Updated Coverage on a NASDAQ Stock That Presents as Oversold and Looks Ready for a Nice Near Term Run. Coming Tomorrow Near Market Open.
Have We Underestimated the Potential Impact of China’s Covid Lockdown on the US Economy?
Good day everyone,
We are seeing a mixed bag of Q1 earnings reports coming out, but overall companies (77%) have been beating analysts’ expectations. Companies such as IBM, JP Morgan, Bank of America, and Alphabet exceeded the analysts’ estimates, while Netflix signals its in trouble and is really taking it on the chin today.
One factor that will impact our economy this year, which isn’t getting a lot of attention is our trade with China. One third of China’s people are in lockdown down over Covid precautions and their economic center Shanghai is virtually closed. American companies with manufacturing operations around Shanghai, like Apple, Sony, and Tesla, will feel some level of impact from the Chinese Zero-tolerance Covid policy (which is now lifted to some extent).
The Chinese economy’s growth will also be slowed down by the lockdown and may have reverberations across the globe. The USA has been on a program, initiated by the government over the past few years, to reduce imports from China and source more products locally. But the US imports over $500B in products from China and the transition to local sourcing may not happen quickly enough to nullify the impact of China’s current woes.
For our group I want to update you on a great NASDAQ company that appears way oversold. We’ve discussed the attributes of this company, why and how it will experience growth, their enviable business model, top talent in management, and some enviable financial metrics.
I want to talk about the reasons I expect this company’s value to leap in the near term. They are operating in a sector that is experiencing tremendous growth and they are a leader in the niche they operate in. There is a tiny share structure, significant insider ownership, significant revenues, and a chart setup that looks set to run.
Stay tuned and stay informed. We will have this report ready on Thursday, April 21, 2022, at or near the market open.
The Traders News Group