“If you're competitor focused, you have to wait until there is a competitor doing something” – Said Founder of Amazon Jeff Bezos
When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline. Read more
(UBER JOINS THE DOW TRANSPORTS, WHILE MICROSTRATEGY GOES ON A BITCOIN SPENDING SPREE)
March 1, 2024
Hello everyone,
Welcome to March.
Uber joins the Dow Transports
Unlike the Dow Industrials, the Dow Jones Transport is not hitting historic highs. The last high was hit in November 2021, and it is now almost 7% below that mark.
Under Dow Theory, the Transports should confirm a new high in the Dow Industrials. The theory is that if you were shipping more, which is what the Transports represent, it’s a positive sign. Uber is not a shipping company, but then neither is Avis, and it is listed in the Transports too. It’s a ground transportation company like Uber. Uber did underperform after its inclusion but shot up again after its first buyback announcement of $7 billion was made on Feb. 14. Uber has far outperformed every other Transport stock in the past 12 months, up 133%. The top performer on the Transports, Matson, is up 68%, while Union Pacific, Old Dominion, CSX, and Kirby are up around 20% to 30%. Uber is overbought as shown in the chart. Wait for a sizable pullback.
The gender pay gap continues.
Men continue to outstrip women in the salary stakes, with men’s annual salary $11,542 greater than women’s, according to newly released data for Australian private companies. It’s a gap of 14.5%, down from last year’s 15.4%. In 2022-23 men’s median annual base salary was $79,613 compared to $68,071 for women. Thank goodness investment returns don’t discriminate based on gender. Investment/trading returns/success is mostly based on behavior.
Under Sea Carbon Storage – a technological leap.
Germany aims to cut its emissions to “net zero” by 2045. To achieve this the country plans to enable underground carbon storage at offshore sites. Specifically, Germany foresees enabling the transport of carbon dioxide and its storage under the sea in Germany’s exclusive economic zone, except in marine conservation areas.
Last year, Denmark launched an ambitious project that aims to bury vast amounts of carbon dioxide beneath the North Sea.
MicroStrategy dosed up on Bitcoin.
MicroStrategy has been buying up Bitcoin in large parcels recently. The latest purchases were made with cash between Feb. 15 and Feb. 25, according to a filing with the US Securities and Exchange Commission on Monday. The company now has a total basket of around 193,000 Bitcoin.
Michael Saylor, the chairman and co-founder of MicroStrategy, started buying Bitcoin in 2020 as an inflation hedge and alternative to holding cash. Bitcoin is up 460% since Saylor began buying. The value of the holdings briefly swelled to $10 billion earlier this month when the price of Bitcoin reached a more than two-year high. With Bitcoin halving coming soon, this stock is one to watch. It could well be a buy the rumour, sell the fact sort of event. When Bitcoin rises, this stock will rise along with it and vice versa. So, perhaps with a Bitcoin target of around $127,000.00, it might not be a bad idea to buy a small parcel when MicroStrategy does pull back.
Cheers,
Jacquie
Global Market Comments
March 1, 2024
Fiat Lux
Featured Trade:
(WHY TECHNICAL ANALYSIS IS A DISASTER)
(SPY), (QQQ), (IWM), (VIX),
(TESTIMONIAL), (NVDA)
When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline. Read more
Mad Hedge Biotech and Healthcare Letter
February 29, 2024
Fiat Lux
Featured Trade:
(A LEAN, MEAN, HEALTHCARE MACHINE)
(MDT)
I admit that predicting where the S&P 500 will land in the next six months is a bit like guessing the next flavor of the month at your local ice cream shop — exciting but wildly unpredictable.
However, history has shown us that over a decade, it's more like betting on the sun rising in the east — pretty darn reliable for those looking to fatten their wallets.
Now, I'm not suggesting you throw your hard-earned cash at just any company that pops up in your stock app. No sir, we’re here for the smart picks.
And who's on my radar today? None other than Medtronic (MDT).
Let’s talk about why this healthcare giant could be the golden goose of your investment portfolio for the next decade.
Imagine a company that’s pretty much the Swiss Army knife of the medical device world, simplifying the lives of patients in 150 countries and tackling over 70 health conditions. Sounds like a dream, right? That’s Medtronic for you.
