Sell Fortrea Holdings (FTRE); Buy Pan American Silver (PAAS)
Fortrea Holdings (FTRE) has exceeded the limits of my patience for how much weakness I’m prepared to endure in a stock that is actively making new 52-week lows.
While the stock initially showed promise in the wake of activist intervention late last year (from Corvex Management and Starboard Value), the company’s recent decision to cancel its planned attendance from two sell-side conferences—and with no subsequent follow-through explanation—also lends itself to a certain level of discomfort.
In view of these considerations, I’m recommending that we exit FTRE as of today. SELL
To fill the gap in the portfolio created by the FTRE exit, I’m also recommending that we re-enter Pan American Silver (PAAS). With silver undervalued compared to gold (per the gold/silver ratio), and with the white metal facing huge potential demand (as an electrical conductor) from the extraordinary power generation demands relating emerging technology applications like AI and alternative energy, Pan American is well positioned to benefit from the bullish longer-term trends.
Therefore I’m placing PAAS in the portfolio with an upside target of 30. (Earnings are due out February 11.) BUY
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