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Hello everyone, out there. 2024 has been a blur so far! Wait isn't that the name of Drake's current tour? All I know is the first three months of this year, I have been skating by like Tyla's hit single --- "Water". So, for my first post I want to revisit some trades that have been at the top of my investment playlist. Some have worked, others are clearly on vacation.
Grayscale Bitcoin Trust (BTC) (GBTC) Update
Bitcoin! I've been called many things but don't call me a flip flopper. I recently had someone say, "See I told you about Bitcoin and now you like the investment". My response was as follows "You clearly didn't read my previous post, What? Am I Investing in Bitcoin: https://urbanomics.blogspot.com/2023/11/what-am-i-investing-grayscale-bitcoin.html "
What I have been called over time is a penny pincher, miser, or as I like to call myself -- a Value Trader. I love to find value. My cryptocurrency friends don't like to tell you about the lumps they absorbed if they bought Bitcoin when it was trading at roughly $60K over a year ago and then precipitously saw it drop to roughly under $20K. The 'Day 1' crypto lovers probably held on to their investment but your average investor may have seen their investment fall almost 100% (...if they bought at the highs) and sold out of fear.
I have to admit, I was triggered into investing in Bitcoin. I watched this Bitcoin drop for over a year and felt for those crypto investors that bought at the highs. But more importantly from my post last November, I was triggered by the fact that crypto industry was suing the SEC to allow them to create and offer Exchange Traded Funds (ETF). ETFs are investment vehicles that allow an investor like me to easily buy and sell, say a commodity (like corn, wheat, gold, crypto, etc.) without having to take ownership of the actual good. I did not want to buy crypto outright because as a cyber professional I've seen the supposed crypto exchanges get hacked (remember Mt. Gox). I have seen crypto influencers post on social media about their wealth only to have crypto robbers (usually friends) beat them up and force them to give up their passwords to their crypto accounts or cold storage devices. Even worse, I saw how FTX and the saga Sam Bankman Friedman played out and the pain it caused many of FTX's crypto investors. An ETF means, no crpto exchange needed, no cold storage required, and no hassle. The VALUE logic I believed was when Bitcoin hit the lower end of $20K there was much more upside than when it was trading at highs of $60K. So, I bought GBTC back in November 2023 at roughly $20 a share. because of the value but more importantly because of the catalyst of the SEC losing this all-important court case. So, I remind my fellow value traders who read my posts on Urbanomics the path that got us here: Value (investment trading at a perceived reasonable discount) + Catalyst (positive legal decision in this case) = great trade even for an investment you may not like or plan to hold forever.
Splunk (SPLK) Update - Deal Close, Trade Done
Stay tuned for my new post of how Splunk is no longer...congrats to Cisco on this hook up. It went down in the DMs and this was a profitable trade for me.
Read my previous post, here: https://urbanomics.blogspot.com/2023/11/lets-go-splunking-splunk-inc-nasdaq-splk.html
Capri (CPRI) - Trade Underwater
Next, I'll visit my failing trade in Capri. The FTC has stepped in like a thoughtful parent and put this discovered hook up on ice so far. Is this hook up in danger, like my failed Tegna trade.
Read my previous post, here: https://urbanomics.blogspot.com/2023/08/savage-over-avid-technology-nasdaq-avid.html
Pay It Forward - Reddit (RDDT)
Stay tuned for a post on Reddit. I have a gentleman I mentor tell me how he broke out his old Robinhood account and finally made a trade. While he said it was easy money, I reminded him it was a thoughtful trade similar to what Mansa Musa network trader Peter Lynch would do. My friend simply bought something he knew about, used, and had much more insight into that I do.
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