Avaya Valuation & General Stock Market Update

By Jeffrey Cohen, Investment Advisor Representative
​US Advanced Computing Infrastructure, Inc.

​Initially posted at market open, updated 31 minutes into the trading day.

#stocks #stockmarket #invest #premarket #avaya #valuation

The stock market and stocks premarket are showing Summer behaviors.

​We do see some news driving two individual stocks. Hewlett Packard Enterprise $HPE and Microsoft $MSFT are both down today. We will listen to the HPE earnings call this morning.

Today, June 2, 2022 we will look at stock market action. We will check in on our previous short squeeze candidates and look at the overall financial big picture.

This morning we also did a deep dive valuation of Avaya stocks AVYA $AVYA from their most recent 10-Q and market trading of their two bonds. We show you the equity market value of Avaya, the debt market value, and review their business performance.

e demonstrated that fixed income, or bonds, were lower yesterday in both the agency or mortgage backed securities markets and in Corporate bonds. We are a little worried that there were 9x more new lows than new highs in the corporate market.

The increase in yields of MBS could be due to Federal Reserve Bank quantitative tightening QT #beginning #qt yesterday. We also looked at the major indices, $SPY $QQQ $IWM and the VIX. These are in a downward pattern after years of rising.

We don't know, nor can we tell with any certainty, whether the market will continue to fall or rise. What we do know is that it is more risky today to be long stocks.

There was little news today. 1) Russia is mad at the US for providing missiles to Ukraine. 2) Microsoft warned of lower revenue and profit.

In terms of stocks to short, or potential short squeezes, our analysis earlier this week is already out of date. The runners yesterday are slow today, or down. $BSQR or Bsquare is up pre-market in what is probably a runner. However, it already ran pre-market, so it is already too late.

Disclosure: We are now short this stock (June 2, 2022 at 11:10am ET).

This is not investment advice, although we are investment advisors.

​Best regards, Jeff