DeepSeek is open source, so that will accelerate its acceptance, modification and usage by major companies.

AI stocks crash after major advances by Chinese AI company DeepSeek using fewer and less advanced semiconductor chips - software ingenuity overcomes chip limitations - this could potentially diminish the demand for sophisticated US designed AI chips and software -

https://www.wsj.com/tech/ai/china-ai-deepseek-chatbot-6ac4ad33?st=xQzoEx&reflink=desktopwebshare_permalink

GLBXF (GBX.To) +.09 to 1.43, nice chart the past 4 months, up about 75% from the Sept lows .... financials show a loss of ($0.01) for Q3 and a earnings of $0.01 per share through 9 months. Are you expecting earnings to improve going forward ?

https://www.globexmining.com/documents/Globex_FS_Q3_2024_final.pdf

ESOA +.64 to 14.93, spiked to $19+ in mid December after the earnings. I was eager to sell but needed just 3 days for my capital gains to go long term, so I held on but regretted it as the stock promptly plunged. Now I regret missing the buying opportunity in the $11's just 2 weeks ago .... Hopefully it's going back to either $11 or $19 so that I can buy or sell accordingly, LOL.

ASTS (19.40) - I've been in it and have traded it since August .... nice big premiums on covered calls. Added shares this morning at 18.74 in pre-market, then sold the Jan 31st $20 calls for $0.88. Cost basis of $17.86.

ASTS conversion price is well out of the money, so that's a positive. And the potential dilution is rather modest. So the selloff is overdone, imho.

ASTS -3.75 to 18.74 in pre-market on news of a capital raise through a convertible bond offering ..... this selloff seems an overreaction and I just added some shares.

https://finance.yahoo.com/news/ast-spacemobile-announces-pricing-private-054700445.html

AST SpaceMobile is building the first and only global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on our extensive IP and patent portfolio, and designed for both commercial and government applications. Our engineers and space scientists are on a mission to eliminate the connectivity gaps faced by today’s five billion mobile subscribers and finally bring broadband to the billions who remain unconnected.

EVTL -2.78 to 6.50 after hours on news of a $75M capital raise, but maybe it's a buying opportunity. I've owned the stock in 2022/23 and made a small profit thanks to rolling over covered calls repeatedly, otherwise it would have been a loss. I might get back in. Great story but developmental stage.

PR -

Vertical Aerospace (Vertical) (NYSE: EVTL) ("Vertical” or the “Company”), a global aerospace and technology company that is pioneering electric aviation, today announced that it has commenced an underwritten public offering of $75 million of units (the "Offering”). Each unit consists of one ordinary share and one-half of one Tranche A warrant and one-half of one Tranche B warrant. The ordinary shares and the warrants comprising the units are immediately separable and will be issued separately in the Offering. The Offering is subject to market and other conditions, and there can be no assurance as to whether or when the Offering may be completed, or as to the actual size or terms of the Offering.

That's an interesting article on Hindenburg .... I don't doubt that was shady collusion going on, but to what extent it violated disclosure regulations is the question. Maybe the SEC is investigating Hindenburg and so Anderson decided to shut it down.

AES -.62 to 11.13, remains a falling knife, hitting new multi-year lows today .... no news that I could find, but there must be something bad going on, maybe related to all their 3rd world exposure. Last year they reported Q4 results on Feb 26th, so we still have 5 weeks to wait .... the way the stock is dropping it could be in the single digits long before then.

Yesterday's announcement of a planned $500B investment in AI Stargate Project triggers AI stock rally -

https://openai.com/index/announcing-the-stargate-project/

NVDA, DELL, SMCI, ORCL, ARM

KIK - PSIX +4.70 to 40.78, now a 22 bagger from a year ago today when it closed at a mere $1.80.

Congrats on your awesome table pounder call in Sept 2023 - it's rare that you call any stock a table pounder and it was truly prophetic for this stock !

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=172757594&txt2find=psix

WBA selling off after hours, down around 10% from when you posted .... I should have shorted a few shares for a quick after hours round trip !

