10 Stocks to Buy, Sell or Hold NOW (Some Have Red Flags)

We're back with one of our most requested videos and this time a couple of pure stocks have Louis [music] concerned. >> Analysts have cut its estimates from $164 to $130 in the last 90 days. So that's a flag for me. Lock and load buying on any dip. >> Buy, sell or hold. Welcome back to Navier [music] Market Buzz. Due to the high volume and the high request of all of your stock picks, we are back with another buy, sell, or hold video. Dad, before we get into people's specific questions, let's set the scene for this week. >> Well, SpaceX is obviously the big news. They are supposed to post positive earnings. They had a big beat last quarter. They weren't profitable, but they were much better than expected. And now they're apparently going to make the transition from uh negative to positive earnings. And I apologize that Space X is not in stock yet. It has to trade 52 weeks, consecutive weeks. It won't appear till next year. And then it it does help me get a bunch of fundamentals for four quarters. and I'll I'll be able to give it a better fundamental score. But yeah, that's the big news. And if uh SpaceX beats, I think you'll see a pretty good recovery in the stock. I'm not recommending it. And again, it's not in stock radar, but anytime a company goes from negative to positive earnings, it's a big deal. Uh also, when SpaceX announced, Tesla's also announcing, and of course, these two companies are connected thanks to Elon and the flying car they did together. Tesla sales are going to be pretty darn good because of high gas prices. Tesla's dominating the EV market. The issue with Tesla is the analysts have trimmed its estimates and it's all over the Optimus robot confusion because obviously they're ramping up Optimus robot manufacturing and we don't know when that's going to be profitable. Now Tesla has missed for the past four quarters in a row. So, what Tesla has to do is has to try to give some hint if their operating margins are improving because they were pretty tight last quarter and they're going to have to uh give some guidance when Optimus if and when they'll be profitable. But the the car business is pretty good. So, uh kudos to Tesla for dominating the EV market, but it doesn't normally fit my model because it's four quarters in a row margins of compression. We got analyst trims. So, hopefully it can break out of that and get its mojo back. Well, while we're talking about earnings, we have Western Digital on Thursday. And actually, a viewer asked about this because Toshiba is increasing its hard drive production. Could that hurt Western Digital? >> No, because there's a shortage. But you have to realize there's all these bots attacking the disc drive companies. Of course, everybody makes disc drives are going to make more because there's a shortage. But Western Digital was the best performing stock in the S&P 500 last year. I do recommend I was a little later getting into it about Seagate and Sandis before, but I do want you to know it sales are supposed to be at 46.9%. Its earnings are supposed to be up 129.4. We have positive analyst revisions in the last 90 days and it has an incredible earning surprise history. Just so you know, its smallest earnings surprise in the last four quarters was 111.6%. So, you know, if the analysts thought Toshiba was a threat to Western Digital, they trim the estimates. They haven't. So, that's just noise, okay? And that's just how opportunistic traders can try to manipulate stocks. But, we already saw the memory stocks start to rebound this week. They are oscillating. So, it's up, down, up, down, and hopefully after Western Digital announces it'll lift the entire sector. >> So, that's a lot of earnings this week. Let's get into your question, and let's start out with the most popular one. Dad, we have to talk about Micron again. Everyone is asking about it. Buy, sell, or hold. >> Lock and load. Buying on any dip. Okay, it's a pharm company. This is different than the other memory companies. They make the dynamic random access memory chips. They're the fastest. So, if you want to have the fastest, greatest data center with all the optical connections and components, you need microns DRAM memory chips. Obviously, they're building a plant in New York. Another Idaho plant was opened up. They are making chips in Taiwan. There is a potential strike in Taiwan, but I'm sure they'll just give them more money. That's what they did in South Korea. They can't afford a strike. Okay? It's just everybody's making a lot of money now, so pay the workers more money. So, yeah, lock and load on Micron, very low P ratio stock, barely six times forecast earnings. >> Now, in our most recent video with investor plays, we were talking about this idea of this AI bubble, and we got some push back from one of your colleagues. Can you share with everyone what your opinion is if they haven't seen that video yet? >> Sure. Well, I'm going to be really honest with you. I only buy the the ones that earn money. So, there's one out there that it's a party pooper called Cororee and it's not earning money yet. It's heavily leveraged. Okay? And what's happening is the people that have lent to build out the data center, some of them gotten a little queasy. Okay? Most are private credit though. But there is some regional banks that aren't eager to lend it to data centers. And the reason tech stocks borrow instead of selling new stock is a lot of them have very high return equity like Oracle. So they'll just borrow to to build the data centers. But they've also exercised this thing called forcement manager. I may have mispronounced that which is we're not going to pay until this thing is completed. So if the data center is four months late, they don't want to pay the interest and that's caused some anxiety as well. So the anxiety in the credit world is hurting some of the AI related stocks, but none of the ones I recommend because everything I recommend has earnings, positive balance revisions, great guidance, huge order backlogs. Uh but yeah, Coreweave was again the