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Cannabis companies remain in hunker-down mode as challenges persist. Those include price compression, competition from hemp-based THC product sales, and uncertainty about potential federal reform.

Not all cannabis companies are going to survive. Ayr Wellness (AYRWF) looks like it is about to go under. I’ve only ever kept a very small position in that name, so the company’s demise did not cause too much damage.

Things haven’t been pretty in this market, to say the least. The summer rally topped in the middle of August, and it’s been downhill ever since. In September, the selloff became more inclusive and took just about everything down, including previously buoyant defensive stocks.
The main catalyst for the selling was the August inflation numbers that came out in September. Core inflation was far worse than expected, at a time when investors were hopeful that inflation had already peaked and there would be a light at the end of the tunnel. The market, which doesn’t take disappointment well, has since priced away most of that hope.

Here’s my final Best Revolutionary Stock to buy. It’s YY Inc., whose symbol, appropriately enough, is YY.

Recently, we’ve been adding very aggressive, high-growth names. These potential moonshots are a lot of fun to research and buy, but we need to maintain balance in our portfolio.

This month we’re going with more of a Steady Eddie-type, a small-cap company with a measured growth profile that features sustainable top line growth, significant EPS, and enough cash flow to fund both dividend payments and share repurchases.



I think in a few years we’ll look back and say it was one of the better investment decisions we made in 2021.



Enjoy!

Health Management Associates Inc. (HMA, NYSE) owns and operates general acute care hospitals and psychiatric hospitals in rural and nonurban communities. ... We are raising our target price to $11 on BUY-rated Health Management Associates. We believe the company has opportunities to grow its top line and to expand the...

Declining markets tend to bring on attacks by short-selling specialists, and today that’s what has happened to GDS Holdings (GDS)

CS Disco (LAW) reported Q1 numbers that surpassed expectations. Revenue rose 63.5% to $34.5 million (beating by $3.8 million), while adjusted EPS of -$0.15 beat by $0.06.

This month we’re jumping into a small MedTech company that represents a picks and shovels play on the cell and gene therapy market. It makes biopreservation media and storage solutions for cutting-edge treatments, including Kite’s (owned by Gilead) CAR T-cell therapies YESCARTA and TECARTUS.

It’s a high growth company with exposure to both clinical trial and commercial-stage therapies. Covid-19 therapies and vaccines are part of the mix too. And there is an M&A angle that’s increasingly relevant.



The stock appears to have huge upside over the coming years. And we’ll get an update from management almost immediately after you read my reports since the company reports Q3 earnings after the close today.



All the details are inside. Enjoy!

Current Market Outlook


Two weeks ago we saw a bunch of positive earnings reactions that bolstered leading stocks, but last week was mostly the reverse—the leaders that had been running for months took on water, often reacting poorly to earnings and/or share offerings. Of course, while we see a few storm clouds, it’s not a hurricane, as the major indexes are in good shape and there are a growing number of “fresher” leaders (just getting going in the past few weeks) that are still acting just fine. All in all, the majority of the evidence is bullish, so we are as well, but it’s a stock-by-stock environment—many names look fine and are even buyable (preferably on weakness), but if you do have some extended stocks that are wobbling, have a plan in place (tightening stops, partial profits, etc.) in case the sellers gain strength.

This week’s list contains many of those fresher leaders mentioned above, including a few that have taken off on earnings. Our Top Pick is Zillow (Z), which should be a great bet to benefit from the new housing boom.

Stock Name	Price	Buy Range	Loss Limit
Agnico Eagle Mines (AEM)	79.05	79.5-82.5	71-73
Chart Industries (GTLS)	72.05	69-73	59-61
Digital Turbine (APPS)	24.75	21.5-24	17.5-19
Freeport-McMoRan Inc. (FCX)	13.78	13.3-14.5	11.5-11.9
Freshpet (FRPT)	107.99	99-102.5	89-91
LivePerson (LPSN)	58.55	55-58.5	47-49
Maxar Technologies (MAXR)	27.02	22-23.5	20-20.5
Ollie’s Bargain Outlet (OLLI)	103.94	100-103.5	91-93
Taiwan Semiconductor (TSM)	78.41	75-78	68-70
Zillow (Z)	76.64	77-80	67-68.5

Current Market Outlook


Most of the issues the market had been suffering from are still out there—even after today’s rally, the intermediate-term trend of the major indexes is questionable at best (still technically down), while relatively few stocks are really moving ahead (the number of new highs remains tame). That said, we have begun to see support show up in the market, partially in the indexes but more so among leading (and potential leading) stocks; we’re seeing many show resilience and a bunch begin to set up in legitimate launching pads. That doesn’t mean these stocks are guaranteed to get going, but it’s a first step to keep an eye on going forward.

This week’s list contains a group of names that’s attracting money, including a few that have popped on news. Our Top Pick is CrowdStrike (CRWD), which is one of the few growth-oriented stocks that’s actually been slowly pushing higher in recent weeks as the market has come in.

Stock Name	Price	Buy Range	Loss Limit
Blueprint Medicines (BPMC)	88.88	84.5-87.5	77.5-79.5
CrowdStrike (CRWD)	137.38	133-138	117-120
Digital Turbine (APPS)	30.98	28-30	24.5-25.5
DraftKings Inc. (DKNG)	56.91	54-58	45-47
Generac Holdings (GNRC)	190.24	180-185	165-168
JinkoSolar Holding (JKS)	37.78	34.5-36.5	29.5-31
Owens & Minor (OMI)	21.67	19.5-20.5	17-18
QUALCOMM Incorporated (QCOM)	118.47	115-119	105-107
Sea Limited (SE)	160.00	156-161	138-141
Square, Inc. (SQ)	160.79	157-162	140-143

Current Market Outlook


From a top-down perspective, the issues that have surrounded the market are still hanging around—the intermediate-term trend is basically neutral, relatively few stocks are plowing ahead (many below their 50-day lines, fewer names hitting new highs, etc.) and every week or so there’s usually some news-driven rotation into or out of one section of the market. And yet, from a bottoms-up perspective (looking at individual stocks), we’re seeing more to like—more multi-month setups from growth stocks (and even some tidy six- to eight-week structures for cyclical names) and more big-volume breakouts or upmoves, often spurred on by earnings reports. We’re leaving our Market Monitor where it is today, but a good week of earnings reactions will have us extending our line.

Stock Name	Price	Buy Range	Loss Limit
Advanced Micro Devices (AMD)	109	104-109	94-96
Alcoa (AA)		38.5-40.5	34-35.5
Align Technology (ALGN)	700	685-702	625-635
ArcelorMittal (MT)	34	33-34.5	30-30.5
Atlassian (TEAM)	323	305-315	275-280
Dynatrace (DT)	64	62-64.5	55-57
Hilton Worldwide Holdings (HLT)	128	126-128.5	117-119
Monolithic Power (MPWR)	454	430-442	382-389
Old Dominion Freight Line Inc. (ODFL)	267	263-269	246-249
Repligen (RGEN)	248	233-240	208-212

Current Market Outlook


We continue to see more good than bad in the market as an increasing number of growth stocks move into new high ground, many other growth stocks set up nicely and even some cyclical names are getting into the act, rounding out nice launching pads. Still, there’s no question the chop factor is still real, as the vast majority of names that pop higher generally attract sellers for at least a couple of days, with more than a few sinking right back to where they started. Overall, we are encouraged by the rising level of leadership, so we’re nudging our Market Monitor up to a level 7, but the game plan remains generally the same—we favor starting small and/or buying on dips or consolidations, while focusing on stocks showing outsized accumulation.

This week’s list is another chock-full of recent earnings winners and other names showing excellent action. Our Top Pick is Alnylam Pharmaceuticals (ALNY), which has lifted off nicely and has a great story.

