💰 Tariffs strike hard, complicating trading and undermining market confidence ahead.
💹 $DRDGold(DRD)$/$Iamgold(IAG)$/$Sandstorm Gold Ltd(SAND)$: More important than gold? Hold on for now.
📣 Stay tuned, supercharge purchasing power through CashBoost!
First thing first!
Our lucky readers have seized the opportunity of this week's energy stocks rally.
In case you missed it, do chase back to our New Alpha series this Mon.:
https://ttm.financial/post/416892929773912
| Market recap💹
Trump's tariffs have threatened the market for the second day, with $S&P 500(.SPX)$ falling 0.33% and $NASDAQ(.IXIC)$ dropping 0.53%. $Apple(AAPL)$ rebounded over 1%.
$NASDAQ Golden Dragon China Index(HXC)$ increased by 1.4% against the trend, while $Niu Technologies(NIU)$ performed exceptionally well, leading with nearly a 12% gain.
$LexinFintech Holdings Ltd.(LX)$ rose over 5%, nearly doubling YTD and achieving 7 consecutive months' gains.
Megacaps - Homeboy Elon
Trump announced a permanent 25% tariff on imported cars, likely making $Tesla Motors(TSLA)$ the only winner. Consumers will be directly affected, with new car prices expected to rise by 11% to 12%. Goldman Sachs predicts consumers will need to pay an additional $5,000 to $15,000 per vehicle. Tesla, proudly 'Made in the U.S.', rebounded over 7% during intraday trading but ultimately gave back most of its gains.
$General Motors(GM)$ plummeted over 7%, and $Ford(F)$ declined nearly 4%—if the 25% tariff on cars and parts is implemented, both companies may face bankruptcy risk for their 2025 annual earnings.
Tech mogul - Huang peril
$NVIDIA(NVDA)$ fell 2%, $Advanced Micro Devices(AMD)$ dropped over 3%, and $VanEck Semiconductor ETF(SMH)$ has declined for 3 consecutive trading days.
To boost its stock performance, NVIDIA has made a bold acquisition move. Reports indicate that NVIDIA is entering the cloud computing and enterprise software markets by acquiring Lepton AI, competing with major cloud providers like Amazon and Google. Lepton AI was founded by ex-$Alibaba(BABA)$ scientists.
NVIDIA's incubated AI infrastructure company, $CoreWeave, Inc.(CRWV)$, saw a significant reduction in valuation just before its IPO, primarily due to high debt and reliance on a few major clients, which contributed to the discounted pricing of its IPO. In contrast, its competitor $NEBIUS(NBIS)$ appears more favorable for holding, boasting a cleaner balance sheet and diversified revenue streams.
Top movers - Rags to riches
🚗The tariffs are causing new car prices to rise, leading consumers to opt for car rentals, with $Hertz Global Holdings, Inc.(HTZ)$ up 22% and $Avis Budget(CAR)$ up 20%.
🔧Similarly, the used car market and repair industry are likely to benefit indirectly, with $Advance Auto Parts(AAP)$ up 6.7% (No, not $AppLovin Corporation(APP)$ 😥) and $CarMax(KMX)$ up 2.5%.
🐩Amid economic uncertainty, pets are providing companionship, helping people cope, with $Petco Health and Wellness Company, Inc.(WOOF)$ up 32% and $The Original Bark Corp.(BARK)$ up 2%.
| Got 99 problems, but the gold ain't one 👑
Today, spot gold prices broke through $3,085 🚀, reaching a new historical high within a week. Goldman Sachs and Citigroup have both raised their year-end target prices, with a high estimate of $3,500.
Increasing geopolitical uncertainty is driving gold prices higher. The U.S. administrations are in turmoil over the Signal leak incident, and the situation could become more tense, accelerating the rise in gold prices.
At the beginning of this week, meme stocks made a comeback, and mid-week crypto markets have seen a resurgence, as market risk appetite seems to return to levels reminiscent of the COVID period—investors are facing significantly increased difficulty to trade.
| Put the pedal to the floor 🏎
The current upward trend in gold assets presents an investment opportunity.
DRD - YTD +70% with trading volume up
$DRDGold(DRD)$ is primarily engaged in gold mining and production, focusing on gold mines in South Africa, committed to improving mining efficiency through advanced technology and sustainable practices.
The company's valuation is within a reasonable range, PE at 14x, with the stock price rising for 4 consecutive weeks, accompanied by an expanding trading volume, demonstrating strong resilience.
For the fiscal year 2024, the company’s ROE reaches 20%, indicating further improvement in profitability.
IAG - Underpriced and increased for 3 consecutive weeks
$Iamgold(IAG)$ is a Canadian mining company primarily engaged in the exploration, development, and production of gold, with multiple mines and projects particularly in the Americas and West Africa.
As a rapidly growing gold stock, IAG's revenue increases by 65% year-on-year in 2024.
Its stock price is relatively undervalued, PE at 4.5x, having increased for three consecutive weeks, with YTD at +25%.
SAND - Up 25% since March, gaining 3 consecutive months
$Sandstorm Gold Ltd(SAND)$ is a mining investment company focused on gold and other precious metals, primarily generating revenue through purchasing future production rights of mines, thereby reducing the risks associated with direct mining investments.
In 2024, the company’s gross margin exceeds 54%, showing an increase for 3 consecutive years, reflecting strong market pricing power.
Recently, the company announced new transactions with several mining firms, expanding its asset portfolio while continuing to optimize its investments to enhance future cash flow.
Stay tuned. Comment, like and subscribe to @Tiger_Contra
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