Apple’s Project Titan Fuels Fisker Stock
The market was steady this past week as the Federal Reserve completed its two-day meeting and announced plans to end its stimulus program but keep rates unchanged. Some highlights among Explorer stocks:
Fisker (FSR) had a nice move this week based on rumors and announcements. First, there is a rumor out there that Apple will acquire Fisker as part of its Project Titan. The company also announced a battery supply deal just yesterday with CATL, the huge Chinese battery company, so they have at least some of the battery supply they’ll need from 2023-2025. Recall that Fisker, with its asset-light strategy, plans to have Magna manufacture cars in Europe in time for the debut of its Fisker Ocean electric SUV to be available in late 2022.
Novonix (NVNXF) shares were up another 20% this week, reaching 6. The company is a non-Chinese synthetic graphite producer, making Novonix immune to any potential disruptions caused either by Chinese politics or its international trade disputes.
ChargePoint Holdings (CHPT) shares have made a nice move over the last month, up 28%. The stock is still well below its 52-week high.
Sea Limited (SE) shares have soared from 312 to 355 in the past month-plus and are up 77% this year—and more than 1,000% the last two years!
We have had some duds too recently, such as Else (BABYF), but we quickly cut our losses on those.
Even Apple, the darling of Wall Street, is facing supply chain woes despite all its leverage. Its products require the coordination of an extensive range of inputs from rare earths to semiconductors before assembly by Foxconn in Asia. Apple’s iPhone 13s have about a two-week wait time for delivery.
I’m researching new stock ideas that take advantage and profit from these complex supply-chain issues. I hope to have one for you in next week’s issue.
Portfolio Updates
Bombardier Inc. (BDRBF) shares were off a bit in their third week as an Explorer recommendation. Bombardier is a global leader in aviation and a play on renewed activity in private and corporate markets. Headquartered in Montréal, Canada, Bombardier is active in more than 12 countries and supports a worldwide fleet of more than 4,900 aircraft in service with a variety of multinational corporations, charter and fractional ownership providers, governments and private individuals.
Bombardier recently received a firm order worth $534 million of an upgrade to its Challenger 350 aircraft, marking its biggest business jet deal this year. Momentum for the sector and company is picking up and the stock is in a clear positive trend. BUY A HALF
ChargePoint Holdings (CHPT) shares have made a nice move over the last month, up 28% on the back of developing an EV-charging network. The company offers drivers in North America and Europe more than 118,000 places to charge their electric vehicles (EVs) and has 200,000 partner ports. The company just completed another acquisition of a platform in Europe. This lead is a huge advantage because of partner network effects so while competition is intense, I believe that the stock is a buy at its current levels with good momentum. BUY A HALF
Cloudflare (NET) shares continued their strong performance, advancing from 178 to 195 and now up more than 150% so far in 2021 as we look for earnings results later today. Cloudflare provides network security, performance and reliability services to a growing portion of global web traffic. I’m going to keep this a hold though more aggressive investors can add to their position. Cloudflare has been a steady performer aided by its aggressive sales strategy, the fact that the company is protected by several moats, its deal with Microsoft, and that the co-founders are significant shareholders. You should take some partial profits. HOLD A HALF
Coupa Software (COUP) shares increased five points in the stock’s first week as a recommendation. Coupa specializes in software, providing cloud-based business through its spend management platform. Its platform connects organizations with suppliers globally, and provides visibility into and control over how companies spend money, optimize supply chains, and manage liquidity, as well as enables businesses to achieve savings that drive profitability.
Coupa has a strategic joint venture with Japan Cloud Computing and it has an app that allows clients to integrate data and tools with companies such as Microsoft and Workday. The company already has 2,000 clients including Amazon and Wal-Mart, with some estimating its potential target market at $94 billion. While the company is still unprofitable, in its most recent quarter Coupa’s revenue surged 42% and free cash flow reached $643 million. BUY A HALF
Fisker Inc. (FSR) shares were up nicely on rumors of being acquired by Apple and a China deal for EV batteries (please see my introduction for more information). As expected, the company lost $110 million, or 37 cents a share, in the quarter, compared with a loss of $46 million, or 16 cents a share, in the year-ago period. Fisker offers investors a custom, “asset light” and “Apple of autos” strategy relative to EV maker leaders like Tesla. Its Ocean EV has a sub-$40,000 retail price point, making it a more affordable EV option. But we have to accept that the company’s first product will be launched in the latter part of 2022, perhaps ahead of some its bigger competitors. This is an aggressive stock but I confirm a buy rating on Fisker. BUY A HALF
Marvell Technology Group (MRVL) should report earnings later today as the stock stayed firm this week. Marvell’s semiconductor chips are used in a number of growth applications such as 5G wireless networks, cloud computing, automotive, and industrial markets. Several Wall Street analysts have raised estimates and Credit Suisse recently upgraded the stock, calling Marvell “one of the most strategic assets“ in semiconductors.
