Tag: tesla

ARK Innovation – ARKK Holdings

Fund Description and Objective

ARK defines ‘‘disruptive innovation’’ as the introduction of a technologically enabled new product or service that potentially changes the way the world works.

Companies within ARKK include those that rely on or benefit from the development of new products or services, technological improvements and advancements in scientific research relating to the areas of DNA technologies (‘‘Genomic Revolution”), industrial innovation in energy, automation, and manufacturing (‘‘Industrial Innovation’’), the increased use of shared technology, infrastructure and services (‘‘Next Generation Internet’), and technologies that make financial services more efficient (‘‘Fintech Innovation’’).

ARKK is an actively managed ETF that seeks long-term growth of capital by investing under normal circumstances primarily (at least 65% of its assets) in domestic and foreign equity securities of companies that are relevant to the Fund’s investment theme of disruptive innovation.

 

Fund Company Ticker Shares Market Value($) Weight(%)
ARKK TESLA INC TSLA 3757946 $ 2,488,361,523.36 10.63
ARKK TELADOC HEALTH INC TDOC 7523212 $ 1,457,547,092.88 6.23
ARKK SQUARE INC – A SQ 6529246 $ 1,457,327,707.20 6.23
ARKK ROKU INC ROKU 3795070 $ 1,298,824,756.80 5.55
ARKK ZILLOW GROUP INC – C Z 6119415 $ 823,000,123.35 3.52
ARKK BAIDU INC – SPON ADR BIDU 3110407 $ 813,526,950.85 3.48
ARKK SHOPIFY INC – CLASS A SHOP 644894 $ 749,366,828.00 3.2
ARKK ZOOM VIDEO COMMUNICATIONS-A ZM 2185394 $ 742,509,465.44 3.17
ARKK SPOTIFY TECHNOLOGY SA SPOT 2717881 $ 726,489,591.30 3.1
ARKK CRISPR THERAPEUTICS AG CRSP 5557003 $ 702,905,309.47 3
ARKK INVITAE CORP NVTA 15979850 $ 653,735,663.50 2.79
ARKK EXACT SCIENCES CORP EXAS 4834402 $ 638,189,408.02 2.73
ARKK TWILIO INC – A TWLO 1618462 $ 573,615,302.04 2.45
ARKK UNITY SOFTWARE INC U 5086108 $ 494,318,836.52 2.11
ARKK DOCUSIGN INC DOCU 2204232 $ 458,392,086.72 1.96
ARKK PURE STORAGE INC – CLASS A PSTG 19516614 $ 429,560,674.14 1.84
ARKK INTELLIA THERAPEUTICS INC NTLA 5910563 $ 385,427,813.23 1.65
ARKK KE HOLDINGS INC BEKE 6293124 $ 381,740,901.84 1.63
ARKK TWIST BIOSCIENCE CORP TWST 2888621 $ 378,929,302.78 1.62
ARKK IOVANCE BIOTHERAPEUTICS INC IOVA 11691695 $ 362,676,378.90 1.55
ARKK 10X GENOMICS INC-CLASS A TXG 2044237 $ 356,024,315.92 1.52
ARKK NINTENDO CO LTD-UNSPONS ADR NTDOY 4804540 $ 354,094,598.00 1.51
ARKK TENCENT HOLDINGS LTD-UNS ADR TCEHY 4269709 $ 345,547,549.37 1.48
ARKK PROTO LABS INC PRLB 2846444 $ 340,947,062.32 1.46
ARKK INTERCONTINENTAL EXCHANGE IN ICE 2706087 $ 302,134,613.55 1.29
ARKK PAYPAL HOLDINGS INC PYPL 1192781 $ 290,764,224.37 1.24
ARKK IRIDIUM COMMUNICATIONS INC IRDM 7642193 $ 288,798,473.47 1.23
ARKK PAGERDUTY INC PD 6913662 $ 287,954,022.30 1.23
ARKK 2U INC TWOU 7373827 $ 285,440,843.17 1.22
ARKK EDITAS MEDICINE INC EDIT 6092618 $ 280,747,837.44 1.2
ARKK SEA LTD-ADR SE 1193181 $ 258,490,731.84 1.1
ARKK PACCAR INC PCAR 2772515 $ 252,770,192.55 1.08
ARKK PALANTIR TECHNOLOGIES INC-A PLTR 10801821 $ 251,250,356.46 1.07
ARKK NOVARTIS AG-SPONSORED ADR NVS 2783362 $ 240,092,806.12 1.03
ARKK TWITTER INC TWTR 3712812 $ 238,622,427.24 1.02
ARKK LENDINGTREE INC TREE UW 1072084 $ 236,748,309.72 1.01
ARKK VERACYTE INC VCYT 4431875 $ 234,933,693.75 1
ARKK SYNOPSYS INC SNPS 948116 $ 222,930,515.08 0.95
ARKK PACIFIC BIOSCIENCES OF CALIF PACB 6643189 $ 216,966,552.74 0.93
ARKK MATERIALISE NV-ADR MTLS 5279754 $ 202,636,958.52 0.87
ARKK BEAM THERAPEUTICS INC BEAM 2309404 $ 204,082,031.48 0.87
ARKK REGENERON PHARMACEUTICALS REGN 431567 $ 202,732,913.92 0.87
ARKK FATE THERAPEUTICS INC FATE 2244692 $ 195,714,695.48 0.84
ARKK TERADYNE INC TER 1686180 $ 190,740,681.60 0.81
ARKK STRATASYS LTD SSYS 5927160 $ 152,742,913.20 0.65
ARKK SERES THERAPEUTICS INC MCRB 7357906 $ 150,542,756.76 0.64
ARKK HUYA INC-ADR HUYA 6297471 $ 140,811,451.56 0.6
ARKK NANOSTRING TECHNOLOGIES INC NSTG 1927033 $ 130,787,729.71 0.56
ARKK DRAFTKINGS INC – CL A DKNG 1766580 $ 123,218,955.00 0.53
ARKK BERKELEY LIGHTS INC BLI 2273703 $ 112,320,928.20 0.48
ARKK CERUS CORP CERS 17450344 $ 106,447,098.40 0.45
ARKK COMPUGEN LTD CGEN 9180979 $ 78,589,180.24 0.34
ARKK MORGAN STANLEY GOVT INSTL 8035 65058639.41 $ 65,058,639.41 0.28
ARKK SYROS PHARMACEUTICALS INC SYRS 4628591 $ 41,194,459.90 0.18
ARKK TAIWAN SEMICONDUCTOR-SP ADR TSM 56941 $ 6,541,951.49 0.03
ARKK ORGANOVO HOLDINGS INC ONVO 121593 $ 1,190,395.47 0.01

