Uncertain Economic Outlooks Play Well for Discount-Themed Plays

With high inflation, rising interest rates, and a geopolitical drama unfolding, there’s a lot of uncertainty in markets right now. It may not take much for the economy to potentially slip into a recession, even as some see low odds of that occurring. When markets get uncertain, investors get defensive. One way to stay on the offense is to buy companies that have built a business model around being a discount player. In the retail space, one such name is Dollar General ...
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Insider Trading Report: Desktop Metal (DM)

Ric Fulop, CEO of Desktop Metal (DM), recently picked up 128,850 shares. The buy increased his holdings by 0.64 percent, and came to a total price just under $526,000. This marks the first insider buy at the company since it went public last year. One company director has been a seller of shares on two occasions over the past two months, otherwise, insiders have been holding their position. Overall, company insiders own just under 17 percent of shares. Shares of the metal ...
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Unusual Options Activity: Cameco (CCJ)

Shares of uranium mining firm Cameco (CCJ) recently soared as calls for further nuclear power use have gained traction. One trader sees the potential for an even bigger gain in the next few months. That’s based on the September $40 calls. With 179 days until expiration, 18,390 contracts traded compared to an open interest of 306, for a 60-fold jump in volume on the trade. The buyer of the calls paid $1.48 to get in. With shares around $27, options would move ...
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Rising Interest Rates Won’t End the Boom In this Sector (For Now)

For the first time since 2018, the Federal Reserve has raised interest rates. With yields at just 0.25 percent, however, it’s unlikely to do much more than start to cool the high inflation rates we’ve been seeing over the course of months. Some traders see a number of sectors traditionally slow down when interest rates rise, and have started to place their bets accordingly. However, while history often rhymes, it doesn’t usually directly repeat itself. One case right now is the housing ...
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Insider Trading Report: Occidental Petroleum (OXY)

Berkshire Hathaway (BRK-B), a major holder of Occidental Petroleum (OXY), recently increased their stake by nearly 30 percent with a 27,107,389 share buy, coming in at just over $1.5 billion. That’s on top of a 61 million share buy earlier in March at a cost of over $3.1 billion, also from the conglomerate managed by Warren Buffett. A number of company directors have been active in the past few weeks, with buys exceeding sales there. Company insiders at the major oil ...
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Unusual Options Activity: Nvidia (NVDA)

Shares of graphics processing manufacturer Nvidia (NVDA) have been a top stock to own over the past several years, but shares are still down with other tech plays in the past few months. One trader sees the potential for a rebound underway. That’s based on the April 8 $240 calls. With 21 days left until expiration, 10,785 contracts traded compared to an open interest of 327, for a 33-fold increase in volume. The buyer of the calls paid $16.15 to enter ...
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Don’t Bet Against Global Consumers and Buy Quality Companies on Sale

The stock market decline has caused nearly all companies to drop. That means that even strong global companies are trading at their best valuation in over a year. That’s particularly true with consumer discretionary firms. While a market pullback may bring some traders to a company like a grocery store, consumers are still going to need other products, even if at a slower pace compared to a roaring economy. As the economy recovers, these companies should recover handily. A number of such ...
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Insider Trading Report: Ball Corporation (BLL)

Daniel Fisher, President at Ball Corporation (BLL), recently picked up 7,000 shares. The buy increased his holdings by 6.7 percent, and came to a total price just over $601,000. He was joined by a director who picked up 1,362 shares, a purchase that increased her holdings by 91 percent, and came to a total price just over $116,000. This follows up on a number of insider buys over the past few months. Over the past three years, insiders have been more likely ...
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