Simple - Only Own Companies With Revenue Growth With Accelerating Margins

person using MacBook Pro on table

Image Source: Unsplash
 

“Find something you’re passionate about and keep tremendously interested in it.” - Juia Child


Market Commentary

Simple- only own companies with revenue growth with accelerating margins

  • I am looking forward to The MoneyShow February 17-19th in Las Vegas. I will be speaking three times there. I am interested in the sentiment of the large crowd, and hearing from the other speakers.
  • “Let’s Give Growth a Chance” – is my idea for a new song for the new administration. It will solve our debt problems. Just like my Magnet model looks for revenue growth, we are not focused only on cost cutting.
  • Over half of all public company’s stock prices are now above their own 200 day moving averages. This is up dramatically from only 25% from last year. Money has already begun to shift out of the handful of favorites. This is positive for the markets just not for the indexes.
  • The new 52-week low list expanded again. The advance/decline lines have once again deteriorated and look too weak for comfort. This is a dangerous market. Do not chase anything here, be patient – even great stocks pull back.
  • The exaggerated moves being made by large cap quality companies is making a mockery of fundamental analysis. Up and down gap reactions to earnings will pull more investors out of the market for individual stock holdings.
  • The Trust 200 Index is up 6.6% already for the year. Imagine just investing in a portfolio of only 20-30 of the most trustworthy and profitable companies. You might not need to follow the news so closely.

Follow The Trust 200 index at this link.

Here is a link to the FOX Business segment from 9/30/24 where I share my current best companies to consider and overall market views. Applovin (APP) was $93, today it is $375 and was profiled in Investors Business daily this week. Magnet brings us in early.


Economic data and market clues

Inflation is 3%, bonds yield 4.5%- move on, there is not much more to think about here. This is a time to own rather than lend. You just need to own the right things.

The pro-growth and America first policies of the new administration is the real key. It has kick-started small business, consumer, and stock market optimism. Despite obstacles and potholes, the environment is now set for winners to win. Just do not count on a straight line up.

Magnet® :

 

Byrna Tech BYRN

Innodata INOD                  

Super MircoSMCI            

FACTS:

Technip FMC FTI

Uber Tech                   UBER

Vista Energy ADR       VIST


More By This Author:

No Need To Over-Reach Now- There Are Enough Great Looking Companies.
“Let’s Give Growth A Chance” – A New Song For The New Administration
Do Not Get Caught Holding Story Stocks- The Market Is Unforgiving

Jordan Kimmel is the Managing Member and Portfolio Manager for The Magnet Fund. Securities discussed may be held in portfolios managed by The Magnet Fund. Members of the staff of Jordan ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Or Sign in with