ThePeachPit Model Portfolio Ep. III
This week's episode contains trading & investment updates across tech, uranium, and industrial names within the model portfolio.
This last week was slow in terms of new company coverage. Aside from Friday’s report covering UEC, the only names I brought to light were Baker Hughes, Marathon Digital Holdings, and an update to EVgo. I did manage to squeeze out Broadcom (NASDAQ: AVGO) over the weekend with some additional insights into the consumer & corporate AI trends.
Uranium Energy Corp. (NYSE: UEC)
Marathon Digital Holdings (NASDAQ: MARA)
Of the four companies, Uranium Energy Corp. and Baker Hughes are the only names being added to the focus list. I believe Baker Hughes has the potential as a long-term turnaround play. Marathon Digital Holdings poses some significant risks in relation to operations and viability as a bitcoin proxy, info I cover extensively in the report. EVgo is just the same story, different CEO. I don’t think I will ever be bullish on EV charging pureplays. Though I have a certain degree of appreciation for their business model, acting as a utility for consumers, I do not anticipate the level of EV adoption needed for the firm to become net profitable. I recommend taking a peek at the EVgo report as I dig into the economics behind electric vehicle ownership and ask the hard questions relating to both ownership and repeat ownership as we near the end of the first cycle.
Nvidia (NASDAQ: NVDA)
This last week ended with some excitement with a big fat red candlestick added to NVDA’s stock chart. A major shift to market sentiment, which doesn’t appear to be showing up across their investors quite yet, pulled the stock back -5.55% off its all-time high. Despite this minor headwind, shares still remain up 78% YTD and the market appears to remain in bullish territory for the name.
Looking at the hourly chart, short-term bearish sentiment appears to be taking some form and may pull shares further down throughout the week as the market digests this monster of a multi-year rally.
It’s probably about time for some retracement. Despite the shares far surpassing my price target of $666/share dated January 10, 2024, I can see this name to continue its trajectory as the stock touches up on multiple surfaces. From an investor’s standpoint, the company is highly profitable, has an abnormally high growth rate above competing AI-related semiconductor designers, and new market entrants should take up excess capacity, not eat at Nvidia’s market share. From a trading standpoint, the name has a massive following for both retail and institutional traders, providing significant liquidity in a normal market.
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