 

Fund Details

As of 12/31/2020
Ticker ARKK
Fund Type Active Equity ETF
CUSIP 00214Q 104
ISIN US00214Q1040
Primary Exchange NYSE Arca
Inception Date 10/31/2014
Net Assets $17.68 Billion
Expense Ratio 0.75%
Indicative Value ARKK.IV
Net Asset Value (NAV) ARKK.NV
Typical # of Holdings 35-55
Weighted Avg Market CAP $122 Billion
Median Market CAP $11 Billion
Portfolio Managers Catherine D. Wood

ARKK Performance

As of 12/31/2020
ARKK 3 Months YTD 1 Year* 3 Years* 5 Years* Since Inception*
NAV 37.44% 152.51% 152.51% 52.36% 45.40% 36.39%
Market Price 37.55% 152.83% 152.83% 52.34% 46.03% 36.42%
*Annualized
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The 
investment return and principal will fluctuate so that an investor’s shares when redeemed may be worth more or less than the original cost. The Fund’s most recent month-end performance can be found in the fund material section. Returns for less than one year are not annualized. Net asset value (“NAV”) returns are based on the dollar value of a single share of the ETF, calculated using the value of the underlying assets of the ETF minus its liabilities, divided by the number of shares outstanding. The NAV is typically calculated at 4:00 pm Eastern time on each business day the New York Stock Exchange is open for trading. Market returns are based on the trade price at which shares are bought and sold on the NYSE Arca, Inc. using the last share trade. Market performance does not represent the returns you would receive if you traded shares at other times. Total Return reflects the reinvestment of distributions on ex-date for NAV returns and payment date for Market Price returns. The market price of the ETF’s shares may differ significantly from their NAV during periods of market volatility.

Tesla increases Model Y price in China after successful launch in the market

Tesla has increased the price of the Model Y electric SUV in China last night after a successful launch in the market.

In January, Tesla launched the Model Y in China.

The launch of the electric SUV was highly-anticipated since the electric crossover/small SUV segment is very popular in the market, and since Tesla was waiting on producing the vehicle at Gigafactory Shanghai before launching it in the country, the market was curious about the price point Tesla could hit.

The automaker ended up launching the Model Y at a lower than expected price of 339,900 yuan ($52,000) for the Long Range Dual Motor version, and the Model Y Performance version started at 369,900 yuan ($56,600).

It was a successful launch as the automaker delivered just over 1,600 Model Y electric SUVs in China in January and quickly ramped up to 4,630 Model Y deliveries in February.

As we previously reported, Tesla sold out the first quarter of planned production in just a few days, and Model Y is believed to already be putting pressure on competitors NIO and Xpeng.

Now, Tesla has decided to increase the price of both Model Y versions in China overnight:

 

Tesla Model Y, China

The price has increased by 8,000 CNY, which is the equivalent of about $1,200 USD.

As usual, Tesla didn’t disclose the reason behind the price changes, but the automaker also made several price changes in the US and other markets in recent months.

Tesla’s Model Y production ramp-up at Gigafactory Shanghai is being followed closely by the market as it is expected to be the biggest contributor to the automaker’s growth in 2021.

The company has hinted at producing as many as 200,000 Model Y vehicles at the factory this year.

Gigafactory Shanghai could produce up to 450,000 vehicles in 2021.

The factory has already been a great success for the automaker, and now, it is trying to recreate that success at Gigafactory Berlin and Gigafactory Texas, which are currently both under construction and where Tesla plans to also produce the Model Y.

Market Sell-Off Part 2: Zoom Earnings and 10 Year Treasury

THE SECRET SAUCE | COMPLEX IDEAS | SIMPLE SOLUTION

Market Sell-Off Part 2:  Zoom Earnings and 10 Year Treasury

Friday, March (3/5) Closing Price

 

Discord Logo And the History of the Business | LogoMyWay
DISCORD RECAP (March 1st – March 5th)

We like energy and oil.

After OPEC’s surprise to cut oil production through April,  we anticipate oil prices will continue to climb.

Crude oil has been a top-performing asset this year, with variants like gasoline and diesel also delivering significant gains in 2021 of 38.6% and 24.3%, respectively.

To participate in this, we will be investing in Exxon Mobil, $XOM.

On Friday, XOM closed at $60.93 and we see a potential to hit $85.

If you trade this stock, we have a short-term target price of $63.17.

Day trading short-term call options could also be a good idea.

Zoom Logo - PNG and Vector - Logo Download

Fundamental Analysis Matters???

Investors have decided that fundamental analysis is essential this week, reflecting in Zoom’s stock price dropping $100 or 30% in two days.

Zoom released its earnings on Monday, and they blew expectations out of the water. The video-calling software maker reported its revenue grew 369% YoY in the quarter that ended on January 31st, after growing 367% in the

third quarter and losing fewer customers than executives had expected.

  • Revenues soared to $883 million, up from $188 million the year before.
  • Based on formal accounting rules, Zoom’s net income rose from $15 million to $260 million, or 87 cents a share.
  • The gross margin expanded from the previous quarter’s 66.7% to 69.7%.
  • small customers grew to 467,100 customers with more than 10 employees at the end of the fiscal fourth quarter, nearly five times as many as it had before the pandemic hit, or up 470% on an annualized basis, compared with 354% growth in the previous quarter.
  • It ended the quarter with $4.24 billion in cash, cash equivalents, and marketable securities, significantly up from the previous quarter’s $1.87 billion.
  • Consensus estimates for their Earnings per Share (EPS) was $0.79, and actual was $1.22 for Q4.
  • Zoom’s revenue topped $822B, almost 9% better than estimates, and provided 2022 earnings guidance of $3.62 per share.

Despite these robust estimates, investors do not agree that the stock should be trading at 110x its 2022 Earnings estimates as well investors are wary of whether or not Zoom can continue this momentum.

Just two weeks ago, researchers from Stanford University argued about possible “Zoom fatigue.”

The study found that all the countless hours spent on zoom calls take more of a tool on the human brain and body than regular office work.

The fact that we are always connected, and sharing is leaving us mentally fatigued. The address four key reasons.

  1. Excessive amounts of close-up eye contact are highly intense.

  2. Seeing yourself during video chats constantly in real-time is fatiguing.

  3. Video chats dramatically reduce our usual mobility.

  4. The cognitive load is much higher in video chats.

We wouldn’t be surprised if we started to see a decline in zoom video usage in the upcoming months with vaccine rollouts, re-openings, and taking a break.

