A number of Club stocks that were unloved on Wall Street earlier in the year have seen their fortunes rebound in recent months, including oilfield-services firm Halliburton (HAL) and industrial Caterpillar (CAT) — creating potential opportunities to lock in gains. It’s been the year of technology on Wall Street. But, as Jim Cramer said Wednesday stocks in other parts of the market have started to come “back from the dead.” But how should investors navigate their positions in these resurrected stocks? In that vein, we screened our 35-stock portfolio to isolate the companies that have underperformed the S & P 500 so far in 2023 — meaning that, as of Wednesday’s close, they had gained less than 18.9% year-to-date. This allowed us to focus on a universe of stocks that haven’t necessarily been red hot like technology names such as Nvidia (NVDA), which has more than tripled in value this year. From there, we calculated each stocks’ lowest closing price since May 1 — roughly a month before this year’s rally started to broaden beyond tech — and how much each has climbed since that low to determine which have had the strongest momentum. We found eight stocks with double-digit percentage gains off their recent lows: Halliburton, Caterpillar, Wells Fargo (WFC), Constellation Brands (STZ), Emerson Electric (EMR), Coterra Energy (CTRA), Morgan Stanley (MS) and TJX Companies (TJX). Between May 1 and Wednesday’s close, the S & P 500 advanced 9.6%. Here’s a look at where we stand on these eight Club stocks, starting with the biggest gainer, Halliburton, and concluding with the eighth-best performer, TJX Companies. HAL 3M mountain Halliburton’s stock performance over the past three months. Recognizing Halliburton’s recent strength, we trimmed our position in the oilfield-services firm last week , locking in a small profit. Its second-quarter earnings report Wednesday underscored the company’s cash-generation abilities, and drilling activity may pickup further if oil prices climb. Plus, the stock remains cheap on a historical basis. Taken together, we’re comfortable holding onto our Halliburton position. CAT 3M mountain Caterpillar’s stock performance over the past three months. Similar to Halliburton, we made a disciplined, 30-share Caterpillar sale on July 10 because the stock’s strong momentum allowed it to break above our cost basis. We wanted to make sure we didn’t give back any of that move higher in what’s proven to be a battleground stock. Still, our multiyear thesis around CAT as an infrastructure spending winner remains intact, and we’re willing to let the position ride here. WFC 3M mountain Wells Fargo’s stock performance over the past three months. Wells Fargo is finally getting the respect it deserves, after issuing better-than-expected second-quarter results and raising its 2023 net-interest income guidance. The stock remains attractively valued — trading at 9.6 times forward earnings versus its five-year average of 11.4, per FactSet — and carries a respectable dividend yield around 2.5%. Those are reasons to feel comfortable owning it. But from a portfolio management perspective, Wells Fargo now carries a nearly 5% weighting, making it our second-largest holding behind only Apple (AAPL). For that reason, we may look to trim some WFC if its rally continues. STZ 3M mountain Constellation Brand’s stock performance over the past 3 months. Our outlook on Constellation Brands is even brighter knowing activist investor Elliott Management is involved and sees “meaningful growth potential” for the Corona and Modelo beer maker. We booked some profits Monday in Constellation, taking advantage of its recent momentum, and now feel comfortable to let the position run as we wait for Elliott’s influence to lead to improved financial discipline at the company. “If you get frustrated, you end up selling too low,” Jim said earlier this week. On Thursday, he suggested STZ shares could reach $300 per share . EMR 3M mountain Emerson Electric’s stock performance over the past three months. Following the bounce off its May 31 low, Emerson Electric has broken above our cost basis — a very welcome development for this hot-and-cold position. If Emerson is able to mount another run higher, we may look to sell some stock because of our uncertainties around management’s execution. It’s no secret that the way Emerson’s National Instruments acquisition played out left us frustrated. CTRA 3M mountain Coterra Energy’s stock performance over the past three months. Coterra Energy is another stock on this list that we’re willing to just hold here. If its recent momentum fades and a meaningful pullback ensues, we may look to add to our fairly small position, at a roughly 1% weighting. Energy prices have increased, and we know that the oil-and-gas producer can break even with relatively low oil prices, which should bode well for free cash flow and capital returns to shareholders. MS 3M mountain Morgan Stanley’s stock performance over the past three months. Morgan Stanley’s stronger-than-expected quarterly results , released Tuesday, demonstrated that the bank’s once-struggling stock price didn’t reflect its underlying fundamentals. But, similar to Wells Fargo, portfolio management may eventually win the day. “Discipline always trumps conviction,” Jim said earlier this week . “My conviction is that Morgan Stanley’s stock goes higher. It doesn’t matter. My discipline says you already have too much of it.” As of Thursday, Morgan Stanley had the third-largest weighting in our portfolio, at approximately 4.5%. TJX 3M mountain TJX Companies’ stock performance over the past three months. The parent of TJ Maxx and Home Goods closed out Thursday just shy of Wednesday’s all-time high, validating our selective approach to the retail sector. While we’re always cautious about adding to a position near a peak, the story at TJX continues to look solid. Jim said last week he could see TJX ascending to $95 per share, representing more than 10% upside from Thursday’s close, at $85.44 apiece. The off-price retailer has an opportunity to gain market share not only due to Bed Bath & Beyond’s bankruptcy, but from consumers who are increasingly seeking out value. (Jim Cramer’s Charitable Trust is long HAL, CAT, WFC, STZ, EMR, CTRA, MS and TJX. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Workers walk towards Halliburton Co. “sand castles” at an Anadarko Petroleum Corp. hydraulic fracturing (fracking) site north of Dacono, Colorado, U.S., on Tuesday, Aug. 12, 2014.
