Looking For Buys | Week 10
So, What Happened?
This week has had little momentum for the portfolio. Unfortunately, our METU position closed hitting out 10% stop loss the week before META rallies 8% and another 10% post earnings. However, we cannot look at missed gains as losses, nor the risk management strategy that did its job. If you recall, the stop loss was set at our purchase price after we gained 10%, so we have nothing to cry over.
Next, as mentioned in my last update, with the uncertainty in the market I’m being more aggressive in taking gains from my leveraged shares. So, the first trim zone for NVDA hit at around a 15% gain of $80. The remaining shares are up 18.12% unrealized and the next trim zone will be at a minimum of +20%.
Finally, with the dip of Bitcoin and newly found cash after selling NVDL, I made another purchase of Bitcoin of 0.006 at $84,675 for $508. At the time of writing, Bitcoin is at $77,778 and I’m kicking myself for not waiting an extra day. However, with the new Federal Reserve chair, Kevin Warsh, being bullish on BTC himself, I’m confident in the mid-long term success of Bitcoin.
Here is the current state of the portfolio:
Time To Go Shopping
As one could conclude by the title, with the $2,136 in cash currently and the discount some quality stocks are on right now purchases will likely be made going into next week.
Some of these stocks are down in what I believe is a generational buying opportunity that has hardly occurred before. Such as this software giant analysts predict to gain 45% this year:
Salesforce (CRM)
Software in general has been taking a beating the past month. So all eyes are on Salesforce as being one of the biggest software businesses out there. The rumors through the grapevine are that software will become irrelevant with AI…
Which might be one of the most bewildering statements I have encountered in scouring the internet. The very thing that built AI being the same thing that crumbles in the face of it seems impossible, because it is. As long as software businesses are adopting AI (like Salesforce undoubtedly is), this whole outshining the creator paradigm is a nothing burger. But don’t take my advice on it, let’s look at the business statistics for Salesforce:
Does this look like a dying business to you? It sure doesn’t to me! These are just the earnings trends, if we look at the statistics of CRM it continues looking better:
As you can see from the underlined parts, the P/E ratios, PEG, and price/sale have never been lower across the past year and a quarter.
Enough said here, let’s move on to the other stock I’ll be eyeing this week.
Adobe (ADBE)
Another software business that has been tumbling down for a while now. While I can’t say I’ve always been bullish on ADBE, I’ve had a change of heart after doing my own research. They’ve had a lot of competition that are purely AI driven which has created lots of recent uncertainty for the stock. However, are we going to act like Adobe isn’t adopting AI themselves? Plus the fact that they are a household name in the software industry.
Again, enough talk, let’s look at some numbers that can break down how legit this company actually is.
Almost exactly similar to Salesforce, ADBE is (second to) the lowest price it’s been the past year and a quarter.
“Why be Bullish on a Tumbling Stock?”
A great question, and very relevant for both ADBE and CRM. Here’s my short answer: I don’t care if a stocks chart looks like this:
If I see the business statistics look like this:
Conclusion
I’m heavily looking forward to potentially making some moves next week. Before anyone asks, I most likely will be using leverage if I am to purchase either of these stocks; but I will have to do more research on how everything will be laid out.
Thank you for reading, leave any questions you may have below.
Cheers!
I heard the new fed chair is bullish on Monk Investments
Stop losses are only bad you would’ve cooked with METU. Do 2x leverage on BTC if you buy under 80k.