Musk Turns His Attention To Tesla

JOIN OUR LIVE SESSIONS! Our LIVE session starts when the big institutions and elite traders do before the opening bell. We'll look at real-time dark pool data as the market movers position themselves for the trading day in secret off-market exchanges. [JOIN OUR LIVE TRADING SESSION @ 6am PT / 9am ET]( [Shadow] Hello investor, There are some signs that households are struggling to pay debts, as they added $148 billion in overall debt to bring the total to $17.05 trillion, according to the Federal Reserve Bank of New York. Notably, consumers tend to build up credit card debt at the end of the year, as they did holiday shopping, then reduce those balances at the start fo the year. Tax refunds also helped reduce the balance. But it didn’t happen this year. It suggested that households are getting squeezed by inflation and are relying on credit cards to get by. - “Credit card balances were flat in the first quarter, at $986 billion, bucking the typical trend of balance declines in first quarters,” researchers wrote in the report. In the graphic below, you can see how auto and credit card debts spiked in the last few months: (Source: Bloomberg) But the overall delinquency rate remained historically low at 2.6%. New York Fed warned that younger people with student loan payments may feel even more pressured once the federal forbearance on payments expires. Elon Musk’s email: Tesla CEO Elon Musk just sent an email to “everybody” at Tesla, saying that every hire must get his direct approval from now on. - “I would like to gain a better understanding of our hiring,” Musk wrote in the email. “VPs should send me a list of their department hiring requests once a week.” Musk announced a new CEO at Twitter, Linda Yaccarino, and some Tesla employees feel that Musk is now shifting his attention to Tesla. Last month, the carmaker’s net income plunged by more than 20% in first quarter from a year earlier. It may be the time for Tesla to tighten its purse as the economy slows down. Musk told his employees to “think carefully” before sending him a request. - “Think carefully before sending me a request,” Musk wrote in Monday’s email. “No one can join Tesla, even as a contractor, until you receive my email approval.” (Photo: Mike Blake | Reuters) Do You Love Share Buybacks? Buy This Stock Immediately Today’s Stock Pick: Fair Isaac Corporation ([FICO]( Do you know your FICO score? Sure, you have an idea what the number is. And guess what? FICO isn’t just a name. It’s an actual corporation name of Fair Isaac Corporation, and boy, does it dominate the industry of credit scoring. You know when a company dominates if its name becomes synonymous with the industry. Such as, “let me google it,” “netflix and chill,” or “let’s Uber there.” FICO scores are the gold standard in credit scoring. A classic metric of a dominant company is the return on equity. When there are plenty of competitors (which builds capacity exceeding demand in the industry), it will drive prices down. And you can’t get high returns on tightened profit margins. FICO has had a consistent ROE above 20% since 2012 – excluding the recent boom & crash during the pandemic: (Source: Macrotrends) When you put two ingredients together – high ROE and consistent EPS growth – what do you usually get? A fast-rising share price. Indeed, FICO saw its stock price rise by about 380% since 2017. And it has a long way to go. Why? FICO isn’t just a credit score company. A top fintech innovator: It continues to innovate beyond credit scoring. In fact, they are considered one of the top 25 fintech innovators in the world. Just as Fair Isaac innovated the credit scoring system in the late 1950s, they are innovating in the 2020s through machine learning, business automation, data analytics, and software. Two-thirds of Fair Isaac’s revenue comes from selling software for business functions, including fraud detection. Right now, credit scores make up about 50% of the total revenue. The other half is from software. Forrester named FICO as a leader in digital decisioning platforms, and top 10 Fortune 500 companies use FICO’s products and services: (Source: FICO) Cash-generative business: With its dominance in credit scoring and the nature of a software business, FICO generates plenty of cash to reward shareholders. FICO often translated more than 50% of adjusted EBITDA into free cash flow. That’s music to shareholders’ ears! (Source: FICO) Share buybacks: Believe it or not, FICO’s shares outstanding were cut by nearly half since 2010! Its Board of Directors had just approved a stock repurchase program to buy back up to $500 million of the company’s outstanding common stock – or about 2.6% of its current market cap. (Source: MacroTrends) Bottom line: FICO holds a competitive moat in the credit scoring system, and it has a proven ability to innovate beyond the segment. Its analytics segment grew to become as large as the credit scores segment. In other words, the sky is the limit for FICO. FREE LIVE TRADING SESSIONS & TRAINING USING THE MOST COMPREHENSIVE DARK POOL MONITOR AVAILABLE TO THE RETAIL INVESTOR Join our LIVE Trading Sessions throughout the day where we will focus on how you can learn to master the markets through the use of advanced algorithms and AI to trade like the institutions. BEFORE THE BELL Starts 6am PT / 9am ET Our newest LIVE session starts when the big institutions and elite traders do, well before the market opens. We'll look at realtime dark pool data as the market movers position themselves for the tra ding day in the secret off market exchanges. LIVE TRADING SESSION Starts 8am PT / 11am ET Take advantage of Trade Algo's proprietary advanced algorithms for anticipating big market swings in our daily LIVE trading session. Trade Algo's Senior Analyst Luke Russell will walk you through the key tools and strategies that the institutional investors and top traders use to profit from high volatility in the market. THE FINAL HOUR Starts Noon PT / 3pm ET According to Wall Street Journal approximately 20% of the trading volume happens at the last 30 minutes of the day. Institutions make the majority of these trades in private dark pool exchanges -- away from the public’s eyes. The timing happens for two reasons: 1) Index funds make their trades to mimic the closing price of a stock. 2) Billionaires trade near the end of the day because they anticipate major news that will be released during after-hours. Because they trade in dark pools, the public doesn’t know about these trades until one day later. We’ve consistently spotted the correlation between a spike in dark pool volume at the end of the day and the next day’s price movement. In the Golden Hour we will identify and analyze these movements so you can trade with confidence. CATCH THE SPARK Starts 4pm PT / 7pm ET Catch The Spark is led by trading expert Luke Russell, starting at 4pm PT / 7pm ET. 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