Flutter Entertainment PLC (STAR)
FLUT (NYSE)
There are countless strategies one can employ to win at sports betting. Screaming obscenities while the other team is attempting a free throw, for example. Or running onto the field and blocking a potentially game-winning field goal. But if you don’t want to be banned from the arena or end up in jail, owning shares of Flutter Entertainment PLC is probably a better idea. The stock surged to a record high after the owner of the FanDuel sportsbook announced a share buyback of up to US$5-billion and projected that revenue will grow at a compound annual rate of 14 per cent over the next three years, reaching approximately US$21-billion in 2027. Keep those bets coming in, suckers.
Gold (STAR) (GCZ24)
You know that fine gold jewellery your grandmother handed down to your mother, who handed it down to you? “You must honour our memories by keeping this precious heirloom in the family for generations to come,” she said. But, seriously, have you seen the price of gold lately? With gold hitting a record high of more than US$2,700 an ounce this week, driven by central bank buying and strong retail demand, there’s never been a better time to take that old hunk of metal down to Bob’s Bullion Buyers and see what he’ll give you for it.
iShares MSCI China ETF (STAR)
MCHI - Nasdaq
There’s an ancient Chinese saying: Be fearful when others are greedy, and greedy when others are fearful. Wait, that was Warren Buffett, but his words are relevant to China’s suddenly surging stock market. For years, investors were fearful of Chinese stocks, which were getting hammered by slowing economic growth, COVID-19 lockdowns and regulatory crackdowns on various business sectors. But with the government announcing a massive package of stimulus measures this week to kick-start the economy, Chinese stocks posted their biggest rally since 2008, giving a huge boost to exchange-traded funds such as the iShares MSCI China ETF. Nice to see greed making a comeback.
General Motors Co. (DOG)
GM - NYSE
Remember during the pandemic when you couldn’t find a new car, unless you wanted the bright green model with roll-up windows and no air conditioning? Well, dealerships have plenty of vehicles now, which is great news for consumers but bad news for car makers. Shares of General Motors Co. hit the brakes after Morgan Stanley analyst Adam Jonas downgraded the stock to “underweight” from “equal weight,” citing high industry inventories, softening consumer demand and growing competition from Chinese automakers. Making matters worse, vehicle affordability in the U.S. is “very stretched,” said Mr. Jonas, who also downgraded Ford Motor Co. to “equal weight” from “overweight.” Auto company stocks are spending some time in the shop.
Super Micro Computer Inc. (DOG)
SMCI - Nasdaq
Things aren’t exactly going super for Super Micro Computer Inc. The shares continued their months-long skid after the Wall Street Journal reported that the U.S. Department of Justice is investigating the AI server maker over alleged accounting irregularities. This came a month after short-selling firm Hindenburg Research wrote in a report that interviews with former senior employees and reviews of litigation and customs records “found glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues.” Other than that, business is going great.