Market Radar 28. October 2022

Silver and copper futures rise pre-market

Silver and copper futures are clearly up pre-market and should now get some boost now that the presidential elections in Brazil have been decided and all Latin American ETFs now receive the daily stamp “buy or top-up”. Many of the mining companies I observe operate their mining activities to a large extent in South America.

What do we see under the radar of the major stock indices?

In the meantime, 18 of the 56 industries I have observed receive the day stamp “Buy or top-up”. As long as this number does not decrease, I assume a healthy form of accumulation. My model is sensitive to short-term trends of declining risk-on readiness, so a daily look at the number of industries recommended to “buy or top-up” should warn me in time when distribution in individual industries will start again.


I would like to talk again about two stocks from the e-learning sector, which I had already mentioned in the market radar for October 26 and had at that time out of 5 candidates as the two top picks.

Capitalized at approximately $3 billion, Grand Canyon Education (LOPE) provides educational services to colleges and universities in the United States and is the company that generates the highest operating profit margin relative to revenue within the peer group. Therefore, I had highlighted them as the top pick.

Grand Canyon Education has now reported quarterly figures last Thursday, which were particularly convincing on the profit side: Instead of $ 0.87 per share, $ 1.02 per share was earned in the third quarter. The stock rose 15% to a share price of just over $100 after earnings on Friday and defended the 100 mark yesterday. Ich hatte am Freitag einen kleinen Gewinn in der Aktie realisiert; nur ein kleiner Gewinn, weil ich am Earning Day nur mit relativ kleiner Positionsgröße in der Aktie drin geblieben war.

Adtalem Global Education (ATGE) was the second favorite e-learning stock. Adtalem Global Education will now present new quarterly figures next Thursday after the stock exchange.

Adtalem Global Education is an e-learning provider specializing in the healthcare sector and is capitalized with approximately $2 billion. The stock hit a new 52-week high on Friday, leaving a cup and handle formation that began on August 26 to the upside. Normally, I would wait for the formation of a handle or a handle in order to be able to see a good set-up for an entry. With the good numbers from Grand Canyon Education, however, I am speculating on a dynamic breakout to new heights next Friday, i.e. a big picture pivot breakout. With a P/E ratio of 10, Adtalem Global Education seems undervalued to me and is not too far from a quality stock in terms of fundamel data. Even though the e-learning industry is likely to be too “hot” for most value investors, the stock actually meets value criteria. The proximity to the healthcare sector makes the share even more interesting.

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Semiconductor stocks: Suppliers better than producers

The fact that Mexico is currently being accumulated so much could also be due to the US government’s decision to shift the production of semiconductor chips from China and Taiwan to the USA. For example, Taiwan Semiconductor (TSM) is currently building a factory in Arizona, which is expected to start production in 2024. New factories for chip production are also to be built in Mexico. At the same time, this means that an economic stimulus package has been created indirectly for companies involved in the construction and maintenance of machines for semiconductor production. Orders await them that could not have been taken into account before the announcement of the CHIPS Act legislative initiative, which provides subsidies of USD 52 billion to increase US chip production.

While searching for stocks from this area, I came across Ultra Clean Technologies (UCTT), which was already mentioned in the market radar, and now the Teradyne (TER) stock.

Ultra Clean Technologies (UCTT) supplies the “small stuff” such as hoses and valves required for semiconductor production, but also manufactures automated systems to ensure the smooth chemical process in the production of semiconductors. After solid quarterly figures released last Wednesday, the stock rose over 5% on Earning Day. I had finished my pre-earning bet that day. I had finished my pre-earning bet that day. Currently, it looks as if the stock will continue to accumulate. I put the stock on my watch list again.

Teradyne (TER) looks almost better than UCTT in terms of fundamentals and charts. Prior to 2016, the company seems to have been fundamentally a bit of a confidence-inspiring pick. From 2017 onwards, the net profit margin will continue to increase and the profit prospects and valuation currently look bright for the forward sector.

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