We are down to 7, actually.
As noted when we were down to 20 on the 21st, all of our Trade of the Year finalists on Nov 30th, 2022 performed very well in 2023 and we came up with trade ideas for each one so let's take this year's finalists very seriously as it's very hard to choose between them and I'll go though our final process with you - maybe we'll all learn something from the exercise.
The year of the Dragon represents energy, strength and power but we already have SPWR ($4.28!) in our portfolios but the dragon also represents flexibility and adaptability - characteristics that are likely to serve us well in the year ahead...
Before we start shopping, we should start hedging and we adjusted our Short-Term Portfolio (STP) more bearish on Tuesday and then EVEN MORE BEARISH yesterday, in our Live Member Chat Room so we are very well-hedged in our Member Portfolios and ready to make some well-protected bullish bets. Our finalists are:
1. Crocs (CROX) remains a strong contender. The brand’s resurgence in popularity, reflected in strategic collaborations and digital growth, positions Crocs well. However, the risks associated with fashion industry volatility cannot be ignored.
2. Best Buy (BBY) faces considerable challenges in a highly competitive retail landscape. Its brand strength and omnichannel capabilities are assets, but margin pressures and vulnerability to market shifts limit its upside potential.
3. Levi Strauss (LEVI) benefits from brand equity and product expansion efforts. Yet the apparel sector’s susceptibility to economic cycles casts doubts.
4. MP Materials (MP) retains a unique market position and pivotal role. Politics and market fluctuations inject uncertainty.
5. Vale S.A. (VALE) seems best positioned, given high commodity prices and its dominance. Environmental factors remain a concern though.
6. Paramount (PARA) has potential with its media properties and streaming pivot.