Target Reports Record-breaking Earnings, stock sells off.

Target-Logo - Earl & Brown

best friends yes GIF by Target

Target’s stock closed down 6.8% on Tuesday trading but has soared 64% over the past year.

For the fiscal fourth-quarter ending on January 30th,

  • revenue rose 21% to $28.34 billion from $23.4 billion last year, higher than analysts’ expectations of $27.48 billion.
  • Comparable sales, a critical metric that tracks sales at stores open at least 13 months and online, went up 20.5% compared to the prior year as comparable digital sales rose by 118% YoY.
  • After strong holiday sales, online sales gained even more momentum as Americans cashed in their $600 stimulus checks in January.
  • Store sales increased by 6.9%, digital sales increased 118%, and same-day service grew 212%.
  • As impressive as they are, both metrics show a deceleration in growth rates versus the third quarter.
  • In mid-January, Target reported that sales grew 17% during the holidays, which is a slight slowdown from the third quarter’s 21% spike, but it is still a lot better than the 9% that Walmart experienced.

So why did the stock sell-off?

Target did not provide guidance within their earnings report, and this has spooked investors.

  • Target also reported on-GAAP EPS of $2.67, beating estimates by $.13, and revenue of $28.34B beating estimates by $920M.
  • The only real forward direction that Target provided is that they will spend $ 4B annually for the next several years.
  • A big step up from 2020 where they spend $2.7B and in 2019, they spent $3B.
  • Target is planning to increase the number of stores by 30-40 stores annually.
  • Target plans to remodel 150 stores this year and increase that number to 200 in the following year.
  • Investors did not take to this news lightly, and the stock price reflected it.

Their earnings were solid outside of the spending guidance, and their omnichannel business presence led to their revenue growth.

In conclusion, investors do not like spending more money.

Somethings AREN’T Best Left Unsaid 

Investors often make decisions based on what was said in meetings, press conferences, and interviews. In this case, markets moved because of things that were left unsaid; investors were left with a sour taste after Federal Reserve Chairman Jerome Powell failed to address the Gigantic Elephant in the room. 10-Year Treasury Yields are rising due to expected economic growth and inflation in the future. Due to the pandemic, borrowing is near an all-time high, and any change in interest rates can have a massive multiplier effect across the country. High Growth companies, small businesses, and millions of individuals will face defaults with higher interest rates. This lack of reassurance from Powell sent markets tumbling despite a positive jobs report showing unemployment rates falling to 6.2%. We will have to keep a close eye on the 10-Year Treasury Yield in the future with it carrying such grave implications.

Tesla Divides Believers and Values Skeptics

Elon Musk Mic Drop GIF by FullMag

The market is split between believers and skeptics.

Those who believe that Tesla’s value is limitless and those who are more pessimistic about its prospects, especially given its current market price.

The company’s progress so far in “accelerating the world’s transition to sustainable energy” is a credit to Tesla. Still, there is a lot more left to do in its master plan to justify today’s valuation.

Tesla’s history of executing many of its audacious goals seems to be expected to continue, given the optimism in the current stock price. This gives the company very little room for error.

Read more about it on our website: https://www.tigerwolfcapital.com/tesla-divides-believers-and-skeptics/

REVIEW OF PAST WEEK 3/1 – 3/5

UPCOMING WEEK 3/8 – 3/12

EVENTS & TALKS

Tesla divides believers and skeptics

Tesla divides believers and skeptics.

The market is split between believers and skeptics.

Those who believe that Tesla’s value is limitless and those who are more pessimistic about its prospects, especially given its current market price.

The company’s progress so far in “accelerating the world’s transition to sustainable energy” is a credit to Tesla. Still, there is a lot more left to do in its master plan to justify today’s valuation.

Tesla’s history of executing many of its audacious goals seems to be expected to continue, given the optimism in the current stock price. This gives the company very little room for error.

 

Investors Are Giving Tesla A Lot Of Credit For Future Execution

See the source image

Tesla (NASDAQ: TSLA) is easily one of the most controversial companies in the world right now. Most either love it or hate it. These two groups seem to be split into those who owned it through 2020 and those who watched on the sidelines as the price multiplied 10-fold.

What’s undeniable is that Tesla is working on some exciting innovations in the world’s transition to sustainable energy. The company’s grand ambitions for electric vehicles, autonomous driving, battery design, energy storage, and energy generation have contributed to the widely differing opinions on the business’ future. Some believe its plans are possible, while others are skeptical.

Let’s look at where Tesla is today versus its future expectations, plus what it needs to do to get there.

  • Tesla is in the early days of its ambitious plan.
  • Perfect execution is needed to reach its bold targets.
  • If any doubt arises about its ability to execute, the stock will re-rate downwards significantly.

Tesla Today Versus Tesla In The Future

Tesla currently generates revenue through 3 sources: automotive sales and leasing, energy generation and storage, and services.

The automotive business generated 97.2% of total revenue while energy generation and services contributed .7% combined during the 2020 financial year.

To understand the expectations related to Tesla’s future, we need to understand where the company is now versus where it is expected to be in, say, 10 years.

In 2020 Tesla did the following :

Production Deliveries
Model S/X 54,805 57,039
Model 3/Y 454,932 442,511
Total 509,737 499,550

In 2020, the company delivered half a million in vehicle sales and generated $27.23bn in revenue (sales and leasing combined). This is a 30% increase over 2019’s automotive revenue.

Years ago, in 2016, Tesla brought in $7 billion in total revenue, while in 2020, it brought in $31.54 billion while its earnings per share went from -.94 to now a positive .64, a 350% and 168% increase.

Sources: tesla.com

The company earns tradable regulatory credits because it operates under regulations related to zero-emission vehicles and clean fuel. It sells these credits to other carmakers who want to comply with the regulations and avoid fines because Tesla doesn’t need them. The CFO stated in an earnings call that demand for these credits would remain strong for the next few years. Still, as electric vehicles become more mainstream and other manufacturers also begin complying with the regulations through their own operations, earnings from these credits’ sales will decline.

Regarding future expectations for the automotive side, Tesla’s CEO, Elon Musk, stated the company plans to produce 20 million cars per year by 2030. That may sound audacious, and it is. But in 2014 (when it sold around 32k cars), Tesla said that it planned to sell 500k cars by 2020, which also seemed audacious, but it did it.

