KATHERINE ROSS: Welcome to the December monthly call of Action Alerts PLUS. I'm Katherine Ross. And I am joined by Bob Lang and Chris Versace.
A lot has happened in a month, with the portfolio exiting positions such as PayPal and Wynn and initiating stocks such as Airbnb. And not to mention, we got a surprise Black Friday sale in the market and more anxiety yet again around COVID-19. But before we dive into the portfolio's various moves, it is the final month of 2021, and I want to take a moment to have Bob and Chris address the state of the portfolio and look within to see how they feel that they've done since they took over Action Alerts Plus.
Now, we do have a fun challenge ahead of us because I want to hit on as many member questions, and of course run through the portfolio positions, as possible, but I also want to keep us close to an hour here. So Bob and Chris, your challenge starts now. You've asked, and now it's time for us to answer. Chris and Bob, I do have a slew of general portfolio questions that I want to run through. But before I do that, I want to note that I have edited these questions for clarity.
Chris, we're starting with Matthew M, who had an interesting point. He was wondering if in general we could hear more about the industry names when discussing a certain stock. We'll get to this one down the line, but a good example would be comparing AMAT to its peers. Is that something that you do with your fundamental analysis?
CHRIS VERSACE: Yeah, of course we do. I mean, we always want to see if a company is growing its revenues faster than its peers, if it's growing its earnings, how its margins stack up, backlog, all of those facts and figures, if you will. That's obvious more to Applied specifically. But again, we do all that analysis as we not just pick a new position, but as we update it, as we think about changing our price targets, changing our ratings. So if the question is can we share some more of that insight, we'd be happy to.
KATHERINE ROSS: OK, so Bob, Travis M, he's wondering how do the current technicals with stock fit for a long-term investment. He's typically viewed technicals as a means to trade a stock in the short term, but is it used to follow current trends to find a better entry point?
BOB LANG: Well, we can look at technicals from different time frames, right? And I generally like to-- I'm a trader, but I also look from an investing standpoint, too. So as a trader, I look at daily charts. We can also step back and view them from a weekly basis or a monthly basis, which, surprise, surprise-- I'm going to clue you in on this one-- we're going to actually start using more weekly charts for subscribers going forward because I think that is the best way to view investing from a technical standpoint versus the daily charts.
Daily chart has a lot of noise in it. The weekly chart has a lot more consistency. There's not as much noise. As far as short-term trading is concerned, one or two months, it doesn't really serve that good purpose. But since Chris and I are looking for trades or investments out 12 to 18 months, a weekly chart is going to be ideal.
KATHERINE ROSS: Yeah, I mean, looking at the market just this week, it's been wild. So looking more at the weeklies versus the dailies would probably definitely help members.
BOB LANG: That's right.
KATHERINE ROSS: OK, so we're going to continue here with you, Bob. Greg T is wondering, how do you calculate the percentage limit on each new stock purchase and current percentage allocation of each stock in the portfolio? Is it a percentage of the current dollar value of the portfolio?
BOB LANG: Yeah, it's a percentage of the dollar value. And we look at the whole portfolio as a whole, and take the actual position and see what percentage of that in terms of dollars, not in terms of size, is of the portfolio. So he's correct.
KATHERINE ROSS: OK, Chris, members have noted that the portfolio did not make that many moves from November 11th to the end of the month. In the past, there would have been multiple moves made by previous management, sometimes even in the same week. Is this to be expected going forward, or were you guys kind of scoping out opportunities to put cash to work?
CHRIS VERSACE: I would say both. We came in and we made a number of changes, adding a lot of fresh blood to the portfolio. And we wanted to take our time, digest those positions, and perhaps scale into them in a measured manner. The one thing we don't want to do, however, is continue to take tiny, tiny, tiny bites, because that costs people money. Right?
So it's one thing to take a look at the overall dollar size of the portfolio, look at the returns in each position. But from a practical perspective, we want to be mindful of commissions that might be being paid out by people as they buy these things. So our bite sizes will probably be a little larger than in the past, but maybe not as frequent.
KATHERINE ROSS: All right, so we may all be too old for Santa's list, if that's your cup of tea, but we're never too old to do a self-review. Bob and Chris took over Action Alerts Plus in the beginning of October, and we're now three months in. Chris, I want to start with you here. If I were to ask you here and now to give yourself a grade of how you guys have done since you took over the portfolio, what would that grade be?
CHRIS VERSACE: If you were to ask me?
KATHERINE ROSS: I am asking you.
CHRIS VERSACE: OK, I just want to be clear on this, Katherine. I would say that we would get a B minus, B. And I know that might sound a little harsh, right, but I think that there's a lot of things that we want to do that we'll be getting to. There's some tinkers and changes we want to make, like Bob just saying, hey, maybe it's weekly charts. Right? We also know that, coming out of the gate, there might have been some confusion as to how we were getting started, style adjustments. And I think we can always listen to subscribers and communicate better. And I think that's something that we can work on.
KATHERINE ROSS: All right, Bob, I'm not letting Chris speak for you here. What's your grade that you would give?
BOB LANG: I'm going to give myself a little bit higher grade. I'm going to give myself a B-plus. It gives myself a little bit more room to do better. And also, the fact that Chris makes a good point, we stepped in here and, instead of causing a lot of chaos in the changeover and transition two months ago-- two months ago today, actually-- we managed to step in we listened to you, we listened to everybody who is putting together the whole production for Action Alerts Plus, the new team, and we listened to subscribers.
And that has been a really great formula. We're going to continue to improve and add some new things here. As we talked about, there's been a humongous amount of interest in learning about technical analysis from my viewpoint. So I'm very excited about that, to teach the people and to share some of those lessons with them. And I just think that the sky's the limit for us, and for our subscribers, as well, too. So I'm going to give ourselves a B-plus. And again, more room for improvement. In about a year, maybe we'll be in the A category.
KATHERINE ROSS: So obviously, back when I was in school, you try to shoot for that A-plus. So Chris, in order to get there, what would you change?
CHRIS VERSACE: Oh, that's a good question. I think that clear communication would be a good start. I think tightening our messages at times would be helpful, as well. I think that we've done a very good job in the morning comments, and I think having more balanced comments later in the afternoon would be a very, very good positive. And then probably using the bullpen more effectively.
KATHERINE ROSS: OK, Bob, how do we get that gold star on your report card?
BOB LANG: Oh, well, I agree with Chris about the bullpen. That was one thing I had in mind, using that a little bit more effectively, being able to be more flexible with our portfolio, not being afraid to shoot and fire positions out of the portfolio that aren't going to be working. I mean, we talked about this last time. An investment can be turned into hope and pray if you're not too careful. And if it goes away from you too long, you end up making that long-term investment even longer.
