AfroBeats - If Artists Were Like Stocks | Momentum Stock: Core Scientific, Spotify, Roblox

 

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AfroBeats - Artists Compared to Stocks

I cannot tell you how proud I am of the growth of African music. I have grown up all my life listening to African music and it's amazing to see the dancefloor erupt when some of our biggest African artists and songs come on at a party. Just like when Dre and Snoop, Nas, Jay, Biggie, Mary J Blige, Mariah Carey, or Whitney Houston are played -- the room is electric. Now the world gets to experience what we've been dancing and shaking to all of our lives. The global explosion of African music across the world has been amazing and I'm telling you it's here to stay. I listen to songs in different languages, slangs, and styles and one thing is universal our music makes you want to dance. And yes, I simply call it African music -- what is this AfroBeats ting?

Well, I wanted to revisit my series that helps you learn how to invest by comparing everyday things to stocks. I always say you have to start by determining what type of investor you are as that usually dictates the types of stocks you like to trade. If you had $100,000 dollars to invest, how would you invest in your favorite African artists:

Momentum Artists: Tyla | Rema | Lojay

I like to say that momentum stocks or artists are investments in something that's buzzing. Like the initial launch of Tesla, the only people that were checking for electric vehicles were EV die-hard fans. No one, I mean no one else was interested in electric cars or let alone wanting to pre-order the damn thing. Then you saw a Tesla on the road OR you heard these hits songs in the last year, and you knew they were undeniably hit songs:

Artist: Tyla ~ Hit Song: Water [Country: South Africa]

Artist: Rema ~ Hit Song: Calm Down [Country: Nigeria]

Artist: Lojay ~ Hit Song: MonaLisa [Country: Nigeria]

Tyla and Water were arguably the biggest songs in the world in the last year. It seemed like we couldn't get enough of Tyla, Ampiano and the buzziness of "Water". She followed up with a remix with none other than Travis Scott and then came for music nerds like me when she teamed up with 2 of my favorites: Skillibeng and Gunna on "Jump". 

Rema - I was bumping "Calm Down" for a minute and the song is infectious. While playing at a backyard party, I had a guest say what is this song -- I like it. The song was so big it has 2 versions, the original which is my favorite and the remix with Selena Gomez. The funny thing is I think some fans think it's Selena's song because of the way the remix was pushed out. Don't believe me, do a search for calm down and strangely you see Selena Gomez as if it's her damn song. Collectively the 2 versions on YouTube Video are easily over 1.5 billion video views.

Lojay & Sarz - Baby corner, corner waka-waka! Yes, for those of you that don't know Creole as we call it or Pidgin in other African regions -- Lojay and Sarz are telling their baby girl to walk over the corner the rest is a sultry mix of indulging in her coca or chocolate body. The song is so big, I share it and people say I've heard and like that song but don't know what they are saying. The song was sooo big that Chris Brown jumped on the remix and the buzz is still going.

Momentum Stocks

Core Scientific (CORZ) - Per their own website "Core Scientific is one of the largest bitcoin miners and hosting solutions providers for bitcoin mining in North America." I read the company recently came out of bankruptcy in January 2024. I started sniffing around when a partner of CORZ, CoreWeave made two attempts to purchase the company. They have to have some knowledge of the operations as they signed a big AI deal in June of 2024 for CORZ hosting services, I believe. While that deal was announced, they then went for the hook up and said we'd love to buy you out. Player move but looks like they are low-balling the offer. It was similar to an African engagement I recently witnessed -- one man representing the bride-to-be's family said, "The envelope looks a little bit light...please go back". I just learned the directors of CORZ are buying the stock and that is promising for a small company with rising momentum. Are they a one hit wonder or can they survive.

Spotify (SPOT) - I believe I've written about Spotify recently and boy are they on a surge. I was too early and this artist or should I say stock is now finally stringing together a 2nd and 3rd hit song. I believe in 2021 I bought around the $260 range and saw it rise and then drop shortly after that all the way into the 70s in late 2022. I liked the first song -- as they essentially a part of a cartel. I actually get most of my music from YouTube Video and only recently Music, but the big dog is Spotify and Tidal is a small fry. Sorry real music artists, streaming is here to stay -- I just wonder if Spotify can increase the price, stave off a mutiny from artists and reign supreme. I'm now in the Green and trading actively against Spotify because the option premiums are very attractive like that coca body.