Jamie Schwaberow | Bloomberg | Getty Images
A number of Club stocks that were unloved on Wall Street earlier in the year have seen their fortunes rebound in recent months, including oilfield-services firm Halliburton (HAL) and industrial Caterpillar (CAT) — creating potential opportunities to lock in gains.
From the ashes of Elon Musk’s decision to fire the whole Supercharger team last year, a new company has risen: Hubber, which will take its founders’ expertise at setting up Tesla Superchargers and apply that to addressing the lack of high-speed urban charging for taxis and other commercial vehicles.
In the immediate aftermath of this decision, a lot of questions were asked around the industry – and a lot of companies started snatching up talent from the best EV charging team in the world.
Or, alternately, some of that talent went to form their own companies. That’s the case for Harry Fox, Connor Selwood and Hugh Leckie, who met at Tesla and together oversaw the rollout of 100 Supercharger sites with 1,200 total chargers across the UK & Ireland. And after the shakeup of the Supercharger team, they set off to charge a new path of their own.
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The three formed Hubber, which pitches itself as a new type of EV charging company, focused on solving “the urban charging gap.”
Hubber describes itself as “the UK’s leading specialist in urban high-powered EV charging, addressing one of the most urgent constraints in the energy transition: the shortage of fast, reliable charging in major cities.” It “acquires and develops prime urban sites into large-scale charging hubs, combining deep grid-connection know-how with a proven ability to deliver complex infrastructure at speed”.
A large amount of the traffic in UK cities is taken up by taxis and last-mile, and these vehicles tend to see higher utilization than commuter cars, so they need to charge more often. Hubber says that taxis charge five times as often as a private vehicle, which means they’ll need more access to fast EV charging.
This is further exacerbated in urban environments, where EVs might not park in a place they can charge. Lots of urban homes don’t have garages, and while there are street EV chargers available in London, they’re not everywhere yet. So convenient fast charging is essential.
And the needs for commercial drivers are different than those of other commuters. While nicely-appointed charging plazas (like Rove’s “full service” EV charger in Santa Ana, CA) are great for the average consumer, commercial EV drivers put more of a premium on speed and affordability, and don’t mind if a site is a little further off of a main thoroughfare, or not as close to food or shopping as other drivers might want.
So Hubber is looking at sites that other developers might pass over – like old warehouses or gas stations – and figuring out how to turn them into an ideal site for high-throughput charging.
With its cofounders’ experience at Tesla, Hubber will buy sites, transform them into a charger-ready location, and essentially provide the dream location that they would have liked to see during the site selection processes they went through in their previous jobs.
The charging hubs could still have some amenities, like restrooms and vending machines, of the type that would be useful for taxi or ride-hailing drivers to grab during a quick stop. But the main focus would be on getting people in and out and back on the road.
Here’s a rendering of what a potential site might look like. In this sample location, there would be room for light-duty vehicles up front, with an area for larger last-mile delivery vehicles with larger charging bays. A small covered area could provide restrooms and vending, and another portion of the site could be dedicated to transformers, batteries and the like.
Hubber is also thinking ahead to a possible autonomous future, where driverless ride-hailing vehicles like those from Waymo could have a place to charge. Although given that there aren’t currently great solutions for autonomous charging, an attendant might have to be involved for the foreseeable future.
The company would also like to expand beyond the UK and Ireland, but they’re sticking to home base for the time being. After all, things are just getting off the ground – but the £60 million (~$81m) investment that Hubber just secured is certainly a big boost towards getting the project moving.
Speaking of projects, Hubber’s first facility is opening this coming week, on August 20th. The site is at Forest Hill in South London, near Forest Hill Station. It will have 12 EV charging bays, with 3 150kW and 3 300kW dual-head chargers. The site will be operated by RAW charging, which will offer free fast charging for its first week of operation.
The silver lining, at least for the rest of the industry, is that it allowed this talent to be distributed around to other companies. This isn’t beneficial for Tesla and did cause chaos which has likely affected the rollout of NACS, slowed EV charging site development in the US, and so on, but it has been beneficial for other companies who managed to snatch up talent.
Or, for companies like Hubber, which were formed by that talent.
It’s an interesting idea, and I like the angle of focusing on taxis in order to increase utilization of the site. EV charging is potentially an interesting business long term, but currently a lot of chargers see low usage because it’s so easy for most of the people who own EVs to charge at home.