So not being afraid to pull the trigger and teaching our investors, our subscribers how to do things the right way. It's that old adage again, if you want to feed a person a fish, he eats for a day. If you teach him how to fish, he eats for a lifetime. So I think that Chris and I and yourself, we're going to try and help people eat for a lifetime. And so I think part of that is all about education. And I think once we make that leap into more education, I think that's where you're going to be grading us a little bit higher, hopefully, or grading ourselves a little bit higher.
KATHERINE ROSS: All right, it is time for our favorite moment, or at least my favorite moment. I don't want to put this on the members here. But let's get into some stock by stock territory. We were just talking about grades, and I think this stock, in particular, gets a gold star when it comes to handling the volatility that we've seen this past week. And that's Apple. Bob, starting with you, the stock has been recently making higher highs and higher lows. Textbook ascender. What do the charts say, and where will it go?
BOB LANG: Oh, it's a powerful stock. In fact, yesterday, when the whole market was getting whitewashed, this stock was up basically all day. I think for maybe five minutes, the stock was negative. It finished strong. It finished near the highs of the session. It's following through today to a new all-time high. It's absolutely doing nothing wrong. Technically, the stock is a little bit extended, it's a little bit overbought, but you know, that is not a reason to sell.
It's certainly not a reason to cut back on the stock. Well, maybe, listen, take some chips off the table, perhaps, if you get a little bit overweight on the name, but this stock is performing like a champ. And it has a tendency to bring other stocks along with it, too. And we do have some names that it could bring along with it. But technically, the stock is strong. Good relative strength. And MACD is on a buy signal. I don't see anything wrong with Apple technically.
KATHERINE ROSS: So Chris, fundamentally, this is a big season. The holiday season is huge for Apple.
I kind of want to look a little bit past that, though, because I feel like we're going to be covering this a lot in our daily rundown. So because this is a monthly review, looking forward to 2022, what kind of catalysts do you see for this name?
CHRIS VERSACE: I think the big catalyst for them is the supply chain issues for the iPhone falling by the wayside. That'll also help iPad production. But there's also going to be the added booster of the 5G-ification, if that's a word, of their iPhone SE. And that'll really allow them to compete more effectively at the mid-range. So I think that's a lot of positive momentum for them. But you know, Katherine, just following on what Bob said, just to make sure listeners know, we actually upped our price target on Apple today to 190. So we are aware of the incremental upside to be had between now and, let's say, early 2022.
KATHERINE ROSS: Perhaps you're trying to up Dan Ives there, because I believe his price target is 185. All right, moving on to Abbvie, real quick, Bob, what does the chart of this name tell you?
BOB LANG: Well, this stock, again, it's been kind of consolidating, going sideways for the past month, month and a half, between 114. And it's actually attempting a breakout today at about 118, 118 and 1/2. It's had some good volume days over the past couple of weeks, and the volume trends are starting to get bullish. Relative strength, it did pull back a bit yesterday. It looked like it was going to break down.
But again, if you don't get that follow-through to the downside, then it's more of like a false breakout, and you've got to look for the stock to return upside. And that's what we're getting today. If it gets it past 119, 119 and 1/2, I think we got a good breakout and the stock is going to make a run up to 130. So I do like Abbvie. It's a good stock for the portfolio. It's got a nice dividend. And it broke out, actually, at the end of October post-earnings with a huge breakout and a ginormous capital. It's held that area pretty consistently. So above 119, I think we're looking good.
KATHERINE ROSS: OK, fundamentally, what does this name look like?
CHRIS VERSACE: Well, price target's 130. So if we do get that upside that Bob is talking about, we're going to have to certainly revisit the one rating, right? Most likely downgrade to a two. We do like the fact that it is a dividend dynamos company, part of the S&P 500 dividend aristocrats, as Bob pointed out. And we do like the long-term fundamentals. But again, we don't want to fall in love with our stocks. We want to be disciplined here. And I think that's something we'll be keeping our eye on with this name.
KATHERINE ROSS: OK, so I want to move into Airbnb here. This is one of the newer names. We haven't actually been able to do this name in a monthly call. The stock did take a bit of a beating during Thanksgiving week. What's the thesis here, Chris? And how can members hold on to a stock that could face negative pressure if this new strain of COVID is as much of a concern as markets seem to think?
CHRIS VERSACE: So think of the way people changed the way they traveled, right? They were no longer staying in hotels. People were working from anywhere, taking not just two or three days or a long weekend on Airbnb, booking out full months. The stock originally got hit back in February and March of 2020 when COVID came around because people were concerned about the business model. We're seeing a repeat of that again.
What I think we're going to see is the subsequent shift to Airbnb, just like we saw, again, 18 months ago, 19 months ago, continuing to fuel the company's business. So I think that's the right way to look at it. Again, where is the stock likely to be 12 months from now, 18 months from now, not a week or two weeks from now. So our inclination, you know, we've chatted about this, and I think once the volatility of omicron settles down, we'll start putting some capital to work. But we want to get the best price we can because we're greedy like that.
KATHERINE ROSS: Bob, it is up with the general market today. Talk to me about the chart here.
BOB LANG: Early part of the fall, the stock was really making a nice run up towards 170, 175. And then earnings hit at the beginning of November, and the stock really popped. And it followed through for about seven, eight days. And it hit about a high of about 215, 214, slightly under the all-time high from earlier this year. And it's pulled back a bit. It's only hanging around the 50-day moving average, which is not a bad thing right now.
It's kind of made a little bit of a floor here about 170. It's trading a little bit higher than that right now. So I think if it holds this area right now and it starts building towards that old high again, 215, 220, I think this stock's got some great momentum. As I said on a call last week, I think this is going to be my stock of the year next year, 2022. This is one I'm really, really happy about, and glad we have it in the portfolio.
KATHERINE ROSS: I'm writing that down. I'm holding it to you. I want to move into Abbott because you were last month, Bob, a little wary on this name. When you look at the technicals now, are they as concerning as they were in November?
BOB LANG: Yeah, so this stock had basically kind of just made a nice pop up to 130, pulled right back down again, and it's right back to where it was at the beginning of November. Again, this is going sideways right now. It's another decent dividend payer, like Abbvie. Abbvie actually, interestingly enough, was a spinoff from Abbott some years ago. It's going sideways right now. It's just 125, 130. It's not active money right now. I'm not going to call it dead money, but it's not really active right now, or where the stock is going to give us a good benefit over here. But for now, I don't see it really hurting us at this point. And the chart's not giving me much of a read at all.