So to put that 20m into perspective, here are a few numbers. That means Tesla needs to increase its current production by 40x (a 44% CAGR). It needs to double what Volkswagen and Toyota (the two biggest carmakers currently) sold in 2020, which was 9.35 million and 9.5m cars, respectively. Plus, market forecasts from Deloitte and Bloomberg New Energy Finance’s likes expect the number of electric cars sold annually to be around 25m in the year 2030. So if true, this implies that Tesla would have an 80% share of the electric vehicle market in 2030, compared to its current 18% in 2020 (it was the market leader in 2020). Tesla is overly optimistic, or the industry forecasts underestimate electric vehicles’ total adoption in 10 years.

Considering that the company generated 43% YoY growth in cars produced from 2018 to 2020, it will need to continue expanding its production capabilities aggressively to continue this growth rate. Achieving this growth will rely heavily on three things: first, an improvement in the company’s capital efficiency (continual reduction in production costs), second, the successful creation of many new factories around the world to support production, and third, widespread adoption of Tesla’s Full Self-Driving (FSD) technology (if the software is successful). We will touch more on these points later.

Regarding Tesla’s energy generation and storage business, it deployed 3.02 Gigawatt hours of energy storage products and 205 megawatts of solar energy in 2020.

At Tesla’s recent Battery Day, Musk announced plans to get to 3 Terawatt hours (TWh) per year in batteries by 2030, a 1000x increase from its current installations.

Considering Bloomberg NEF predicts that energy storage installations around the world will reach 1.1TWh to 2.8TWh by the year 2040, it appears there are some big discrepancies. Tesla’s forecasted energy installations in 2030 would be more than 100% of what BloombergNEF forecasts for the entire world’s installations.

Again, either Tesla is optimistic, or industry forecasts are underestimating the growth of global battery installations.

How will Tesla Reach These Bold Targets?

These bold predictions from Tesla seem vastly different from what some market research by other firms suggests will occur. Regardless, to achieve what it’s claiming is possible, a few things need to occur.

1. Tesla Needs To Spend Big

To build more factories in its automotive and energy businesses, Tesla will need to spend money and lots of it. The company had $19.38bn of cash at the end of 2020 (after raising $10bn via equity in the second half of 2020, which was 2% dilutive), generated $5.9bn cash flow from operations, and spent $3.16bn of that on capital expenditures for the year. For 2021, 2022, and 2023, Tesla expects to spend between $4.5bn and $6bn on capital expenditures per year (page 33 of the 2020 annual report). Some forecasts suggest that Tesla will need somewhere between 20 to 40 new gigafactories to reach its goals by 2030, which could cost anywhere between $32bn and $64bn over the next 10 years (if we use the $1.6bn cost of the Shanghai factory). Yearly, that would equate to between $3.2bn and $6.4bn of capital expenditure over the next 10 years. Given the current cash flow from operations and the high cash balance, this seems affordable, at least for the next few years.

Here’s an outline of the company debt to equity situation since 2014 from our company report.

Source: Debt to Equity History and Analysis – Simply Wall St

 

2. Tesla’s FSD Software Needs to Win

Tesla FSD software is up against almost every other company in the space (e.g., Waymo, GM, Toyota), using LIDAR technology. It’s beyond my current capabilities to outline the technological differences between the two (and they are significant), but what is important to keep in mind is that neither are at full level 5 autonomy just yet. This means both systems are yet to prove they have the capabilities for full autonomy without a human driver.

However, while Tesla’s FSD software is reportedly only at level 2 autonomy, it claims it will be at level 5 (i.e., fully autonomous) by the end of 2021. This could be since it has accrued somewhere in the range of 3 billion miles of data from its fleet of cars on the road to building its FSD software. This is significantly more data than its competitors. So if that software comes to market successfully at the end of this year like the company plans, that would provide more substantial evidence that supports Tesla’s case for being the market leader in autonomous driving software and driving its potential exponential growth. Not only that, the software would provide a very high margin source of recurring revenue. But again, that’s yet to happen, and if it does experience any hiccups in the process, it could be incredibly damaging. So execution is key.

3. Tesla Needs To Continue Improving Capital Efficiency

In the manufacturing business, capital efficiency is key to growing production rapidly and affordably. Ark Invest, one of the most widely known bulls on Tesla (Ark owns around $3.7bn of Tesla across its ETFs), believes there is a 50/50 chance Tesla will be more capital efficient than traditional US auto-makers. The Bureau of Economic Analysis showed that traditional US automakers spent $14k per car on fixed assets in 2016. For reference, the Tesla Shanghai factory-required $1.6bn in financing with an initial capacity of 150,000 cars, meaning it costs $10,700 per car (Shanghai recently reached 8k cars per week and expects to produce 550k cars in 2021). To grow rapidly and affordably and enable this growth required to get to 20m cars by 2030, Tesla needs to continue to improve its efficiencies and productivity even further with its future factories.

The thing here is that it seems a lot of Tesla’s current market price is counting on the successful execution of these future events playing out. The CEO even noted this to employees in an internal letter in 2020. The expectations of exponential growth rely on simultaneously expanding production capabilities, increasing productivity, and successfully delivering FSD software to market. The company has a track record of executing, but if any doubt arises from investors about their ability to further execute, it would be incredibly damaging to the stock price.

What This Means For Investors

While Tesla seems to still be in the early days of its ambitious plans, the stock’s current market valuation seems to largely expect that all of these developments occur, even though they’re likely years away and not guaranteed. The huge share price increase in 2020 versus more conservative growth in the actual business indicates that a lot of the rise was due to increasing expectations that the company would successfully execute. As investors, we need to assess a range of possible future outcomes, assess the probability of each outcome occurring, and estimate the potential risk-reward that comes with each outcome playing out.

There’s a saying from Charlie Munger that goes, “No matter how wonderful a business is, it’s not worth an infinite price.” It’s up to us as investors to determine what an appropriate price is.

How to trade Tesla : 

On the overall 2hour, 360-day time frame, Tesla’s technical analysis reads bearish with more downside to come.

The 14-day simple moving average is now well below the 30-day simple moving average.

As a result, we now see more downside for tesla to come in the near future.

As a day trader and an option trader, we would be looking to buy $550 or $500 puts if this downward trend were to continue.

The price target will be $566.77 and then $533

Join our discord to see more real-time analysis.  

 

Tesla’s weight in SPDR S&P 500 ETF Trust, SPY, has led the stock market to retrace back down towards the $370 price level.

Price action has led to many stating that the stock market is crashing.

But to be honest, we have not seen a market crash yet.

