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I have 30 consecutive profitable trades of 15% or better. How is this possible? Every day there are hundreds of stocks setting new highs, no matter what happens in the overall market. Many of these stocks are still at very reasonable valuations. Afraid of buying stocks at their highs? Think of it this way: a new high is really a future floor for companies with solid financial underpinnings. Quantitative momentum modeling makes it easy to identify stocks that can continue this upward momentum trend. Why does this happen? It's really very simple..ask me about what investors and cows have in common. I am $$$ MR. MARKET $$$. I AM HUGE!!! Bring me your finest meats and cheeses. You can join in on the fun. Register for free and you'll be able to post messages on this forum and also receive emails when $$$ MR. MARKET $$$ makes his own trades. ($$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.)
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  1. #1

    Default SNX ==> The Vero Winner

    What makes a companyís stock price go up? Well, unless youíre addicted to Reddit and Wallstreetbets or whatever those dopes are doing in there, itís only three things. Earnings, earnings, earnings. Given this fact, would you like a company that has posted 134 consecutive profitable quarters? I would.

    How do they do it? Their ability to quickly anticipate and adapt to changes in the marketplace by executing and managing resources, maximizes optimal business outcomes. Their focus on value enables them to apply their resources only on those activities important to their associates, customers, vendors and Ė yes - shareholders. Consistent forecasted free cash flow enables increase in share repurchases, which pumps up the stock price. OkayÖ.I wonít keep you in suspense.

    Today I bought stock in SNX at 102.96. I will sell it in 4-6 weeks at 118.92. Hereís why I like SNX.

    Hereís a quick look at a delicious chart:



    Youíll quickly note that SNX is up over 224% over the last 12 months. Meanwhile its PE ratio is only 9.8. That is incredibly cheap for this growth stockÖ...a high tech growth stock!
    SYNNEX Corporation (NYSE: SNX), is a leading provider of distribution, systems design and integration services for the technology industry. They will be reporting earnings next week, but I am boldly coming in before earnings. Why? Because last quarter was awesome and the earnings momentum has not had any headwinds at all.

    Here are their Fiscal 2020 Highlights:

    Revenue was $20.0 billion, up 4.8% from the prior fiscal year. Operating income was $521 million, or 2.6% of segment revenue, compared to $519 million, or 2.7% of segment revenue, in the prior fiscal year. They grew their revenue and earnings during the pandemic! How did they do it? Remote work. Remote learning. Of course when COVID disappears a lot of people are going to go back into the office and the classroom, but some of the remote activity is here to stay. There are going to be lots of companies that are going to have employees come in only 3 days a week. The 4 day work week will likely be a staple. SNX stands to benefit from all of this!

    Synnex successfully spun off their Concentrix business and now they can stay focused on their high margin IT distribution business. Synnex over the last decade has asked itself whether it makes sense to separate its Synnex and Concentrix business into two given the distinct nature of the two. Well, they did it.

    Founded in 1980, SYNNEX Corporation is an industry leader in IT distribution, providing comprehensive logistics, integration services, and technology solutions to help their customers and business partners grow and enhance their customer-engagement strategies. SNX distributes more than 30,000 technology products from more than 500 of the worldís leading and emerging manufacturers and provide complete solutions to more than 20,000 resellers and retail customers in the U.S., Canada, and Japan. As part of their value-added services, SYNNEX provides a variety of professional and marketing services, including demand generation, education and training, pre- and post-sales support, end-user enablement, server assessment, design and integration, product lifecycle support; contract design and assembly, and IT resource planning. In addition, SYNNEX provides a wide range of financial options to ensure that their partners always have the means to close deals. Never mind all that. Ask yourself one question. Are consumers using MORE or LESS electronics? Do you expect them to use MORE or LESS in 2021? If your answer to the question is MORE, then there is no reason not to own SNX stock.

    The company's profitability is robust, driven by an expanding operating margin, returns that outperform over half of its competitors in a very stable business condition environment. Synnex is not a Mickey Mouse company. They collaborate with Microsoft, Cisco, Intel, you name it. The diversity of their customer base provides protection against any one downturn in any particular sector. Thatís why they have been profitable for a bazillion quarters in a row.