KATHERINE ROSS: OK, so when I started writing the section of Abbott members, and Chris, this was not a name that was doing very much fundamentally. Obviously, now, we've got the omicron variant. As it might be affecting Airbnb, it could also affect Abbott here. What does the thesis say for you?
CHRIS VERSACE: Testing, testing, testing, Katherine. You are correct on that. I mean, this is a nice little bump in the portfolio and for Abbott's business. Obviously, I think we saw last year it benefit tremendously from that. Started to get under a little bit of pressure as vaccinations level rose. We were thinking this is the worst behind us. Then delta hits, and now omicron. I think that we're going to see some upside here. But I think Bob is right. Past a certain point, again, we're going to have to revisit the longer-term prospects. So this may not be something that we're holding on to 12 to 18 months. We'll have to see what happens.
KATHERINE ROSS: I promised we'd circle back to Applied Materials.
CHRIS VERSACE: Let's do it.
KATHERINE ROSS: And Matthew M was wondering why, Chris--
CHRIS VERSACE: Yes.
KATHERINE ROSS: --you're bullish on this name over a company such as Lam Research, which was once owned by the portfolio. I want to make a note of that. And what price should members look to get into AMAT if they haven't already?
CHRIS VERSACE: OK, so the thesis behind it, just to refresh and reset the table on this, is current chip shortage, increasing chip demand over the next several years, whether it's 5G, Wi-Fi 6, AR/VR, IoT, metaverse and all this other stuff. OK? So we're going to continue to see a rising need for chips. At certain points in time, we'll see manufacturing hit capacity utilization levels that demand higher capex. And we're seeing that already from companies like Samsung and others that are expanding their manufacturing footprint.
Why do we like Applied? Because they are one of the biggest and the best. They also have this upside in their display business, as well, and they're a great dividend payer. So for those reasons, would we look to buy Lam at a certain point if we didn't have Applied? We probably would. We just happen to like Applied a little more, given the range of their business.
KATHERINE ROSS: OK, so Bob, I did hear you, I promise, when you were saying that you wanted to go more to weekly charts than dailies, but we have to talk about the daily chart here because it's up 6% today. So what's the read?
BOB LANG: So strong move today. And I want to talk about here with Applied Materials two things. First of all, when we first got into the name, I had identified an area that it was trading, it was called-- it was in a box, basically, between 125 and 143, 145, give or take. And we were looking for that to make a move above the box. So when we first started buying the stock, it was about 126, 128, right, Chris?
And it made a nice, sharp move in October, and it went right through the box when earnings came out. And then it made a new all-time high up to the high 150s. Pulled back a little bit. Friday was an important day because it came back and tested the top side of that box, bounced right off of it, and then on Monday, ran right back up. And today, it's following through.
So what we have here is what's called a technical pattern called a morning star. A morning star is a bullish three-day pattern, where you get a red candle, a [INAUDIBLE], and then a following with a green candle. We get some follow-through the next day, which actually, for this one, it wasn't the next day, which was yesterday, it's today. Hopefully, I didn't confuse everybody there. But we're getting some follow-through on that pattern, and it's, generally speaking, one of the most reliable bullish patterns there are in the technical analyst universe.
So I'm very bullish on this name. Again, we're in there, we're in there at 120. And we did buy a little bit more after that. I'm very pleased with how we've been doing with the stock. Lam Research are at new all-time highs. Two other names that are also in that space are doing well, too, but AMAT is certainly an A-plus name for us.
KATHERINE ROSS: But today, you like it, buy, sell, hold?
BOB LANG: Yeah, absolutely, I'd be buying it. Look, I mean, all-time high is about $2 or $3 above here. It's almost up to our target. Chris and I were talking about maybe revising our target to the upside because we both are pretty bullish. He's bullish on it fundamentally, and me on the technical side.
KATHERINE ROSS: OK, so we've got another stock that gets a gold star in the portfolio because it hit an all-time high just yesterday. And that's AMD. Sheila is wondering, Bob, what's a good reentry point if you sold out of AMD?
BOB LANG: So I look at AMD as one of these strong growth names in the tech sector over here. And every single time that it's pulled back to the 20-day moving average, it's been a great buy opportunity. So it's a little bit stretched away from the 20-day moving average today, which is about 149. Stock's trading about 157 right now. So it's got a little bit of room down there.
So if the market did correct and the stock did correct back down on that 20-day moving average, that's the technical term, I'm going to tell you, that's where I'd be backing up the truck, adding some shares if I didn't own it right now, or if I was light on it right now. Sure.
KATHERINE ROSS: Then there's always the news of Xilinx. And Susan asked Chris if-- she thought that the impending merger is considered to be another great catalyst and going forward can propel AMD profits even higher. Am I being too starry-eyed? What is she missing?
CHRIS VERSACE: No, I don't think she's being-- no, I don't think so. I think what it's going to come down to-- and usually this happens when companies close their acquisition. We talked about this previously with Norton LifeLock and Avast. Once they close, then we start to get a little more insight as to how are they going to cross market their products, what type of cost synergies they might have, that sort of thing, what type of cost reduction targets they might publish and put forth.
That's the next step for all of this. And then the same goes for Norton LifeLock as well. Once we get that, then we'll be able to see, OK, over the next 12 to 18 months or longer, what do earnings look like. And that will allow us to readjust our price target.
KATHERINE ROSS: One stock that I know that you personally really like, Chris, is Amazon. So I did have you guys--
CHRIS VERSACE: It's because I get a lot of boxes.
KATHERINE ROSS: I did have you guys rate yourselves at the beginning, but I'm going to ask you, Chris, now to rate Andy Jassy since he's taken over as CEO of Amazon.
CHRIS VERSACE: Good.
KATHERINE ROSS: That's it?
CHRIS VERSACE: Well, I mean, look. He has to convince us that he can effectively run and manage the retail facing business as well as grow certain other businesses that have been incubating inside. We know he can run AWS. No question.
Look at the growth of that business, the market share gains, and still the profits that it's generating, the cash flow it's kicking off. There's no question about that. So if we had to grade him on that performance, easy. A plus.
But if you're asking me to grade how he's been doing about the other businesses-- your question-- what's his long term vision for the health care business? What's the long term vision for the retail business? I would argue that business could almost run itself. But how is he going to make-- what's his imprint going to be? That's something we have to learn.
KATHERINE ROSS: What's your long term vision on Amazon then?
CHRIS VERSACE: World dominance. No, I kid. Well, it is the deflationary Death Star. There is no question about that. I think that Amazon as we see it today is going to morph. And I think they're going to bring more of their technology out. We're starting to see that with their partnership with Starbucks, bringing Amazon Go and Amazon QuickPay technology out.