most talked about stock at at the Orlando Money Show. A lot of people like it. >> Okay, so if AI needs all this memory, it also needs power and cooling. And a lot of you asked about three stocks in that space. Let's start out with the first one, Vertiff. Yeah, Verif makes water cool rack systems. Not as good as Super Micro, but pretty darn competent. Everybody's making more rack systems. HPE, Dell, you know, it's a big business. They can only do so much, all of them. Okay? And they show up, they do their job, and if there is a bottleneck, they can't get the the natural gas turbine or the Bloom Energy fuel cell or get the approval from the utility for extra power or if there's not enough memory. You know, there's these little glitches when you when you do construction and that can confuse people, but my stocks are just all about the order backlog and it's still growing. >> And what about Modine? That's a cooling play, too. Right. >> Here's what's going on with Modine. Their sales are supposed to be at 56.9%. Their earnings is supposed to be up 37.7, but unfortunately, the analysts have cut its estimates from $164 to $130 in the last 90 days. So, that's a flag for me. Another flag is unfortunately it missed for three quarters in a row until the second quarter when it is 16.6% surprise. So again I have that eight factor fundamental model and if the socks got an analyst cut or it doesn't have the best or any surprise history it will be a flag for me. So yeah that's why it's not on my radar. >> And GE Venova which is the power side would you still want to get in? Yeah, I think the big news with G Vernova is how big is that order backlog? At the end of the second quarter was 176 billion. A lot of people are thinking it's going to go to 200 billion or more. But this is why Elon was so frustrated is he can't get enough power, okay, to expand Grock. And he wanted to get in the turbine business himself. And all that gossip about Elon getting in the turbine business did hurt temporarily. CRS, Carpenter Technology, which makes the blades and the turbines. Helmet Aerospace also makes the blaze in the turbines and those stocks have recovered and they have phenomenal forecast sales and earnings. But yeah, there's a shortage of power. There's not a shortage of natural gas. There's a shortage of power because of turbines and fuel sales. So hopefully GE Venova will uh give us some really good guidance here. I would add that their earnings is supposed to be up 182.22% and their sales is supposed to be up 20.3. This is a big company. People talked about the entry price for these three stocks. I know you didn't really like modin but what about for verdiv and g vernova >> any of dips you don't have time to set price targets right now markets are oscillating up down up down wait for a down day buy it that day hopefully it'll be up the next day cuz we're in the middle of earning season you don't have time to fine-tune the portfolio so just buy on the dip we did have a sell off in the AI related stocks they're washed out they're near the low end of the range but as these earnings come out one by one the earnings should overpower the entire sector and the whole sector This should be a lot higher 3 4 weeks from now as we go into November. >> All right. Now that everyone's feeling confident, one viewer said that they're concerned about Invent and TTM Technologies. What are your thoughts on those two stocks and do you see any red flags? >> No. Invent is the British company that makes big transformers and all kinds of great things to the electrical grid. Their uh sales are supposed to be up 36%. And then their earnings supposed to be up 53.2. The analyst have revised their estimates from 97 to $1.27 in the last 90 days and last quarter it had a 35.88% surprise and it's surprised four quarters in a row. So no lock and load on this stock. Uh it's a British company. You know that confuses some people but they make great transformers and other equipment they need for the grid. And uh TTMI's sales are supposed to be at 50.3. Their earnings are supposed to be up 87.8. The Allen have revised their estimates from 86 cents to 99 cents in the last 90 days and had a 13.8% surprise last quarter. We do recommend this stock. It's held our manage accounts. My only comment about this stock is I'm very comfortable with it surprising again, but it doesn't have the strongest surprise history of a lot of my other stocks. Now, this company makes radio frequency components. So unlike a lot of our stocks, it's not an AI place, but you know, all the drones and everything need their equipment. So they have a booming business right now. >> Okay, let's switch gears from AI infrastructure to a company a lot of people think AI could hurt. Someone asked about your latest take on Adobe. >> Well, Adobe is the PDF standard. Uh they're a monopoly, and how do I say it in a nice way? Uh it's good to be a monopoly. As long as PDF is important, they're going to be important. uh and you know they license the the PDF standard. So yeah, sales are supposed to be up 10.3, earnings supposed to be up 151. Analysts have barely changed their estimates and it has tiny surprises. So this company isn't strong enough for me to put in my portfolios, but it's not going anywhere. It's kind of like Microsoft. You want to use Microsoft software, you got to pay them an annual licensing fee. You want to, you know, use PDFs, you got to pay Adobe. So the PDF standard is a very good standard. And we just had bank earnings. So, a few of you asked about the big financials. Let's start out with JP Morgan. Their bond trading didn't make much money, but the stock still went up. >> Well, I think that's smart. Uh because, you know, when rates are going up, you lose money, and when rates go down, you make money. One reasons a lot of these bond investors like Jeffrey Gunlap are so depressed all the time is, you know, it's hard to make money when rates go up. And what they try to do instead is find the sweet spot in the yield curve when they get a fairly high yield without a lot of duration risk. But it's still very difficult