Yo Pit Crazies,

Interest Rates has stopped going down and now stocks are at all time highs! Not every stock is enjoying the rally, read on.

The first came off Sibyl, my idea-flow tool that flags when a name inside one of my themes hits a good price. I keep the themes in my head and Sibyl tells me when a stock finally deserves a trade. Most of that list still needs time, but this one's getting close.

The second came off my bottom-of-the-basement scanner, and that's a list no stock wants to make.

Let’s get into it…

A different kind of Oracle

As I write this, SpaceX(SPCX) is taking off again. Why? Well it is the most direct way to participate in AI and infrastructure. There are a lot of other ways to do something similar right now and one is Oracle Inc (ORCL). Larry Elison runs ORCL, and well, for the last 50 years. He is 80 and is likely wanting to leave the company with a strong legacy in AI. The build up in hype in Anthropic will only help the established players that have made big investments in AI infrastructure. The AI has to play somewhere.

ORCL is 6 on my list for stocks showing large accumulation. This is a real opportunity to jump on ORCL highly leveraged shares. Counter this with ORCL’s $36 billion cash hoard and the $110 billion in debt is not so bad.

ORCL shares are in the basement because investors are worried about the AI buildout. A 50 year veteran thinks his company needs this to stay competitive and I am inclined to agree with him. ORCL shares are a bargain down here.

1-Year ORCL chart

The call buyers should make a nice little payday.

This chart is hard to believe

There is a story going on right now about interest rate sensitive stocks but it is not the one you think it is. Stocks that pay large dividends are getting dumped wholesale in exchange for Chip stocks and AI wonder. One that is getting smacked and Enbridge Energy (ENB).

ENB is on its way to pay a 10% dividend. That is no joke. The stock has been straight down for 3 months. The problem with 10% dividends is it pales in comparison to the 500% return in Micron Technologies Inc (MU) over the last year.

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52 week lows are 52 week lows. I do not see the interest rate train stopping at this point. The most important thing is that interest rates are here. 10 year yields are at 5% plus and it is not going lower anytime soon. This is putting a constant pressure on div paying stocks. Also, the constant upward swell of AI is putting FOMO front and center for investors. Two prongs are hurting div paying stocks right now.

1-Year ENB

ENB is paying nearly 10%. It is a solid company and USA production of Gas and Oil are going to flow for the foreseeable future now that Iran is out of play. In the short term, I expect ENB to get low enough to generate 10% in yearly divs then I will dip my toe.

So which one does the crew pick for Monday's Ticker Highlight Show? Tap this link to join at whatever rate you want and get Monday's pick as soon as it hits.

Hopefully this was helpful,

Andrew Giovinazzi