Chris Forte’s “Thoughts to Start the Day” – HLIT, BIP

Posted on May 3, 2022 by Scott Shuda

May 3: A few thoughts to start the day. . . Like Costco shoppers circling the $1.50 hot dog combo cart, bargain shoppers showed up late in the session to stage a sharp reversal. The Dow and Nasdaq finished in positive territory. The S&P rebounded after hitting a new yearly low. Buyers dusted off their wallets and said, “Enough is enough,” after April was the worst month since March 2020. Speaking of dusting off a wallet, Warren Buffett cracked open his billfold as Berkshire Hathaway spent $40B on equities last quarter, much of it on Chevron (CVX) and Occidental (OXY). That’s a wallet so big even George Costanza would envy.


Harmonic (HLIT) reported Q1 after the close. Revenue was up 32% year over year with Cable Access revenue up 98%. HLIT’s CEO said, “Robust bookings resulted in a record backlog and deferred revenue at quarter end, demonstrating continuing competitive market momentum and growth visibility.” HLIT has a market cap of $860M and is expertly covered by BI’s Steve Kraus. Paul Rieutort commented, “I’m happy to hear company ahead of schedule and their guidance bodes well for rest of 2022 and beyond. Good start to a Monday.” See the Feed for the latest. In premarket HLIT is $9.31, +0.71 (+8.26%).


And speaking of The Feed, one of the best ways Breakout Investors collaborate is by posting Research Posts on companies, news, and topics of interest. If you haven’t posted a Research Post don’t be shy, give it a try. You don’t have to be an expert on the topic or know the company’s 10K backwards and forwards. We all learn by sharing info and your post could spark a fire that leads to discovery for the entire clan of Breakout Investors. And we do like a good fire.


If you’re looking for a Costco-like bargain check out small healthcare play Assure Holdings (IONM), market cap $55M. In mid-March it spiked to $7.76 after Q4 earnings but has slid to $3.79 on low volume. Strong Buy. . . Seeking Alpha author Lawrence Fuller says the S&P 500 forward P/E multiple has fallen to its 10-year average of 17 times and first quarter earnings continue to exceed estimates. Investors have been selling the rumor of Fed tightening all year long, so perhaps they will buy the news that it has finally started on Wednesday. . . “Bills travel through the mail at twice the speed of checks.” — STEVEN WRIGHT. . . Good luck to all.

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