On December 18, 2020 Deadnsyde did a video covering the 41% drop in the price of Triterras off of news that Rhodium (owned by the same owner of Triterras) needed to "restructure it's debts". Deadnsyde seen this drop as an overreaction and speculated that there could be a bounce in the near future.
I know little to nothing about Triterras other than what's listed on their website. They own Kratos which is a "custom-built, blockchain-enabled, end-to-end global trade and trade finance platform". Apparently there is a fair amount of industry disruption that this platform provides so I figured I would try a small starter position, partially because I'm not totally bullish on the company but I had just enough faith that there was an overreaction and that it would at the very minimum see a 50% recovery from the drop. To plot out this position I would use a strategy I created for myself called the "Speculative Equity Strategy". I opened a position on December 21st at $8.98.
The Speculative Equity Strategy basically is a system of scaling into a position based on the price action of the stock at a set percentage. In the example above I scaled in with increments of 10 shares at every 12% rise in the stock price of my last purchase (you could use any percentage but 12% works better for me). Once I entered in the stock symbol, share amount and percentage in the yellow fields of the excel spreadsheet it populates the fields including the stock price per add, average cost, profit and loss percentage and profit and loss open. You can see an example of it's implementation below.
As you can see it is a bit difficult to get in at exactly the right projected price (stop orders and limit orders are not 100% reliable) but what this system does is that it eliminates emotion out of the trade because you are working towards a projected result. The price may not rise to $14.13 as shown in the example above but at that point you already have achieved a 17.58% profit once it rose up to $12.62. Using this method you can limit your losses if the stock goes against you while being able to map out what your desired P/L % based off of technical data and price action.
Looking at the example above on December 16th there was a dramatic drop in price when it was at $14.22, once the price rose back up to that level on December 24th the momentum stalled which aligned with my 5th add which was at $14.34. Basically you can plan your profit around support and resistance levels. Most traders would plan on taking profit once the stock retraced it's loss but I think I'll stay in a bit longer to see if it can break the new all-time high at $15.48 before the end of the year. If you are interested in the excel spreadsheet I included it in an attachment below.
Switchback Energy Acquisition Corp (SBE) is up 10% today after President elect Biden mentioned creating 550,000 EV charging stations. SBE has been on my radar for a while being that they are merging with ChargePoint who reportedly has an 44% US market share of all charging stations and they are due to complete their merger on the 15th of December. I currently have a position averaging around $17 while looking to add if it goes below $15 or above $23.
I started hearing a lot about NIO after they were given a 1.4 billion dollar bailout from China. With the goal of China to have 25% of it's new vehicles sales by 2025 to be EV along with strong growth in it's stock I finally decided to buy into the Chinese EV manufacturer. Starting my position at $27 and slowly scaling into a position I am currently holding with my average trade price at $31. Looking for possible adds when it's either above $43 or below $36.
Buying a Jan 15, 2020 Call at the 125 Strike price for $7.85. Looking for resistance around $127.50 & $138 while getting over 90 days till expiration to compensate for the volatility due to the presidential election.
Written by ZEROSYSTEM
I figured it would be easier to create a blog to update family and friends on my current portfolio and give the reasoning behind each investment. As a disclaimer, these are my personal views on my investments and I am not a financial advisor. Please consult with a professional before making any investments.
I started out this portfolio focusing on dividend and value stocks but over time I seen that growth stocks produced the biggest gains so I started to focus more on Tech putting an emphasis on ETFs rather than a single stock.
Being that making one post giving the reasoning behind each position (plus charts) would be way too long, I'll be breaking it up between three or four positions at a time. The following is a breakdown on ARK Invest ETFs.
The single most important family of holdings I have in my portfolio. The Ark Invest ETFs (ARKK, ARKG, ARKF, ARKQ & ARKW) are collectively the highest performers and have been outpacing the S&P for the last four years. ARK Invest family of holding are geared towards disruptive innovation.
ARK Innovation ETF (ARKK)
The ARKK ETF is a blend of the holdings in ARKF, ARKQ, ARKG & ARKW. If you only have enough capital to invest in one of the Ark family etfs this would be the one. I'll probably add if the price drops down to $100 and watch it closely when it breaks $104.
Genomic Revolution ETF (ARKG)
The ARK ETF (ARKG) focuses on biotechnology with a focus on genomics. Performance wise this has been a slow starter for the past few months but once it broke past resistance at $64 it's been smooth sailing. Looking to add more to my position at $76.
