Late-Cycle Behavior

Virgin Galactic founder Richard Branson.

Investors’ new mantra: Apple AAPL, +1.71%  and Amazon AMZN, +1.25% are for boomers — we buy Tesla TSLA, +7.29% and Virgin Galactic SPCE, +11.58%. Apple and Amazon are pedestrian stocks of yesterday; they do nothing interesting. Vacationing in space on a Virgin Galactic flight is around the corner. Soon we will be mining on Mars. When we return from Mars to the lowly planet Earth to visit our aging parents, we will be getting around in flying autonomous electric taxis from Tesla and staying in homes powered by Tesla solar roofs and batteries.

Public service announcement: If you’re an investing novice, you are setting yourself up for a painful lesson

Both Virgin Galactic and Tesla provide short-term trading opportunities for sophisticated investors both from the long side and the short side. Our system gave a signal to short-sell Virgin Galactic for a very short-term trade near the highs.

However, there was no point in publishing that signal because the shares were not readily available to short. The plan is to trade only those setups where there is reasonable risk control. It is also important to pay attention to Arora’s 14th Law: “To be successful at investing and trading, become a master of position sizing.”

Nigam Arora  Nigam@TheAroraReport.com

Like a Virgin

Virgin Galactic Holdings Inc NYSE: SPCE

Virgin Galactic’s Stock Soars Again, Toward 8th-straight Gain — MarketWatch

Virgin Galactic Holdings, Inc

Virgin Galactic Holdings, Inc., formerly Social Capital Hedosophia Holdings Corp., is an aerospace company that provides human spaceflight for private individuals and researchers. The Company is focused on developing a spaceflight system to offer customers a multi-day experience culminating in a spaceflight that includes several minutes of weightlessness and views of earth from space.

Through its aerospace development subsidiary, The Spaceship Company, LLC, the Company manufactures its space vehicles in Mojave, California. Its spaceflight system consists of three primary components: its carrier aircraft, WhiteKnightTwo; its spaceship, SpaceShipTwo, and its hybrid rocket motor. SpaceShipTwo is a spaceship with the capacity to carry pilots and customers or payloads, into space and return them to earth.WhiteKnightTwo is a twin-fuselage aircraft designed to carry SpaceShipTwo up to an altitude of approximately 45,000 feet where the spaceship is released for its flight into space.

AMD Second-Gen Epyc Server CPU

On a down day for chip stocks, AMD (AMD) – Get Report managed to rise nearly 3% to new highs. Likely helping: Google (GOOGL) – Get Report announced on Tuesday morning that its public cloud services unit — the Google Cloud Platform, or GCP — has rolled out cloud computing instances that rely on AMD’s second-gen Epyc server CPUs (codenamed Rome).

Google’s announcement comes six months after it disclosed (at AMD’s Rome launch event) that it plans to offer Rome-powered instances via GCP, and also that it has begun using Rome for unspecified internal workloads. But while GCP was expected to eventually offer Rome instances, some of the performance claims it has made for the N2D instances have raised eyebrows.

Nonetheless, Google’s N2D performance claims do provide AMD with one more feather in its cap as it tries to wrest server CPU share from Intel. The company estimated it had a mid-single digit server CPU share as of the start of 2019, and has set a goal of having a double-digit share by mid-2020. In addition, CEO Lisa Su forecast on AMD’s Q4 earnings call that her company, which has guided for 28% to 30% total 2020 revenue growth, expects server CPUs to be its fastest-growing business this yea

PE Ratio

The price to earnings ratio (PE Ratio) is the measure of the share price relative to the annual net income earned by the firm per share. PE ratio shows current investor demand for a company share. A high PE ratio generally indicates increased demand because investors anticipate earnings growth in the future. The PE ratio has units of years, which can be interpreted as the number of years of earnings to pay back purchase price.

Agilent Technologies NYSE: (A)

Earnings Report – 2/18 Tuesday BUY $85.82

Tuesday 2/18 Advance Auto Parts , Agilent Technologies ,Concho Resources , Ecolab, HSBC Holdings , Medtronic , Vornado Realty Trust,Walmart, and Wabtec report earnings.

Agilent Technologies, Inc. provides application focused solutions that include instruments, software, services and consumables for the entire laboratory workflow. The Company serves the life sciences, diagnostics and applied chemical markets. It has three business segments: life sciences and applied markets business, diagnostics and genomics business, and Agilent CrossLab business.

