Mid-January to Mid-April: EQT moved from $20 to $40. Now what?
It is a big move for a big company. You will likely want to take some money off the table, but as you know by now, we subscribe to the adage, “Let Your Winners Keep Winning.”
While we “think” EQT will correct in the near future, but we also believe the outlook over the next two to three years will include multiple increases in cash flows. We expect to see stock buy backs, increasing dividend and perhaps a special dividend. This has been indicated by management. We think the stock will move higher but certainly not at the doubling in three month’s pace. How much to sell from a fast double and how much to leave invested as EQT still being an excellent growth stock, is your personal finance question. Our goal is to give you the set-ups for potential doubles in share price. We let you play through to meet your end-goals.
We like a number of growth companies that have moved in the opposite direction than Commodities –
- Our focus in commodities has been and remains on Metals and Nat Gas.
In Growth companies we like the Blockchain and Payment related companies.
- Here are a few of the Growth stocks we like at their current depressed prices:
- Galaxy Digital (BRPHF)* $13.06
- StoneCo (STNE)* $10.50
- PagSeguro (PAGS)* $17.40
Spotlight on StoneCo (STNE)*:
StoneCo has pre-announced that Q1 2022 would show results of better than 100% gains Vs a year-ago in both Revenue and Earnings.
StoneCo Reports Fourth Quarter and Fiscal Year 2021 Results
Finviz link for Chart, Analyst Projections Stats & Aggregated News Flow
Based on 11 Wall Street analysts offering 12 month price targets for StoneCo in the last 3 months. The average price target is $16.64 with a high forecast of $28.00 and a low forecast of $10.00. The average price target represents a 59.08% change from the last price of $10.46.
Technical Comment from LOTM:
Love the chart.
Year-long declining patter $95 to $8.20 – that part we don’t love. It does give us our “opportunity,” however.
At the price of $8.20, came the pre-announcement of more than 100% increase in Revenue & earnings expected in Q1 ’22. StoneCo popped to close to 100% in five days. Now the share price has tailed off to below $11 again. This is very bullish chart action. The stock reacted strongly to positive news. A new analyst started following the stock with a $16.00 target. More positive analyst comments will follow (sheep) once the actual earning are announced. The sheep comment is fake sarcasm. Analysts need to see the actual numbers in order to do their work. Analyst comments are a lagging opinion as it is based in real time announcements. That gives you and me some lead time, “if” we accept what management said in their pre–announcement. Reported March 18, 2022.
Good Luck!
Written by Tom Linzmeier April 15, 2022
LOTM Research & Consulting Service
* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
Please refer to our web site for full disclosure at www.LivingOffTheMarket.com ZTA Capital Group, Inc.
To Unsubscribe please select “return” and type Unsubscribe in the subject line.
