Disney (DIS), Home Depot and Stimulus Check Investments

Play episode

Disney (DIS), Home Depot and Stimulus Check Investments


Podcast Transcript

Hey this is Jeffrey with another edition of Stock Smart, March 16th, 2021 edition. Hope you’re doing well, let’s start with some news. NXPI semiconductors, Penn National Gaming, Generac Holdings, Caesars Entertainment, all four are going to be adding the S&P 500 next week. So these stocks all will get a little bit of a boost because of all the exchange-traded funds or ETFs that will need to add to these positions over the next few weeks to bring up their holdings. So, a strategy is to jump on these now as they will get a boost from the stock purchase. So again, NXPI, Penn National Gaming, Generac and Caesars, and two of these stocks, we have featured on this show, we have talked about Penn National Gaming many times. We have talked about Generac, so take a look at those, again going back to the chip shortage.

We’ve been talking about the last pretty much two months, it’s impacting these companies greatly car companies getting hit big-time, you know by manufacturing costs, cost of supplies and chips, fall right in there because there’s so many chips now in cars but Ford said that the shortage of it continues in the second half of the year could impact their bottom line or gross revenue by about 2 billion. So it’s hitting in the bottom line. So you got to pay attention to that, where AMD says, Lisa Su says, the chip shortage is good for us, we’re going to cover demand, and we’re getting there. GameStop getting sold off massively today, down to 202, down about 8% it had reached under 200 at one point. And again, it’s part of the ping pong. You want to stay away from it.

There’s nothing you want to be invested in here, big announcement coming up in the next few weeks, going to change the face of the show a bit, going to have a lot of new content, featuring a lot of new and different segments of the stock industry and the sports industry, really excited about that. We’re still positive on the S&P 500 oscillator, so if the market kind of goes sideways for a bit or slightly up, slightly down. That’s what we would expect to see over the next week or two as it trades off a little bit and we get to a more viable number on the S&P oscillator again. We’re slightly overbought the VIX is down under 20. That’s a good number, a good safe number. We’re about 3 to 4 weeks away from bank earnings coming in.

So once we get those bank earnings again, get some more catalyst for movement in stock prices and that VIX, keeping that number low is a good indicator. The more continue to go up. A lot of these financials the XLF, you can take a look at it, up greatly, 30% or more so far this year. A lot of financial stocks have done really well.


Gonna take a look at a stock right now. We’re going to look at the marketing language as always. We engage in the sale of building materials, home improvement products, these products include building materials, home improvement products, lawn and garden products and decor products, that offers home improvement installation services and tool and equipment rental. Who are we? Home Depot. Okay stock is about 280 right now, about 5% off its 52 week high and this time of year for Home Depot.

It’s like the Super Bowl because it generates a ton of foot traffic as people start to focus on their backyards and gardens. It’s spring, it’s time to plant flowers, do some remodeling in the backyard. Maybe buy a barbecue. So seasonally this is always a great time to invest in Home Depot. You have to throw last year out of the window because the entire market was hit extremely hard, but if you look at the 5-year chart and then throw Covid out, because everything got hammered and we lost 30% you know this time last year. And so if you look at the prior 4 years of Home Depot, from about March where we are now, we’re like the 1st of March until about June.

This stock is generally appreciated about 10% in that time frame, largely because this is a very good seasonal play right now. And so this is a stock you want to get in now, technical chart is moving in the right direction towards what could be a mini break out here, to a 52-week high, and after it hit about 245, it has been in a good upward trend, so great stock to look at right now, Home Depot seasonal play. Great time to buy it.


I got a question from Rich. Rich just received his Covid relief check for $1400. And again, he wants to know what stocks would be good investments right now.

A lot of this money, the lot of the relief checks have gone into the stock market as we said, you know, we talked about this many times before, an online survey of 430 investors who use online broker platforms, half of the respondents between 25 and 34, plan to use 50% of their stimulus payments on stocks, 18-24 year olds are going to use 40% of the check on stocks, and 35 to 50 year olds used about 37% to invest in stocks so that in-flow of money and we talked about how great the growth of the retail investor has been this last year during Covid. So that money is coming back in and going to hit stocks again. Now, what are people going to want to buy? So I think you’ll have to look at this in 2 ways. Don’t just look at it like, this is the stock we want to buy, look at it like this. What are people going to do with that money, those are the stocks that I‘d want to buy. Travel, right we know travels has moved greatly this year, if I’m a family where am I going?

Let’s say my kids are in between the ages of 6 and 13. I’m going to go to Disney. I actually want to go myself right now. I haven’t been obviously in a year plus but I’m in California. So I’m wanna go to Disneyland and Disney World is great too, I have been there but I might go to Disney which is already moved to great deal. But sure I would go to Disney and families are going to go to Disney and they’re going to take this like a tax return and they’re going to put it in that vacation bucket and say, let’s take the kids to Disney. It’s a great idea, Disney’s opening up but all travel stocks, and I’d say adults, they may want to go to places like somewhere like in Las Vegas. So maybe MGM or Wynn, WYNN ticker symbol, airline stocks, Alaska, ALK,

Southwest, LUV ticker symbol. Rental cars, Avis, Carnival Cruise Lines, CCL, which has moved a great deal already, but I also think the stock that we just talked about, which is Home Depot and Lowe’s, so Home Depot, ticker symbol HD and Lowes, LOW, they’re going to benefit as this is the right timing for backyard work. So that money can go right back into your garden. It can go into your grill go in the patio furniture, whatever. Maybe you buy a hot tub this year.

So those are all areas where I’d either be an investor because you know, those are stocks that can do very well right now and will continue to do well, as America opens up again, and we travel. Another one that you know, when your kids get a little bit older say they’re in their 13+ age, they always love Disney, but they want a more exciting or scarier roller coaster and a place I’ve been, I’ve taken my kids, which is Cedar Fair in Ohio. The ticker symbol is FUN, so Cedar Fair Parks Entertainment Group, up about 30% already this year probably has a ways to go still but that’s a stock again similar to a Disney a little bit of a different segment. They own theme parks. Hey, another great show and we’ll see you again next time on Stock Smart.

More from this show

Episode 35