GSIT +1.45 to 4.20, rally looks overdone for a mere potential $250k contract .... I shorted a few shares.

https://finance.yahoo.com/news/gsi-technology-selected-u-army-130000129.html

Hindenburg has a mixed track record, but did make many excellent short calls including SMCI last summer. The auditor then resigned and the stock is down sharply since then. He also made an excellent short call on IEP, Icahn Enterprises at $50 about 18 months ago, calling it a financial scam. It's now $9. Pull up the 2 year chart to see when he crashed it. His critique was very correct and Carl Icahn was in furious denial but it not stop the huge selloff.

That 2 year chart of IEP is too funny. Thanks go to Hindenburg for uncovering the scam.

Over the years his research caused at least 7 CEOs to resign or get arrested.

Of course he's also made some bad short calls and was biased to the short side due to his own short positions. Nonetheless he was both feared and respected, so his short research could have significant impact on a company's stock price.

ADFJF (5.95) bullish article on SA today, but we'll have to wait until early April to get their Jan Q4 and FY25 earnings. So far no further orders have been announced, so presumably their backlog is continuing to shrink.

https://seekingalpha.com/article/4749638-adf-group-capitalizing-on-us-infrastructure-growth-with-a-niche-in-structural-steel-fabrication

VTRS -.42 to 11.30 after FDA issues warning letter and import ban for 11 products pending resolution -

briefing -

Viatris issues statement regarding receipt of warning letter and import alert for Indore, India facility (12.49 ) :
"Our plants around the world are regularly inspected by health authorities to ensure compliance with the various markets we serve. Following an inspection by the U.S. FDA at our oral finished dose manufacturing facility in Indore, India earlier this year, the Agency has issued a Warning Letter, and an Import Alert related to this facility.
The Import Alert affects 11 actively distributed products that will no longer be accepted into the U.S. until the Warning Letter is lifted. It makes exceptions, subject to certain conditions, for four products based on shortage concerns. There could be the potential for additional exceptions based on further discussions with the Agency.
Following the substance of FDA's original inspection observations, we immediately implemented a comprehensive remediation plan at the site. The necessary corrective and preventive actions are well underway, including but not limited to related personnel actions. Additionally, we have engaged independent third-party subject matter experts to support the remediation plan.
We have been in regular communication with FDA during this process and will continue to work to ensure that the Agency is satisfied with the steps we have taken to resolve all the points raised. Our response to the Warning Letter and Import Alert will be submitted within the required time periods.
At this time, we do not anticipate these actions impacting our current 2024 financial guidance ranges. We will incorporate potential future financial impact in our 2025 guidance ranges when we provide these in early 2025.
We take very seriously our continued and comprehensive oversight of our entire manufacturing network. Patient safety remains our primary and unwavering focus. We will work closely with our customers to mitigate any possible supply disruptions and meet the needs of the patients we serve."

S&P futures up 1.5%, Russell futures up an astounding 2.7%.

I might be looking for some selling opportunities this morning ....

F (9.69) has gotten cheap again. Ford Motor now trades at a forward PE of 5.7 and yields 6.2%. Covered call premiums are also fairly high. I added a few shares this morning. GM is even cheaper with a forward PE of 4.7, but yields only 0.9% and is more dependent on imports from Mexico which may be subject to tariffs under Trump.

I own small positions in both stocks. Beware, Ford's Q3 results were disappointing. Q4 will be reported on 2/5, but some bad news is already priced in with the stock trading very near a 4 year low.

Ford has been an excellent trading buy at around $10 over the past 2 1/2 years -

 
 Trend Start  Price         Trend End     Price      Gain/Loss %   Days in Trend 
  
 07/19/22      11.91         07/05/22      9.95          -16.5%        11 
 07/05/22      9.95          08/16/22      15.65          57.3%        31 
 08/16/22      15.65         10/03/22      10.44         -33.3%        34 
 10/03/22      10.44         11/11/22      13.76          31.8%        30 
 11/11/22      13.76         12/28/22      10.23         -25.7%        32 
 12/28/22      10.23         07/05/23      15.2           48.6%        129 
 07/05/23      15.2          10/31/23      9.49          -37.6%        84 
 10/31/23      9.49          07/18/24      14.85          56.5%        179 
 07/18/24      14.85         08/05/24      9.49          -36.1%        13 
 08/05/24      9.49          11/25/24      11.52          21.4%        80
                            

