Kohl's (KSS) - Up 36% After Hookup

 Did you read my last post? I highlighted Kohls and how Wall Street is looking for value stocks. Here is a great example of an underperforming company that is looking to be taken over.

I joked my wife said I have a few stocks that are doing very well.  A very common phrase I hear from newer investors. I told her we but be patient, disciplined, and it's good to hold the value companies for the long haul. 

Well, I think she is happy she is holding Kohls. Yesterday it was up a whopping 36% and I think could go higher. They won't sell for cheap...so let's watch the investors fight over who will date or win Kohls over.

Here is a snapshot of Kohls massive rise after two companies slid into their DM:

Kohl's (KSS) - I Got the Hookup Alert (Jan 2022)

 Many say that 2022 will be the return of the Stockpicker's Only club. What this means in Wall Street speak is that the easy money days are probably over. I would love to see the stats but I'm sure even the Reddit Forums volumes are lower that they've been over the last year. Last year, any stock you touched or bought was red hot! But the difference between the newbies and the veterans is the wisdom of having seen situations like this before...and for other veteran investors: having discipline. If you replay the last year or two on my blog, you'll notice that I primarily moved to options in an attempt to manage my risk. Yes, I owned Gamestop and AMC and ironically got out of these positions after 100 or 200% returns. Many went on to hold for much more higher gains. Unfortunately, too many newbies are still holding and watching those magical gains erode. As I've mentioned here before and had to learn the hard way...it never hurts to take some of your winnings off the table in a disciplined manner. Even I fell victim to this as my investment in Roku skyrocketed beyond belief. It has cratered back down and while I have a measly 4 figure gain it used to represent a large 5 figure gain. I could've done some things a little bit better but AT LEAST, I was trading against ROKU on a regular basis. 

What did I do Right?

1) Hedge - I used options to hedge against my growing holding. This is a way that many of us investors collect INCOME (or as I like to call it a stimulus check). When Roku hit $200, I would write an option betting it wouldn't reach $250, $300, $400, and even $500. As long as those levels weren't reached, I received a small check for my time. I'd have to go back and calculate my win % but it was high, and the gains were steady.

What did I do Wrong?

1) Pay Attention - I was busy building my cyber business and didn't keep hammering my income generating strategy into the end of the year. Not a biggie. If you check every day, investing will consume you. Buy stocks you can purchase and forget for a while. If you have to own stocks you must check daily...that could be bad for your wealth and health. But fair enough I could've taken a peek in the last 5 months of the year.

2) Stop Loss Trade - While many people use this for capping their losses, I could have used this type of trade to simply exit a VERY profitable trade. I didn't put an exit trade on because I was busy (see point #1) but primarily because of taxes. This was a biggie and I saw a huge gain dwindle but happy to still be up thousands of dollars. Why didn't I get out...because I was FORCED to lock in gains from Collectors Universe. When you have a 10x bagger on your hands the gains are astronomical, and I was very concerned about the tax implications of both Collectors Universe and ROKU in the same year. I would have had capitals in the range of what I made in one year in Corporate America on top of the fact that I already have a steady job this would have easily put me into a brand-new tax bracket. Again, this is simply RPP - Rich People's Problems or a First World issue... but I wanted to be transparent on why I personally didn't sell.

What Likely Works in 2022 - VALUE + Mansa Musa Network

Value is often described as a beaten down, unloved stock. You've read before that I like to look for those unloved gems, wait for people to see the shine or polish and then watch them rise. Collectors was like that and that turned out amazing. I'm staying locked into to a few of these trades in 2022. One trade being Kohls, the other being Tegna.

Kohl's - I Got the Hook Up

It goes down in the DM and once again my Mansa Musa Network trade is Kohls appears to be heating up. A beaten down stock is being being courted by hedge funds and private equity funds on Wall Street...don't believe me just watch:

Acacia Research appears to have just slid into Kohl's DM and they wanna hook up at a value of $64 dollars. Considering Kohl's is trading in the mid 40s when I wrote this they may be heading for the Love Boat.

Talk about your DM blowing up. Kohl's has just had another suitor slide into their DMs. Sycamore has joined the party and they want to Netflix and chill.

So stayed tune and be very careful as the easy money days are ending. Don't say you were NOT told as the Federal Reserve has been carefully telling you they are increasing interest rates because everyone is making money...off stocks, Bitcoin, NFTs, trading cards, etc. It means it's time to cool things down a bit. Now is time for my value strategy to shine and occasionally I'll go hunting with some of my Mansa Musa Network friends. Potential hookups like I've written before will offer tremendous value. 

Release The Pressure - Stick to the Pillars

 Happy New Year's to all my readers out there. I am wishing that everyone has a blessed and prosperous 2022.  For the last few months, I've posted less because I've been focused on a growing technology consulting and training business that is thriving. I have clients across the country and globe, and I train cyber consultants to help those companies increase their security hygiene.  I don't mind when my business efforts take me away from my typically successful trading efforts because while its challenging and rewarding to trade for yourself, there is NOTHING comparable to building something from scratch that makes a difference in people's lives. I get to choose my mission and its pressure packed but it also rewarding to see people and my client's grow.

Speaking of pressure, I have discussions with many people about the obstacles they are hearing and seeing. However, one piece of advice I give is that we must remain eternal optimists, laser focused on risks to our families, business, and life.

2022 will be filled with many pressure points, so I want to help you navigate your investments, your journey, and your goals. To combat pressure and stress it often takes having a plan, practicing it, and then sticking to the plan. I liken this approach to when I played sports, you practice shooting free throws in practice when you're tired, so when the game is on the line you've practiced taking and making the winning shot. For my international readers, imagine being chosen to kick the winning goal in football (soccer in America). To succeed in the face of insurmountable pressure, you much approach it like you've been there before.

Here are some things we are up against:

What am I listening to: "Pressure" by Ari Lennox