Advisors In Focus- November 13, 2020

Happy Friday everyone! We hope you are staying safe as the second wave of coronavirus cases wash onto shores. The news is leading to more shutdowns and is impacting holiday plans. Markets, being forward looking instruments, have remained resilient on the idea that a vaccine is on the way and this short-term pain will eventually give way to longer term opportunities. With opportunity on the mind, let’s look at some of the names your clients researched this week.

The top searches by your clients will not come as a big surprise. Large Cap Tech, Cannabis, and electric vehicles continue to remain in focus. Pfizer (PFE) and Alibaba (BABA) attracted plenty of interest given the vaccine news for PFE and Single’s Day/Regulatory issues for BABA. While the roll over in EV plays today represent a potential blow off top that will be closely examined, the name we want to focus on is in an equally strong area that may have fallen from headlines but not your clients’ radar.

TrackStarIQ Data

Here are some highlights from Retail searches this week –

TOP STOCKS – BY Retail (Total Traffic) This WeekTickerTOP STOCKS- BY RETAIL (Surge Traffic) This WeekTickerTOP ETFs By RETAIL (Total Traffic) This Week
Sundial Growers IncSNDLGreenland Technologies Holding CorpGTECSPDR S&P 500 ETF
Nio IncNIOFuel Tech IncFTEKInvesco QQQ
Alibaba Group HoldingBABAGenfit S.A. ADRGNFTARK Innovation ETF
Pfizer IncPFESummit Therapeu ADRSMMTProShares Ultra VIX Short-Term Futures
Apple IncAAPLFive Prime TheraFPRXSPDR Gold Trust
Eversource EnergyESSummit Semiconductor IncWISAProShares UltraPro Short QQQ
Aurora Cannabis IncACBPlandai Biotechnology, Inc.PLPLProShares UltraPro QQQ IncAMZNTrxade Group IncMEDSiShares Silver Trust
Tesla IncTSLAVoyager TherapeutVYGRTechnology Select Sector SPDR Fund
Zoom Video CommunicationsZMImmuron LtdIMRNiShares Russell 2000 ETF
Rocket Companies Inc RKTMyomo IncMYOSPDR Dow Jones Industrial Average ETF
Beyond Meat IncBYNDPerformant FinancialPFMTInvesco Solar ETF
Boeing CompanyBA Vaccinex IncVCNXEnergy Select Sector SPDR Fund
Inovio PharmaINOGaslog Partners LPGLOPVanEck Vectors Gold Miners ETF
Sorrento TherptSRNERevlon IncREViPath Series B S&P 500 VIX Short-Term Futures ETN
Workhorse GrpWKHSLands’ End IncLEiShares 20+ Year Treasury Bond ETF
Plug Power IncPLUGPerformance Shipping IncPSHGU.S. Global Jets ETF
Adv Micro DevicesAMDTitan InternationalTWIFinancial Select Sector SPDR Fund
Microsoft CorpMSFTVital Farms IncVITLETFMG Alternative Harvest ETF
Nvidia CorpNVDAGraybug Vision IncGRAYARK Web x.0 ETF

Rocket Mortgage (RKT) came in at #11 in Total Traffic searches. RKT is a mortgage originator that rolled out it’s initial public offering back on August 6. RKT posted third quarter earnings on Tuesday, which has garnered the interest of retail clients. The company has taken advantage of the recent migration from cities to suburbs as it witnessed its best quarter of originations in it’s 35-year history. Origination volume was up 122% yr/yr, Gain on Sales increased 37% yr/yr, Net Income was up a whopping 506% yr/yr, and Adjusted EBITDA improved 338% yr/yr. Shares of RKT remained near post-IPO lows though as the company warned of a deceleration of originations in its fourth quarter. This has introduced the idea that mortgage originators are at a cyclical top in the markets. It is interesting to see RKT shares hold above the key $20-psyche level despite these concerns. In its earnings release, RKT announced a $1 billion share repurchase which suggests it has faith in its business model. With near term support helping define risk, we would keep an eye on RKT as it has piqued the interest of your clients. 

Other names of interest:

  • The top name in total traffic was Sundial Growers (SNDL), a penny stock cannabis name that reported earnings this week. Interest was boosted by the favorable developments from election result, in particular, cannabis referendums. SNDL is improving its balance sheet but, with the stock at $0.20, this remains a highly speculative name. 
  • On the surge side, we saw an increase in interest around Greenland Technologies (GTEC). GTEC announced it is integrating an electric drivetrain system into its electric forklifts. The company hits all the right buzzwords ‘China’, ‘Electric’, and ‘lithium batteries’ as investors look for the next big thing in electric. Shares rallied 300% on the news but we would note that the float is miniscule at 1.18 million and this is an unpredictable play.

Trivia Answer- Beyond Meat (BYND) came in at #12 on the list after it missed EPS expectations by 33 cents and missed on the top line by a wide margin. BYND was defended at UBS and Piper Sandler and is showing signs of holding its 200-sma ($125).

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