Beginning 3/29/2018, Volume Bot has two official stocks we like for long term investors with stomach for higher potential volatility.
In terms of individual stocks that we’d want to own for the next ten years, we would want to own these two:
Baidu (NASDAQ:BIDU) Price of first recommendation: $223.19 (3/29/18)
Facebook (NASDAQ:FB) Price as of first recommendation: $159.79 (3/29/18)
Long Thesis Summary for Baidu:
Although most shareholders view Baidu as a search engine, we view Baidu as an autonomous driving play loaded with near term and long term catalysts that’s trading at under 20 times forward earnings estimates. Thanks to Baidu’s investment in AI/autonomous driving, and the Chinese government’s help in blocking foreign competition, we believe Baidu will make substantial profits from autonomous driving over the next decade from its efforts. With those growing profits and the potential for autonomous driving mania, we like Baidu as a ten year holding. In terms of some future short-to-medium term catalysts, we note that Baidu wants to list back in China, and Chinese tech valuations can be substantially higher than that of the NYSE/NASDAQ. Many of the headwinds facing Baidu, such as its ill fated attempt at winning China’s online-to-offline market, have also abated, and the company’s Netflix-like unit’s public offering could give shares a boost.
Long thesis for Facebook:
Facebook users are addicted to it, and won’t leave unless the company really drops the ball. Regulation-calls are bad headline-wise but won’t likely cost that much in the long term. Meanwhile, Facebook has a ton of monetization opportunities and trades at a cheap valuation. The company also has one of the best CEOs in history. Although short volume is just neutral as of March 29 (short volume was bullish on March 28 before the stock rallied 4.4% the next day), we will take more of a long term view and designate Facebook as our number two long term pick for the next decade.