Kramer says Fiverr, an online marketplace for freelance services, is benefitting from massive disruptions in the workplace amid the coronavirus pandemic and that at roughly $140 per share, the stock still has potential to grow.
On Monday's market moves, Kramer said despite stocks surging, investors should act with caution.
"Even on this day when the market is up, volatility seems to be rising," said Kramer, who attributed the volatility to uncertainty surrounding the presidential election.
YAHAIRA JACQUEZ: Stocks on Wall Street are flying high this Monday afternoon. Those gains coming after four straight weeks of declines. Here with me to talk market action is Hilary Kramer of Kramer Capital Research. Thank you so much for being here with us.
HILARY KRAMER: It's a pleasure to be here today.
YAHAIRA JACQUEZ: Hilary, it looks like we're starting the week off on a positive note. But this comes after weeks of losses. Should investors be bracing for more swings?
HILARY KRAMER: Investors should be extremely careful. And one of the hints is that volatility, even with this day where the stock market is up, volatility seems to be rising. So there's expectation that the market will see another leg down. There is a lot of concern out there about this week to come.
Yes, we have the employment numbers on Friday, the first Friday of the month. But the big thing for everyone is what will happen at the debate tomorrow night, Tuesday night, between Biden and Trump, especially in light of the news that has come forward with President Trump's tax returns.
And that should not necessarily sway all of those Trump supporters. But there is a big swath in the middle that he was hoping to win over. And what will come to light is tomorrow during the debate, that's where a lot of this information will come out for those that haven't been necessarily following all the news since yesterday.
YAHAIRA JACQUEZ: And those will be the last employment numbers before the election. So when can we possibly expect things to calm down? Will it be until after the election?
HILARY KRAMER: Once we have some certainty. And that's why, again, the market was down four straight weeks, because President Trump has been quite vocal and open to say that he's going to contest. If he doesn't win, he's contesting. OK? So he's not just going to walk out of the White House.
And that's brought a lot of concern to the market. And internationally, the United States has always been known as a place of safety. So we have to be mindful. Anyone who thinks that now's the time to jump back in and that the FAANG socks and Big Tech, this is the time to make your money, because maybe you didn't the first round between March 23 and the end of August, when it was just straight up-- this may just be a dead cat bounce. It's a holiday today. And we have yet to see what's going to happen.
But that being said, there are still great opportunities in the market. There are lots of stocks that haven't kept pace with the likes of Tesla and Apple and Facebook and Netflix that investors can make money.
YAHAIRA JACQUEZ: So what are those stocks, if it's not those Big Tech names we're always hearing about?
HILARY KRAMER: One in particular that-- I know it's a play on some level on COVID-19, but it's also the direction we're going in. And that's Fiverr. Not as Five Below, but Fiverr with two R's on the end. And that is an e-commerce site. But it connects freelancers.
And Fiverr was created 10 years ago. It's an Israeli-based company that has 250 different categories of freelancers that are put together with those in need. And it spreads beyond every geographic location. So you could be working with a freelancer in Australia and be in New York, who is helping with 3D gaming technology. Or it could be finding a ghostwriter or a blogger or creating a logo.
And this is the direction that we're going in, is the freelance gig. This company, at $140, still has the potential. Its competitor is Upwork. And 80% gross profit margin, because it's really just taking a piece from each side of the parties.
Ingredion is one of my favorites, INGR. It used to be called Corn Products. For decades, it's known as Corn Products. This is high-fructose syrup, starches, dextrose, caramel coloring. So it goes without saying that Ingredion is one of the basic companies that serves everything from cereal makers to chewing gum to cosmetics to animal feed.
They are in everything. So a company like Ingredion-- and there, you have a 3.13% dividend yield. And it just chugs along there, and it's just a great company that investors forgot while they were busy bringing Tesla up. There's just lots and lots of value out there to be had.
YAHAIRA JACQUEZ: And you know, we are seeing the tech stocks rebound after being a major focus in this sell-off that we've had in the past. But bank stocks are also rallying today. I know that last time you were on with my colleague, you said you liked Goldman. And I wanted to know whether that was still the case or, you know, whether you're eyeing anything else besides the ones you just mentioned.
HILARY KRAMER: Well, Goldman is interesting, because I saw Goldman was up about $5 today. It hit-- it was able to rise above $200 a share. I am still bullish-- so bullish-- on Goldman Sachs, because they really are the international investment bank.
And we are seeing-- just even with all these partnerships. Just look at pharmaceutical companies. All of these partnerships that are in joint ventures, those alone require investment bankers to make those deals. But you also have restructuring. We are talking about thousands and thousands of companies that are going through bankruptcy.
That is big money, those restructurings, because it's not just the key from restructuring, but all the money that's made on the debt and the debt placement. It's like putting Humpty Dumpty back again, because there are so many pieces of debt, the way debt is sold today.
It's big money. I love it. Goldman Sachs is also at their own private equity fund.
YAHAIRA JACQUEZ: Of course. So we'll definitely be watching for those unemployment numbers and that debate tomorrow. Thank you, Hilary, so much for sharing your thoughts with us today. We really appreciate it.
That was Hilary Kramer of Kramer Capital Research. I'm Yahaira Jacquez, and this is Reuters.