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KWCP Daily Roundup May 22 NASDAQ Bounce Continues

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As the world continues to invest in technology, the NASDAQ bounce continues. As what appears to be an episode of the stock market version of Super-Size Me beyond what rational ratios allow, the ‘flight to technology safety’ continues. It’s interesting what’s occurring here as the traditional flight to safety which always tended to be earnings based, finds its comfort and confidence in the future, as the triple-headed technology dragon companies see it.

Here in supernova alley, Amazon (AMZN, $970.67) continues to grow toward that $500B market cap. Google (GOOG, $941.86) likewise at a healthy $650B market cap rose $7.85. One can’t help but think that at what size large becomes too large and with the main visionaries having too many disparate interests. That day is not today as the tech behemoth rally continues, but one day this will come and investors paying these high prices should be ready. Apple (AAPL, $153.99) is in the same boat with their girthy $800 billion market cap. As a side note, while we remain fans of Nvidia (NVDA, $138.90), they too are reaching mini-star $80B market cap status at high valuation levels given their new chip lineup announcements and belief in their leadership position.

On the retail front, Nordstrom’s (JWN, $42.04) though despite positive gains throughout the sector given the positive day, many of the gains weren’t as meaningful as JWN, though it is a positive sign. Likewise, the manufacturers had a small positive affect on the retail bump. However, biotech did not receive the same preferential treatments. With still the overhang of drug and biotech reform sitting over these investors, the potential reform continues to affect the entire sector until clearer foresight arises.

While we have time to highlight a smaller sector, a small company named Origin Agritech (SEED, $1.66) that holds growth potential in GM corn market for the world food supply. At these low valuations, we see some upside with the management and potential catalyst on the horizon. Stay tuned and have a great week before Memorial Day weekend.

KWCP Daily Roundup May 19 The Calm Before the Storm

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As the parade of Donald Trump into the Middle East begins, the NASDAQ bounce continues. But it comes with a tinge of bias toward the larger and safer technology plays as Alphabet aka Google (GOOG, $934.95) and Amazon (AMZN, 965.95). Even the very hot Nvidia (NVDA, $136.24) is on the rise. Same is true for the biopharm and biotech sector as Allergan (AGN, $220.07).

Though the market has been somewhat impenetrable to the political winds that had stirred the business tax cut rally just a few months ago, the tide has steadied and now is the time to find bargains that may find headway in the not so distant future. Lululemon Athletica (LULU, $49.04) and Under Armour (UA, $17.58) still have cache with the customer but have been beaten down by the retail lag. With that, the growth stories still present great value plays with catalysts that are attractively priced as of today.

Amongst the larger companies, Disney (DIS, $107.48) has been beaten back significantly due to the crown jewel ESPN losing automatic cable bundling preferences, however in a world with content is king, few companies carry the content upside as the juggernaut. With Marvel and Lucasfilm in the fold and producing movies, spin-offs, and products, it looks like time to reinvest the Walt's World.

Again, today we like the Etsy (ETSY, $13.19) and Snapchat (SNAP, $20.18) with still healthy real estate in the valuable internet world present valuable, depressed jump in points. We look forward to a good weekend, have a good one everyone!