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Most bought stocks during “The Dip?”

Written by Barry Dumas | 26-Jan-2022 07:45:00

Stock Picks

Market volatility has exploded at the start of the new year. With global markets turned lower, Buy the Dip investors gear up as inflation and international interest rate themes dominate the airwaves.

The “Buy the Dip" movement is alive and well; it is reported that retail investors bought an astounding $1.36 billion in equities on Monday the 25th of January 2022. This was after the most significant monthly drop in markets since the COVID-19 pandemic.

Let’s look at 3 of the most bought stocks across EasyWallets in January 2022 so far:

EasyAUD

Core Lithium Ltd (CXO)

No surprise that another Lithium exploration company makes the list along with Pilbara Minerals this month as electric vehicle (EV) and renewable energy technologies demand rise. Core Lithium share price has gained over 166% in the last year mainly due to the positive outlook on lithium which has skyrocketed, and the demand continues to look compelling.

The investment bank JP Morgan is highly optimistic about the ASX Lithium sector and has upgraded its baseline forecasts by 70% over the next year. JP Morgan says, "the demand outlook remains compelling, and it is hard to see a catalyst for prices to correct."

  • Share Price: AU$ 0.73
  • Market Cap: AU$ 1.22 billion.
  • P/E Ratio: N/A
  • P/B Ratio: N/A
  • Dividend (Annual Yield %): N/A
  • Franking: N/A
  • 52 Week range low of AU$ 0.17 and AU$ 0.96 share high

But it gets better; not only could the miner capitalize on rising Lithium prices and demand, but its Uranium assets could also boost share performance in 2022. Core Lithium owns the Napperby Advanced Uranium Project and the Fitton Uranium Project in South Australia.

Demand for uranium could rise due to political unrest in Kazakhstan, which produces around 40% of the world's uranium, followed by Australia and Canada. Uranium miners like Core Lithium and other ASX uranium producers could capitalize on the unrest.

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EasyUSD

Microsoft Corporation (MSFT)

Microsoft, along with Apple and Tesla, are in high demand from our EasyVSTR community this January as the current tech downturn offers retail investors great opportunities at lower prices.

Microsoft has made its metaverse intentions clear with its recent acquisition of Activision Blizzard, the biggest in tech history. Microsoft was also the only stock among the top 5 bought instruments in retail investors with $1.36 billion splurges on equities this Monday.

  • Share Price: $ 288.89
  • Market Cap: $ 2.165 trillion.
  • P/E Ratio: 33.2x
  • P/B Ratio: 14.2x
  • Dividend (Annual Yield %): 0.84%
  • 52 Week range low of $ 224.22 and $ 349.67 share high

The all-cash deal, valued at $69 billion, will not require financing, and when the merger is finalized, it will make Microsoft the third-largest gaming company by revenue in the world. The acquisition is expected not to affect its repurchase program or its dividend yield and should immediately boost adjusted profits when the deal closes before June 2023.

Microsoft also released its second-quarter (Q2) earnings last night which beat analyst expectations on both the top and bottom lines. Earnings came in at $2.48 per share vs $2.31 per share expected and revenue clocked $51.73 billion vs $50.88 billion with a net income increase of 22% to $18.77billion.

With continued metaverse interest and a surge in digital across the globe, Microsoft is sure to continue its upward trajectory. The outlook from the rating agency Moody's before the earnings release: "Microsoft has $137 billion in cash on its balance sheet and is likely to generate $50 billion in free cash flow in the current fiscal year.”

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EasyZAR

Sasol Limited (SOL)

Locally our EasyVSTRs capitalized on the moves in the energy markets with Sasol Limited and "wait, hold on to your mattress" Steinhoff is also among the most bought stocks in January 2022.

With energy demand set to increase and oil prices, Sasol Limited has seen renewed interest from the Easy community. Looking at the chemical and energy company's production and sales metrics for the six months ended on the 31st of December 2021, things are on the up.

The production and sales metrics report showed an increase in sales volume; gas production was higher while mining productivity remained under pressure. Chemicals external sales revenue for H1 FY22 was 31% higher than the year before, driven by higher improved demand, higher oil prices, and reduced global supply chain constraints.

  • Share Price: R 303.14
  • Market Cap: R 184.45 billion.
  • P/E Ratio: 20.3x
  • P/B Ratio: 1.3x
  • Dividend (Annual Yield %): N/A
  • 52 Week range low of R 145.35 and R 327.58 share high.

Not only is Sasol gaining traction, but it is also looking to expand on its “green" initiative with a logistics company, Imperial. The plan is to move from diesel truck engines to trucks powered by hydrogen fuel cells. Some have said the venture is not viable and could be costly to implement.

Sasol's share price outlook could be set for a bumpy ride with continued commodity (oil, gas, coal) price volatility, a prolonged pandemic, and geopolitical tensions could all still weigh in.

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Sources – EasyResearch, EasyBlog, Koyfin, Reuters, Yahoo Finance, Barron's, Moneyweb, Sasol Limited, JSE SENS, Zach Bristow, Brooke Cooper, JP Morgan, Microsoft Corporation, CNBC, Core Lithium Ltd, Australian Securities Exchange (ASX).

Take note: Stocks mentioned form part of the most bought stock data over January 2022 and Fundamental stock data was taken on 25/01/2022.

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@BEEF_FINMARKETS


Barry is a market analyst with GT247, with a wealth of experience in the investment markets. Now in his tenth year in the markets, Barry "The Beef" Dumas brings a combination of technical analysis and fundamental insights to the table

 
Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by Barry Dumas, Market Analyst at GT247 (Pty) Ltd t/a GT247.com (“GT247.com”) as general market commentary, and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. First World Trader (Pty) Ltd t/a EasyEquities (“EasyEquities”) and GT247.com do not warrant the correctness, accuracy, timeliness, reliability or completeness of any information received from third party data providers. You must rely solely upon your own judgment in all aspects of your investment and/or trading decisions and all investments and/or trades are made at your own risk. EasyEquities and GT247.com (including any of their employees) will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.The value of a financial product can go down, as well as up, due to changes in the value of the underlying investments. An investor may not recoup the full amount invested. Past performance is not necessarily an indication of future performance. These products are not guaranteed. Examples and/or graphs are for illustrative purposes only.