2019年10月30日星期三

Today's New Buy Pick - Digi International Inc. (DGII)

The Fed Is About To Reduce Rates Again

The Federal Reserve is widely expected to reduce its  benchmark interest rate by 25 basis points today. Their decision will be  announced at 2:00PM EST, with Chairman Jerome Powell's news conference  on the decision scheduled for 2:30PM EST. The market will be looking for  clues about where the Fed will go from here...  

Earnings season marches on today, with Apple, Facebook, and Starbucks all reporting after the bell. General Electric  shares are up nearly 12% at the time of writing after the industrial  conglomerate reported an earnings beat this morning and raised its 2019  cash flow forecast. On a non-adjusted basis, GE still lost $9.5 billion  in Q3, but earnings per share came in at $0.15 on revenue of $23.36  billion ...


Investors are capitalizing on the Electric Vehicle trend by investing directly in the world's future suppliers of lithium, aka the white petroleum. Deutsche Bank expects lithium demand to increase to 534,000 tonnes by 2025 with battery manufacturers accounting for the bulk of that usage. Inside, we'll look at one such mining company that now controls over 4.8MT of the white stuff. (ad)

 

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A little over a month ago in this space, I highlighted Goodyear Tire & Rubber Co. (GT)  as a stock that offered a nearly compelling value argument. This icon  of American business has really been beat down for most of the past two  years, as broader industry trends pointed to weakening automotive sales  growth on a global scale along with price volatility tied to oil prices  as well as trade uncertainty.

In many ways, the auto industry (and the  stocks like GT that are tied to it) has acted as a proxy for uncertainty  about tariffs between the U.S. and its trading partners since early in  2018, so I suppose it isn't that surprising to have seen a number of the  fundamental metrics that I use showing significant signs of  deterioration in recent quarters.

 

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Featured Stock

Digi International Inc. provides Internet of Things connectivity   products, services, and solutions in North America, Europe, the Middle   East, Africa, Asia, and Latin America. The company operates in two   segments, IoT Products & Services and IoT Solutions.

It offers   cellular routers that provide connectivity for devices over a cellular   data network; cellular gateway products that enable devices or groups of   devices to be networked in locations where there is no existing  network  or where access to a network is prohibited; radio frequency  products  that utilize a range of wireless protocols for PC-to-device or   device-to-device connectivity; and Connect, Rabbit, and ARM-based   embedded systems on module and single board computers for medical,   transportation, and industrial device manufacturers  
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(AEM) Buy Target – $59.25 or better  


 
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