Tiger Wolf Capital owner Frank Mercado wrote this article is general in nature. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

#18 The First Crack: Why the Market Crashed Last Week

Friday, February 26th Closing Price

 

“The secret of your success is determined by your daily agenda“ – John C. Maxwell

 

DISCORD RECAP (2/22 – 2/26)

We shorted the market.

$SPY (S&P 500 ETF)

We are anticipating more downside in the overall market.

On Friday, $SPY closed at $380.36; this is below our support level of $380.71.

Our 14-day simple moving average is below the 30-day simple moving average as well our MACD parameters are becoming redder and redder.

We are anticipating seeing SPY trading around $370 / $366 shortly.

JOIN OUR DISCORD

www.tigerwolfcapital.com/discord

JOIN OUR PRIVATE TWITTER WITH YOUR MEMBERSHIP PLAN

 

 

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UPCOMING WEEK 3/1 – 3/5

EVENTS & TALKS

UPCOMING WEEK’S

EARNINGS 3/1 – 3/5

EARNINGS
REVIEW OF PAST WEEK 2/22 – 2/26

MARKET LAST WEEK (2/22 – 2/26)

MONDAY (2/22)

10-Year Treasury Yields Jumped

10-Year Treasury Yields jumped 14 basis points to 1.34% and reached1.37% overnight. Yields have increased 28 basis points so far in February, which can significantly impact high-growth companies who rely on low-interest rate loans. While this may hurt high-growth companies, this is a sign of growing confidence in the economy. House Democrats are looking to finalize a large stimulus package that could cause an uptick in inflation and increase short-term interest rates. Businesses are borrowing at low rates, and any increase can seriously hamper their growth moving forward. When vaccinations have been implemented, and society can resume, the economy may overheat in a short period with rapid amounts of inflation. The 10-Year Treasury Yield having an uptick is a preemptive measure to counteract the economy’s possibility of overheating.

TUESDAY (2/23)

In Spite of the Red, the Fed Shows Optimism

J Pow spoke with Congress on interest rates and inflation for the short-term. Jerome Powell says there is a lot of liquidity in the market, and people want to place it in Treasury bills. He is worried that downward pressure on rates and the Treasury General Account is shrinking in size. He also believes that there will be more realized gains later this year with the economy and vaccines.

Facebook reached an agreement with the Australian Government about proposed amendments to the media bill. The original bill would have made digital platforms pay for news content displayed in search results or feeds, meaning they would have to pay local media and publishers to link their content. Google previously agreed to pay for news, and Facebook has held out for a better arrangement.

WEDNESDAY (2/24)
Regulation Standards Under Review Across the Board

A new report has come out stating that Boeing and the Federal Aviation Administration have a flawed relationship, which may obstruct the FAA’s ability to identify future safety challenges. The FAA has agreed to implement 14 recommendations in the report and addressed innovations to existing aircraft designs and improved communication with Boeing.

The Securities and Exchange Commission has committed to reviewing its policies on Climate Change. They are evaluating and speaking with companies about the extent to which they are complying with climate change disclosure guidance. They are looking to make a comprehensive framework for companies to produce consistent climate-related disclosures. This will have a significant impact as companies will have to change their business models to factor in climate change practices, which can be expensive. Looking forward, we will have to watch the SEC’s change in policy overwatch.

THURSDAY (2/25)

Mcdonald’s Looks to the Future and the Outlook is Green

In a massive announcement, Beyond Meat has partnered with Yum Brands and McDonald’s to produce an alternative meat product for Vegan Customers. These are some of the largest food brands in the United States, and Beyond will begin to skyrocket in the future. This is a good deal for both partners as Vegan customers are continually looking for cheaper alternatives, and fast food brands are always looking for a new market segment to reach. McDonald’s is looking to create a full line of products, the “McPlant Series,” while the Yum brands will be making pizza toppings, taco fillings, and chicken alternatives. Beyond Meat is now involved in almost all fast-food chains within the United States.

AT&T sells a stake in its pay-TV unit to Private Equity firm TPG and carves out struggling business. AT&T will retain a 70% stake in the business, and TPG will pay $1.8B cash for a 30% stake. This deal values the new company at $16.25B, with about $6.4B in debt. AT&T will now be allowed to stop including the results of its U.S. video operations in its financial reports.

FRIDAY (2/26)

Midnight Riders Filled the House of Representatives

As usual, Friday never goes quietly into the weekend, and it was full of important events. Primarily, the house held the vote for the 1.9 trillion dollar stimulus bill. During the session, Democrats were able to pass the bill, and now the Senate will move to vote on whether it will pass. Although every vote is crucial one way or the other, it will be a tight finish, as even one non-partisan vote can decide the fate of the session.

    While the market continues to be erratic, treasury yield bonds briefly touched their highest point in over a year but came down slightly again, under 1.6%. If the market continues to be volatile, we may see an increase in investors picking up more bonds with a higher yield.

#5: Let the FOMO Begin

“How wonderful it is that nobody needs to wait a single moment before starting to improve the world.” – Anne Frank

 

TABLE OF CONTENTS

  1. TESLA TO JOIN $SPY
  2. BOEING’S 737 RETURNS
  3. REVIEW OF LAST WEEK’S EARNINGS
  4. UPCOMING EARNINGS
  5. UPCOMING EVENTS & TALKS
  6. MERCHANDISE
  7. DISCORD RECAP
  8. STOCKS ON OUR RADAR
  9. EDUCATIONAL LEARNING SEGMENT
  10. BOOK OF THE WEEK
  11. VIDEO OF THE WEEK

tesla GIF

 

MARKET LAST WEEK (11/16 – 11/20)

TESLA TO JOIN $SPY

The world was a very different place in 2003, the year Tesla Motors was founded. The standard in American cars was huge SUVs. Large SUVs at the time were perfect in part because gas was so cheap, and they could fit an extended family. Yet, here came Tesla, a company urging buyers to be sustainable to use electricity instead of gas. Despite a lengthy series of infamous setbacks over the decade, Tesla has arrived. Standard and Poor’s (S&P500)  disclosed Tesla is to be added on December 21st. The addition of Tesla ushers in a new era for the index funds.

Index funds are viewed in part as the safest assets American households seeking to participate in the market can acquire adjacent to Bonds and CDs. This “safe” factor is in part why this new addition to the S&P 500 is a milestone not only for Tesla but the electric vehicle sector as a whole. Fund managers that have been short/bearish on Tesla have constantly critiqued the company for being too overvalued and have accused Tesla of currently not having the proper financials to justify various market price valuations. This inclusion makes Tesla as American as apple pie. Once added, pension funds and retirement accounts alike will own a small portion of Tesla. Consecutive quarters of profitability, reducing production cost, and a successful expansion into Asia have now earned Tesla legitimate entry.