Sadly, it hasn’t been all sunshine and rainbows for this medical device company. Recently, Medtronic's growth has been more sluggish than a snail on a leisurely stroll, with revenues dipping ever so slightly in the latest fiscal year.
Blame it on COVID-19, people dodging doctor visits, or supply chain snafus; the healthcare sector has been through the wringer.
But, just when you thought it was all doom and gloom, Medtronic surprises everyone with a 4.7% revenue bump in its latest quarter.
With new gizmos and gadgets rolling out and an aging population that’s only going to need more medical attention, Medtronic is poised for a comeback.
Looking at the company’s trajectory and portfolio, I’m inclined to agree with optimists singing tunes of a 5.9% compound annual growth rate for the global medical device market till the decade's end. Considering that Medtronic is positioned in front of this segment, it doesn’t take much convincing that this stock is set for growth in the next years.
That’s not all though. Medtronic is trimming the fat by saying sayonara to its ventilator business, embracing a leaner, meaner approach.
Specifically, it plans to merge the remaining gems of its patient monitoring and respiratory interventions segment into a dazzling new business unit: acute care and monitoring.
Ultimately, the goal is to beef up organic revenue growth and buff up those financials. As they gracefully exit stage left from the ventilator biz, any lingering revenue from these machines will play a cameo in the “other” section of its financials, starting next quarter.
And let’s talk numbers for additional context, because who doesn’t love a good success story?
Over the last three quarters, Medtronic has been strutting its stuff with earnings just north of $3 billion on a revenue runway of $23.8 billion, flaunting a profit margin of 12.6%.
Not too bad, right? Still, there’s room to grow those figures, and a beefier profit margin means a happier ending for investors, with the stock potentially hitting new highs.
Can Medtronic truly follow through with a growth story? Well, its history says yes.
Medtronic's revenue has ballooned by 88% over the last decade, a feat that's as impressive as fitting into your high school jeans.
A significant chunk of this growth spurt came from its $42.9 billion acquisition of Covidien in 2015, which did more than just add a few zeros to its balance sheet — it catapulted Medtronic’s product portfolio and European presence into the stratosphere.
After that, the company continued to expand through a series of mergers, acquisitions, and good old-fashioned organic growth.
Peering into the crystal ball, there’s a strong potential that Medtronic will keep the growth party going at a steady clip of 4% annually in the medium term.
Let’s also not forget about dividends. Medtronic is the kind of company that keeps the dividend party going, having increased its payout for an impressive 45 years. Despite a modest bump this year, the future looks bright for dividend lovers.
So, should you buy Medtronic stock?
If you’re in it for the long haul, Medtronic seems like it's gearing up for an exciting journey. With a leaner, meaner approach and a market ripe for the taking, Medtronic's future looks bright. I suggest you buy the dip.
Global Market Comments
February 29, 2024
Fiat Lux
Featured Trade:
(The Mad MARCH traders & Investors Summit is ON!)
(THE GOVERNMENT’S WAR ON MONEY)
Nvidia, a titan in the world of graphics processing units (GPUs) and artificial intelligence (AI), has been making significant moves in recent years. One notable strategic investment is its interest in SoundHound AI, a company specializing in voice-enabled AI and conversational intelligence technologies. This move underscores a growing recognition of the transformative potential of voice AI and how it intersects with Nvidia's core competencies.
In this article, we'll delve into the reasons behind Nvidia's strategic interest in SoundHound AI, examining the benefits for both companies and the implications for the broader AI landscape.
Understanding SoundHound AI's Technology
SoundHound AI has established itself as a leader in the field of voice AI. The company provides two key technology offerings:
- Houndify: An independent voice AI platform enabling developers to integrate customized voice assistants that retain their own brand identity. It offers a comprehensive suite of features including natural language understanding, speech recognition, and speech synthesis.
- SoundHound App: A music recognition and discovery application that lets users identify songs by humming or singing. This app serves as a showcase for the capabilities of SoundHound's underlying technology platform.
The key advantages of SoundHound AI's technology lie in its accuracy, speed, and ability to understand complex, nuanced language. This makes its solutions ideal for building highly engaging voice-powered experiences for users.