Homebuilders strong today after KBH posted solid results including impressive 19.5% y/y revenue growth for Nov Q4 -

briefing -

KB Home beats by $0.08, reports revenue growth of 19.5%; FY25 housing revs expected to be $7.0-7.5 bln (64.08 +0.89) :
Reports Q4 (Nov) GAAP earnings of $2.52 per share, $0.08 better than the FactSet Consensus of $2.44; total revenues rose 19.5% year/year to $2 bln.
Homebuilding revenue rose 19.7% yr/yr to $1.99 bln.
Homes delivered increased 17% to 3,978.
Average selling price rose 3% to $501,000.
FY25 guidance:
Housing revenues in the range of $7.00 billion to $7.50 billion.
Average selling price in the range of $488,000 to $498,000.

BIIB +1 to 149, Biogen looks cheap and oversold, but may be a value trap unless they can show some revenue growth. Revenues peaked in 2019 and are down about 31% since then, although they seem to be stabilizing. Solid balance sheet is a positive and they've been beating earnings estimates.

I'll pass for now, but did put it on my watchlist. Good luck.

GERN -.28 to 2.89 after Q4 revenue guidance of $46M falls far short of analyst estimates of $59M. Now looks like revenue estimates for 2025 will have to lowered significantly.

PSIX -.01 to 35.79, sold my entire position this morning. I still like it, but there's technical resistance at around this level and I think I'll be able to buy back lower in the coming weeks, especially if this market selloff continues.

WBA +2.37 to 11.59, nice move - I should have added a bunch of shares in premarket. There were loads available in the $9.80's.

CIVI (Civitas Resources) was formerly (BCEI) Bonanza Creek Energy. They did a rename in 2021 after a merger with Highpoint. I owned it a few years ago as BCEI.

CIVI +2.27 to 51.17, this Colorado O&G producer looks cheap at under 6x FY25 EPS estimates. Oil is back over $77/bbl.

I picked up a starter position this morning.

WBA +.59 to 9.81 in premarket after posting surprisingly solid Nov Q1 numbers, well ahead of estimates -

briefing -

Walgreens Boots Alliance beats by $0.13, beats on revs; reaffirms FY25 EPS guidance (9.22 ) :
Reports Q1 (Nov) earnings of $0.51 per share, excluding non-recurring items, $0.13 better than the FactSet Consensus of $0.38; revenues rose 7.6% year/year to $39.5 bln vs the $37.4 bln FactSet Consensus.
US Retail Pharmacy: The U.S. Retail Pharmacy segment had first quarter sales of $30.9 billion, an increase of 6.6 percent from the year-ago quarter. Comparable sales increased 8.5 percent from the year-ago quarter.
International: The International segment had first quarter sales of $6.4 billion, an increase of 10.2 percent from the year-ago quarter, including a favorable currency impact of 3.6 percent. Sales increased 6.5 percent on a constant currency basis, with the Germany wholesale business growing 11.3 percent and Boots UK sales growing 4.5 percent. Boots UK comparable pharmacy sales increased 10.9 percent compared with the year-ago quarter.
U.S. Healthcare: The U.S. Healthcare segment had first quarter sales of $2.2 billion with growth in all businesses compared to the year-ago quarter. VillageMD sales increased 9 percent, CareCentrix increased 16 percent and Shields increased 30 percent.
Co reaffirms guidance for FY25, sees EPS of $1.40-$1.80, excluding non-recurring items, vs. $1.52 FactSet Consensus. Sees growth in U.S. Healthcare and International more than offset by a decline in U.S. Retail Pharmacy, a higher adjusted effective tax rate, and lower contributions from sale-leaseback and Cencora earnings

Reminder - Market is closed tomorrow for Jimmy Carter's funeral.

Glad your profits are way more than your losses in the quantum group. It's the big picture that counts !

