
But this is more a function of the market and Wall Street losing its mind over the end of easy Fed money than anything else.
Hydrogen power, whether it comes from Hyzon or Plug Power (Nasdaq: PLUG) or some other hydrogen fuel-cell maker, is the future of the energy market. I’m not saying it’s the sole green option for investors, but I am saying that hydrogen fuel cells will play a much, much larger role than anyone stateside expects.
Thanks to both Gary and Daniel for writing in!
Editor’s Note: Don’t want to leave the new-energy race completely?
We have you covered! One former Tesla employee just released a brand-new innovation promising to make every electric vehicle (EV) out there instantly obsolete.
And it goes beyond just EVs: His new technology is rolling out to power 50 million homes and businesses, setting up a new market 10X bigger than EVs — and you can buy in right away.
Feelin’ Hot! Hot! Hot!
Can you give your opinion on KULR Technology?
Interesting choice, Harry. Thanks for writing in!
So, KULR Technology specializes in thermal management technologies for things like batteries, electronics and other things that get too hot.
Some of its most popular products include thermal runaway shields for lithium-ion batteries, heatsinks, internal short-circuiting devices and HYDRA TRS battery storage bags.
In other words, unlike Buster Poindexter, KULR doesn’t like it hot, hot, hot. The company is more on par with Foreigner … it’s as cold as ice.
Now, on the surface, KULR Technology looks like a solid investment. The company’s products address a need that the financial and mainstream media both tell us is dire in EVs. Not a day goes by without someone writing a story about some EV blowing up or catching fire.
The thing is … the EV fire story has been blown way out of proportion.
According to the National Transportation Safety Board (NTSB), the Bureau of Transportation Statistics (BTS) and government recall data, EVs are responsible for just 25 fires per 100,000 units sold. By comparison, there are 1,529 gas vehicle fires for every 100,000 sold.
In other words, the need for KULR’s services isn’t quite as high as the media would lead you to believe.
Furthermore, the majority of EV fires that do happen are caused by liquid-state lithium-ion batteries. While these EV batteries are the most popular right now, every EV battery maker worth its salt is working toward solid-state lithium-ion batteries.
Companies such as QuantumScape (NYSE: QS), Solid Power (Nasdaq: SLDP), Panasonic (OTC: PCRFY) and even Tesla (Nasdaq: TSLA) are all working toward a solid-state lithium-ion battery specifically to cut down on or eliminate EV battery fires altogether.
Plus, these new EV batteries also promise better range, faster charging and a host of other benefits.
In short, if you’re considering investing in KULR because you think the company will see increased demand from the EV market … think again.
There might be a short-term boost for KULR over the next year or so … but there are better investment options in the EV market, in my opinion. Such as — surprise — the EV battery market, which you can learn more about right here.
Plus, despite already offering heat management services for lithium-ion batteries, KULR still hasn’t turned a profit. You’d think that wouldn’t be the case, especially if the financial media’s EV fire horror stories were as widespread as they try to make you believe.
Sorry. Probably not the opinion you were hoping for, Harry. Thanks again for writing in!
Beyond The Pale
Dear Great One…
Just wanted to let you know that, literally EVERYONE who has stumbled into a Bed, Bath and Beyond finds the “beyond” section. Dude! Just look at the prices………they are “beyond” belief!
— Karen S.
As you probably know, Karen, those prices aren’t due to the current bout of soaring inflation. Bed Bath & Beyond (Nasdaq: BBBY) was expensive before it was cool to be expensive. So, like, hipster BBBY?
Actually, I like walking through BBBY stores just to look at all the weird “as seen on TV” style crap that covers its shelves. I never buy anything, but it’s fun to browse and think: “People actually buy talking, solar-powered, robotic cat back scratchers? Huh.”
Definitely a strange store that I can’t believe is still around, let alone a publicly traded company.
Thanks for writing in, Karen!
Jay C Superstar
I proudly told my wife someone confused me for Jay-Z.
‘Why is it a big deal? People confuse me for Beyoncé all the time’ was her response.
I better be less pretentious and call myself just JC. Oh, wait. — Jay C
Hey, JC, JC … you’re all right by me.
Why waste your breath investing with the crowd? Nothing can be done to stop the trading. If every meme stock trader was still, the noise would still continue. The stocks and options themselves would start to sing!
Hosanna, hey sanna, sanna sanna ho…
OK, I should stop before we both get struck by lightning.
Thanks for writing in JC … or Jay C … or, whatever, Great One!
And that’s all she wrote for today’s editing of Friday Feedback.
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Until next time, stay Great!
Editor, Great Stuff