Fintech Innovation ETF (ARKF)
The ARK ETF (ARKF) focuses on innovative financial technology such as blockchain, peer-to-peer and mobile payment technology like Square. With the advent of covid-19 these technologies will become more commonplace in the future and with a current trading price under $44, this may be one of the best values yet.
Autonomous Technology & Robotics ETF (ARKQ)
The ARK ETF (ARKQ) focuses on autonomous driving, robotics, materials along with next-gen energy and space exploration. One of the most solid performers of all the ARK ETFs, I'm looking to add to this position when it gets to a break of $65.
Next Generation Internet ETF (ARKW)
The ARK ETF (ARKW) has a combination of cloud computing, block chain, peer-to-peer and electronic commerce technologies. ARKW is the highest performer of all the ARK Innovation ETFs. Looking to add around $123 anticipating a break of $125.
Written by ZEROSYSTEM
PIMCO Corporate & Income Opportunity Fund (PTY)
I wanted an relatively stable closed-end fund with a pretty decent dividend and found that with PTY. This bond fund pays 9.35% dividend with a monthly payout but be advised that it also has an 1.3% expense ratio that will eat into your payouts. For the time being I plan on holding with my current position and possibly adding in after a break of $18.50.
Nuveen Nasdaq 100 Dynamic Overwrite Fund (QQQX)
Another closed-end fund that tracks the Nasdaq 100 with a 6.35% dividend that pays out quarterly and a .91% expense ratio. For the time being this will be a hold.
Global X Funds - Global X NASDAQ 100 Covered Call ETF (QYLD)
This Global X Fund ETF has been the mainstay of my dividend portfolio with an 11.69% dividend that pays monthly along with a .6% expense ratio. I've been carrying this ETF for a few months and it's slow and steady growth, even during times of high volatility, ensures me that this will be a position I'll hold even through retirement.
Invesco Solar Portfolio ETF (TAN)
Just my luck the day I started a position in this ETF it decides to drop. Seriously though, I had wanted to increase my exposure to innovative ETFs so I decided to invest in this high preforming Solar ETF by Invesco which I suspect would receive a boost if there is a Democratic victory in the election this November. I started my position around $75 and plan to hold with an alert set at $68. If it dips below the 30 RSI I plan on adding more shares.
Written by ZEROSYSTEM
Hannon Armstrong Sustainable Infrastructure Capital Inc (HASI)
I was looking to get into a REIT with strong growth potential and found one with HASI. Although HASI has experience strong gains since the covid era it has a Beta of 1.8 so it may be more volatile than most. Currently it has an 2.97% dividend that pays quarterly which has experienced growth over the past year. Looking for a possible add above $47.
Iron Mountain (IRM)
The first REIT I invested in. I never had a significant investment in it because it was hard to maintain it's price over $30. What attracted me to this REIT was it's 8.76% dividend which has been growing over the last 10 years but with it's instability I'll more than likely sell my position at $29 and reinvest it into QYLD.
For the sake of diversification I took a look at investing into the consumer discretionary sector and found RCII. With a far amount of growth and value mixed in one I started a position around $27 and looking to hold being that margin of safety is 8.7% with a intrinsic value of $37.69 (current price is $34.60) as calculated by the TD Ameritrade's Intrinsic Value Calculator
Written by ZEROSYSTEM
Following the market downturn on 09/02/2020, Apple found strong support around $110 so I took a long position around $106 and scaled into it averaging my holding around $110. I may scale in with a bit further depending how the stock trends after the Iphone event on 10/13/2020.
Applied Materials (AMAT)
I'm not going to lie, this one hurt.
I got into AMAT as a value stock around $62 in August and slowly started scaling into a position. After earnings AMAT sold off, had a big run up on September the 2nd along with the rest of the market and dropped like a stone during the market downturn on September the 3rd. Now that the stock is back above $64 I ran it back through TD Ameritrade's Intrinsic Value Calculator and these are the results:
With an intrinsic value of $83.98 it still has plenty of upside so I'm looking to add to this position when it breaks $66 and another possible add at $68.50.
Amkor Technology (AMKR)
Another value stock (semi-conductor) that wasn't able to hold his value after earnings but it fared slightly better than AMAT before it's earning runup recovering most of it's loses. What attracted me to this stock was that it had a decent amount of Intrinsic Value and after doing another calculation with TD Ameritrade's Intrinsic Value Calculator it's still holding it value.
I'm keeping an eye on it after it breaks resistance around $13 looking to add to my position around a break of $14.