Still no word from Epstein’s mother, though. That valuation, however, is too low for Bank of America’s Ronald Epstein, who lifted his SPCE price target from $35 to $50. SPCE is down more than 40% from its February highs and now trades for a more reasonable $34. My issue has always been SPCE’s valuation, and the past two months have taken quite the edge off that concern. And then, space tourism will really be a thing. Still, the company is well-capitalized and will figure it out eventually. I have my reasons, including the fact that Virgin’s rockets have trouble reaching the bare-minimum definition of “space.” Regular Great Ones know that I’m not that big a fan of Virgin Galactic ( NYSE: SPCE ). (Hey, everyone spends lockdowns their own way, don’t judge.) But this is a strategy so simple, you can make the same trade on the same ticker symbol once a week and target potential gains of 100% or more each time. Mike Carr has spent the last year designing the perfect strategy. Let’s simplify things, shall we? It turns out, all you need is one trade. This goes for GME just as much as it goes for RKT.Īnd before you ask, trying to figure out the next meme stock before it’s a meme stock can be just as futile. If you happen to be in the trade before it moons, bully for you. GameStop is worth about a quarter of its recent peak. RKT is down nearly 20% from its post-squeeze high. I realize I’m ranting at this point, so let me give you one piece of advice on the meme stock front: Don’t chase these stocks. Hedge funds are keenly aware of market risk, and if they aren’t, maybe they shouldn’t be hedge funds. Short sellers know what they’re getting into. And why should anyone stop them? It’s a free market. What really concerns Wall Street is if Reddit’s retail traders break short selling.Īs of right now, any heavily shorted stock is fair game for the GameStop/Rocket treatment. Will they mess with a few stocks here and there? Sure.īut break the market? No way. However, I highly doubt Reddit retail traders have that kind of power. You can pretty much just list any correction in history, and you’ve got an example. I guess Wall Street would know, considering it did the exact same thing on a much larger scale back in 2000 … and 2008. Many Wall Street talking heads are worried that meme stocks like Rocket or GameStop and the retail traders that chase them will break the market. Reddit investors noticed and went full GameStop ( NYSE: GME ) on Rocket. Short interest spiked in the wake of RKT’s post-earnings rally, according to S3 Analytics - about 47.9 million RKT shares, or 45.8% of the stock’s public float, to be precise. In two days? That’s meme stock territory.Īnd that’s exactly what happened. Immediately following the report, RKT jumped more than 15% - basically what you’d expect from impressive post-IPO earnings these days.īut more than 70%. The only real bit of news was Rocket’s rather impressive fourth-quarter earnings report on February 25 - which included a special dividend of $1.11 per share. Was there a sudden surge in smartphone-initiated mortgages or loans? Nope.ĭid Rocket inherit a fortune? Find buried pirate gold? Uncover the lost city of Atlantis? Nope, nope … aaaand nope. RKT spiked more than 70% in just two days! Then on Monday, Rocket took off like a … well, it took off like a rocket. (I’m not mowing the yard in March, damn it.) It snowed heavily here in Kentucky, and my grass grew more than that. A mere 10% gain (rounded up) in five months for an IPO in this speculative market. Despite all the hype surrounding the Rocket Loans app and how easy it now is to put yourself in massive debt with just the flick of a finger, RKT shares only gained a mere 9.9% through the end of February. If you could found a business on watching paint dry or grass grow, it’d be more exciting than investing in the mortgage and loan business.Ĭase in point: RKT went public in September. Now, as we all know, mortgages and loans are terribly exciting - emphasis on the terrible. Specifically, Rocket Companies ( NYSE: RKT ), the parent company of Rocket Mortgage, Rocket Loans and Quicken Loans. Today, we’re talking “meme” stocks again. Howdy, Great Ones! Are you ready for another foray into the great wide open?
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |