Here are three charts that illustrate the dramatic rally off their March lows – last week:
StoneCo (STNE)* Nearly a double (86%) in six days
PagSeguro (PAGS)* up 73% in seven days
Galaxy Digital (BRPHF)*– up 69% in six days
Great trades if one is perfect. We not and suspect most who caught the trade are more lucky than smart. That is not too be critical of those who have the perfect trade.
So Now What?
Well, yup, one should expect a correction. Hopefully not as deep as Bakkt (BKKT)* below.
BKKT is a much earlier stage company so should be more volatile. PAGS, STNE and Galaxy are all young but established companies with very strong revenue growth and profits. BAKKT is still proving up its revenue stream and is a long ways from profitable.
BKKT had its bottoming rally from $3.31 to $9.01 in February and pulled back to $4.26. and is now $7.00.
That could well be the pattern we see in StoneCo, PagSeguro and Galaxy. I do not think the correction will be that deep in the latter three because these are bigger stronger companies.
Trade as fits your methodology. Know yourself and what you want. We will continue to tinker, tinker, putz, putz with these as core positions while doing some trading and tax management positioning around the excitement. At this time, our longer term goal is still a double in all four stocks above and from the current prices.
Our two year performance in a managed account, ZTA, is off the chart good. We know well from 45 years’ experience this might be the best two year performance we ever have. Yesterday, two years ago, was the low on the panic selling of March of 2020 . That was good bottom to choose. Of course, we did not first enter the market on March 23, 2020, so we have history not shown below. It is what we aspire to continue to duplicate in the future.
The performance was not:
- Leveraged except very modestly – less than 3% margin.
- No long option positions except once in Calumet.
- No direct ownership crypto positions.
P.S. we are currently concentrated in Commodity related equity, Payment companies and Blockchain related companies.
Changes ay LOTM:
We will soon launch a private club for those who do not have a million dollar account in equities – but want it.
The “Let’s Make a Million$ Club”
- Limited membership.
- A mentored but Do it Yourself Club.
- Our goal is to teach you how to do, but you modify it to fit your personality.
- We will provide you the ideas, we believe are suited to turn a modest $10,000 in a million dollars – one double at a time.
- Not for the faint of heart but it is a learned skill you can take anywhere.
- Modest Working Capital required, combined with passion and desire to meet the goal of having One Million Dollars in your account.
- You are coachable and want to learn combined with strong desire to make money – 😉
No, it is not free.
Email at Money @LivingOffTheMarket.com if interested in more about this.
LOTM Research & Consulting Service
* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
Please refer to our web site for full disclosure at www.LivingOffTheMarket.com ZTA Capital Group, Inc.
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