Diamonds and Dogs

6/18/18

The Goose is loose. Canada Goose (GOOS), the maker of the $1,000 luxury parkas and winter wear jumped over 30% on Friday and is up 4% today following better than expected earnings. CIBC upgraded the stock with a $70 price target saying there is upside to 2019 guidance of 20%+ revenue growth and 25%+ earnings growth.  I hope so because the stock currently trades for 13 times next year's sales and 98 times next years' earnings. The valuation is similar to Under Armour before the stock's 50% slide.

Intel (INTC) down 4% on a downgrade at Northland Capital. Intel has performed well year to date as has most chip stocks, but the analyst predicts slow growth going forward due to the evaporation of their chip quality advantage over rivals like AMD for business to supply server farms with the chips they need. Northland sees positive catalysts at Intel's business strengthen in such fields as autonomous cars (Mobileye), artificial intelligence, and graphics processing chips, but unfortunately, Northland doesn't believe any of these factors will "move the needle" for Intel before 2020 at the earliest.