📈 Alpha Picks & Market Update

December 26, 2023

Welcome Investors!

Here’s your last Alpha portfolio update for the year 2023:

  • Returns so far this year +59.4%

  • Our leading stock is still Forestar Group Inc currently at +76% while our position in SilverBow is the laggard at -14%

    See the investment portfolio for the rest of our positions.

Market Snapshot

  • US stocks rose after US Q3 GDP growth was revised downward to a 4.9% annualised rate, keeping in line with the narrative that a cooling economy will lead to rate cuts.

    • Nasdaq closed at +0.81% while the S&P 500 closed the week at +0.5%

  • Nike shares fell 6% after missing Q2 revenue expectations but beating on profit; Nike warned about a softer revenue outlook for the second half of the year and unveiled a plan to cut costs by ~$2B

  • Bitcoin options show that traders are hedging bets ahead of a January 10th, 2024, deadline for the SEC to decide whether to allow Bitcoin ETFs.

    • Subscribers: Our Crypto Portfolio will be updated next week for the New Year. Keep an eye out for the update.

Alpha Picks of the Week

Buy

  1. SilverBow (SBOW)

  2. Ituran (ITRN)

  3. Deutsche Rohstoff (DR0)

  4. Century Communities (CCS)

  5. Haverty Furniture (HVT)

  6. Edel (EDL)

  7. BlueLinx (BXC)

  8. Allkem (AKE)

  9. Motorcar Parts (MPAA)

  10. Hudson Technologies (HDSN)

Sell

  • M/I Homes (MHI)

  • Beazer Homes (BZH)

  • Vista Outdoor Inc (VSTO)

  • Ferroglobe PLC (GSM)

  • Guess? Inc (GES)

  • Lennar (LEN)

These are the companies that Alpha Algorithm® has short-listed for this week from a list 18,742 stock.

Featured Analysis

Hedge Fund trading activity

Motorcar Parts (MPAA)

MPAA engages in the manufacture, remanufacture, and distribution of automotive parts.

  • Total Revenue increased 5.04% since last year and increased 23.13% since last quarter.

  • MPAA is trading in the middle of its 52-week range and above its 200-day simple moving average.

  • It’s currently trading at its 12, 15 and 20-year lows. It may serve as a pivot point for this stock.

  • The price of MPAA shares has increased by $0.20 since the market last closed. This is a 2.30% rise.

  • Hedge Funds decreased holdings by 40K shares since last quarter. However, it is not significant given that they remain invested at 3mil shares.

Crypto Trade Ideas

Polkadot (DOT) looks promising with the same breakout pattern in play as Solana (SOL). I would consider pull-backs as a buying opportunity with the first target at $14 and a 25% stop-loss.

Thank you for being a part of The Insider Memo community.

Remember, investing is not just about wealth; it's about making informed decisions that shape your future.

Have a great day!
Ali @ Insider Memo

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