You're receiving this email as part of your subscription to Trend Trader Daily. [Unsubscribe here](. [Friday Charts] Bubble Lies and My Favorite Chip Stocks
By Lou Basenese
Friday, January 15, 2021 Itâs Friday in the Trend Trader Daily Nation! That means the longwinded analysis is out. (Hallelujah!) And some carefully selected charts are in. (Amen!) So without further ado, check out these snapshots about the biggest myth regarding the current market valuation, plus a friendly reminder to keep buying chip stocks⦠with both hands! Itâs Not a Dot-com Bubble With the massive rise of IPOs and soaring valuations for so many high-profile companies like Tesla Inc. (TSLA), pundits keep throwing around the accusation that weâre living in another dot-com bubble. Poppycock! We need some Arnold Schwarzenegger in âKindergarten Copâ to frighten these blowhards back to reality. Itâs not another dot-com bubble. Not yet, at least, based on the analysis below from Bespoke Investment Group. They compiled a list of U.S. stocks with âludicrousâ valuations (over 10 times sales) that have more than doubled in price. Per Bespoke, âThis reading has spiked recently, but we're still less than halfway to the February 2000 reading of 120 companies.â So itâs not another bubble. Yet. Now that we have that myth cleared up, itâs time to get back to one of the best sectors of the market to own⦠Semi Strong Ever since the pandemic hit, Iâve been [banging the table to buy semiconductors](. Nonstop. And this trend, my friends, has no signs of letting up anytime soon. Take a look at the momentum: As I shared during an appearance on TD Ameritrade Network today (replay [here](), the best way to profit from semiconductors at this stage is with a pick-and-shovel approach. By that I mean, donât try to buy the maker of the one type of chip stocks that is going to do the best. Instead, bet on all chip companies by investing in the providers of critical equipment or technology used by them all. Like Atomera Inc. (ATOM). This is a stock I originally recommend to Micro-Cap Advantage readers at $4.22 per share. This week, it soared past $31 on a major customer win. Itâs either Samsung or SK Hynix, based on my sources. But it doesnât matter which one it is, because both are in the Top 5 chip manufacturers. With 50% of the entire chip market in talks with Atomera, Iâm convinced the stock could top $50 on the next customer win and possibly $100+ later this year on additional wins. As I shared with viewers, Atomeraâs high-margin royalty-based business â and ability to sell to the entire $500 billion semiconductor market â means it could eventually become the next ARM Holdings, which sold for $40 billion. Iâm so bullish on the prospects that Iâm betting my own hard-earned capital on it. And I suggest you do the same! If youâre curious what else Iâm buying, check out [this video update]( I put together yesterday. But donât delay. The information in it expires on Monday at 10 am ET. Ahead of the tape,
[Lou Basenese]
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