The 3 Cs of Democracy: Mid-Term Stock Picks

This year, seats in both the Senate and House are up for grabs in the mid-term elections. Which stocks should you be looking at for if the Democrats win?

October 24, 2022
Jackson Leininger

It goes without saying that the stock market can be extremely volatile. Similarly, election season tends to be a volatile period of time.

This year, seats in both the Senate and House are up for grabs in the mid-term elections. Players on both teams, the Democratic and the Republican Parties, are campaigning hard for our votes. But who’s looking out for your financial security?

Answer: We are.

To ensure you’re prepared no matter what November brings, here are our stock picks for if the Democrats take the mid-term elections. (Coincidentally, they all start with the letter C!)


$CHPT

Chargepoint

ChargePoint Holdings

Recently, an infrastructure bill announced the injection of 5 billion dollars over 5 years as part of the National Electric Vehicle Infrastructure (NEVI) Formula Program. This will supply charging stations in the Interstate Highway System along the designated Alternative Fuel Corridors.

$CHPT quarterly revenue increased 90 percent year over year with annual revenue increasing 65 percent year over year. $CHPT is the fourth-largest EV charging company in the US and is quickly upgrading to 50kW DC charging systems to compete with EVgo.

Chargepoint $CHPT chart
Price at writing:
$13.65
Possible plays:
  1. Wait to buy when $CHPT finds a bottom around $12.50 area.
  2. Look for a break and hold above $14.24.

$CURLF

CuraLeaf Holdings

Curaleaf Holdings

One of the hottest political topics for the Democratic Party continues to be the legalization of marijuana. This triggered a substantial bull rally in late 2020 early 2021.

Well, $CURLF is a holding company that operates in the cannabis industry, as the top US MSO by revenue.

This is also an OTC stock as it is not tradable on the US stock exchange since cannabis is not federally legalized. However, $CURLF has incredibly high potential profitability in a Democratic market. Thus, we think it could be a smart move in a Democratic landscape to go with a stock with broader reach and high growth potential in the US market, especially versus many other cannabis-related stocks on the NYSE (many of which are primarily overseas and sector related stocks).

Whatever happens, the reality is that more states are legalizing cannabis. Additionally, President Biden has been calling for pardons on convictions related to cannabis as well as a review of its status as a controlled substance.

$CURLF Curaleaf Holdings chart
Price at writing:
$5.80
Possible plays:
  1. We’re watching for a dip before the next pickup in the range of $4.83.
  2. You could make a small buy in the $5.80 area with a second buy once we confirm support in the $6.55 range.

$CLF

Cleveland Cliffs

Cleveland Cliffs

With news that President Biden has passed an infrastructure bill totaling more than a trillion dollars, there’s huge opportunity for companies in this space to make a lot of money.

Cleveland Cliffs is one company that’s likely to benefit. Over the last year, $CLF acquired steel mills in Northwest Indiana, becoming the largest integrated steelmaker in the US, specializing in the mining, beneficiation, and pelletizing of iron ore in addition to steelmaking, stamping, and tooling.

With upward of $100 billion designated to infrastructure, expect to see a demand increase of 100 percent or more in steel demand over the next decade.

$CLF has a 90-percent plus analyst hold or buy rating, with average price targets in the range of $22 to $27, setting up a potential profitability of 35 to 80 percent over the next year.

$CLF Cleveland Cliffs chart
Price at writing:
$15.50
Possible plays:
  1. Wait for the confirmation break out of this descending wedge. Once it’s over $16, you can make your buy, adding a second buy at the level.
  2. Make a first buy off rejection of the upper wedge trend line, finding bottom wedge trend support or the $14.80 area.

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