A roundup of what The Globe and Mail’s market strategist Scott Barlow is reading today on the Web
I don’t usually discuss individual stocks, but NVIDIA Corp. is a special case.
The maker of graphics processing units was dubbed “the smartest company in the world” by M.I.T. and provides a benchmark for the development of artificial intelligence.
NVIDIA reported blow-out earnings after the close Thursday and has already generated a ridiculous three year average annual return of 133.5 per cent. (Disclosure: a close family member owns a position in the stock),
“Chipmaker Nvidia sees fewer crypto miners, more gamers in future” – Reuters
“@bespokeinvest This quarter, NVIDIA $NVDA reported an almost unprecedented 11th earnings triple play in a row dating back to Nov. ’15. Beat EPS, beat revs, raised guidance. These are the prior 10 from our Earnings Screener bespokepremium.com/earnings-scree…: ’ – (table) Twitter
“@SBarlow_ROB NVDA is ridiculous “ – (performance chart) Twitter
“‘The smartest company in the world’: Why this stock could be a solid bet for future riches” – Barlow, Inside the Market (July 12, 2017)
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Merrill Lynch energy strategist Francisco Blanch sees a very good chance of $90 oil in early 2019 and a potential price spike to $100,
’Oil prices look set to temporarily hit $90 a barrel during the first half of next year, if not sooner, and risk spiking to as much as $100 a barrel, depending on geopolitical events and other factors, say Bank of America Merrill Lynch analysts. “Looking into the next 18 months, we expect global oil supply and demand balances to tighten driven by the ongoing collapse in Venezuelan output. In addition, there are downside risks to Iranian crude oil exports. Plus we see a high likelihood of OPEC working with Russia in 2019 to set a floor on oil prices,” they wrote.”
“Oil prices risk spiking to $100 next year, Bank of America analysts say” – CNBC
“@SBarlow_ROB ML: Chance for $100 oil not reflected in asset flows” – (research excerpt) Twitter
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Bank of Montreal strategist Brian Belski reiterated his view that the TSX is a ‘coiled spring’ and set to outperform U.S. equities,
“One of the defining characteristics of Canadian stock market price performance has been a penchant for “fits and starts” trading patterns. For instance, while the TSX has managed a positive CAGR since the 2009 global market lows, Canadian stocks have also exhibited two corrections greater than 20% since these lows. In fact, the TSX now has more pullbacks greater than 6% than in any other post-bear market period since 1974 … Our work shows shifting relative expectations have been a major driver of these fits and starts, with troughs in relative expectations being a strong contrarian indicator of forward relative price performance. In fact, history shows that troughs in our relative revisions composite and troughs in relative [net to market] EPS growth have led to TSX outperformance vs. the S&P 500 by 2% over the following six months. As such, with relative expectations troughing, we believe Canada is poised to tactically outperform over the next few quarters.”
“@SBarlow_ROB Belski on TSX as ‘coiled spring’, set to OP” – (research excerpt) Twitter
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Tweet of the day:
Diversion: “Google just gave a stunning demo of Assistant making an actual phone call” – The Verge
Scott Barlow