Stocks in Play - December 13th 2024

TLDR Stocks in Play: AVGO, RH, EVGO

Welcome to today's Stocks in Play report. Below are the key stocks to watch, along with brief x-ray and analysis.

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1) Broadcom (AVGO) _{(Rating: B+, Multi-Day, Top Picks December}🐶 ₎

Industry Group: Semiconductors, Market Cap: $843.75b, Float: 4b, Short Interest: 1.45%, Days to Cover: 3, Exchange: NASDAQ

Catalyst: This was all about the Call. Slight Beat on EPS, Tiny Miss on Revs, Miss on FCF, Q4 Guide Inline Revs Guide, EPS Guide Beat. Then some Very Bullish commentary on the call made the stock soar. The company believes it’s opportunity is huge. $70b alone in 2027. Two new hyperscaler customers and big orders across all segments. They also poured cold water on the idea that their relationship with Apple was on the rocks. Like NVDA the actual numbers here are huge 50% YoY growth at this scale is difficult to even comprehend. I expect all Semiconductors to be in play here today and possibly kick start another sustained run.

2) EVgo Inc. (EVGO) (Rating: C+, Single-Day)

Industry Group: Retail Trade, Market Cap: $661m, Float: 96m, Short Interest: 35%, Days to Cover: 4, Exchange: NASDAQ

Catalyst: Closes on $1.25b Guaranteed loan facility from U.S Dept of Energy. This was previously announced but the finalizing of it may be enough to kick off a squeeze. Huge short interest and a reasonable float. Reasonable volume pre market. Expect volatility, I find these squeezes tend not to happen immediately at open though this is anecdotal at best.

Honorable Mention to: RH - Pretty poor earnings last night, misses all round, but the CEO is a salesman and keeps spinning a big inflection moment for the company. The earnings call was rambling with the CEO even referring to the stock price move after hours on the call (not a good sign). Stock had a big 15% reaction last night on this. There are a lot of people trying to short this on fundamentals and the fact the company will almost certainly need to raise money soon as it’s debt mounts. I’m open minded on this today though I am leaning more that it may be a fade than a long.

Market Awareness

I’m bullish today I think the AVGO earnings were enough to spark a nice end to the week. I’m looking to see a broad based rally focusing on big cap stocks. Focus today mainly on Semiconductors. We will however have a sizable gap at the open in the Indices so caution warranted I won’t be diving in at the open. Looking for nice technical intraday setups on strong stocks and delayed reaction swings in Top Picks.

Top Pick Watchlists:

• Top Picks - November 2024

  • LONG: ALAB, HNST, SNOW, ESTC, RKLB, SMTC, URBN, PLTR, GAP, TSLA, SE, RDDT, DESP

  • SHORT: TGT

• Top Picks - December 2024 

  • LONG: CRDO, MRVL, OKTA, FIVE, RBRK, AVGO

Sources & Services I Use in my Trading:

• Finviz - Short Interest, Float, Articles, Fundamentals (Free)

• Benzinga Pro - News Source + News Squawk + Earnings Data (Paid)

• Tradingview - Charting & Scanning (Paid)

• Koyfin - Fundamental Data (Paid)

• EarningsWhispers - Earnings Calendar (Free)

• Finchat - Fundamental and KPI Data

• Tradersync - Trade Journal (Paid)

_{PS: There are many ways to trade stocks in play. It does not have to be the one that keeps going straight up and sometimes it doesn’t even have to be day one of the catalyst. Everyone must find a setup, timeframe and method that works for them. This list is supposed to educate on the criteria I use and the methods in which I find Stocks in Play. Yours may differ and that is completely okay.}