Chicago Quantum presents The Bottom Line. Stock market news during a stock market crash. We look at the pre market stock market signs of a stock market crash. We continue to have one of the worst months in recent history. What you should do? Pre market stock market news and analysis. May 23 2022: Pre-market analysis of financial conditions By: Jeffrey Cohen, Investment Advisor Representative US Advanced Computing Infrastructure, Inc. The US Equities markets are set to open Green, or up this morning. What do we see? We normally work in the top-line market. The headlines. Macro-economics, money flows, fixed income, US equities, and look at the major indices (S&P 500, NASDAQ Composite and Russell 2000). Today, we are going to look at the bottom line market. Some stocks that are at extreme levels of fundamental valuation. The edge where people can make or lose a fortune with stocks that seem values at a level 'too good to be true.' We are no longer looking at MEME stocks or fast runners this morning, we are looking at The Bottom Line, extreme valuations. Of course, we will also review the news, market futures, industry sectors, fixed income, commodities and all that jazz. Probably check out a few US Government websites for data. Look at pre market movers. Check out global markets overnight and earlier this morning. This time, we dig into some ultra-low valuation stocks. Stocks that trade at very attractive multiples to profit or net income, and others that trade a low multiples of cash flow. But, look out for debt levels. This is the difference between a valuation trap and a valuation opportunity in many cases. The bottom line market. May 23, 2022 Jeffrey Cohen, Investment Advisor Representative US Advanced Computing Infrastructure, Inc. We are looking for potential runners today based on extremely good valuations. Top-line: Yield curve normal, but short money is yielding higher, and long bonds under 3%. Corporate fixed income: Was strong on friday in investment grade, balanced in high yield (1:1 ratio) and slightly lower in convertibles due to the equity exposure. New lows continue to dominate new highs, around 25:1. If you can afford to wait, let's falling stocks and bonds fall further. US Dollar looks significantly weaker. EUR/Dollar up to 1.0656. We saw this recently as low as 1.039. This is bullish for US equities. Material news None found. Futures for US Equities Green across the board. Up ~1% pre-market. Currently Efficient Portfolio: Was flat, 1:1 advance to decline in pre market trading. This is not bullish. Europe and Asian markets, Global equities: Asia was down, Europe is up. Nikkei (Japan) was up. VIX fear gauge: Lower this morning, but still elevated. Gasoline, Oil and Natural Gas: Gasoline at $3.82 is still very high for the US consumer. Oil is up at almost $111 / barrel West Texas Intermediate, and Brent is almost $114 / barrel. We think big money is behind the moves in the indices on this Monday morning. Commodity futures up across the board. Gold, silver, platinum all up Bond futures Looked lower, so rates are set to rise today. Overall: Equity Factors Industry view (canary in a coalmine industries): NA Money Manager News: NA Crypto-currencies, such as bitcoin: Up 1%, not much movement, but positive. The Bottom Line: There are three stocks with high volume and high volatility that lost money. Check them out in the video, they are set to move today. We found a bunch of stocks that pass a pretty aggressive faluation filter. Also check them out in the video. Closing things out. What we saw: Green futures. Some stocks are trading at valuation discounts, but these are in industries that will suffer the most in a recession. What you can do today: Avoid investing in stocks and bonds that are at new lows. Unless, of course, you are investing in them falling further. Some of the stocks we looked at have a chance to run (either up or down). Not investment advice, you get investment advice when you become a paying client. I wish you good luck in the markets. Enjoy the video. GLTA!
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Here are the three stocks that were very active on Friday, have high historical volatility, and lost money.
Three stocks that move fast, and had high volume on Friday
GENI - down
ZYME Zymeworks - down, but loaded recently.
LWLG - Lightwave Logic - moves every day…trader’s paradise.
Here are the multiple stocks that had a strong fundamental valuation based on last year's performance, and are significantly down in price. These are your falling knives with good metrics.
$100M equity market cap or above.
Traded every day for a year
Positive net income
Stock prices that pass validation.
Down in price, but good earnings, better than 10:1 ratio on total capitalization / CFFO, and total capitalization / NI (both conditions are met):
COIN Coinbase Global
TUP Tupperware Brands
RVP Retractable Technologies
CONN Conns Furniture store
BGFV Big 5 Sporting Goods
PLCE The Children’s Place
BIG Big Lots
LEU Centrus Energy Corp
RKT The Rocket Companies
URBN Urban Outfitters
PVH PVH Corp
WGO Winnebago Industries
GPRO Go Pro
BBY Best Buy
NATR Nature’s summer harvest
FL - Foot Locker
SIG Signet Jewelers LTD (foreign)
DKS Dicks Sporting Goods
JHG - Janus Henderson (money manager UK)
Sporting goods and sporting apparel is down. UA is down massively last week.
9 Up pre-market, 4 down
8 Up vs. 5 down
Even in a down market, cash flow from operations and net income matter. They are valued by investors.
In a recession, however, earnings and cash flow evaporate and you end up holding stocks with worse valuations.
And these final two stocks are just a little different. Worth looking at:
CLF Cleveland-Cliffs Inc (down 5%)
AUTO Autoweb (down much more than 5% - going concern risk)
Good luck in the markets today.
Stock Market BLOG
President and Investment Advisor Representative