Stock Name	Price	Buy Range	Loss Limit
Albemarle Corporation (ALB)	231	218-227	195-199
Alnylam Pharmaceuticals (ALNY)	200	195-202	174-177
Datadog (DDOG)	130	124-128	110-112
Goldman Sachs Group, Inc. (GS)	400	394-404	375-380
Lending Club (LC)	26	25-27	21-22
Lightspeed POS Inc. (LSPD)	93	90-93.5	81-83
ON Semiconductor (ON)	45	44-46	40-41
Paycom Software (PAYC)	469	448-462	405-414
Under Armour, Inc. (UAA)	25	24-25	21.5-22
ZoomInfo (ZI)	61	59-62	52.5-54.5

There have been a few times this year when the onus was on the bulls to snap the market out of a downturn, correction or choppy period—and, happily, in most cases they did. Now the shoe is on the other foot: Yes, there are some worries out there, with a lot of stuff extended to the upside and some signs of complacency, but the vast majority of rubber-meets-the-road evidence remains positive, with the major indexes in strong uptrends, a ton of fresh breakouts (including many from names that built launching pads for five to eight months) and little in the way of pullbacks. As we’ve been writing, you shouldn’t get crazy and lose all risk discipline or start buying fly-by-night operations, but overall, there’s no question the evidence tells us to remain bullish. We’ll nudge up our Market Monitor to a level 8 today.

This week’s list features a ton of names that have recently lifted off on earnings, and from a variety of industries, too. Our Top Pick is Arista Networks (ANET), which is a high-priced stock but showed extreme power and a change in character after a great quarterly report and multi-quarter outlook last week.

Stock Name	Price	Buy Range	Loss Limit
ABNB (ABNB)	200	195-200	175-178
Arista Networks (ANET)	526	515-535	453-468
Canada Goose Holdings (GOOS)	49	47-49.5	42-43.5
CFLT (CFLT)	88	82.5-85	72-74
Devon Energy (DVN)	44	42-44.5	36-37
EOG Resources, Inc. (EOG)	97	94-97.5	84-85.5
KLA Corp. (KLAC)	413	395-410	357-367
ON Semiconductor (ON)	59	56.5-59.5	50-51.5
Planet Fitness (PLNT)	96	93-96	84-86
ZoomInfo (ZI)	74	71-74	63-64.5

Last week was an awful one for growth stocks, many of which had already been sitting well off their highs and then were taken apart as the calendar flipped, with 15% to 20% declines seen in some former leaders last week alone. To be fair, some areas actually acted decently—in our screens this week, it wasn’t hard to find good-looking commodity, semiconductor, financial and industrial stocks—and there are names that may be near good entry points. The trick, though, is that the selling appears to be broadening out: Today saw declines across the board (led again by growth stocks), with even resilient areas getting hit. We never catch falling knives, but in the near term, a bounce wouldn’t shock us, as the selling has beenpunishing and has become very obvious. Still, that’s like picking up nickels in front of a bulldozer—a nibble here or there is fine, but there’s not much to like from an intermediate-term perspective, so caution remains the best stance.

This week’s list contains a bunch of commodity and more reliable performers, a sign that big investors continue to favor steadiness and defense rather than aggressive situations. Our Top Pick is a steady performer with a low valuation and a great cash flow outlook.

Last week was another constructive week, with the major indexes surviving some early volatility to finish the week higher—and with more leading (and potential leading) stocks perking up as they round out multi-week launching pads. It’s pretty obvious the intermediate-term evidence has improved during the past couple of weeks, though we wouldn’t say it’s all clear out there, as the major indexes and growth measures are moving into the thick of resistance, and this week brings an avalanche of earnings reports from key stocks, so it’s still very much a day-by-day process here. Even so, we always go with what’s in front of us—we’ll nudge our Market Monitor up to a level 7 and could go higher if more individual names kick into gear.

This week’s list has a bunch of recent earnings winners, some of which are out to new highs, while others are setting up. Our Top Pick is one of the former that has a great near- and longer-term outlook in the aerospace and defense area.