    When you look at this companyís PE of less than 10, you canít help but agree with managementís strategy to continue to buy back stock. This is a screaming signal to Wall Street that SNX is an incredible value. They have noted that they intend to invest at least 30% of their free cash flow to dividends and share buybacks. Since I mentioned the dividend, they do pay a yield of 0.8%. Thatís not spectacular, but itís a heck of a lot better than what youíd get in a CD these days. The cash reserve is plentiful as their balance sheet is very solid - debt to earnings ratio is only 2.3.

    If you follow the school that a rising tide lifts all boats, the whole tech sector is going to be flooded! Over the long term, the Tech sector is going to benefit from unlimited digitization across the economy, and greater acceptance of transformative technologies. Data demand is exploding because of mobile internet, video on the web, social networking and other factors. Prevailing trends in the global information society - including collaboration, virtualization, cloud, social networking, and exponential growth in "big" file-based data - are driving the need for more network "intelligence," meaning security, efficiency, extensibility, personalization, and sophisticated data management. Everyone under the age of 30 does everything on their smartphones now. The PE ratio for the Tech sector in 2021 looks to be about 28, compared to the market multiple of 23. Looking at SNX, with itís PE under 10, they have a lot of runway and a giant safety net.

    You know they always say, donít poke the bear. Well when it comes to Synnex CEO, Dennis Polk, there is no poking going on. No joking either. Hereís what he has to say:

    ďIím very proud of the accomplishments of the SYNNEX team in 2020, especially so against the backdrop of a very challenging environment. I would also like to thank both the SYNNEX and Concentrix teams for their diligence in completing the spin-off on December 1. For the SYNNEX TS business, our record top line performance in the fourth quarter was driven by broad-based demand across all our platforms as the remote work, learn and consume trends continued. Our revenue growth, along with seasonally high Q4 leverage benefits drove solid profit and returns as well. Consistent with Q2 and Q3, demand remained strong in products such as notebooks, Chromebooks, cloud, collaboration and security. This was evident in both our commercial and retail distribution businesses.

    Turning to our outlook, our priority remains on the health and safety of our associates. Overall, we are optimistic about fiscal í21 given the start of vaccine rollouts and we are hopeful our world returns to a closer sense of normalcy over the next year. With this occurring, we expect that business investment will increase, especially in IT. For our Q1, with continued execution we anticipate our business will grow slightly better than the market for the quarter. Continued demand for our products and services related to remote work, learn and consume, combined with the remaining backlog we have provides us a base level of confidence in our forecasts. For fiscal í21, using our Q1 forecast as a base, we expect the rest of fiscal í21 to progress in-line to the seasonal patterns of 2018 and 2019. In closing, our strategy of optimizing our core business, investing in organic opportunities and targeting strategic M&A to enhance our portfolio will continue to provide us with opportunities to grow moving forward. This strategy, along with the drive, determination of the SYNNEX team, coupled with the excellent partnerships with our customers, vendors and the communities we operate in support my confidence about the future for SYNNEX.Ē

    I am on board. Letís do this! Go SYNNEX!!

    $$$MR. MARKET$$$
    Last edited by mrmarket; 04-10-2021 at 11:08 AM.
    =============================

    I am HUGE! Bring me your finest meats and cheeses.

    - $$$MR. MARKET$$$

  2. #2
    Join Date
    Sep 2003
    Posts
    4,891

    Default

    I agree that SNX is the best stock to pick today, and I'm in with you on this one at 105! This one's going to 120 in no time, for sure!

  3. #3
    Join Date
    Jan 2004
    Location
    Blue Ridge Mts....
    Posts
    3,676

    Default

    SNX reports earnings today... up 6% + this morning...
    might get the 15% pretty quickly 👍🏻
    BEEF!... it's whats for dinner!

  4. #4
    Join Date
    Sep 2003
    Posts
    4,891

    Default

    Yep, a good week for SNX! Up to 111 today, and 112 in the AH trading. Won't be too long now until the 119-120 range and profit time!

    Glad we got in on this one before the Earnings Release!

  5. #5
    Join Date
    Sep 2003
    Posts
    4,891

    Default

    At 115 now, we're Almost There!

    https://www.youtube.com/watch?v=nbhGuuOoYAI

  6. #6
    Join Date
    Sep 2003
    Posts
    4,891

    Default

    Ok, just about at 118... Stay On Target!

  7. #7
    Join Date
    Sep 2003
    Posts
    4,891

    Default

    Boom! 120 and I'm out with my $15 profit on this one. Thanks for this awesome pick, $$MM, you are HUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUGGGGGGGGGGG GGGEEEEEEEEE!!!!!!!!!!!

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