Roblox (RBLX) - Is the like the new stock on the block that I nailed just right but got nervous about when the next hit song was coming out. I listened to a good friend tell me ALL the kids play on a platform called Roblox. I have no clue what this platform is but I looked into the stock and it had a rough time after creating a buzz. Sound familiar touring artists. Like a greedy music label, I saw talent when the stock stumbled to the $25 range. I owned it for much of the last months or so. It ran up on a hit song to the 40s I got nervous a 2nd hit song wasn't coming right away and sold as they came down into the 30s. Well that was a mistake because the second song is doing nicely and the stock is back at the $43 range. I am watching this one soooo closely as I want to get back in. Maybe I'll wait to see if they have a good TMZ like scandal which knocks the stock down, pick some shares up, and then wait for the 2nd album to cause the stock to move higher again.

Disclosures: I own Core Scientific and Spotify; I owned Roblox within the last year and got out too early. Also, I'm not typically a momentum stock trader. Note from my writings -- I like Roblox after they stumbled, Core Scientific only after a label came calling, and Spotify for the lane it is in. Like Shaboozey, an African boy (Nigerian) who had to genius idea of taking a classic one hit wonder song "Tipsy" (Artist: J-Kwon) and putting a country twist on it is an artist in his own lane. The world is craving for a unique sound and not many artists can fill that void yet. He's got a lot of money to make before other artists start attempting to fuse hip-hop and country.

Next Up Growth Stocks

If I Ruled the World, Imagine That

Imagine smoking weed in the streets without cops harassin'

Imagine going to court with no trial

Lifestyle cruising blue behind my waters

No welfare supporters, more conscious of the way we raise our daughters

Days are shorter, nights are colder

Feeling like life is over, these snakes strike like a cobra

The world's hot my son got not

Evidently, it's elementary, they want us all gone eventually

Artist(s): Nas ft. Lauryn Hill       Song: If I Ruled the World (Imagine That) 

I'd free all my sons.... and with the loss of Breonna Taylor I feel like I need to free my daughters too. In the land of the "free" and the home of the brave it's irreprehensible that history continues to repeat itself. Why does history repeat well let's ask Trevor Noah. He reminded us that what is happening is not a failure of the system, rather the system work as it's intended. Every movie depicts the home of the brave as one big melting pot, yet when I moved to Chicago I found quite the opposite. I received coded messages even about where to live. They went like this: "Whatever you do don't live on the South Side or the West Side. Being new to the city, I heeded this warning and didn't even include the South or West sides of Chicago in my search for my first apartment. After a few years, I eventually learned this coded message was telling me to stay away from the predominantly African-American sides of town. So when the time came buy my first crib, I put every wish list item that EVERY person (white, latino, AA) told me they dreamed about having in a home in Chicago and then of course I considered my shoestring budget...and guess where it took me...to the Southside -- Lake Shore Drive to be exact. My humble abode is in Hyde Park, hence why I was given the nickname The Oracle of Hyde Park by close friends. Remember when I invest, I am a contrarian --- I listen to mainstream America (the man) and then simply do the opposite. I was always told get city views, have a roof deck, live by the Lake, a garage (if you're lucky), and you can't afford no more than 2 bedrooms (so I went w/ 4 bedrooms, 3 baths in a duplex penthouse). That was true in Lincoln Park but in Hyde Park I found a gem right off the lake by firing two real estate agents and going at my search alone through the aide of a technology startup at the time called Redfin, that "took the bias" from the agents outta my search. Even though gentrification is coming slowly to my hood, I ain't selling because like Nas said "Evidently it's elementary, they want us all gone eventually". So my job is to hold the fort down, teach others how to unplug from the Matrix and join me as in owning assets, shunning the materialist crap that doesn't increase in value, and create a legacy that you can begin to pass down...so hopefully each generation to follow start on an equal footing. 