And I think that the way that they have disrupted retail, they are going to do with health care. When you look at a lot of the pieces inside, whether it's the ability to leverage the logistics business that we know as Amazon Prime, when you look at what they have done with Chime and some other things, there's a lot of pieces there that they can pull together and really disrupt health care. And that is what gets me very excited about the name.
KATHERINE ROSS: So Bob, let's take a step back. And instead of looking forward, let's take a step back and look at the chart right here right now. What's it tell you?
BOB LANG: Yeah, so let me go back even further. Let's go back a month when we were last here together. And I had mentioned that a pullback to this 200 day moving average was probably pretty constructive.
And it was just a couple of days after that-- I'm going to refer to another technical term I just mentioned a minute ago-- a morning star pattern emerged. And the stock ran up two days in a row. And it took off to near all-time highs, almost $3,800 a share. And that was about two weeks ago.
It's pulled into the 20 day moving average, which is a fair spot to add some shares and usually find some support there. And, in fact, it's right at that level, Katherine, from the early part of September where it broke down really hard just before earnings came out. And the stock really just got pummeled until the beginning of part of August-- I'm sorry-- October-- $3,175, $3,180 or something like that-- before it launched up again.
So it's pulling back, testing this breakdown level. If it can hold right here, turn back around, and go up, I see no problem getting back up to around the $4,000 area. So we're talking about a good 10%, 15%.
KATHERINE ROSS: All right. Let's stick with these mega top stocks and continue into Alphabet. Now that Facebook, Chris-- I mean Metaverse-- has fully committed to the metaverse, some investors may be wondering what kind of exposure they can get without actually investing in the company formerly known as Facebook. Alphabet, according to Morgan Stanley, is one of those names. Do you agree with that? And what kind of metaverse exposure does Google have?
CHRIS VERSACE: I don't know that. I don't think I agree with that at all. I mean, you could see on the marketing of the perception side maybe, but when you really drill into what Google does and does well, more importantly, where they make their money, it's a search and advertising business model, which also spills over a little bit on the advertising to YouTube. So I'm not really seeing the connection to the metaverse there where I'm potentially moving into a digital world a la Second Life or something like that. I'm not seeing it.
KATHERINE ROSS: All right, Bob. I want to keep it tight on this one. I just want one thing that stands out to you about the technicals of Alphabet.
BOB LANG: The 50 day moving average. That's it. I mean, that's where we've tested the last couple of days. It's been a good layer of support. It's trapped between the 50 and the 20 right now. So if we can get it back above the 20 day moving average, call it about $2,940, the stock is going to be in good shape. But for now, I'm just kind of going sideways.
KATHERINE ROSS: OK, there's one stock that's been a little bit of a dog. And that is Boeing. So Chris, in the Wall Street Journal's review of "Flying Blind," which is a new book on Boeing, Roger Lowenstein wrote, and I quote, Boeing remains one of America's leading manufacturers, but it is reduced in reputation as well as equity. I know that you're a long-term believer in this stock, but what do you make of that?
CHRIS VERSACE: His criticism is fair. How many aircraft manufacturing companies of that size do we
have in the United States? One. So it's a player on the global stage where there's effectively less than a handful of other competitors. So it's in an enviable position.
But as we know with the Max and some other things, they have had manufacturing issues. They need to work their way out of it. And we're starting to see that happen. So when you ask me then, well, what about the long term? Do you like the long term? I do like the long term, because everything we see points to rising international travel, especially out of Asia.
So I think that is what we're going to focus in on as the Max comes back and as some other aircrafts continue to move forward. Again, what are we really watching in the short term? Rising backlog and orders that paint to rising production, rising revenue, rising earnings over the next several quarters. So no matter how we look at it, we like it.
It's been a dog. Hopefully this dog will have no quips for you, Katherine. I was trying to come up with something funny. I couldn't do it. Yeah, yeah. Turn a trick, become a pony-- I can't think of anything. But I think better days are ahead.
KATHERINE ROSS: I don't think I want to see a shapeshifting dog, but that aside, Bob, do the technicals stand up to the long term thesis that Chris just laid out for us?
BOB LANG: That's stretching it. I'm going to be very objective here with the charts. And I just brought up-- we talked earlier about moving to the weekly charts as opposed to the daily charts. The daily chart is ugly. The weekly chart, not looking that sporty either. It's got a series of lower highs, lower lows coming back from March of-- it peaked in March of 2021.
And so we're approaching the lows from earlier this year, which came in around late January. So it's really got to prove itself over here. If it breaks below, I'm telling you, 190 right here, it's got trouble. Because there's gaps down below. And all the way down to $150.
So those gaps are eventually going to get filled. I can't say too much positive about Boeing right now on the chart, on the technical basis. And it's something that Chris and I have been talking about lately.
CHRIS VERSACE: This is a great example, Katherine, of why the new AAP is very different than the old AAP. Because we're actually looking at both of these things in tandem. So we can make the best decision that we can for subscribers.
Even though the long term might be great, but what Bob is telling us is there might be more pain ahead. So we're going to watch on that. And like some other names we've done, maybe not the most popular moves at the moment, but they were the right moves to make for subscribers, we will once again do the right thing.
KATHERINE ROSS: OK, I want to move in to Blackberry here, because this is a stock, members-- as you're well aware I got many emails about this. We weren't able to hit on last month, but now we can. So, to start us off, John S is asking about-- asks, "Is BB anything other than a stock that trades in line with other meme stocks?"
I prefer the term momentum. What's your fundamental analysis here, Chris?
CHRIS VERSACE: Blackberry is one that is often confused. All right, there's still, believe it or not, a lot of people out there who still think they make the old-fashioned Crackberry smartphone, and they do not. They have morphed successfully into a cybersecurity firm, and when you look at the customer base that they have, whether it's on the auto side or it's on the federal government side or international government side, or financial institution side, for cybersecurity, they are doing a wonderful job.
Why do I like them? Two big reasons. One is the pivot into the-- sorry, the connected car market, right? Because of their position in the automotive market with the cockpit, and cybersecurity-- as this connected car becomes something, they are in a pole position-- mixing my metaphors here-- to tap into that marketplace.
And people might say, well, is that really going to happen? My response is, Visa and Daimler are partnering to bring payment capability into the car. That changes things on its head.
And all of a sudden, you now need to protect your car, just like you would your laptop, your smartphone, your bank account, what have you. So yeah, this is going to happen.
The second reason is, we haven't had it yet, but it is still pending-- the sale of their wireless IP patent portfolio that will turbocharge their balance sheet. So there's a number of positives coming. We've unfortunately been in a little bit of a waiting game for this to happen. But very confident and comfortable that all of that is going to play out.
