Is the Stock Market Forming a Bottom?
Federal Reserve rate hikes, second quarter earnings, impending recession, historic inflation. All of these things are going on as we speak and yet stocks aren’t selling off. It begs the question, have we actually hit a bottom? Now, keep in mind that the stock markets rarely hit the bottom and then surge back up in a V-shaped recovery. I know we all saw it happen in the COVID-19 crash in March of 2020, but that was the exception and not the norm.
While the NASDAQ remains in textbook bear market territory this year, the S&P 500 and the Dow Jones have both managed to claw their way back. The benchmark S&P 500 is now down by only 15% year to date, while the Dow is only down about 11% now. All three major averages are still well in the red in 2022, but have bounced nicely off of their recent lows. Can the market make another leg lower? Of course. The global economy is still fragile, Russia is still at war, and COVID-19 is still running rampant in Asia.
As of late, the markets have been putting in higher lows. Tech stocks like Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), and Alphabet (NASDAQ:GOOGL) all popped after mixed earnings. While it isn’t a sign that we’re back to a bull market, it is a possible sign that the worst of the news is already baked into the current prices. We’re far from fully recovered, but the market is also not being as irrational as it was earlier in the year.
So should we buy the dip? Here at Pubco Insight we’ll never provide actual financial advice. Investments are always dependent on your personal situations. Are we ready to start adding? Now seems as good a time as any to add to some beaten down stocks that you’ve had on your watchlist. We could be in a period of sideways accumulation, but the market’s recent higher lows tells me that stocks are at least trying to form a bottom level of support.
Stocks on our Radar
So which stocks are we watching? At Pubco Insight, we have our eyes on all of the major markets: the NASDAQ, the NYSE, and the OTC. Without further ado, here’s a few stocks that we’ve been eyeing lately for a chance to rebound.
This stock should not come as a surprise. We’ve written about iQSTEL previously as a stock that we believe has been oversold during the market correction. Not only has this diversified company continued to add other businesses into its umbrella, it is set to reach a record annual revenue of $90 million this year. It has global telecom services, blockchain technology, and even a fintech platform.
Despite all of that, the most exciting news from the company was its recent announcement that it is going to produce its first electric car by the end of the year. We all know about its EVOSS subsidiary and its electric motorcycles, but a car too? That’s a major pivot for the company but one that can only be seen as bullish for the future. iQSTEL’s car is set to be a mass market model, targeting lower socioeconomic regions like Africa and Latin America. Not everyone can afford a Tesla (NASDAQ:TSLA), but everyone should have access to technology that will benefit the environment. iQSTEL is aiming to make that possible.
Remember when everyone was going crazy for Palantir? During the meme stock short squeeze shares of PLTR hit as high as $45.00. Now, it is trading at its direct listing levels of just over $9.00 per share. So what gives? Palantir is still not profitable and this market has absolutely punished non-profitable companies. It has been one of the strongest bear arguments against the company. Years of stock based compensation have led to Palantir having trouble reaching profitability.
Analysts point to 2024 where Palantir will likely turn into a profitable company. It recently renewed a $100 million contract with the US Army, silencing critics that have pointed towards slowing government partnerships. CEO Alex Karp recently compared its Foundry platform to Amazon’s (NASDAQ:AMZN) AWS Web Services. It’s a pretty bold comparison to make, but if Karp is right, Palanir could be in for some rapid growth over the next decade. A Raymond James analyst recently initiated coverage of Palantir’s stock with a Strong Buy rating and a Wall Street high $20.00 price target for the stock.
With the federal legalization of cannabis hitting another wall, it’s time to consider looking at the CBD industry. A couple of weeks ago it was announced that the CAOA Act or the Cannabis Administration and Opportunity Act would be voted on in the US Senate. If it passed, we would effectively see the federal legalization of cannabis and cannabis products for American adults. Unfortunately for cannabis investors, industry experts say there is little chance that this vote passes.
So what about CBD? It’s legal, it’s regulated, and it’s already on the shelves of some of the largest retailers in the world. CBD is getting the green light in historically drug-strict markets across Europe and even in Asia. This is why we’re bullish on companies like Endexx who have been using the bear market to expand their retail partnerships. Endexx now has its products in over 8,000 retail locations across retailers like Target (NYSE:TGT), CVS (NYSE:CVS), and even on Amazon (NASDAQ:AMZN). In a challenging market environment, you want to look at companies that are consistently still trying to grow their business, even if it comes at a cost.
Our second mention of an electric vehicle stock in this article? You can see which industries are still considered hot and ready for a rebound. Unlike its other EV startup rival Mullen Automotive (NASDAQ:MULN), I like where Canoo is headed with its business. The company’s Lifestyle EV has been popular ever since it was revealed last year. But up until recently, it was a niche model that hadn’t gained much traction in the consumer or commercial industries.
Well that all changed in a hurry a couple of weeks ago when Canoo signed on with WalMart (NYSE:WMT) to provide up to 10,000 of them to be last-mile delivery vans. Canoo’s stock popped but has fallen back to Earth a bit since the initial move higher. It’s not just the WalMart news that I’m bullish on. Canoo has also been working closely with the US Army and NASA to begin the electrification of their fleets. These government contracts could be massive for Canoo as it looks to establish itself as a player in this growing sector. Canoo might already know it won’t be able to compete with the likes of Tesla in the consumer market, but it is firmly establishing itself as a leader in the commercial market for electric delivery vans.
Are you bullish or bearish on the Metaverse? It seems to be a pretty polarizing topic these days, and perhaps it is just the bear market that has people feeling negative about the future. Do you know who’s not bearish on the Metaverse? Nearly every big tech company in the world. From Meta Platforms (NASDAQ:META) to NVIDIA (NASDAQ:NVDA) to Microsoft (NASDAQ:MSFT) to Tencent, nearly every tech titan is invested in the space. That’s a pretty good indication and good clue to follow the smart money.
SFLMaven isn’t a big company, nor is it well known. But it’s being aggressive in its digital transformation and is looking to establish a first mover advantage in the Metaverse and NFT markets. Earlier this year, SFLMaven opened the first NFT-Jewelry store in the Decentraland Metaverse. It is currently in the process of designing an NFT line for in-game avatars with several NFT artists. If the Metaverse can ever grow as large as some people believe it will, then SFLMaven has a head start on what is going to be a very crowded space.
CleanVision Corp (OTC:CLNV)
How do you feel about investing in companies that do good for the environment? Through its subsidiary Clean Seas, this company is looking to put a dent in the world’s plastic waste crisis. How exactly is it doing this? Clean Seas works with local governments around the world to establish PCNs or Plastic Conversion Networks. These facilities take collected plastic waste and convert it into renewable fuel sources. One such product from this conversion process is its hydrogen fuel, AquaH.
Clean Seas has been busy establishing these partnerships in regions like India, Morocco, and most recently, Turkey. Clean Vision also has several other projects on the go including its hydrogen fuel cell technology, Ecocell, that is designed to provide a low-carbon, continuous power source. Why do we like Clean Vision? It’s pre-revenue right now, but all of these catalysts are about to start returning annual revenues as early as next year. As the world continues to seek out ways of solving the global plastic waste crisis, it will be companies like Clean Vision that provide these solutions.
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