Rocky’s Weekly Stock Picks
This week we’re looking to bolster our current holdings and to play it safe.
Truth be told I’ve thrown a few Hail Mary’s, and would encourage you to do the same, but only if you can afford to sit on some shares for 6 months to a year, or more. I’d be remiss, however, if I were to name a specific longshot pick and have you losing your money.
If you lose your money, I want it to be a controlled loss. Debit spreads are great for this, keeping your maximum potential loss limited to the initial amount you put in. Okay enough banter, let’s get started.
RIOT - Even if we don’t see this ever get back to the $60+ mark, the premium on options contracts is still quite juicy. And weekly. Weekly juiciness.
ACVF - This ETF is the slow and steady race winner. American Conservative Values Fund is where it’s at. While I do expect to see the price to experience a few significant upward bumps, the real allure is its ability to weather an economic storm. Some folks equate this to the MAGA ETF, but that’s just fake news. (We have fun here). ACVF, while somewhat ideological in nature, is a lot less influenced by superficial factors.
ORC - Continuing with our safety picks this week, Orchid Island Capital. A juicy monthly dividend, and $5+, this REIT (it’s a REIT, btw) has pretty much nowhere to go but up. We’re pass the ex-div for this month, though.
DLMRY/SYY - This is a two-fer, yes sir. Both of these stocks (Daimler and Sysco) pay very juicy dividends. Additionally, their share prices will continue to rise. Sysco is the big spoon in this relationship, working to replace its entire service fleet with EVs. Guess who they’re getting them from? That’s right, Daimler.
MIDD/MCD - Another two-fer, yes sir. Both of these stocks are pretty much guaranteed to win. McDonald’s, obviously, can’t lose. There’s McDonald’s restaurants on military bases in foreign countries, for crying out loud. Unless I’m missing something, McDonald’s will continue doing what it does - win. I would put forth the notion, however, that you can’t expect to see enormous gains in the short-term.
MIDD, MIddleby, is a company that deals with restaurant equipment and repair (amongst other things). Specifically, they are the only provider of the only ice-cream machines that any McDonald’s uses. And the only company that can repair them. (In the United States, we haven’t bothered checking on other countries).
If you’re familiar with the chronic problem of broken ice-cream machines at McDonald’s, you may have seen a certain investigative documentary about it. Basically, the two companies have been scratching each other’s backs since the beginning of time.
The big spoon here is arguably Middleby. While McDonald’s is definitely more well-known and influential, and is responsible for some ridiculous portion of MIDD’s revenue, MCD can’t sit on inventory for 2 years. Food spoils. Whereas metal does not.
If the ice-cream machine conspiracy ends badly for Middleby, it will only be a temporary hiccup. Commercial kitchen equipment isn’t going to stop being a thing, even if restaurants as we know them disappear forever.