KATHERINE ROSS: All right, Bob. Member Scott D asks, "Does the chart not look like a breakout is at hand just over $12, and a possible leg up?"
BOB LANG: Yeah, so we've pulled back on BlackBerry here for the past month or so. And mind you that the volume level is pretty elevated. The early part of November, it's tapered off a little bit as some people have been pulling it in. The October lows coming in around 930, 950 area right now, which is where the stock is sitting.
I don't see any reason to get worried right here. I think technically, it's gotten oversold here. I think we're going to see some buyers stepping up here. It seems to attract a lot of buyers above $10 that it did earlier this year in the summertime, and more recently, it picked up some buyers in October, November.
So I think right back up to $10 pretty soon.
KATHERINE ROSS: OK, so Costco is a stock that just keeps on giving for members. Chris, I'm going to keep you very, very tight here. Buy, sell, or hold Costco?
CHRIS VERSACE: Hold.
KATHERINE ROSS: OK, and what do the technicals tell you, Bob?
BOB LANG: So the stock pulled back a little bit yesterday. It was the first time it's pulled back since-- in 20 years. It seems like it, right? It seems like the stock just goes up every single day, and there's just not a down move on this stock ever.
So no, I do like the stock eventually. It's been a great play on pullbacks. It did actually pull back in a little part of November, to give members a chance to step in the name if they didn't have enough shares. 20 day moving average is always where I seem to like to find levels of support.
The stock could pull back down there five-- it looks like 526, around the 527 area. Stocks currently at 541. If it pulled back about, what, that'd be about 3%, I'd be wanting to back up the truck and pull some more. That's my new phrase of the day. Back up the truck, right?
So that's been kind of an area where I'd be wanting to add some more shares.
KATHERINE ROSS: All right, let's see if we can get you to use that phrase again. Salesforce reported earnings last night. They did disappoint Wall Street on the guidance end. Bob, what does the chart tell you about the same?
BOB LANG: Are we going to empty the truck? I don't know. I don't know. Yeah. The stock has been acting poorly for weeks. And it had a nice run up in the fall. And it's been pulling back on. And yesterday had a rough day. And then today, after earnings came out yesterday, the stock is trading at the lows of the session right now. It's been pretty weak. It hit a high, just above the 100 day moving average today. And I see it pulling back significantly here.
It's pretty oversold. And I do think that it's probably due for a bounce. But if it gets a lower high and a little lower tomorrow, that's a technically bad signal. There's some support levels that about 250, which is a little bit further down from where we're currently at right now. And maybe even support at about 240. That's about 10% down from where we're at. So yeah, it's a tough one right now with the absolute earnings. But Chris and I'll be talking about it.
KATHERINE ROSS: OK. So after our last monthly call, Hans, Chris pointed out that after that they liked the fact that you called Salesforce or Costco 2.0. But the cost and CRM have two different portfolio ratings. And CRM is technically a bigger position in the portfolio than cost. Is this a scenario where the portfolio rating will be updated? Or is this how much you believe in Salesforce's fundamentals?
CHRIS VERSACE: I would say that based on what we've learned and are still learning about the factors that led them to issue disappointing guidance that we're probably not as bullish on that name, very different than Costco. Costco, we love it's just been a monster performer. To put it in context, Salesforce's guidance is disappointing on a couple of different fronts.
One, because it's below expectations. But the other is that as businesses continue to move in the cloud, it indicates that they're not really winning as much share or flip it around. They're actually starting to lose some market share. So that's a little concerning to us. And I think, again, we don't want to fall in love with our stocks. We want to be rather cold blooded and call out what's actually happening. And that's probably going to lead to some changes.
BOB LANG: So I did want to mention. I didn't want to send any shockwaves with my empty the truck analogy there. But as Chris said, I mean, we're not going to pull any punches. We're not going to try and put lipstick on an animal here and try and figure out--
CHRIS VERSACE: Pigs.
BOB LANG: Oh, it's a pig. OK. We're not going to put lipstick on a pig here and try and dress it up, and say that it's worth holding. If it's not worth holding, we're going to say it. We're going to act. We're going to do something about it. Because why do we need to stay with something that's not going to perform for us?
KATHERINE ROSS: OK. So we're going to move into Cisco now. We did talk about it recently. A reported earnings those did. I want to just point out those did disappoint Wall Street as well. But because we talked about recently, I'm going to keep you guys both to a buy, sell, or hold based on fundamentals, based a whole.
BOB LANG: Big buy.
KATHERINE ROSS: OK. Let's move into Deere then. Because Sheila asks Bob, what is going on with Deere buy, sell, hold here?
BOB LANG: Yeah. So I think we like Deere here. Technically, it's just kind of going in a sideways range up here between 340 to 370. It's quite a wide range. It's about 10% range of the stock. Any dips, I think we want to be a buyer.
KATHERINE ROSS: OK. And Chris, for you, I actually really love this question. John, I just want to give you a shout out for that because this is a fantastic question. John noted that even back in late October, the price of seed fertilizer and farming supplies were up. That usually puts pressure on capital expenditures for farmers since the margins get cut. And as the price of equipment goes up, those purchases are delayed. Does that impact at all your fundamental thesis?
CHRIS VERSACE: That is a fascinating question.
KATHERINE ROSS: Right?
CHRIS VERSACE: So I have to admit I haven't looked at that. But I think what I want to take a look at is the relationship between the moves higher corn, wheat, and soybeans, the real determinant of farmer income. I think-- John is his name?
KATHERINE ROSS: John.
CHRIS VERSACE: I think John is identifying some potential rising costs for the farmer. So I need to see what that delta is. And that's something we'll look into. But my suspicion is that based on the patterns we've seen for ag equipment, orders, and deliveries, it's not really having an impact. But we'll take a look at it.
KATHERINE ROSS: So let's move into Walt Disney now. This is another stock that we've talked about recently. I did get a couple of questions around the technicals. But the one that really stood out to me was stop loss, Bob. What would your stop loss on this name be?
BOB LANG: Yeah, good question. So we looked at this stock recently. And once it broke, 165.66 area, we were focusing on it. And it kept dropping and has since last earnings report. And technically, it's not performed very well at all. It's been of the worst performers in the Dow industrials. The Dow has actually been a bit of poor performer over the past five weeks. But Disney's been one of the worst performers there.
And as far as the stop is concerned, stop loss is concerned, we didn't have one actually in place. But we work on the technicals, which kind of takes the place of a stop loss. And so letting the market take you out of the trade.
Chris and I are sort of relying on the technicals on the charts to help us get out of the trade. It did break some technical levels. So we're looking for a rebound back and then probably making a decision on that down the road here. So yeah, it's just it's been a disappointment.