being a bond investor. And there's there's junk bonds. There's other places to invest. But I do not criticize JP Morgan for throttling back on the bond trading. Now, I think what's still so odd about the bond market is we had that horrible inflation news and yields fell. And I think everybody was so excited to find the peak in inflation and then they bought it thinking that inflation might cool off in the upcoming months. But we'll see. You know, oil prices are still very high and that was the main catalyst behind inflation and because all your shipping costs are up and I was upset in the producer price index that warehousing costs were up 3.4. Now I can profit on that. I have the shipping stocks. I have the high day rates and you know I have plenty of energy stocks. I'm profiting from some of the problems out there. >> Going back to banks, what do you think about Bank of America? >> I've never liked Bank of America. You know, a lot of people don't know this, but when you transfer money, you know, the code you use, Bank of America has several of them. Oh, they got one for Florida, one for Nevada, one for California. You know, this is a national bank that has a lot of state charters within it, and it's just not as efficient. So, the first thing we learned is when your mom moved from Nevada to Florida is the ATM didn't work because it was a Florida Bank of America versus a Nevada one. So, other banks aren't like that. I've never to this day understood why Bank of America can't go with a national charter and streamline its operations. I don't recommend banks in general because I am an ex-bank analyst and I know the problems with banks and also they don't have enough growth for me anyway. They tend to be value stocks. But but yeah, Bank America is not a favorite. >> Do you hold a similar opinion to American Express? >> American Express is a credit card company and as is Visa and Mastercard and you know that's a tough business and uh but as you know American Express has new promotions for young people that capture more market share and that's that. So I'm not anti-American Express but I don't have any of the credit card companies on my radar right now. >> And one more quick question. We talked about tankers last week and a viewer wants to know about your entry price for ECO. Well, ECO is my favorite, okay? And you got to realize that this is a stock that's going to bounce around a lot. And what I would recommend is you buy it on any pullback, kind of like a tech stock, but as I talked to you, it's down 10.5% in the last 5 days. It's up 4.6% in the past month, and it's up 166% this year to date. So, any pullback is a good buy for this stock. This also thinly traded. you're not going to be able to buy too much of the stock. >> And we didn't forget about your other stock picks, but Louis is going to cover those in our next buy, sell, or hold episode. So, make sure you're subscribed so you don't miss it. Well, before we go, we have a special guest joining us, Thalus Hexure. Welcome. We want to talk about this Wall Street South Summit that you're hosting. >> Hey, hi Crystal. Hi, Louis. Looking forward to uh what's coming up. So, um, yeah, next week, Wednesday, 28th of October, here in Fort Lauderdale at the, uh, world famous Fort Lauderdale International Boat Show, we are hosting the first ever Wall Street South Summit. As some of you have probably heard, all the news about Wall Street South and the migration of asset managers from North America, South America, Europe, who are all kind of looking to Florida right now as that jurisdiction of choice. So next week we are putting it all together on a stage at a summit and uh we're going to have three panels going on. First one in the morning will be asset managers. We have some large asset managers sitting on a panel for an informal chat followed then by a panel with a a couple of investors to talk about what they're seeing where they're allocating some money. And the most exciting part of all we're going to crescendo with a wonderful keynote speak by Louis Navalier. and he's done this a few times now for us and it's been to great acclaim and every year people are asking is Louis coming back? So yeah, next week Wall Street South Summit at the Fort Lauder International Boat Show October 28th the registration starts at 8:30 a.m. We'll have opening remarks from the mayor of Fort Lauderdale, Dean Trantales. And just to put into perspective, the Fort Lord International Boat Show is the equivalent of hosting four Super Bowls in this little town of ours. So, it has a huge economic impact and it attracts the top 1% of global wealth. So, we're pretty excited. We're pumped for it. As you can see, votes are coming in. >> Can you tease our viewers what you'll be talking about? >> Well, although I'm officially retired from portfolio management, I doubled down on the newsletter business and uh we're more active than ever before and obviously we'll tell people the truth of what's going on. It's still a narrow market, but it's a stunning earnings environment. I'm very excited about the third quarter earnings. are now unfolding. We should get a January effect in an early one in November and that'll set us up for a bigger January effect in the new year. And of course, there's a lot of positive seasonality happening. So despite all the chaos in the world, America is the oasis. We are benefiting from, believe it or not, some of this chaos because we're getting a lot of capital flows from internationally into America. And of course, Florida is one of the hot spots. >> So that event is Wednesday, October 28th at the Super Yacht Village in Fort Lauderdale. So, if you want to come meet Louisie in person, the link will be in the description below. It'll be a really fantastic event, and if you guys can make it, you definitely should. As always, thank you all so much for watching. [music] Please give this video a like and subscribe to our channel. And for everyone watching, drop your stock questions in the comments, and they might make it into our next episode. [music] We'll see you this Sunday for a new episode.