December 22: Part III

In Part I of today's Marder Report, it was discussed that the idea of holding exposure to some less-aggressive actors -- namely liquid glamours -- makes sense for some of us due to institutions' tendency to favor these in a mature bull market. You are seeing outperformance now in names like Adobe Systems (ADBE), Alibaba Group Holding (BABA), Apple (AAPL), Facebook (FB), Nvidia (NVDA), and Shopify (SHOP), among a few others.

With the exception of AAPL, these have an earnings growth estimate of at least 20% for '20. Thus, we are not buying large stocks just because they are large. They must have a healthy earnings growth estimate. If it is a large company, like ADBE, an estimate of 18% is acceptable as a minimum level to be considered a liquid glamour.

Accordingly, Facebook (FB) is added to the Focus List. It has a 42% earnings estimate for '20 and shows 28% and 29% revenue growth in the last two quarters. An 85 RS stock with a B+ acc/dis rating. Technically, it has been basing for 17 months. It forms a base-within-a-base, and can be taken above the 208.66 high of July 25. Earnings expected Jan. 29 (unconfirmed).