Turnaround Stocks . Ep 42
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This is the weekly article and Pod/Video Show 42 discussing Turn Around Stocks since that’s been the theme this Summer into Fall. Boeing, VF Corp, Papa Johns and even VSCO have moved up – it’s not all we do but this is as good as a time as any to discuss this.
If you’re new here welcome, make sure to subscribe on YouTube and/or Spotify – you can get free daily market updates on LongVolReport.com
The market had a little slip up on the last day of the month this week which we’re going to talk about a bit more than we normally do here each week. Earnings this week was a lot to unpack – I’ve been reading through reports all week and have more to get into over the weekend.
We also had earrings on some of the names talked about on this show and in The Report:
- $VFC – Big win +30%
- $AMZN – AWS earnings are crushing it
- $VSCO new yearly high made
New: Seminars/Webinars Listed
- Articles of Interest from This Week
- Broad Market Overview
- Boeing Updates
- VFC/AMZN/VSCO
- AAP Update
- Education: Trade Structuring
- Weekly Q&A
If you’re new – this is not investment advice, do your own work. This article/show is not designed to give you investment ideas – it’s to share insights and highlight our work. The analysis I go through here is maybe 20% of the full analysis so don’t take this and start putting positions on like a retail NPC.
If you don’t have the time then use our tools/research:
2. The AST Swing Portfolio
If you want to learn then use the FOPT Mentoring.
Let’s get into it this week!
Now on Spotify
The Market at Large
- $5800 was/is key on SP500 – we broke that this week and we saw selling pressure on Thursday. We’re still bullish but this is not the time to be adding into beta/market wide names. We need a sell off by end of the year, whether that is next week post-election or in December.
- Should still be bumpy/choppy until the election – still expect to also get wider ranges (good for Index ETF Trading)
Boeing check Up
- Close to a deal with the Union (and should get done here)
- Removed their DEI initiative
- Stock offering done with
- Waiting for the deal to get done and a 2-3 rally to ensure
VFC Corp
- Notes below but likely to restructure this trade as it may turn into a growth story in coming quarters – the turnaround story is still in play but then maybe we get a reaccelerating is ales on their main brands.
- Watch that video – this was a year ago them talking about their plan to fix the Company. (relatable to retail investors – devise a plan quarter by quarter, execute on it – go back and see if you did what you said)
VSCO – New 52 Week High
- New 52 week high
- Still not sure this is something to hold long term given their debt but earnings around the corner so we’ll watch
- Likely more of a technical/breakout trade as the day-traders/system traders find the 52-week breakout
Amazon Earnings
- Trying to take out the ATH – discussed this in the report start of October but it’s been a bumpy ride.
- Normally don’t like to trade into these names but hard not to given the chart and the expectation of earnings with AWS which we got
- Big beats below
Advance Auto Parts
- Advance Auto Parts – new 52 week low
- Debt is high but $1.2B after tax is coming in from World Pac that adds to the $479 million in cash they have – they have earmarked that for debt reduction.
- Concern still on margins
TRADE STRUCTURE: WHY IT MATTERS
Each week I try to do a quick investing lesson to share insights on this show – I realize some of you watch to get ideas/copy trades but for those that are here trying to learn so you can eventually do this on your own there are free tidbits I try to help with.
Trade structure is a big deal. It’s probably a bigger deal than the actual trade/investment thesis and trade structure encompasses:
- Sizing of a position relative to a portfolio
- Duration (is it a short-term tactical trade, swing or long term investment)
- Are you trading time (spreads) or direction
Those of you that subscribe to the AST Alert Portfolio know we do the work for you as far as ideas, structure and the rest. We use DITM options because those ideas are passive not “here and now, perfect entry with the 1 min chart + MACD + Fungulator and if I don’t get it right I have to leave to another Discord like a proper Retail NPC and waste more time!”
Now obviously buying the shares is what I personally do a lot for clients but then again our views are longer-term and not around trading.
The point is, the idea is part of it, the structure is the final part.
In year 1-3 (maybe even 4) you don’t want to jump around but those that are more experience and are not afraid to think outside “system trading” then this concept of structuring is a game changer.
It’s in the FOPT and that Mentoring Program is coming Q1 2025 and I am excited to bring it back as well as a Trader Retreat in April 2025 in Puerto Rico.
Final Word.
- Issue 44 Out Sunday
- Still not super bullish broad market
- Application for FOPT 2025 Mentoring open
- Q&A for the week
Next Lesson
Patience Pays and Stock Market Sentiment
GXO Logistics and Stock Market Sentiment
Ready for Take Off or Jet Lagged?
About the Author
Daniel Bustamante is the founder, managing partner, and CIO of Bustamante Capital Management L.L.C., a multi-strategy investment management firm based in San Juan, Puerto Rico. He has over 10 years of experience in the financial industry, specializing in equities, futures, and event-driven trading strategies.
He is also the founder of TheLongVol.com, a blog and newsletter that shares his insights on his investing process, travel, and other private investments. He has been featured in Bloomberg, Arizona Business Journal, Business Insider, Yahoo! Finance, Forbes, Seeking Alpha, and other publications over his career on Wall Street.
