Posted on April 22, 2022 by Scott Shuda
April 22: A few thoughts to start the day. . .Remember the old Maytag repairman commercials where actor Jesse White was bored out of his mind waiting for someone to call? That’s how it feels being a microcap growth investor. There simply are no buyers. Good companies with excellent results and strong forecasts are eroding into bargain bin territory. Where’s the bottom? Your guess is as good as mine, but it hasn’t stopped me from plucking some share of my favorites.
On the bright side airlines are strong. CNBC’s Phil LeBeau said, “Corporate travel is coming back stronger than many expected. There is a limited supply of seats. Many airliners have been retired and not yet replaced. The airlines are looking at profit per seat, that’s what really matters, and they are seeing sensational numbers and people are willing to pay up to fly. American Airline CEO, “I see robust demand far into the future.” American reported record revenue in March. Overall carriers are swinging to profits in Q2 and there’s a surge in customers paying for premium/first class seats Transatlantic shows strong demand, corporate travel coming back fast. The Airline sector is up 14% year to date.
SARK, the fund short on ARK was up 5%. In CF Room we are bullish on the ad-tech sector. With Netflix taking a beating there’s discussions about streamers resorting more to ads. The ad-tech sector could be a possible beneficiary. We like Perion Networks (PERI) in particular in this sector which recently knocked earnings out of park. . . “Damn, Netflix is in trouble, which is so surprising because me and the 43 people I share my account with, we’re still watching it all the time.” — TREVOR NOAH. . . Good luck to all.
Join us on the Breakout Investor Platform (BIP) to discuss PERI and other great little companies where our community shares research and analysis. We seek to be Ahead of the Curve in identifying and owning great companies with catalysts that could make them the next Breakout Investment. Membership and most of the content on BIP is free.