 This inclusion comes when persons like Cathy Wood’s have heavily criticized classic index funds like Standard and Poors for not including companies that she would describe as innovative. Wood has critiqued Wall Street for undervaluing many of tech companies’ intangible assets like intellectual property (i.e., arthrograms, patents). Wood’s who manages $ARK  Invest; the innovation ETF has consistently been a long $TSLA. And has publicly disclosed her PT for $TSLA was $7,000/share (pre-split) or a price of $1400/share post-split.

In the weeks to come, Tesla is likely to rally in anticipation of inclusion into the index. Yet, similar to its rally in anticipation of its stock split, it is unlikely the rally will continue after its inclusion. Historically, companies added to the S&P 500  are likely to experience a run-up after newsies are made public, followed by a pullback once the inclusion is complete.

BOEING’S 737 RETURNING

On March 19 of 2019, the Boeing 737 max was grounded by the FAA post the Ethiopian Airlines crash. The incident happened on March 10, 2019; at this time, Boeing’s share price was trading right around the $400 mark. This was high for the past 12 months. In recent news this week, the FAA has released that the Boeing 737 max is now set to return to the skies. The 737 max’s return provides a lot of clarity for investors. The aircraft has and will continue to be a pivotal piece of technology in mass commercial aviation. With its new MCAS (system dedicated to providing additional sensors to the aircraft to help navigate through unusual weather) system, Validation program, Pilot training, modifications from airline input regulatory review as well as a grueling inspection process, it is safe to say that the 737 max is back and better than ever. However, it would be naïve to say that the 737 max’s return solely will directly correlate to a jump in its stock price. Expect heavy fluctuation In the stock shortly due to several factors.

One of the biggest factors that investors should be aware of is the mass cancellation of 737s on backorder. Due to COVID-19 airlines have taken a gruesome hit, it should be kept in mind that at this point, there are hundreds of 737 orders that are now pending cancellation. The airlines cannot afford to pay for these aircraft due to the lack of business due to COVID-19. As it stands now, 20% of Boeing‘s backorder is now pending cancellation around 780 Aircraft. There is still 3,120 737 max to be sold; this will be monumental for Boeing. With all this being said, it is with no doubt that the airline industry will return as we begin to enter a post-pandemic world. As people begin to travel, more airlines will rely heavily on the 737 Max’s capabilities. Expect the high demand for these aircraft to run parallel to a flux in $BA share price in the long run.

LAST WEEK’S EARNINGS

Tuesday, November 17th

Walmart Logo Tagline
WALMART – $WMT

Like other major brick-and-mortar stores, Walmart has seen a decline in overall foot traffic to both Sam’s Club and Walmart stores. What is important to understand is the increase in online shopping from Walmart. The pandemic has accelerated online grocery and general merchandise shopping for the entire retail sector. These key areas will drive Walmart into 2021.

Walmart:

  • Same-store sales rose 6.4%

  • E-commerce soared 79% and contributed approximately 570 basis points to comp sales.

  • Comparable sales at its discount unit Sam’s Club were up 11.1% 

  • Reduced tobacco sales negatively affected comp sales by approximately 4.2% 

  • Sam’s Club e-commerce sales grew 41%

  • Membership income increased 10.4% at Sam’s Club.

  • Total revenue was $134.7 billion, an increase of $6.7 billion, or 5.2%

  • Walmart International net sales were $29.6 billion, an increase of 1.3% after currency.

  • Consolidated operating income was $5.8 billion, an increase of 22.5%

  • Operating cash flow year to date has been strong and increased approximately $8.3 billion versus last year to almost $23 billion

Takeaways: 

Walmart has had strong all-around growth in Q3. Even after currency exchange expenses, its international sales have grown. Shoppers are spending more at Walmart per visit than pre-pandemic. Its online presence has allowed it to compete with Target and Whole Foods for store pickups, which have expanded to 3600 stores with same-day delivery at 2900. Walmart is one of the largest corporations in the US with good economies of a scale capable of continued growth during and posts this pandemic, and it’s apparent in their report.

   File:TheHomeDepot.svg - Wikimedia Commons

HOME DEPOT – $HD

Due to the closing of malls and stores that were not deemed essential, most of the retail sector at the start of the pandemic experienced a major decline in revenue. $HD Home Depot, however, unlike many other retailers, has seen an increase in revenue in part because it is classified as an essential business and due to many more persons working from home. More persons working from home in a pandemic has led to more homeowners renovating their living space to make it more suitable to work from home.

Home Depot

  • Actual earnings per share $3.18

  • $3.06 expected earnings per share

  • 33.54 billion revenue

  • 32.04 billion expected

  • Net sales increased by 23%

  • 33.5 billion in net sales (Q3 2020)

  • 27.2 billion in net sales (Q3 2019)

  • Average customers sale rose by more than 10% 

Takeaways:

Similar to earnings last quarter Home Depot beat analysts’ expectations. Yet, this beat resulted in a 1%+ decline in the share price. Today Home Depot has beat expectations, but this beat has lead skeptics to question how well $HD will perform in a post-pandemic economy. Will customers still feel the need to renovate their homes in a post-vaccine economy, and if so, will net revenue see an increase or decrease when laborers can ditch their home offices and return to the workspace.

NIO (car company) - Wikipedia
NIO – $NIO

Electric vehicles are gaining popularity globally. Sleek designs and multiple countries publicly announcing their push towards EV to come a hyper-competitive atmosphere in the EV market. NIO is based in China, which is an advantage in terms of potential market share.

  • 31,430 vehicles delivered (10/31) 111% year-over-year growth

  • Adjusted loss per share 12 cents 

  • Expected loss per share 18 cents 

  • Revenue: 666 million v. 663 million expected

  • Actual gross margin: 12.9%

  • Expected gross margin: 11.25%

Takeaways:

Value investors may have difficulty in understanding NIO’s current valuation relative to their current earnings. Nio’s current price is not based on what it is today but is based on what NIO could be in the not-so-distant future. This valuation indicates their current growth as of October 31st; 111% year-over-year growth gives NIO a promising future. NIOs current gross margin is higher than expected, which will likely aid NIO in scaling up to higher production numbers and ensuring profitability on vehicles as demands grow.

