Stocks in Play - January 16th 2025

TLDR Stocks in Play: SYM, TSM (Semis), SEZL, Luxury

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Irish Born Investor
January 16, 2025 • Estimated Reading Time: 5 minutes

Stocks in Play - January 16th 2025

TLDR Stocks in Play: SYM, TSM (Semis), SEZL, LUXURY

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

If you find this Newsletter helpful and ever want to say thank you then feel free to Buy Me a Coffee. It’ll inspire me to work faster….

1) Symbiotic (SYM) (Rating: B, Single-Day)

Industry Group: Industrial Machinery, Market Cap: $3.3b,  Float: 39m, Short Interest: 38%, Days to Cover: 6.8, Exchange: NASDAQ

Catalyst: Robotics/Supply Chain Management Company SYM have agreed to acquire Advanced Systems & Robotics Business from WMT for $200m + up to $350m in Add Ons. According to the company this transaction comes with additional new agreements that could increase SYM’s future backlog by over $5b and increases their TAM by more than $300b. High Short Interest and Low Float. SYM are traditionally a scammy company. While this may work well today I would be wary of a stock offering occurring.

2) Taiwan Semi (TSM) (Rating: B, Single-Day)

Industry Group: Semiconductors, Market Cap: $1.1T, Float: 5.2b, Short Interest: 0.6%, Days to Cover: 2.3, Exchange: NYSE

Catalyst: Beat on Gross & Operating Margins. Beat on Revs Guide & GM Guide. Big CAPEX Guide vs estimates. Bullish management commentary on AI Demand while other sectors are seeing a mild recovery. Management foresee a Bullish 40% CAGR on AI Accelerator demand over the next 5 Years. All Semis likely in play today off of the back of this. Particularly suppliers: TSM, ASML, SMCI, etc.

Honorable Mention to: SEZL - Company gave a vague announcement (without figures) that they would be estimates in the coming Quarter. Usually companies give numbers on these announcements. So I would certainly be treating this one with caution. They recently have had short reports against them. That being said it is a super low Float stock. Not a lot of short interest but is one that could have a big intraday move. LUXURY STOCKS - Worth noting that Richemont the Luxury brand posted Very strong numbers today. This was unexpected and sentiment around luxury product stocks has been quite negative for the past while. All of these names are soaring today: LVMH, HERMES, RACE etc. My only issue is I don’t see a good trading stock to play this. Maybe RACE might work?

Market Awareness

Broad based buying yesterday. Bullish market move. I am still sketchy that we don’t get trapped into new chop here but regardless VIX is down so my Stocks in Play work. I am going to try some swings again in my Top Pick names and see if I get traction. Progressive exposure on these and build on any success that I see.

I will take it 2 to 3 days at a time and maintain, for the most part, a hit and run singles strategy. I think next week we will see a lot of volatility with new administration kicking off with a slew of Tariffs, announcements etc. Last time around the Trump Show was a constant market mover. Season 2 is likely to be the same. We will also be getting into the meat of earnings season with some important companies reporting.

After Hours I’m Watching: JBHT, OZK (Earnings)

Tomorrow Morning I’m Watching: SLB, FAST (Earnings)

Top Pick Watchlists:

Sources & Services I Use in my Trading:

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.

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