Marvell’s semiconductor products are state-of-the-art and in high demand, allowing businesses and consumers to take advantage of 5G capabilities. I recommend buying this stock if you have not already done so. BUY A HALF
Novonix (NVNXF) shares were up 20% from 5 to 6 this week and are up well over 120% since being added to the Explorer portfolio a few months ago. The company’s mission is to support the global deployment of lithium-ion battery technologies for a cleaner energy future.
Based in Australia, the technology and advanced materials supplier is focused on synthetic graphite for the electric vehicle and storage battery industry. Novonix, which has a partnership with Phillips 66, is a non-Chinese synthetic graphite producer, making it immune to any potential disruptions caused by either Chinese politics or its international trade disputes. This is an aggressive idea but this stock is a play on an important clean technology. If you’ve owned the stock since our initial recommendation, I would take partial profits here. BUY A HALF
Palantir Technologies (PLTR) shares edged up this week to break out of the 23-25 range the stock has been stuck in over the past several months despite posting some very good numbers. However, this “big data” market opportunity is massive and could lead to growth in the years ahead. Double-digit sales growth and the chance that the company may turn its first annual profit in 2021 may spur the stock forward. Palantir is driven by its two core platforms: Gotham, which serves government clients, and Foundry, which provides services for enterprise clients. Its third platform, Apollo, provides cloud-based updates to both markets. HOLD A HALF
Sea Limited (SE) shares soared from 340 to 353 int the past week and are up 77% this year—and more than 1,000% in the last two years! The company expects that its e-commerce revenue will grow 121% in 2021. Sea’s aspirations are increasingly centered around its global e-commerce arm Shopee’s plans to expand into Poland, India and Spain and is looking at Brazil and France. I also see further potential upside to Sea because of strong momentum in its gaming portfolio and increasing fintech revenues. I would be an incremental buyer of this stock but long-time holders should definitely take partial profits. BUY A HALF
Veeco (VECO) came out with quarterly earnings of $0.40 per share, beating expectations of $0.35 per share. Shares reacted positively, jumping from 24 to 27 this week.
This is an American high quality provider of state-of-the-art semiconductor fabrication equipment. The company delivers the leading edge technology to U.S.-based and international high-end class chipmakers, some of which are 100% reliant on Veeco’s technology. Revenue growth for 2021 may be up 30% and earnings growth may be even better. Veeco represents a backdoor play on semiconductors.
I recommend that you acquire shares if you have not already done so. BUY A HALF
Virgin Galactic (SPCE) shares added a point this week, falling just short of 20, after being moved to a speculative buy. I’m still bullish on this high-risk stock but I admit they have missed targets and there is more competition out there, such as Blue Origin. The company has to right the ship and end the delays. BUY A HALF
| Stock | Price Bought | Date Bought | Price 11/3/21 | Profit | Rating |
| Bombardier Inc. (BDRBF) | 1.66 | 10/14/21 | 2 | 1% | Buy a Half |
| ChargePoint Holdings (CHPT) | 21 | 8/19/21 | 25 | 17% | Buy a Half |
| Cloudflare, Inc. (NET) | 24 | 4/30/20 | 195 | 713% | Hold a Half |
| Coupa Software (COUP) | 231 | 10/28/21 | 235 | 2% | Buy a Half |
| Else Nutrition Holdings (BABYF) | - | - | - | - | Sold |
| Fisker (FSR) | 15 | 2/4/21 | 18 | 20% | Buy a Half |
| Glaukos (GKOS) | - | - | - | - | Sold |
| Marvell Technology Group (MRVL) | 50 | 4/1/21 | 69 | 39% | Buy a Half |
| Novonix (NVNXF) | 2.24 | 8/6/21 | 6 | 181% | Buy a Half |
| Palantir Technologies (PLTR) | 22 | 5/27/21 | 26 | 17% | Hold a Half |
| Sea Limited (SE) | 15 | 2/8/19 | 354 | 2280% | Buy a Half |
| Veeco Instruments Inc. (VECO) | 23 | 9/10/21 | 27 | 18% | Buy a Half |
| Virgin Galactic (SPCE) | 7.34 | 12/5/19 | 20 | 172% | Buy a Half |