It Pays To Be A Bankrupt Meme Stonk
It’s highly likely the beginning of 2021 will be written about in future financial history books. The Rise of the Meme Stocks or David and Goliath: When Retail Investors Took Down Hedge Funds will be the best selling titles most likely written by Andrew Ross Sorkin.
But as fast as hot stocks come, they go even faster. If someone tells you that this time is different its time to become extremely cautious. The only thing that is different in every financial bubble is the players and the bagholders at the end. Every bubble ends the same - with a pig getting slaughtered.
GameStonk - The Next EV Car That Runs On Bitcoin And Cures COVID
GameStop closed up 92% today with an ending share price of $147. This equates to a market cap of $5.3 billion. The lunacy didn’t stop at the close though. A few minutes after the market closed, Elon Musk retweeted the following:
GameStop post-market subsequently rose to $230 per share. While Wall Street Bet degenerates were cheering, hedge funders are estimated to have lost $5.5 billion.
Eventually GameStop will come crashing down to a normalized valuation but the timing is uncertain. Don’t be on the wrong side of the trade and don’t change your investment strategy to make a few buck (or a million).
Bubbles are created when people see their neighbors (who they view as dumb) make more money than they are. The FOMO becomes real and can be devastating over the long-term if you are left holding the bag.
Other Hot Stocks
AMC Entertainment Holdings (“AMC”) ended the day up 12% to $4.96 per share. In post-market trading the stock is currently up 35% to $6.70 per share. The stock is up close to 90% over the past five days due to a successful capital raise of $917 million. AMC has been a hot meme stock and seems like it will have heavy volume going into the open tomorrow.
Will Meade tweeted about Tanger Factory Outlets (“SKT”) right before the close today shooting the stock up 17%. SKT is currently up 3% in post-market trading.
Degenerates on Wall Street Bets are trying to keep BlackBerry Limited (“BB”) in play. The stock has rocketed over 95% this month and is currently up 6.55% in post-market trading. There are a few degenerates trying to pump Nokia Corporation (“NOK”) as it fits the similar style of “dying” companies. But it seems as if the market cap is too large for a few thousand pumpers to move this stock.
CarParts.com (“PRTS”) isn’t on the Wall Street Bet radar screen (yet). But I think it could have a chance to get noticed. The stock was up 48% today on news that it was launching an EV-focused shopping hub. Given the markets liking for electric vehicles, this is definitely one to keep an eye on. In this market, you mention EV once and valuations suddenly don’t matter.
The Bubble
There is an insane asset bubble that continues to grow everyday before our eyes. The signs are abound - an invisible currency costs more than a sports car, bankrupt stocks hitting all time highs, dotcom like forward P/E ratios and amassing debt levels that are unsustainable in a non-zero interest rate environment.
I have been concerned about a hyperinflationary environment for some time now. The Fed has given investors (and governments) an incentive to borrow at basement level interest rates - lowering discount rates and increasing valuations. If and when rates start to move in the upward direction, valuations will come crumbling down, bond prices will fall and a massive amount of inflation will happen.
I currently have 1/3 of my portfolio in cash, 15% in hard currency (gold and silver) and the rest in value stocks that should largely benefit in a state of hyperinflation. There is no doubt in my mind we are in a giant asset bubble that is bound to crash. When degenerates are making more money than hedge funds, its usually the sign the market is at a top.
Disclaimer: The publisher does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author or paid advertiser.
Alpha Letter is a publisher of financial information, not an investment advisor. We do not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient.
THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN.
No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.
Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and the publisher undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.
The publisher, its affiliates, and clients of the a publisher or its affiliates may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Neither the publisher nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.
By using the Site or any affiliated social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.
For Full Terms of Use Click HERE. For the Privacy Policy Click HERE.
alphaletter.co (“Alpha”) is a website owned and operated by Substack. Alpha is paid fees by the companies that make investment offerings on this website. Be aware that payment of these fees may put Alpha in a conflict of interest with the investor. By accessing this website or any page thereof, you agree to be bound by the Terms of Use and Privacy Policy, in effect at the time you access this website or any page thereof. The Terms of Use and Privacy Policy may be amended from time to time. Nothing on this website shall constitute an offer to sell, or a solicitation of an offer to buy or subscribe for, any securities to any person in any jurisdiction where such an offer or solicitation is against the law or to anyone to whom it is unlawful to make such offer or solicitation. Alpha is not an underwriter, broker-dealer, Title III crowdfunding portal or a valuation service and does not engage in any activities requiring any such registration. Alpha does not provide advice on investments or structure transactions. Offerings made under Regulation A under the U.S. Securities Act of 1933, as amended (the "Securities Act") are available to U.S. investors who are “accredited investors” as defined by Rule 501 of Regulation D under the Securities Act well as non-accredited investors, who are subject to certain investment limitations as set forth in Regulation A under the Securities Act. In order to invest in Regulation A offerings, investors may be asked to fill out a certification and provide necessary documentation as proof of your income and/or net worth to verify that you are qualified to invest in offerings posted on this website. All securities listed on this site are being offered by, and all information included on this site is the responsibility of, the applicable issuer of such securities. Alpha does not verify the adequacy, accuracy or completeness of any information. Neither Alpha nor any of its officers, directors, agents and employees makes any warranty, express or implied, of any kind whatsoever related to the adequacy, accuracy, valuations of securities or completeness of any information on this site or the use of information on this site. Neither Alpha nor any of its directors, officers, employees, representatives, affiliates or agents shall have any liability whatsoever arising from any error or incompleteness of fact, or lack of care in the preparation of, any of the materials posted on this website. Investing in securities, especially those issued by start-up companies, involves substantial risk. investors should be able to bear the loss of their entire investment and should make their own determination of whether or not to make any investment based on their own independent evaluation and analysis
what llong term stocks do u have u think will do well in hyperinflation
Agree, we need a true 'bug out' plan in place