KATHERINE ROSS: Chris, I think what I'm going to have to ask you about this name, which is we now have the omicron variant. We've seen multiple countries now put restrictions on travel. Could this have a negative impact on this name?
CHRIS VERSACE: Of course it could. Absolutely could. Remember, we were generally excited about what happened in early November. The gates were open. People were going to be coming back in, going to the parks, right? But this is weighing on it.
So the question for us has to become at what point is this fully baked into the stock or overdone relative to the stock price and the opportunities to be had again? Normally, we'd say 12 to 18 months. But for the return people to the parks, when is that looking like also to remember the big knock on the stock was Disney Plus with a relatively weak subscriber growth numbers.
Again, because they didn't have all that much content. And we know that content library should get better as the couple quarters move further. So for us, the real question is, what's it looking like and more like nine months time frame?
KATHERINE ROSS: There's so much more I can say on this stand. But I will get yelled at for continuing. So I do want to move into Estate Lauder here Chris, let's start with you. There's not a whole lot of change in the fundamental story of this name. So I want to keep it to a buy, sell, hold.
CHRIS VERSACE: I would say, especially going into the holiday season, it's a buy.
BOB LANG: Yeah. I'm a big bull on EL. And it did gap down a little bit last week on some concerns with the virus and so forth. And people coming back to the stores to buy products. But there are great brand. And I'd be buying it on the as it's come down a little bit. It's come down about 10% roughly from the recent highs. I'd be a buyer here.
CHRIS VERSACE: Yeah. One thing people don't-- they fail to really recognize, I think, or give full credit, that's the better way of saying it. And this is true with even Coty, which is one of their competitors. The amount of digital business that these companies are doing and how they're tapping really into Asia, which is a huge, huge market for that with the rising disposable income. They're so-- to just remind people, it's not just the US.
KATHERINE ROSS: And that's interesting because I did actually-- I'm probably going to start getting yelled at for going over here. But I did actually just recently sit down with the co-founder of Sarah V, which is a skincare product brand for an episode of Coffee with Katherine.
And I asked him specifically about what does marketing look like in this day and age. And a lot of it is TikTok and Instagram. And that seems to be backing up exactly what you guys just said. All right. To keep us on track, let's move into Ford, which is a fan-favored over here,
Bob, Ford did recently hit $20 for the first time in about 20 years. It is at $20 today. It's about 5%. I'm looking at it right now. Where do you see a big breakout price?
BOB LANG: I see that $21 level would be a would be a breakout. It had a huge run in the fall from $12.5 up to about close to $20. So stock makes a big run like that. It's going to stop. It's going to stall. It's going to take a rest and go sideways for a bit.
It's in that process right now. So I think between $18.5 and $20. If it goes sideways even for a set of weeks or months or whatever, it's fine. But once it breaks above that $21 level, we should see some higher prices. Maybe up to towards $25.
KATHERINE ROSS: OK. So Chris, a lot of members are looking past Ford when it comes to EV place. They love Ford. Great position. But they're wondering if this is going to be AP's main EV play.
CHRIS VERSACE: No. I think that there's a better way to play it. When we've talked about this in the daily rundowns, the strategy that we were likely to use, which is buy the bullets, not the guns. So Ford is transforming his business. But it is a player in the EV race so to speak.
We would rather look for an alternative way to do that either a key supplier or perhaps another pain point in the growth of EVs. I think we've talked about this so I'll say it. We're looking for something in the charging space.
KATHERINE ROSS: OK. I'll be keeping you guys up on that. Because members, you guys are very curious about other EV plays. Moving into Honeywell really quickly, buy, sell, hold, Chris?
CHRIS VERSACE: I think that I would hold it. I wouldn't necessarily buy it.
KATHERINE ROSS: You agree with that?
BOB LANG: Yeah. I'm hold with Honeywell right now.
KATHERINE ROSS: OK. Going into Linde, buy, sell, hold, Chris?
CHRIS VERSACE: Hold.
KATHERINE ROSS: OK. And does the chart back up what Chris just said?
BOB LANG: Yeah. So yesterday, we got a bounce off the 50-day moving average, which is, generally speaking, a pretty good area of support. And it's gapping up today, pretty strong move here and had a Fibonacci retracement level as well too. This is another tool that I like to use technical tool. Pull back to other 315 areas. So I think this has got some good energy at least to get back to the 20-day moving average and maybe even higher.
KATHERINE ROSS: OK. So moving into Mastercard-- or when I wrote this, I should really check this. Yeah, it's down about 313. So it's near. Its 52-week low. Down about 12% year to date. Is the stock going through a rough patch, Chris?
CHRIS VERSACE: It is going through a rough patch. I think people might be overreacting a little bit to that disappointing Cyber Monday figure that we got, right? Expectations by Adobe were--
KATHERINE ROSS: --from Adobe.
CHRIS VERSACE: Yeah, from Adobe. So the expectation was 11.3, came in actually down slightly year over year. But what's fascinating, Katherine, is if you put-- sorry, pull the camera lens back a little bit, and you look at the first 29 days of November, digital shopping was up about 12% year over year. That's a big number considering the amount of shopping digitally we saw last year.
So I continue to feel good about it. Company also came out. And they've upped their buyback once again, boosted their dividend. Whenever we see the dividend, that's always favorable because it says confidence about the future. So I think, yes, it's just a rough patch.
KATHERINE ROSS: Do you agree with that?
BOB LANG: Yeah. And from the chart perspective, it's been churning through a lot of volume here for the past month and a half. You don't really like to see that high volume days when the stock is falling. It's had some pretty wild sessions. It's below the 200-day moving average.
So it's got a lot of work to do. We're not happy with the performance in Mastercard here right now. But we'll hold on to it for a little bit. It's a good brand. And we think, over time, it's going to right. The ship is going to right itself on this one.
KATHERINE ROSS: OK. So moving into Marvell, which recently got a price target update. Bob, where do you see the stock going?
BOB LANG: Yeah. I like this one. The stock had a horrible day yesterday and is bouncing back today. I think they have earnings coming out tomorrow? Tomorrow after the close. And the stock had a good session a couple of days ago. It pulled back yesterday on moderate volume, which a lot of tech names got thrown overboard yesterday. But this stock is bouncing back over here, getting to move over $75, $76. We got something to work with here.
KATHERINE ROSS: And what do you expect to hear from earnings, Chris?
CHRIS VERSACE: I think the quarter is going to be solid. We've heard a lot of favorable comments about the communications infrastructure, about data center even including. Early this morning, we touched on that based on what GlobalFoundries had to say. So I think the outlook remains very, very favorable.