 

If I ruled the world and everything in it, Dr. Martin Luther King Jr. and Malcolm X would be my co-Presidents. I never bought into the stereotypical viewpoints that pitted them as polar opposites when in actually they were fighting for the same things. They fought for the equality of African-Americans using different methods but with the same goal in mind. That goal was to free all my sons...and daughters: Emmett Till, Trayvon Martin, Eric Garner, Philando Castille, Laquan McDonald, Breonna Taylor, Amadou Diallo, George Floyd.... from the tyranny of oppression and systemic racism that has continued be it 400 years, 40 years, or even 4 months ago. So I am simply telling people to try a new method, the only language a capitalist nation speaks in --- and that is in owning assets. Using the 4 Pillars, the poor working class can strengthen themselves for the battle ahead. We double down on the basics educational principles of S L A M + (Science, Legal, Arts, Math, +) I shared a few posts ago and build institutions that fight for our best interests. We incentive more people of color to be lawyers, doctors, police, accountants, technology, teachers, clergy, judges and most importantly political professionals that go to battle with one broad goal. A goal that will truly allow our communities to invest ourselves, our neighborhoods, and our family's future. People keep calling these officials in office dumb, when in actuality their plan is working as intended. If you go back and look at the history, the deaths, and the treatment of black people in this country, one might come to a conclusion that these tactics are telling you...you're not wanted or appreciated here. I've made that point on many occasions (again a contrarian viewpoint) and I wonder if it's because I know my roots, have seen a different homeland, traveled the world, speak different languages, and more importantly know the legacy of true kings and queens. I was surprised to hear someone else speak this truth, a musician I listen to often from Nigeria, Burna Boy. He echoed some things I've said for quite awhile:

Source: The Guardian - Burna Boy Interview

"The only way we can move forward is if we all know that Africa is our home and make sure our home is a place that is respected"

“I’d like to use this opportunity to say that some time around 1835, there was a mission to turn Africa into a dominated nation,” “Now is the time to overturn that, and go back to the royalty that we were, because, in order for black lives to matter, Africa must matter.”

To quote Nas at the end of If I Ruled the World, "I'd Open Every Cell in Attica Send em to Africa". I agree with Burna Boy that to truly move forward, African-Americans must first remember they are Africans. My trip back home to Sierra Leone was the most amazing experience that I've ever felt. Noticed the world felt - I was surrounded by the energy of belonging as soon as I stepped off the plane. Your talk, dress, style, swag, names, face, dance....to see and feel the source of it all was truly profound. It gave me a new set of armor as I came back home to the US and engaged in corporate meetings, business negotiations, or dealt with people who want you to feel less than or worse place a knee on your neck. If you're not working towards having options --- the option to walk away from that job, negotiation, negative energy...then you may be consumed by it. 

This week, I made another stride in my side hustle being truly my main hustle. I signed my first corporate supplier agreement. I'll post about this moment another time but it was painful as every step of the way I was dealing with negotiations that tried to take advantage of me, my value, my legacy that I'm building for my kids. I know when I'm being shortchanged, we all do and I held out...and got almost everything I've asked for. Now my new mission is to deliver on this agreement and show them what "WE" can do and I'm bring a whole lot of people that look like me along for the ride. This will be the final trade I share for awhile as I hunker down for what I believe will be turbulence in the American economy beginning in the 4th Quarter. School starts, flu season, a hunt for a vaccine, and a grid-locked political system that acknowledges record amounts of people are unemployed, with back-due rent, and agitated because they can't go back to their normal consuming lifestyle they've been sold --- are all a recipe for the unknown. One thing I've learned from analyzing the corporate world is they like "certainty"...and when the future is uncertain I think Volatility comes. There are many haters in life but I know my worth, so I don't spend time entertaining their BS. I write so the world can see and invest because my trades are my journal documenting exactly what I was thinking. I knew last year uncertainty was coming so I purchased literally just that a VOLATILITY fund that protects your portfolio when the fear sets into the economy, the markets, and people. It's not about the money, it's about making educated clear minded decisions about the future using very good clues from today. 

In November, I felt something wasn't right and I started to best against the markets, economy, etc. It resulted in the fastest and the largest gain I easily ever experienced in my life when COVID hit in March. See here: I was up roughly $29K after it was all said and done!!!