Wednesday, November 18th

NVIDIA - NVDA - Stock Price & News | The Motley Fool

Nvidia – $NVDA

Nvidia is the premier GPU producer. Their cards are years ahead of the competition, and that’s evident in their $300 Billion market cap compared to their competitor AMD’s $100 Billion market cap. They are also extremely integrated into the data center sector, which is their best performing division in terms of profits to expenses and growth.

  • Record revenue of $4.73 billion, up 57 percent Y/Y

  • Record Gaming revenue of $2.27 billion, up 37 percent Y/Y

  • Record Data Center revenue of $1.90 billion, up 162 percent Y/Y

  • GAAP earnings per diluted share for the quarter were $2.12, up 46 percent from $1.45 Y/Y and up 114 percent from $0.99 Q/Q

  • Third-quarter revenue was a record $1.90 billion, up 8 percent from the previous quarter and up 162 percent Y/Y

  • Shared news that Amazon Web Services and Oracle Cloud Infrastructure announced the general availability of cloud computing instances based on the NVIDIA A100™ GPU, following Google Cloud Platform and Microsoft Azure (not sure what we want to do about hyperlinks. They do lead to articles with the announcements.)

Extended its lead on MLPerf performance benchmarks for inference, winning every test across all six application areas for data center and edge computing systems

Takeaways:

NVIDIA’s GPU segment is taking off rapidly and better than ever before. As new games come out that utilize ray tracing, the RTX GPU becomes more relevant. Unseen loads of everyday life are being automated, put online, or requiring exact and technical technological inputs from GPUs and CPUs in our society. Of these two, they lead in GPU technology, and the acquisition of ARM will allow NVIDIA to fully compete with AMD in the CPU division with their state-of-the-art processors. CPUs were the only division NVIDIA was not leading in. NVIDIA has excellent growth drivers that continue to accelerate business growth and push the company forward well into the future.

Thursday, November 19th

File:Workday Logo.png - Wikipedia
Workday – $WDAY

Workday has been able to expand throughout the last year due to its ease of use platform.

  • Total revenues were $1.11 billion, an increase of 17.9% from the third quarter of fiscal 2020

  • Subscription revenue was $968.5 million, an increase of 21.3% Y/Y

  • Operating loss was $14.1 million, or negative 1.3% of revenues, compared to an operating loss of $110.3 million, or negative 11.8% of revenues Y/Y

  • . Non-GAAP operating income for the third quarter was $268.1 million, or 24.2% of revenues, compared to a non-GAAP operating income of $142.6 million, or 15.2% of revenues Y/Y

  • Operating cash flows were $293.8 million compared to $258.0 million in the prior year.

Takeaways:

Subscription service growth has led the way for Workday’s growth the past year. Even in the midst of the pandemic, Workday has grown revenue and shrink its operating loss Y/Y from (11.8%) to (1.3%). Workday’s partnership with Accenture will help make an even more ergonomic friendly experience for Workday users through “greater visibility and simplified experiences

UPCOMING WEEK 11/16 – 11/20

EARNINGS

Tuesday:

Best Buy unveils new logo | Fox Business

Best Buy $BBY (Before Market Open)
Best Buy is a massive tech retail company that has posted strong earnings from the last 2 Quarters, and they are expected to continue that trend for the Q3 report. They have an expected EPS of $1.93, and Revenue is expected to be $10.9B. With quarantine orders coming back into effect and schools shutting down, the need for technology at home will come back, and we expect Best Buy to post strong earnings for a long time.

Dollar Tree Bringing 'Snack Zone' Initiative to More Stores | Convenience Store News

$DLTR (Before Market Open)
The largest single price point store in the U.S., as money in the current economic climate is very precious, Dollar Tree will continue to grow. $DLTR expected EPS is $1.24, and Revenue is expected to be $6.11B. For the next several quarter’s Dollar Tree will see growth and revenues steadily increase.

File:Dell Logo.svg - Wikimedia Commons

$DELL (Aftermarket close)
Correlating in the same vein with Best Buy is Dell technologies. More and more people are buying technology to work from home or go to school online. Much like the previous two companies mentioned, the Q2 numbers provided positive insight into how the company performs. Dell is expected to have $1.50 EPS, and revenue is expected to be $21.92B. Continued stay-at-home orders and in-person learning put on pause; we will be on the lookout for their Q3 report.

DISCORD RECAP

This past week we had a total of 24 trades. 20 of which were positive trades and yield an average of 112.7% return on investment. We had losses with an average loss of 60%.

The trade of the week goes to Tesla! 

On Tuesday, we alerted our members about the $TSLA 490calls for November 27 at an average price of $460.

On the 18th, the 490 calls were trading at $2,300, and the 500 calls were trading at 1,950.

A 400% and 500% return on investment overnight!! 

EDUCATIONAL LEARNING SEGMENT

“I didn’t lose money; I paid for a lesson.”

Perspective is an invaluable strength—the ability to look at a situation and discern more than just the negative from it. Perspective has allowed me to view loss differently and find the silver lining. While trading, even when your trade doesn’t have the desired outcome, spend more time trying to understand why you want wrong and adding that information to your tool kit rather than energy being disappointed at the outcome.

Everything is Fucked by Mark Manson
In keeping with the theme of perspective, our book of the week takes a deep dive into hope and the power of perspective. This New York Times bestseller analyzes prominent examples throughout history and the shared human experience. It advocates choosing to enjoy and appreciate what is positive in your circumstances rather than being obsessed with quick wins and never-ending target posts. Those ultimately lead to greed and a lack of fulfillment. In regards to trading, many traders fail to follow their plan by being dissatisfied with their position and hoping for change rather than exercising the discipline to secure the profit they have or minimize the loss they’re experiencing. It’s important to remember that in good times and bad, things can always be worse
..”.

#4: 2021 – Heading Into a New Year in the Market

“Losers quit when they fail. Winners fail until they succeed”.–Robert T. Kiyosaki

 

Thursday, December 31st Closing Price


TABLE OF CONTENTS

  1. STIMULUS
  2. COVID RELIEF
  3. BOEING
  4. ANT-GROUP
  5. ASTRAZENECA
  6. MODERNA VACCINE
  7. NATIONAL DEFENSE AUTHORIZATION ACT
  8. SHIPPING DISRUPTIONS
  9. UPCOMING EARNINGS
  10. MERCHANDISE
  11. DISCORD RECAP
  12. STOCKS ON OUR RADAR
  13. EDUCATIONAL LEARNING SEGMENT
  14. VIDEO OF THE WEEK

 

 

MARKET LAST WEEK (1/4 – 1/8)

MARKET

MONDAY

THE SECOND ROUND OF STIMULUS – WHAT DOES THIS MEAN?

