Big Blue Huddle

Crossing my fingers, but I think the bull is back...at least in the tech world 



The ETF: QQQ has been one of the few ETFs I've invested in over the past couple of years...that and SPY. Both overly heavy in tech stocks...especially Apple, Microsoft, Tesla, Google, Nvidia, etc.



When looking at the last month of July compared to the first half of the year, it sure looks as if a rebound is happening in the tech sector. Hopefully, the market has bottomed out and some of those billionaires sitting on the sidelines with mountains of cash have grown some cojones and are jumping back in

Yeah, things seem to quietly be moving in the right direction.  I say quietly as you don't hear near the reporting about things getting better than when we were on the downswing.  I picked up more dividend stocks recently because I think we have hit or are near the bottom, and things will get better.   With interest rates still likely to rise, I see bonds as still a risky investment so I prefer dividend stocks.  If the economy sort of stagnates or stocks goes down, I can take in the dividend income until things get better.

Nice chart here to enjoy your morning coffee to:


https://twitter.com/DTAPCAP/status/1555439725556662273

Job creation was twice what was expected for July.  The market's reaction?  The markets reacted negatively to the news.   


The argument is a strong job market means more interest rate hikes.  Seems investors alternate their worry from "we are in a recession" to "the economy is too strong so the feds will raise rates" 

Yesterday was a big time sell off. Today, the market's on fire...go figure

Ric,

The inflation numbers came out and while they are not ideal, they are lower than what was expected

Ugly day in the market today, but one of my stocks took off like a rocket after the market closed. One of my favorite companies is Wolfspeed, Inc (WOLF) that started in "Research Triangle" in North Carolina and just built a new and bigger plant in New York in the Mohawk Valley area next to New Yorks nano center that has cost taxpayers billions. I only own about 25 shares, but I got in when it was cheap and during the time I was analyzing investments into the semiconductor business. I spent a lot of time researching materials and machinery that Intel, AMD, etc., use to make their chips. I also own about the same amount of stock in Globalfoundries, Inc. (GFS) that manufactures the equipment needed to build chips and they are basically next door to the heavies in Santa Clara, Cal. [note: Intel, AMD, and Nvidia are all in Santa Clara within 3 blocks of each other]. GFS co-engineers with each of those companies and builds their machinery to meet their exact specifications. That's a big plus because Intel, etc., have invested billions in equipment and they aren't going to change suppliers and get rid of all their old equipment when the company next door is already building exactly what they need and can retrofit equipment a mile down the road. It's a big (huge) modern company on the edge of technology

As you can see, GFS Plant is not some fly by night company operating out of a mini-mall in Santa Clara:


Another big player in semiconductor production is Lam Research in Freemont, Cal. They build different types of machinery used by the big boys in the business and are deep in bed with Intel, AMD, and Nvidia



Anyway, Wolfspeed developed, patented, and now manufactures all the silicon carbide wafers that are the root substance for semiconductor companies. Their material is far superior to the silicon used by traditional semiconductors like Intel, AMD, and Nvidia in years past. It's almost a business that is impossible to fail...knock on wood

Regardless, while the market was tanking today, WOLF is up over 15% for the day with about 90% of it's jump coming after closing hours. It salvages the rest of the bad day I had and thought I'd share (or brag maybe  )

I have a heart for local business and I might as well support where my tax dollars go as NYS has invested heavily in becoming a nano technology center for that sector of business. Wolfspeed is only a small portion of the overall project to make New York a high tech region specializing in all things semiconductor. They have also poured tons into Plug Power to make New York a leader in liquid hydrogen production and distribution. Plug is miles ahead of its competitors in customer base (Amazon, Walmart, etc.) and are building a network of refill stations around the globe

This is the "nano center" campus in New York



https://marcynanocenter.com/

this is the Wolfspeed NY plant that opened this year next to the nano center:



I'm not suggesting in anyway that anyone should invest in these companies. These are just some of my favorite tech stocks that I follow and thought some might find it interesting as I do

The ugly day in pictures

Wolf is up nearly 30% this morning. Nice to catch a wave once in awhile 

Ugly, ugly day for the tech sector. Looks like health care and energy/utilities are the only sectors going up. And they are almost always down. Must be profit taking - either that, or options calls are abundant

       

Quote from: Jolly Blue Giant on August 19, 2022, 12:24:38 PMUgly, ugly day for the tech sector. Looks like health care and energy/utilities are the only sectors going up. And they are almost always down. Must be profit taking - either that, or options calls are abundant

       

Seems like there really is nothing to push the markets higher.  It's like they are just in a holding patter (plus it's Friday)

I'm a big supporter of hydrogen power and have quite a bit of money invested in Plug Power stock which has been on an upward trend for several weeks now after bottoming out. I don't suggest anyone invest in PLUG, as it is a high risk, high reward type stock in a company that has yet to show a profit since its inception