Notice I purchased those shares in November 2019 (see above). Nov, Dec, January I began to doubt if my thesis was correct: The market was over extended, one economic shock would send it cratering. noting had happened for 3 months and doubt sank in like it does when someone doesn't know where they came from. So on January 27th I purchased a hedge giving in to that doubt (see below). This hedge would allow me to walk away with a nice payday ($3K) but IF I was right about my thesis...I would be kicking myself for a long time to come. 

Well, guess what I should have never doubted myself. I was right about volatility in a major way and my shares ended up being worth roughly $29K in just a few months. I was locked in at that nice payout I spoke about above ($3K). For most of March, until my hedge ended, I kicked myself as I watched my hedge closeout --- meaning I gave the other $26K in profits back to someone else.

At the end of the day, $3K in profit is still a game changer for this poor boy from the hood. All $29K would have been one for the record books. But Nas and Burna Boy, I'm just getting started and the goal is to bring our people with me for the ride. Because If I Ruled the World...Sky's the Limit.  For those that think I'm playing, you better get out of the way.

2020 Kick-Off - Reflect But Expect Disruptions

If Regular People Did That Sh!t

Carlos Ghosn – The previous CEO of Nissan must have been watching the movie “Catch Me If You Can”. For those of you not paying attention, he had been jailed on charges related to misusing company funds – a charge alleged by Nissan.  Mr. Ghosn orchestrated an escape out of Japan that truly only rich people can get away with. So regular people if you ever get jammed up, follow what rich people do, not what they say:

First he was not required to wear any electronic monitoring device (smh).  Then Carlos evaded detection and took a high speed train to Japan's Osaka airport to board a private jet.  How do you board a plane when you been accused of damaging Japan's iconic Nissan company - well by jumping into a large speaker box used for concert equipment (remember to poke holes in it like he did or it might not turn out good). From there, the plane went to Turkey and his team got him onto a plane to Lebanon.  Why Lebanon – because Carlos’s game is tight he is a citizen of Brazil, France, and Lebanon. And Lebanon DOES NOT have an extradition treaty with Japan so for now he’s untouchable. To plot and possibly test run this escape, it took months and supposedly hundreds of thousands dollars.  So next time you think you’ve made it, ask yourself is your get outta jail card as good as Carlos Ghosn??

No Photoshop – A Real Look Back

I continually assess my performance to ensure I am reaching my goals and targets. Here is a look back at 2019 and when personally reflecting you have to be real about what worked and did not work. But I always caution patience, look at my list from the previous year end and surprisingly the areas where I decided to push forward paid off.  Here is a quick summary of Items that Did Not Work (in Red) and Nice Surprises (in Green):

·          Colony (CLNY) – Due to poor performance at this company, some investors have called for CEO Tom Barrack to step down. Investor(s) rationale: being a close personal buddy to Donald Trump has caused reputation risk to the company and has been and operational distraction for Tom. Who is the agitator: Blackwells Capital. Outcome: Unclear if it’s a coincidence, Mr. Barrack has named, Marc Ganzi, as his successor and the CEO transition will take place in 2021. 

·          AMC Entertainment (AMC) – AMC is a good example of poor risk management on my part. I had successfully traded this position multiple times for small gains. Using options, I was in a position that allowed me to finally own the stock even though I profess to hardly going to the movies because of the costs and now due to the ease of streaming. All was temporarily well after the most recent earnings call – revenue was up however earnings missed the mark. At first glance I was good, the stock rose and I had a profitable position. Bur the EPS miss may have been signaling a more significant problem - AMC is spending significant mounds of money to fuel the monthly subscription service called Stubs-A-List which is supposed to draw people back into the theatres.  Long story short, I should have done a proper risk assessment. It would have led me to a 5 second conclusion: I think movies are slowly declining business as streaming is the new trend. I think once AMC stops burning cash this stock will do well…but they’ve burned bridges with me. I’ll reevaluate after the next few earnings but this won’t be a long-term position.

·          Retail – This sector will continue to be difficult to trade as retail companies are reeling from too many headwinds: 1) Amazon, 2) China Trade Issues, 3) Changing trends (like working from home and athleisure wear), and 4) decline of malls. So yes my investments into Foot Locker, Kohls, and Stitch Fix were misguided because I thought I could dip my toe into the deep end of a pool for a quick buck and hop out.  However, every time Amazon flexed its muscles or supply chain disruptions were identified in China (from the Trump admin – China trade war in 2019) it was more like jumping in the deep end and remembering you’re not a great swimmer.  The positive is jumping in with Foot Locker, Kohls, and Stitch Fix is like jumping in with 2 experienced swimmers and one newbie who poised for breakout, respectively. At current prices, these stock have likely bottomed and but the rebound will take time.  Business and Life Lesson: Always set limits for short term positions and goals and don't be afraid to adjust or admit failure. If NOT, be prepared for the long-haul.  

