This star stock could shine again
Oct 22, 2021Good morning!
It’s been an incredible week and the indices are once again flirting with record highs.
Let’s finish the week strong!
Here’s my playbook.
1 – Betcha WeWork wished they did (work) with the Trump Media & Technology Group
The former made its NYSE debut via a SPAC with a valuation of just $8 billion, a fraction of the $47 billion touted under hotboxing exec Adam Neumann who reported had a passion for stashin’ weed in cereal boxes. (WeWork)
The latter blew every conceivable record with a quadruple outta the gate and another 100% boost on top of that. (Explainer)
I wouldn’t touch either and – to be crystal clear - for reasons that have nothing to do with politics.
WeWork is an unmitigated disaster by all metrics, unless of course you are an early investor who came in to clean up on the earliest investors. Digital World Acquisition has simply run too high too fast which means the odds of a reversal are super high as is the risk. Not to mention they don’t actually have a product yet.
2 – Powell makes Fed officials wish they’d been elected to Congress
The Fed has finally decided to do something about insider trading following a public outrage over recent disclosures. Not that two high profile resignations had anything to do with it??!!
Now let’s see if Congress has the guts to do the same thing, especially when it comes to all those spouses who are making supposedly independent investment decisions on, before or just after key votes. (Read)
3 - Meanwhile over at Intel
Shares of INTC are down 10% pre-market after that company predicted lower profit margins because of ongoing new technology investments. It beat on earnings but sales fell short of expectations.
Might be worth a nibble because INTC and AMD are the only game in town if China heats up and the chip shortage can’t get fixed. Or two.
4 - SNAP, yeah about that …
Shares fell 22% after a big, ugly miss on revenue thanks to Apple’s privacy changes which threw the company’s advertising model into chaos. Normally, you’d hear from dedicated buy on dippers but in this case, it’s been eerily silent overnight.
‘Nuff said.
5 – If you think bitcoin’s run is over, think again!
According to the Wall Street Journal, the Houston Firefighters’ Relief and Retirement Fund, which has $5.5 billion in assets under management and more than 6,600 benefactors has purchased $25 million worth of Bitcoin and Ethereum through NYDIG, a subsidiary of Stone Ridge, an alternative asset manager.
This is a BIG deal because defined benefit plans like this one do not untie their shoes unless they’re confident whatever decision they’ve made passes the “prudent person” test. That’s an institutional standard intended to prevent stupid decisions but is really a CYA if something goes wrong.
The reason it is important is because the prudent person standard stipulates that whatever decision is being made is the same as a “prudent person” might make for their own investment portfolio. Hence the name.
If you think bitcoin’s run is over, think again. A few more decisions like this one will bring billions running into crypto but primarily bitcoin and ether.
Bottom Line
People who really want to make money in the markets will find a way to do it.
Everybody else will find excuses.
Just sayin’
You got this – I promise!
Keith