KATHERINE ROSS: We're not going to forget this name this month, Morgan Stanley. There aren't a whole lot of news events driving this name when it comes to fundamentals. So I want to keep this kind of simple. Buy, sell, hold?
CHRIS VERSACE: Morgan Stanley? I think it's a two. But I think there's some room to nibble here. The one thing I want to get just a little comfortable before we do that is the IPO calendar near term looks a little sparse compared to what it was previously. So we just need to think about what that might mean, and maybe look for what the M&A activity is doing for Morgan Stanley first.
BOB LANG: So technically, Katherine, this stock has found support around the $96, $95 level. It pulled down a little bit below there yesterday. But it's pulling back up there today. If you stay above that $96, $97 level, consolidate a bit and make a run back through $100, I think once December is over, and we get into the new year, earnings are going to come out in the second or third week in January. It's usually one of the first ones to come out with all the banks.
I think we'll see some good results from Morgan Stanley. There's been trading. There's been brisk. I think their acquisition of e-trade was fantastic with the assets they have over there. And I think this is one of the premier names in investment banking here along with Goldman. But I mean, we like Morgan here.
KATHERINE ROSS: And one of the premier tech names of the portfolio is Microsoft. Now Chris, Satya Nadella, the CEO obviously, sold half of his stake in Microsoft earlier this week. That headline alone might spook investors. Does it spook you?
CHRIS VERSACE: No, it doesn't spook me. I mean, I understand the why he's doing it. I was just happy he didn't tweet and ask people about what he should do with it like some other CEOs. No. Look, I'm not as worried about that.
Most often, CEOs and other C suites will have a programmatic selling program that's out of their hands. I wish that was the case. If that was the case, then we wouldn't be having any of these questions.
KATHERINE ROSS: Fair point. Bob, what's the one thing that stands out to you in this chart? Because we did just recently do this chart.
BOB LANG: Yeah. And the stock, again, pulled down to the 20-day moving average. And we talked about that saying that would be a good spot to add the name. And it pulled down there below it on Friday of last week when the market got hammered and then yesterday. But it's making a nice run above there today.
So it's gapped up this morning. And it's trading right now at the highs of the session. It made an ugly looking reversal candle last week last Monday. And it went up to about $350 and pulled back down. So we're only about 4% below that level right now. And I think if we can get a little bit more energy keep this thing going, I think by the end of the year, we're at new highs.
KATHERINE ROSS: OK. Nortonlifelock, buy, sell, hold?
CHRIS VERSACE: Buy.
BOB LANG: I'm a buy on that one as well, too. I think that the stock has pulled back just enough that we can get some more activity to the upside.
KATHERINE ROSS: OK so. Moving into Nucor, because members really do want to hear about this name as well. We saw the stock pull back a little bit at the beginning of November. Can you walk members quickly through the investment thesis here?
CHRIS VERSACE: Well, the investment thesis is really twofold. One is it's very simple. Its price and its volume. Because it's a steel manufacturer. So steel prices have been elevated. Odds are they're going to moderate a little bit. But we see the volume improving from really two big fronts, rebounding automotive manufacturing, as well as the final happening of infrastructure.
So the bill was passed. Now we're just in a little bit of a no man's land because there's no such thing, Katherine. It's shovel ready-- I can't even say it, shovel ready projects. So there is a little bit of a lag time there. We're going to be patient and catch that move.
KATHERINE ROSS: We're going to let Chris have the legwork here. Buy, sell, hold based on technicals?
BOB LANG: I'd be a buy. But I thought when I heard Chris say price and volume, I thought he was going to step into my zone of tactical analysis. But no. I'd say I'd be a buyer up here.
KATHERINE ROSS: OK. Let's look at it Nvidia very quickly. I'm going to have a ton of eye rolls when I say this. But it was interesting that this stock was actually one of the top stocks on Wall Street Bets earlier this week according to swaggy stocks. Buy, sell, hold, Chris?
CHRIS VERSACE: Hold.
BOB LANG: I'm a hold as well, too. Stocks had a huge run over here and probably just going to go sideways for a bit longer.
CHRIS VERSACE: What he said.
KATHERINE ROSS: Sure. But where we do-- here's another question . Where would you buy?
CHRIS VERSACE: Closer to 300.
KATHERINE ROSS: OK.
BOB LANG: How about the 20-day moving average, which is about 3 to 10, 310.
KATHERINE ROSS: There we go, even more specific. You get the gold star of this round. OK. Moving into Starbucks. Now I don't really love going into the past. But I do want to do this really quickly for Starbucks here. Because Starbucks had a couple of dips back in November. It fell to about one or five. Are you looking to continue buying Starbucks and building up a position here? Are you happy with this position?
CHRIS VERSACE: Yes. I think we are happy with the position. I think that it's kind of getting weighed down a little. There's a lot of headlines about coffee prices being at a 10-year high. And I think that's some mental headwind. I think what we need to see is the company come out and deliver.
I know that every time I go to a Starbucks-- we were at a Starbucks earlier today, Katherine. And it was packed. The drive-thru lines are crazy long. I just think from a fundamental foot traffic perspective, the company is going to continue to win.
KATHERINE ROSS: Price level based on the chart.
BOB LANG: I'm a buyer down here. It's pulled back from a recent highs of about $117. It's a kind of a no man's land right now, which means that it's got lower highs but it's got higher lows. So I'd still be a buyer right here.
KATHERINE ROSS: Union Pacific. Buy, sell, hold?
CHRIS VERSACE: That will chug higher as the supply chain--
BOB LANG: Ouch.
KATHERINE ROSS: All right. Bob, what do you think? Anything stand out in the chart here?
BOB LANG: It was having a nice little run up there until about a week or so ago. And a lot of these rails had a tough going the last four or five days, especially with this revelation in the news of the new variant over here, probably getting in the way of more deliveries.
But this stock has been strong. And it's just kind of came back into the zone that it's been in for the past month or so. I like the stock, especially if it gets a move back up above the 20-day moving average, which is again, an area of about 2.41 or so. It's trading about $3 below there. We get above that 2.41 level. I think the stock is going to make an aggressive move up higher.
CHRIS VERSACE: Courts get better, auto production rebounds. 2022.
KATHERINE ROSS: OK. Sticking with you, Chris. You beat me to the Adobe numbers, which did show a more disappointing Black Friday. But overall, interestingly enough, the holiday sales are still strong and still on course to beat last year's numbers. When you look at a stock such as UPS, does that affirm your overall thesis?
CHRIS VERSACE: UPS, you mean the first derivative of digital shopping because every package has to get somewhere? Yes, it does.