But we’re going to have to move beyond the market of people who can easily charge in a garage attached to a single family home, especially in cities. Getting an easy way for the cars that get used the most in a city to charge is a really important move, and we’re looking forward to seeing how Hubber can help with this. And having a leadership team consisting of people who formerly worked at the best charging team in the industry isn’t a bad start.
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Indian ag and automaker Mahindra has launched a limited-run Batman Edition of its BE 6 Electric Origin SUV, calling it, “a production car that brings to life a rare fusion of cinematic heritage and modern luxury, inspired by Christopher Nolan’s critically acclaimed The Dark Knight Trilogy from Warner Bros. Pictures.”
And, you guys – the new Mahindra BE 6 is. So. Serious.
Someone at Mahindra is very taken with American culture it seems. After launching the Willys MB Jeep-inspired Mahindra Roxor a few years ago, the company followed it up by building a credible line of EVs co-developed with VW. Now, they’re building a limited edition of one of those EVs inspired by another American cultural icon.
“Batman is more than a pop-culture icon — he represents innovation, resilience, and an unyielding drive to push boundaries,” says Vikram Sharma, Senior Vice President, Warner Bros. Discovery Global Consumer Products, APAC. “This collaboration brings that spirit to the road in a bold, electric way. With this limited-edition range, fans in India can now experience the thrill of Batman every time they drive. It’s a collector’s statement on wheels.”
Pinstripe graphic and The Dark Knight Trilogy Bat Emblem across the passenger dashboard panel
Race car inspired open straps with Batman Edition Branding Batman Edition welcome animation on the infotainment display
Custom Batman inspired exterior engine sounds
Despite all the Batman branding, the end result is almost tasteful. I could do without the custom Batman decal on the front quarter panels, but the rest of the mods are far less offensive. I even like the little “Bat Signal” puddle lights on the wing mirrors.
Mahindra Batman BE 6
As a car, the special edition Batman Mahindra is based on the top-shelf version of the BE 6, fitted with a 79 kWh battery good for 550 km (about 340 miles) of range according to its WLTP rating. That battery sends power to a rear-mounted 282 hp (210 kW / 286 PS) electric motor generating and 380 Nm (about 280 lb-ft) of torque that sends power to the rear wheels.
The BE6 also features a modern Level 2 ADAS tech and screens everywhere, including in the steering wheel hub – which seems like it might get particularly nasty in an airbag deployment (but no one asked me).
Pricing starts at ₹27.79 lakh (a little under $27,500, as I type this), and production will be limited to just 300 units. Order books are set to open 23AUG.
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Electric bike and scooter safety is now part of the curriculum in some schools – and surprisingly, it’s happening in Florida.
Yes, Florida. The state that’s better known for keeping education out of schools, banning everything from books to the word “gay.” But now, a Central Florida nonprofit is stepping in to make sure students are at least learning how to ride responsibly.
The group Best Foot Forward for Pedestrian Safety has partnered with local police departments and Orange County Public Schools to bring e-bike and e-scooter safety programs directly into middle schools and high schools. The initiative is focused on addressing the growing number of crashes and injuries involving students riding electric two-wheelers.
The safety course covers basics like wearing helmets, obeying traffic laws, and making yourself visible to drivers — skills that are important for the many young riders who are increasingly taking to electric bikes as a form of independent transportation around their cities and neighborhoods. One of the main topics of the program is said to be speed management. The program addresses the importance of keeping speeds reasonable and the impacts of faster riding.
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Like much of the US, Florida has seen a surge in e-bike and e-scooter popularity among kids and teens, especially in suburban and coastal areas. While many embrace them as a fun and fast way to get around, the sudden rise has also come with a worrying spike in injuries and deaths, prompting calls for improvements in both infrastructure and education.
With e-bike usage exploding across the US, more schools and communities are exploring steps to increase rider education. It’s a sign that America’s transportation habits are changing – and our education systems are beginning to catch up.
Electrek’s Take
I think programs like this are great because they teach kids things that they’d otherwise have to learn through trial and error. We don’t just hand cars to sixteen-year-olds and say, “figure it out.” So it follows that some form of organized rider education would be important as more youths take to e-bikes than ever before.
In cycling-intensive cities in Europe, all schools teach kids to ride bikes, often giving the kids some form of cute little cycling diploma to demonstrate that they’ve passed the course and can safely ride a bike.
But at the same time, this makes me wonder if we’re still missing the point. Responding to an increase in e-bike rider deaths with lessons about bicycle speed management is a bit like responding to mass shootings by lecturing innocent passersby about why they shouldn’t run into bullets.
Educating riders is always great and I’ll always support it. But in parallel, perhaps we should also be addressing the root cause of all of these tragics deaths. At the end of the day, most electric bike-related deaths aren’t a result of an e-bike rider doing too much fast riding; they’re a result of a car driver doing too much running over a cyclist.