QUBT, QBTS

Quantum computing stocks might get a big bounce after this sharp selloff, but that would be a selling opportunity. I hope your overall trading profits in this group exceed the losses you're seeing today.

https://www.marketwatch.com/story/quantum-computing-stocks-sink-as-nvidia-ceo-delivers-a-reality-check-7fbdf443

QUBT, QBTS, RGTI

SANA +2.73 to 4.38, it's a great story but they have loads of huge hurdles ahead before potential commercialization some of which could be insurmountable. The stock hit $7.30 this morning, but has dropped back sharply. Surely a capital raise is in the offing. They burn a lot of cash and will want to take advantage of the strength in the stock.

Anyone who bought this morning's peak is already down 40%. Ouch.

AI server spending is expected to grow nearly 50% this year ! The boom continues.

1/6, Barron's -

Chip stocks were gaining on Monday as Taiwan's Foxconn gave the latest
indication that demand for artificial-intelligence infrastructure is set to
boom this year.
Foxconn, an assembler of Apple and Nvidia products formally known as Hon
Hai Precision Industry, said Sunday that its quarterly revenue rose 15% on
the year to 2.132 trillion New Taiwan dollars ($64.75 billion). Foxconn
recorded annual sales growth in almost all of its major segments, driven by
demand for AI servers.
The news boosted stocks across the semiconductor supply chain. American
depositary receipts of Taiwan Semiconductor Manufacturing rose 4.3% Monday
morning, while ADRs of ASML, the Dutch supplier of chipmaking equipment,
were up 5.6%.
Among U.S. companies, memory chip maker Micron Technology rallied 10%, at
least partly because high-bandwidth memory chips the company makes are
needed as a component of the latest processors from the likes of Nvidia.
Chipmaking equipment stocks were also gaining, with Applied Materials up
5.4%, KLA rising 5.5%, and Lam Research up 6.2%.
The news from Foxconn comes amid other signs of strong AI demand.
Microsoft said Friday it plans to invest $80 billion in fiscal 2025 to
build AI-enabled data centers, with more than half of the spending in the
U.S. OpenAI CEO Sam Altman said Monday that customers are using so much AI
computing with its ChatGPT Pro product that the start-up is losing money on
its $200-a-month subscription deals.
The value of the AI server business is set to rise to $298 billion this
year from $205 billion in 2024, according to research firm TrendForce. It
expects AI servers to account for more than 70% of the total value of the
entire server industry in 2025.
Write to Adam Clark at adam.clark@barrons.com

NVDA, DELL, SMCI, PSIX

KOP (30.83) looks oversold. I've owned it for a long time and regret not taking profits last April when it hit $56+. FY24 estimates were $4.68 at the time and have dropped 9% to $4.24 now, but the stock is down a whopping 45%. Sure looks like a bargain and I've recently been adding shares.

PSIX - each brokerage firm can decide whether or not a stock is marginable if it's eligible in accordance with rules set by the FED .... liquidity is the primary criteria. Options are offered by the CBOE on many stocks, generally related to liquidity and demand, but it is not tied to marginability. For example, OPTT has options but is not marginable.

IMRX +.23 to 2.59 after having spiked up to 5.64 this morning on very favorable phase 2 drug trial data .... yet the stock has given up almost all of its gains. I just picked up a small starter position at $2.56.

https://finance.yahoo.com/news/immuneering-announces-positive-data-three-120000795.html

OPTT (1.48) I wish I had a 10 bagger in this one, but regrettably I sold $0.50 covered calls on my entire position. Even so a nice winner.

RHE -1.17 to 2.39, I just covered my short for a quick 50%+ gain .... I think there'll be more good shorting opportunities ahead as the market corrects.

CRMD +1.99 to 9.92, looks interesting. I added it to my watchlist. Thanks.

OPTT +.59 to 1.70 on volume of 71M, now a 10 bagger from your price alert just 6 weeks ago. Amazing call !

RHE has under 2M shares o/s yet the volume today is over 40M. It's a trading frenzy, but that inevitably fades within a day or two, leaving bag holders who want out. After I shorted at 4.96 avg, the stock briefly spiked up to 6.80, but it's trended steadily down since then, now at 3.20.

Yeah, it's risky to short these flyers !