Today we are watching…
1. Broadcom (#brcm)
According to industry giant Broadcom, the cyclical world of semiconductor chip-making looks to be facing clogged up supply chains. This will affect AMD, Broadcom, Intel, Qualcomm, and other companies in the tech business, making them possible short candidates. “Air and sea transport options have become unreliable and more expensive and have increased delays, ” said Nilesh Mistry, Broadcom’s Vice President of Sales. It could take up to six months for customers to get their chips, drastically affecting the ability of tech companies to assemble products until coronavirus is expelled.
2. JC Penney (#jcpen)
JC Penney, the dinosaur of brick-and-mortar retail, is days from collapse. It’s been a long time coming. The company’s tech transition overran and cost too much, footfall steadily dwindled as stores closed across the States, and soon enough, investors departed. The stock is a deep value play if nothing else. That means you buy it if you think JC Penney will go bankrupt and flash sale all of its remaining assets for more value per share than the current stock price. It’s risky, though. Common stockholders are last in line to receive the proceeds. Management, staff, bondholders, and preferred stockholders could drain the sponge before it arrives with you.
