We saw another up day in the biotech world, iShares Biotech (IBB, $320.11). Again, names we like such as Amgen (AMGN, $173.87), Valeant Pharmaceticals (VRX, $15.50), and Editas Medicine (EDIT, $17.54) rose with the trend.
Curry Payday. Other names like Lululemon (LULU, $54.25) and Under Armor (UA, $19.24) continue to be value plays amidst a difficult manufacturing sector. We believe Under Armor has not become an uncool brand and there are still plenty of individuals running around proud to don UA gear. Of note, Stephen Curry to due for a large contract upgrade and a large signing placing Steph in the elitest of basketball players would similarly elevate Under Armor and leave CEO Kevin Plank’s tone-deaf comments in the forgotten pile.
Do Forget Retail. No suitors for Nordies or Macy’s and PE investors licking their own retail wounds. No safe haven for Kohl’s (KSS, $36.30) in the midst of their stock buyback still trading at lower levels than a few weeks ago. Why not take advantage of a company willing to plow back money into their own stock due to pressure, both from investors and industry.
Time for Toys? With Hasbro (HAS, $110.47) riding the heels of their big victory with Disney (DIS, $104.22) and now valued at 2x the market cap of Mattel (MAT, $20.30), why not visit a pairwise trade as Mattel still has some life left in their product line and Hasbro is not that far ahead. Let’s not forget just 6 months ago Hasbro's was belong 80 and Mattel was above 30.
Me too. AMD (AMD, $14.38) has become the ideal me too play of the chip sector as the cheaper secondary player to Nvidia (NVDA, $158.37). So AMD claims the Radeon chip is comparable in performance and favorable in price to Nvidia’s high performance chips, so time to bitcoin mine away!