Hey 5-Star Trader,
People all over the world are showing their support for the people of Ukraine, trying to find ways they can help and make an impact while knowing that we as individuals can only do so much. Corporations are stepping up, in unique ways, utilizing their own strengths and providing dire need to those in the worst of straits.
I hear from investors that they feel wrong and guilty trying to attempt to short the indexes, using war as a reason, while people are suffering. And so, I’m providing an alternative, highlighting corporations who are putting the power of their organizations behind them to help those suffering. I’m looking at investments in these companies due to not just their fundamentals, technicals, and macro story (which are factors), but also primarily because they are stepping up right now and doing good in the world at a time where uncertainty and craziness is abundant.
Investors looking for stocks to shop for right now, especially given the correction, can feel good about selecting any of these names. At the same time, look at companies that are fundamentally sound and represent innovative, forward-facing operations that will stand the test of time. It’s also a way to pay back companies that are using their resources when they don’t have to.
This is a topic near and dear to my heart, and I was so happy that I was able to discuss it on The Exchange on CNBC with Kelly Evans. To check out the segment, click HERE.
Tesla (TSLA) / SpaceX
How they are helping: transportation, power, internet, wages
I would argue that Elon Musk began the move towards assisting Ukraine. It’s a little unusual as private companies generally try to avoid taking stances on political matters, but Musk recognized it as a humanitarian issue. With one tweet he began a snowball that has taken over corporate America and companies around the world.
Musk tweeted that he would be sending SpaceX terminals to Ukraine to make sure the country would have communications coverage which is impacted by the current war. He shifted his company’s focus to improve SpaceX services to work against Russian cyber attacks.
Now, you can’t invest in SpaceX just yet, but you can invest in Musk and Tesla. Both are also using their products to help.
Tesla has opened up free supercharging not just for Tesla’s but for all EVs in the areas surrounding Ukraine, including where refugees are fleeing. They have also committed to paying Ukrainians fighting in the war full-time for at least three months.
Technicals / Fundamentals
I’ve always been a huge TSLA fan, but right here, at the 200 simple moving average (SMA) on the daily chart (especially showing relative strength compared to other Nasdaq peers) makes it a solid place to add more shares. It’s been on a ride the past few years but this correction gives investors an opportunity to buy the dip on a company you can feel good about. While I believe the market and TSLA will remain volatile short-term, I love the consolidation on the weekly chart. I’m targeting a return to $1,200 a share, and then onto $1,400. My stop would be below $700, so this is a great risk-reward for investors. Currently down 30% from highs, TSLA is a steal, while not getting destroyed like many, many others. It will recover.
Check out my sources below:
Source – Click here
Source – Click here
Microsoft (MSFT) / Amazon (AMZN) / Cloudflare (NET)
How they are helping: These companies each have their own initiatives to help Ukrainian businesses, non-governmental organizations (NGOs), charities, and aid organizations ward off cyberattacks from state actors and those who are trying to take advantage of the generosity of others. Unfortunately, this has sprung up a breeding ground for hackers who are attempting to disrupt medical supplies, food, and clothing relief.
Each of these American companies is proactively working directly with organizations in Ukraine. This effort includes not only government organizations and clients but charity and NGOs on the ground working to help those most vulnerable to help assist in the recovery efforts.
The impacts of Microsoft in particular are impressive. Their early recognition of malware attacks in Ukraine and their forethought and ability to stop them says an incredible amount about what they are capable of achieving.
Additionally, they have begun campaigns in the effort to draw awareness to how necessary cyber security positions are, and have, through their own channels, begun free education to attempt to fill the gaps that are sorely needed. Their President and Vice Chief, Brad Smith, has instituted a national campaign that will benefit not just Microsoft, but the cyber security community, those seeking high-paying jobs, and organizations warding off attacks. They have invested $20 billion dollars over the next five years to continue to invest in their cyber security infrastructure.
Not only is this a company that is effectively using its talent, influence, and resources to help those in need, but this will also position Microsoft as a leader within the cyber security space. Microsoft has already taken over the cloud, it’s set to take on the video game industry, and now it’s coming for cyber security as well. This is only the beginning, and the ability to test these attacks, which you have to think, is likely to get worse.
Technicals / Fundamentals
Microsoft has strong fundamentals and strong technicals (though I would prefer it above the 200 SMA on the daily chart). I do like it for a buy between $270-$300. I will give it some room to the downside, but I wouldn’t like to see it below $250. If it can break above $305, which I believe it can, it should retest previous highs.
Source – Click here
Amazon (AMZN) has also taken a key role in the cyber security space, using its talent, resources and name to assist clients in Ukraine. This is in addition to donating $5 million to those who need it most, and matching employee donations.
However, this isn’t the only reason I like Amazon stock for a buy. Throughout the pandemic, Amazon heavily invested in their own infrastructure, both to bring goods from overseas and also to transport them across the globe. Amazon no longer relies on FedEx to make their deliveries, giving them control and saving them money. Of course, we all know Amazon as a strong e-commerce business, which has successfully raised prices of Amazon Prime, in addition to the investments they’ve made in Prime video content. On top of all of that, you have a stock split, which generally causes a rally into the event, and post-split.
With this stock, I want to pick up more shares between $2,500-$2,750 for an eventual break of $3,000.
Cloudflare (NET) is a cyber security company that has stepped in, and through their Project Galileo, is offering direct support to organizations in Ukraine under cyber attack. They have onboarded non-paying clients and currently are assisting over 60 individual organizations – 25% of which they have taken on due to this crisis.
This is a volatile stock, and I’m not expecting it to return to new highs soon. They are worthy of mention because of what they are doing due to the onslaught of malware attacks in Ukraine.
I have always liked this company and, yes it’s been volatile, but cyber security is going to become so much more in focus, especially after all of these events.
The indexes have been correcting for several months, and at this point we have reached bear market territory in the indexes. I know there are investors out there who want to use this opportunity to add strong companies that will recover to their long-term portfolios, without taking advantage of the suffering happening on the other side of the world. By looking for socially conscious companies that are using their power and influence for good, these are companies that you can feel good about investing in.
Learn more here:
If you’d like to learn more about how key corporations are helping Ukrainians, check out these links below:
Microsoft – Click here
Amazon – Click here
Cloudflare – Click here
Want to learn more? Join me in Stacked Profits Mastery to get my weekly watchlist, discover my up-to-date take on the market, and learn more about my style of trading and investing.
Disclosures – I own all the stocks listed (MSFT, AMZN, MCD, NET, TSLA) and I am always looking for great spots to add more shares. These events, pullbacks, and company values are what draws me towards these names during these current times.