The Synergy: Nvidia and SoundHound
Nvidia's interest in SoundHound AI highlights several areas of powerful synergy:
- Accelerating AI Development: Nvidia's GPUs are renowned for their ability to accelerate computationally intensive AI workloads. By collaborating with SoundHound AI, Nvidia can optimize its GPUs for voice AI applications, ensuring smooth, seamless, and highly responsive voice experiences.
- Hardware-Software Integration: Nvidia's investment in SoundHound AI facilitates vertical integration of their respective technologies. This translates into the development of purpose-built hardware and software solutions tailored to power the next generation of voice AI applications.
- Edge Computing Advantage: Voice AI is rapidly finding its way into edge devices like smartphones, smart speakers, and vehicles. Nvidia's expertise in edge computing platforms positions them to collaborate with SoundHound to develop efficient voice AI solutions for these resource-constrained environments.
- Generative AI Revolution: Advancements in generative AI, like ChatGPT and large language models, have the potential to revolutionize how we interact with voice assistants. Nvidia's leadership in AI, combined with SoundHound's conversational intelligence platform, could lead to the creation of even more intelligent and personalized virtual assistants.
The Competitive Landscape
While Nvidia and SoundHound AI have a promising path ahead, the voice AI market remains intensely competitive, dominated by tech giants like:
- Amazon (Alexa): Alexa's widespread adoption makes it a default choice in the smart home space.
- Google (Google Assistant): Google Assistant leverages the company's vast search capabilities and integration with its suite of products.
- Apple (Siri): Siri boasts seamless integration with Apple's devices and ecosystem.
SoundHound AI and Nvidia will need to differentiate themselves from the competition. A focus on customizable, brand-agnostic voice experiences and partnerships within specific industries could give them an edge.
Market Opportunities
Nvidia's strategic investment in SoundHound AI signals their belief in the immense growth potential of voice AI across various sectors.:
- Automotive: Voice AI is rapidly becoming an essential feature in vehicles. Intuitive voice commands for navigation, entertainment, and vehicle settings can improve driver safety and overall convenience.
- Smart Home: Voice-enabled smart speakers and appliances promise hands-free control of lighting, thermostats, and entertainment systems.
- Customer Service: Voice AI-powered chatbots can provide 24/7 customer support and address routine queries, freeing up human agents to handle more complex issues.
- Healthcare: Voice assistants can aid in remote patient monitoring, medication reminders, and even virtual consultations, increasing healthcare accessibility.
- Enterprise: Integrating voice AI into enterprise workflows can facilitate easier access to information, streamline meeting scheduling, and automate repetitive tasks.
Implications and Future Outlook Nvidia's partnership with SoundHound AI has both immediate and far-reaching implications for the technology sector:
- Voice AI Democratization: The collaboration could accelerate the adoption of voice AI across a wider range of devices and applications.
- Enhanced User Experiences: Optimized technology solutions can lead to faster, more natural, and personalized voice-driven experiences, driving user satisfaction.
- New Innovation Pathways: Combining Nvidia's AI prowess with SoundHound AI's expertise paves the way for groundbreaking advancements in the voice AI space.
Conclusion
Nvidia's interest in SoundHound AI represents a bold move with significant implications for both companies and the broader technology landscape. By leveraging each other's strengths, they have the potential to not only advance the state-of-the-art in voice AI but also unlock new use cases across diverse industries.
The convergence of Nvidia's computational power and SoundHound's innovative conversational intelligence platforms promises to fuel the development of increasingly sophisticated, intuitive, and ubiquitous voice assistants. As this collaboration matures, we can anticipate a future where seamless voice interactions become the norm, shaping the way we work, live, and interact with technology.
While major players dominate the current voice AI landscape, Nvidia and SoundHound's partnership could carve out a valuable niche – potentially disrupting the market with their focus on performance, efficiency, and customizability. The success of this strategic investment will have a transformative impact on the future of human-computer interaction.
Mad Hedge Technology Letter
February 28, 2024
Fiat Lux
Featured Trade:
(GOOGLE HITS A ROUGH PATCH)
(GOOGL), (MSFT), (OPEN AI)