Regardless, this is an interesting article that encourages me to believe that hydrogen is the fuel of the future

https://www.cnn.com/travel/article/coradia-ilint-hydrogen-trains/index.html

Quote from: Jolly Blue Giant on August 25, 2022, 10:24:38 AMI'm a big supporter of hydrogen power and have quite a bit of money invested in Plug Power stock which has been on an upward trend for several weeks now after bottoming out. I don't suggest anyone invest in PLUG, as it is a high risk, high reward type stock in a company that has yet to show a profit since its inception

Regardless, this is an interesting article that encourages me to believe that hydrogen is the fuel of the future

https://www.cnn.com/travel/article/coradia-ilint-hydrogen-trains/index.html

Ric,

I am not sure how you view hydrogen, but I have noticed that many people don't fully appreciate the nature of hydrogen power.  Some people view it as an energy source like fossil fuels, wind, solar, etc

Hydrogen is best viewed as a means of storing and transferring energy.  Energy is needed to generate hydrogen.   The biggest potential for hydrogen is in vehicles.   Refueling a hydrogen-powered vehicle is more akin to gassing up a gasoline or diesel vehicle than, say, recharging an electric vehicle (which, even under the best conditions, takes at least 20 minutes for a substantial charge)

Hydrogen can be used to generate electricity via a fuel cell or burned in an internal combustion engine.   When burned, the difference is fossil fuels burn and produce CO2 and H2O (plus small amounts of a variety of pollutants) while burning hydrogen produces H2O.

Quote from: MightyGiants on August 25, 2022, 10:49:09 AMRic,

I am not sure how you view hydrogen, but I have noticed that many people don't fully appreciate the nature of hydrogen power.  Some people view it as an energy source like fossil fuels, wind, solar, etc

Hydrogen is best viewed as a means of storing and transferring energy.  Energy is needed to generate hydrogen.   The biggest potential for hydrogen is in vehicles.   Refueling a hydrogen-powered vehicle is more akin to gassing up a gasoline or diesel vehicle than, say, recharging an electric vehicle (which, even under the best conditions, takes at least 20 minutes for a substantial charge)

Hydrogen can be used to generate electricity via a fuel cell or burned in an internal combustion engine.   When burned, the difference is fossil fuels burn and produce CO2 and H2O (plus small amounts of a variety of pollutants) while burning hydrogen produces H2O.

I'm high on hydrogen. Twenty years ago I was in Plug Power's original plant and given a tour of the facilities as well as a complete video presentation in the conference room explaining how it works. I was blown away. At the time, Plug Power was literally the only serious player in the market and they have done wonders at getting plants set up internationally as well as putting together a refuelling grid across the U.S. and Europe

I was just blown away at the aggressiveness of Germany starting with trains. To me, that is huge because it means big trucks and big planes are also good candidates for hydrogen powered transportation

I remember years ago when George "W" said in a speech that he was supporting hydrogen and he was ridiculed for saying it because his critics said, "it's completely unfeasible" and "it's a hundred years away if it can even be done". Well, Germany is paving the way with hydrogen powered trains 

Quote from: Jolly Blue Giant on August 25, 2022, 10:59:32 AMI'm high on hydrogen. Twenty years ago I was in Plug Power's original plant and given a tour of the facilities as well as a complete video presentation in the conference room explaining how it works. I was blown away. At the time, Plug Power was literally the only serious player in the market and they have done wonders at getting plants set up internationally as well as putting together a refuelling grid across the U.S. and Europe

I was just blown away at the aggressiveness of Germany starting with trains. To me, that is huge because it means big trucks and big planes are also good candidates for hydrogen powered transportation

I remember years ago when George "W" said in a speech that he was supporting hydrogen and he was ridiculed for saying it because his critics said, "it's completely unfeasible" and "it's a hundred years away if it can even be done". Well, Germany is paving the way with hydrogen powered trains 

Ric,

The criticism for Bush promoting hydrogen was more due to the idea that it could replace fossil fuels (as I explained, it's not a fuel source).   Hydrogen is more of an adjunct to replacing fossil fuels.  It gives us the ability to make power plants the main means of energy generation, which allow for easier alternatives to fossil fuels such as solar, wind, hydro, etc.

Your comments also reminded me just how drastically the political landscape has changed in this country over the past 20 years

I have a subscription to Seeking Alpha so not sure this link will work, but I'll give it a try

https://seekingalpha.com/news/3876643-plug-power-surges-on-hydrogen-supply-deal-with-amazon?mailingid=28842620&messageid=2900&serial=28842620.58726&source=email_2900&utm_campaign=rta-stock-news&utm_content=link-1&utm_medium=email&utm_source=seeking_alpha&utm_term=28842620.58726