KATHERINE ROSS: OK. Going into 2022, what do you expect to see from these technicals?
BOB LANG: Can we say back up the truck with UPS?
KATHERINE ROSS: Sure, you can say that.
CHRIS VERSACE: You could back up the big brown truck.
BOB LANG: Back up the big brown truck. So I do like the fact that it's pulled back to the 50-day moving average, which has been historically a nice area of support. It gapped above there in October and made a humongous run, which we were on. And we ended up taking some profits off the table back then and there. So I think this 199, 200 level is an ideal spot to add here. I do like it here.
CHRIS VERSACE: And I do think that-- you talked about Abbott benefiting from omicron. I do think at the margin omicron could lead to better digital shopping here. But also, I think you were saying, Bob, that earlier today when we were chatting, Europe is the epicenter of the pandemic.
BOB LANG: Right.
CHRIS VERSACE: Most likely in Europe as well.
KATHERINE ROSS: OK. So moving into our final name of today, Walmart. This is another name, obviously, that benefits from Black Friday. But Chris, Brett Briggs, the long term CFO, is stepping down. I haven't really seen much of a movement on this stock due to that. But could that have a long term impact?
CHRIS VERSACE: No. I say that because Walmart's a machine, right? And I and their bench is why. Their bench is deep. And they will be bringing somebody up. We'll see who it is. But not worried.
KATHERINE ROSS: Buy, sell, hold on the chart?
BOB LANG: I'm a buyer of this thing. Stocks pulled down a little bit below 140 right now. And I do think that-- like Chris said, this eventually two things are going to get settled. And I think whoever they bring in is going to do a great job. Walmart is a machine. And they just print money like it's nobody's business.
KATHERINE ROSS: OK. It is now time, as I've kind of teased through some of my questions, to look into our crystal balls into 2022. Chris, what sectors do you guys want exposure to in the long run? And what is a must own stock?
CHRIS VERSACE: So to be clear, sectors that we have already, or sectors we don't have exposure to?
KATHERINE ROSS: Either, or.
CHRIS VERSACE: Oh. Look, I've said this before, chips or the fabric of our lives. It's only going to happen more so. So I think some of the names that we have, whether it's a Skyworks, a Marvell, and an Nvidia, those are all great names. Again, the rising demand, I'd like for applied as well. So I'm very comfortable with those names. And I think that they're going to be great. If I had to pick one name--
KATHERINE ROSS: I believe in you can do it.
CHRIS VERSACE: I'll tell you what. Mark this down. We will revisit this in exactly 12 months, Katherine. I'm going to go Skyworks.
KATHERINE ROSS: All right. I've written it down. All right. Let's move in. Before we end, I do want to move into the Bullpen because I've gotten a number of questions from our members who want to know what you guys think. Starting with roadblocks, you said when I asked you about this a couple of weeks ago, that you missed the move, Chris. But members are still wondering if this is one to consider for the portfolio, and where you buy it?
CHRIS VERSACE: I'd have to check in with Bob on the technicals on that one, to be honest with you, I understand the company's business like where they're going. The question, though, is what's the right entry point to your point? And I think it's one of the ones that we'd have to really consult the technicals on and figure out what the upside is to be had.
BOB LANG: So it's coming into a nice entry point right now. We've been talking quite a few times about the 20-day moving average being important level to find support. That 20-day moving average is about $10 below where it is right now. It's having a rough day today.
The stock is-- it pulled up to $140 recently. It had a monster run from November. It gapped up on earnings. And it just kept going and going and going up to about 140, pulled back sharply and try to make another run up there. Yesterday had a good run early in the day before the market started to break down. And it's down to about 118, kind of in a no man's land here right now.
So we'll be watching this one. I have my eye on this. This 20-day moving average currently about 109, about $9 below where it is right now. And if we can get back down there, catch some support of that 20-day moving average, I think it's going to turn right back up again.
KATHERINE ROSS: All right. I've got a challenge for you. I've emailed in wondering about three names. And I'm going to go back and forth with you guys. Bob, starting with you, buy, sell, hold, J&J?
BOB LANG: Buy. Yeah.
KATHERINE ROSS: OK. Chris, Alibaba?
CHRIS VERSACE: Oh. Hold.
KATHERINE ROSS: OK. And JP Morgan, Bob?
BOB LANG: Yeah, I'm a buyer. I like the financials in 2022. So buy.
KATHERINE ROSS: OK. So we talked a bunch about 2022. But the one thing that-- I'm looking at you members-- the one thing that you're really curious about is the size of this cash position. Do you plan to continue having such a large cash position going into 2022? And should members mimic the amount of cash that you guys have?
CHRIS VERSACE: So the cash position is hovering around 17% as I recall. I think that the cash position will be lower in the coming weeks.
KATHERINE ROSS: We got to wait. OK. I've got a question from James P. Here, Bob, which is actually really interesting as well. Congrats, James P. "Many of the stocks have done extremely well this year. If one wants to cut back and take some profits, would you do it this year or wait until 2022 when taxes might increase?"
BOB LANG: I mean, I'll speak from my experience. I don't really invest based on tax purposes at all. And I know there's a lot of people who do and I respect them. But I've always said, if I have a tax problem, it means I probably had a pretty good year. It means right. That's something I had a good year with my portfolio.
So from an investing standpoint, I really don't think that if you're staying with an aim, if you're not going to sell it, why bother messing around? Just keep things with some continuity there.
CHRIS VERSACE: And I think the key, and this is a very individual answer. As you get towards the end of the year, if you want to minimize your tax bill, you have to marry up short term gains, short term losses, long term gains, long term losses. So it's hard to give a very specific answer, right, because you don't the construction of everybody's portfolio, how long they've been holding something. But that's something I would think about as we get closer towards the end of the year.
KATHERINE ROSS: And I just want to clarify one thing because it, obviously, is very important to our members, EV charging stations, that's a sector that you are looking to get into. You said that a little bit when I asked you about Ford.
CHRIS VERSACE: Are you asking me if I told the truth? The answer is yes.
KATHERINE ROSS: I just want to make sure that we're getting the best answers for our members here. OK. All right. So I look forward to seeing you guys add an EV charging stock to the Bullpen. You see what I did there? All right. And on that, it's a wrap. Members, I want to thank each and every one of you for sticking with us through a year that has seen a COVID sell off and the changes that led us to be here in person to answer your questions and address the Action Alerts Plus portfolio.
We are incredibly grateful for you all. And thank you, Chris and Bob, for being here as well. As always, please continue to send in your on air member questions to firstname.lastname@example.org. And we'll see you in the Daily Rundown.
BOB LANG: Happy holidays, everyone.
CHRIS VERSACE: What Bob said.