Barron's Picks And Pans Of The Week: Time Is Ripe To Sell NIO, XPeng, Li; And Lessons From The IPO Frenzy

  • This weekend's Barron's cover story makes a case for taking profits on Chinese electric vehicle makers.
  • Other featured articles examine who is hurt if Chinese companies are delisted, an outlook for the markets and money management trends, and lessons from a crazy week in IPOs.
  • Also, the prospects for an auto insurer, two old-school stocks still offering growth and a semiconductor company abandoned by the iPhone maker.

"NIO, XPeng, and Li Aren't the Next Tesla. Time to Unplug From Their Shares" by Al Root makes a case that shares of Chinese electric vehicle makers Li Auto Inc. LI, Nio Inc NIO and Xpeng Inc XPEV are now priced for perfection and taking profits seems prudent.

Reshma Kapadia's "Delisting Chinese Companies Could Be Bad for Investors. But It's the Right Thing to Do" suggests that Chinese companies that do not adhere to U.S. audit and accounting standards could be kicked off U.S. exchanges. Does that include Alibaba Group Holding Ltd BABA?

In "Mercury General's Hefty 5.4% Yield Is Just One of the Auto Insurer's Many Charms," Andrew Bary points out that auto insurer Mercury General Corporation MCY gives investors ample income as they await a potential sale of the company after the death of its 99-year-old founder.

BlackRock, Inc. BLK President Rob Kapito shares his outlook for the markets and his thoughts on the big trends in money management in "BlackRock's President on the Outlook for Stocks" by Leslie P. Norton. See where the world's largest money management firm is headed next.

In Jack Hough's "Starbucks and Disney Can Still Offer Investors Growth," see how two old leaders, Starbucks Corporation SBUX and Walt Disney Co DIS, set ambitious goals at their investor days last week. Find out how each stock stalwart still can offer investors growth.

"9 Lessons After a Crazy Week for IPOs" by Eric J. Savitz indicates that, even after AirBnB Inc ABNB, DoorDash Inc DASH and others exploded into the market recently, there are still another 500 unicorns (that is, private companies with $1 billion-plus values) waiting in the wings.

See also: Benzinga's Bulls And Bears Of The Week: Boeing, Netflix, Nike, Starbucks And More

With trillions of dollars in index funds tracking the S&P 500, and trillions in actively managed funds benchmarked against the index, a whole lot of investors could be forced to buy Tesla Inc TSLA stock at inflated values, according to Evie Liu's "Tesla Is Joining the S&P 500. Why This Could Be a Problem for Many Investors."

In "Dominion Energy's Dividend Cut Shows the Danger of High Debt," Lawrence C. Strauss examines how Dominion Energy Inc D became "overextended," according to one portfolio manager and analyst. Also find out why an analyst has turned bullish on the Dividend Aristocrats (companies hiking their dividends for 25 consecutive years).

Eric J. Savitz's "Qualcomm Stock Tumbles on Report Apple Will Build Its Own Modem Chips" says that the threat of Apple Inc AAPL modem development really is a risk for QUALCOMM, Inc. QCOM investors, but it is not a new risk: Apple recently chose to produce its own microprocessors for Mac laptops, too.

Also in this week's Barron's:

  • Investment advice from a poker star and behavior specialist
  • Common behavioral mistakes that derail retirement
  • Why to be wary of celebrity-backed SPACs
  • How to invest in a market that keeps bouncing back
  • Why it is good that soaring IPOs cannot lift the market
  • Saudi Arabia as another pipeline for IPOs
  • Whether natural gas prices will continue to rise
  • Book recommendations from business leaders and cultural influencers
  • The five types of retirement savers
  • What to know now that Brexit is almost here
  • Why iconic rock songs are suddenly hot commodities

At the time of this writing, the author had no position in the mentioned equities.

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Photo courtesy: Jengtingchen via Wikimedia

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