President Trump has officially signed a second round of stimulus checks to citizens as part of the coronavirus relief package. This second round of direct payments does come with a few fundamental changes, though. In the first round of funding, eligible households received $1,200 per adult and $500 per child. This time around, we see a decrease to $600 per adult and an increase to $600 per child. These changes apply to individuals with gross income under $75,000 and married couples under $150,000 based on their 2019 income. All of these changes are expected to happen relatively quickly, as the IRS has started sending out payments via direct deposit as of December 29th. Treasury secretary, Steven Mnuchin, states that all taxpayers who have current banking info with the IRS will receive direct deposits by January 4th. With nearly a third of Americans reporting that they are struggling to pay their bills due to the pandemic, this is undoubtedly welcome news, despite failure to push through legislation to increase direct payments to $2,000 from $600.

 

TUESDAY

COVID-19 RELIEF BILL
House Representatives passed the updated Covid-19 relief bill with increased payments from $600 to $2,000, and the bill now includes college-dependent students. This all seems to be not due to the Senate’s expected vote to decline the increased Stimulus. This re-vote was all based on President Trump initially declining the first round of stimulus funding in favor of the larger package.

BOEING

In other news, Boeing had its first flight with its controversial 737 Max from Miami to LaGuardia after 21 months of being forced aground after two fatal crashes. This comes after nearly two years of the plane being grounded and facing harsh regulations from every aviation agency across the globe. With Boeing able to fly this plane, we can begin to see Commercial Airlines begin to purchase and renew contracts for the 737Max.

ANT-GROUP

Ant group is facing harsher regulations from the Chinese government as they want to hold Ant Group’s finances in a holding company. China is using this as a possible way of increasing domestic consumption by having raised consumer loans. They want to use Ant group finances to provide funding to citizens, which in turn will then increase at-home spending.

ASTRAZENECA

And finally, the United Kingdom approved the third vaccine from AstroZenica to combat the notorious Covid-19. AstraZeneca has partnered with Oxford University to create this vaccine, and it has reached the minimum efficacy needed to push forward for implementation. This approval is only within the United Kingdom and needs to go through trials within the United and be approved by the Food and Drug Administration. The United States is skeptical of the AstroZenica vaccine as they have had several missteps along the way and need to re-prove their credibility to the United States marketplace.

WEDNESDAY

MODERNA’S VACCINE

The head of Ontario’s COVID-19 vaccination program has requested that Health Canada, the department responsible for the country’s federal health policy, delve into the feasibility of administering Moderna’s two-shot vaccine in a single dose. General Hillier (Ret.) cites a desire to increase efficiency in helping citizens. Notable health officials have expressed that there is a lack of evidence to suggest merit to this idea. If this idea gains traction and is proven to be effective, the implications are significant as it will lower the time necessary to inoculate and protect the population, effectively lowering the rate at which coronavirus will spread.

FRIDAY

NATIONAL DEFENSE AUTHORIZATION ACT

The House and Senate overwhelmingly voted to pass the National Defense Authorization Act and override President Trump’s veto. The 740 billion dollar law automatically comes into effect. The bill contains multiple cybersecurity provisions relevant to the Solar Winds hack. It also gives the Cybersecurity and Infrastructure Security Agency at DHS the authority to issue administrative subpoenas that will enhance the agency’s ability to investigate private-sector networks’ hacks. The bill is necessary for strategic programs, cyber, intelligence matters, drug interdiction, and counter-drug activities in appropriations adjustments.

SHIPPING DISRUPTIONS

In other news, there may be major international shipping disruptions in 2021 due to a law signed in 2018 that comes into effect. Over 180 countries and territories are not in compliance with the 2018 Synthetics Trafficking and Overdose Prevention (STOP) Act. The bill’s purpose was to combat the opioid crisis and stop fentanyl shipments through the USPS by providing advanced electronic data, or AED. AED provides USPS and Customs and Border Protection with information about international packages’ contents before reaching the United States. Country waivers are available, but only to countries without the technological and financial capital to properly comply with it, only 10-15% of the total volume.

 

UPCOMING WEEK 1/4 – 01/8

EARNINGS

Thursday (Before Market Open)

Bed Bath and Beyond Logo transparent PNG - StickPNG

Bed Bath & Beyond
In a year when home improvement and retail therapy have run rampant across the United States, Bed Bath & Beyond has a stronghold in that market. Beginning in Q3-2020, $BBBY began to pivot its business model from retail to a digital-first company. They will be closing over 200 stores within the next two years with this strategy to save money. They have an expected EPS of $.31 and revenue of $2.77B and have expected quarterly earnings of -155%.

Thursday (Before Market Open)

Walgreens Logos | Walgreens

Walgreens Boot Alliance Walgreens is a retail drugstore chain that sells prescription, non-prescription drugs, and various household items. With a consistent decrease in in-store visits and pivot to online sales, Walgreens will continue to tumble on its earnings reports. Estimated EPS of $1.02 and Revenue of $34.89B, with expected Quarterly earnings of -25.5%.

Thursday (After Market Close)

Micron Technology
Micron Technology is one of the world’s largest and leading semiconductors and data storage providers. They have shown consistent downtrends in their last three years of annual reports, including lower revenue and net income. They have an estimated EPS of $.80 and Revenue of $5.73B, and their expected quarterly earnings are expected to increase by 42.9%.


EVENTS & TALKS

Thursday: Balance of Trade (NOV) at 8:30 a.m. EST

Jobless claims 4-Week Average at 8:30 a.m. EST 

 

 

DISCORD RECAP

We finished the year strong.

We had a total of 22 trades in the 4 day trading week, with 18 of those trades being profitable.

We will continue to focus on companies in the Electric Vehicles Industry in 2021.

We have also improved our discord experience by adding more bots to the server at no additional cost to our members.

Quant Data Bot –

Provides the team with options sweep. The team’s sweeps are used to note what stocks are getting a lot of attention and have the potential to make a big move towards the upside or downside.

Join the team to see how we will use this information to improve our trading.

 

EDUCATIONAL LEARNING SEGMENT

“Always be ready for the next move.”

 

Straddling is a conservative trading strategy that consists of buying both calls and put option contracts for security with the same strike price and expiration date. Straddling is an attractive option because you don’t need to accurately predict price direction as you are poised to benefit from a sharp move in either direction and can sell your incorrect position at a loss once the direction is confirmed. This strategy provides a built-in hedge, but you do stand to lose on both positions if a move fails to happen. So the next time you find yourself wanting to test your thesis on a big move, consider straddling to protect your investment.