·          Moore’s Law – If you’re not familiar with this law you should be. This law theorizes that computer processing doubling every year and I believe that semi-conductor chip makers are sitting in the middle of a revolution – Computer’s are more powerful fueling the Cloud, 5G phones, autonomous cars, gaming, streaming, televisions and the COSTS are coming down across most of these product segments. You’ve seen me dabble in chipmakers: Qualcomm and Qorvo but there are many more like AMD I need to evaluate.  I believe it’s fueling the investment trends of the future listed above and impacts all corners of life. See these examples below:

o    Sports - I joke other areas of our lives are impacted by Moore's law and are racing to reach a most optimal efficient state. Take sports – the games have gotten faster, the players bigger and smarter, the hits – harder, and the focus is now all about DATA analytics. When I used to play Sony Playstation's Madden NFL football game years ago, I always picked a team with a mobile quarterback. Fantasy football – same trend I foresaw years ago the path to racking up passing and rushing yards is through mobile quarterback. The rationale – Football is simple à keep the ball moving forward, limit the sacks and incomplete plays and good things will happen. Well we’ve come along way from Randall Cunningham, Michael Vick, Donvan McNabb and others being an outlier. Look who’s in the playoffs this year: Russell Wilson, Lamar Jackson, Patrick Mahomes, Deshaun Watson, Josh Allen, Ryan Tannehill. They took a theme I knew back in the early 2000s when I would pick Donovan McNabb or Michael Vick in Madden…which was "OPTIONALITY".  Just like in life on every play I wanted options - in football it was the option to Run/Pass/QB run to always gain positive yards.  Funny it took the league over 15 years to catch up to the obvious or wait maybe there was something more holding back the inevitable?  Live your life like water - find the most efficient path and then always give yourself OPTIONS.

o    AfroBeats – I don’t love the name for this music genre but hey I guess if Lil Nas X is not country music who am I to judge. The mix of musical influences is nothing new to life, however; I belive the only thing that holds the flow of music is labels and the radio stations. Moore’s Law to me is like water, life will find its most efficient path and that is happening in music. Everything is FLOWING to streaming, the cloud and to blending sounds. The only people that didn’t get the memo are Country Music execs in their denial of Old Town Road, but strangely I hear there are country rappers now. 👂 But back to the message: Amazing artists have blazed a path just like artists did in in Electronic/EDM when they infused the electronic sound with pop artists (unless you were tripped out...who wanted to listen to music with no words). But now African artists are getting their shine. Not sure what took so long because the music has been so good and so rich for so long (clearly when I would attend African parties or watch music videos during my trips to London). So now I’m happy to see really good artists blowing up mainstream:

§   Davido - Fall

§   Burna Boy – Ye

§   Koffee – Toast

§   AfroBeats – Drogba (Joanna)

§   Wizkid – Come Closer

§   Rotimi – Love Riddim

Props to Akon (Senegal), P Square (Nigeria), Rihanna (Barbados), Nicki Minaj (Trinidad and Tobago), and French Montana (Morocco) for continuing to blaze the trail. Even more than ever, we have African and Carribean infused music being played all across the world. Thanks to the streaming outlets for giving the people what they want. So prepare to be disrupted in your life - it's inevitable. Take Moore’s law and the music industry - disrupted Radio music execs and stations who always want to rinse and repeat music about cash, drugs, and sex now have to compete with the endless amounts of music on YouTube, Streaming outlets and Satellite Radio. This is a good disruption because allowing music to easily get out into public brings variety (and a many bad viral one-hit wonders) but I wouldn't have it any other way.  Our society and culture… are so much more that power being in the hands of few trying to curate our lives one song at a time.

Stay tuned - I'll post soon about the fear of World War III and the impact to your portfolio in case you haven't been watching Oil + Gold prices and stocks skyrocketing