Kevin Simpson's Latest Stock Trades: Home Depot, IBM, and CME Group

Home Depot Investment Rationale

• 💡 Home Depot (HD) is identified as having significant upside potential if 30-year mortgage rates fall, which would boost existing home sales.
• 📈 The speaker has owned HD since Arthur Blank ran the company and recently added to their position.
• 🎯 The stock is seen as a beneficiary of lower rates and increased consumer spending, with macro conditions remaining favorable.

IBM: A Tech Value Play

• 🧠 IBM was purchased after a post-earnings sell-off, with the speaker believing the earnings were strong and the stock has not yet reflected this.
• 📊 Key metrics for IBM include a 17x forward earnings multiple and a 2.5% dividend yield.
• 🚀 The company is noted for its involvement in quantum computing and Watson AI, despite being an older technology company.
• 📈 Since being bought in May, IBM has seen a 52% increase in value, benefiting from consulting and AI exposure.

CME Group: Strategic Partnership and Dividend Potential

• 🤝 CME Group was bought despite a recent pullback, with the company having amazing earnings.
• 💰 A key reason for the investment is the anticipation of a special dividend historically paid in December.
• 🌐 A significant partnership is highlighted: CME Group was the main sponsor for the Robin Hood conference, a notable development given the companies' histories.

Quantum Computing Landscape

• ⚛️ IonQ is highlighted as a leading company in the quantum computing space, with the speaker noting its significant daily gains.
• 📈 For long-term, high-growth opportunities in quantum computing, IonQ is presented as a strong contender.
• ⚠️ It's acknowledged that companies like IonQ are volatile and may not see earnings for years, requiring a strategic approach to position building.