Its life sciences and applied markets business segment offers instruments and software that enable customers to identify, quantify and analyze the physical and biological properties of substances and products, as well as enable customers in the clinical and life sciences research areas to interrogate samples at the molecular level. Its diagnostics and genomics business segment includes the reagent partnership, pathology, companion diagnostics, genomics and the nucleic acid solutions businesses. Its Agilent CrossLab business segment spans the entire lab with its consumables and services portfolio.

Walmart Stores Inc. NYSE: WMT

Earnings Report – 2-18 Tuesday BUY $117.89

U.S. stock and bond markets are closed on Monday for Presidents Day. Fourth-quarter earnings season continues when they reopen on Tuesday, with 45 S&P 500 companies scheduled to report. Highlights include Walmart on Tuesday, followed by Analog Devices and Dish Network on Wednesday. ViacomCBS and Deere report on Thursday and Friday, respectively.

Walmart started the decade as almost an exclusively brick-and mortar business. However, by 2015, the company had upped its annual e-commerce investment from $1 billion to between $1.2 billion and $1.5 billion.

Walmart acquired e-commerce site Jet.com for $3.3 billion in 2016. The company has also been investing in same-day delivery and in-store pickup. Walmart appears to be poised to continue its investing and innovation in the 2020s, recently announcing an $11 billion commitment to store redesigns, including the addition of autonomous floor cleaners, shelf scanners and unloaders.

Tuesday 2/18 Advance Auto Parts , Agilent Technologies ,Concho Resources , Ecolab, HSBC Holdings , Medtronic , Vornado Realty Trust,Walmart, and Wabtec report earnings.

MLCO

Melco Resorts & Ent Ltd – Earning Report on 2-20 Thursday – BUY

 Melco Resorts & Entertainment Limited, formerly Melco Crown Entertainment Limited, is a holding company.

Melco Resorts & Entertainment Limited, formerly Melco Crown Entertainment Limited, is a holding company. The Company, through its subsidiaries, develops, owns and operates casino gaming and entertainment casino resort facilities in Asia. It is principally engaged in the gaming and hospitality business in Asia and its principal operating and developmental activities occur in over two geographic areas, which include Macau and the Philippines.

Its segments include City of Dreams, Altira Macau, Studio City, Mocha Clubs, City of Dreams Manila, and Corporate and Others. It has over three casino based operations in Macau, namely, City of Dreams, Altira Macau and Studio City, and non-casino based operations in Macau at its Mocha Clubs. It also has a casino based operation in the Philippines, City of Dreams Manila. It is developing the fifth hotel tower at City of Dreams in Cotai, Macau. Its other operations also include Taipa Square Casino, Macau operating within Hotel Taipa Square.

Skyworks – (SWKS) -$3.60

Advances Next Generation Wi-Fi 6E ~ Down -$3.60 BUY

Developing Future-proof Connectivity Solutions in Alignment with Wi-Fi Alliance(R) IRVINE, Calif.–(BUSINESS WIRE)–February 11, 2020–

Skyworks Solutions, Inc. (Nasdaq: SWKS), an innovator of high performance analog semiconductors connecting people, places and things, today announced that it is supporting next generation wireless technologies set forth by Wi-Fi Alliance(R) and developing advanced connectivity solutions designed to meet future requirements. Skyworks offers a family of solutions that address all existing Wi-Fi(R) standards and is working in Wi-Fi Alliance to develop its Wi-Fi 6E products that operate in the 5.925 to 7.125 GHz frequency range.

Skyworks Solutions, Inc. (Nasdaq: SWKS), an innovator of high performance analog semiconductors

Skyworks’ powerful modules facilitate Wi-Fi functionality with best-in-class linearity and performance in the smallest footprint available. These solutions expedite time-to-market by incorporating the required functionality to deliver maximum performance and contain a logarithmic power detector to support wide dynamic ranges, low power consumption and improved thermal management. Visit Skyworks’ Wi-Fi page for more resources and solutions.

Day of the Dead

Day of the Dead is an annual holiday celebrated throughout Mexico and other parts of Latin America. The holiday takes place each year from November 1st to November 3rd and is a time for family and friends to remember and honor loved ones who have passed.

Some traditional Day of the Dead celebrations involve family visiting the gravesites of loved ones, the cleaning and decorating of gravesites, and the making of ofrendas, or altars that honor the dead.

Gravesites are decorated with candles and flowers. The favorite foods of the deceased are placed on the grave. Families will often visit the gravesites together to eat, sing and share stories about loved ones who have passed.