IT GOES DOWN IN THE DM - Avid Technology (NASDAQ:AVID)

 

IT GOES DOWN IN THE DM - Avid Technology (NASDAQ:AVID) 

I usually hate that technology is always watching or should I say listening to what you're doing. In a recent episode of "Billions", they were covering the subject of wire taps. There were strict rules of what you could listen to and where you could listen. The bedroom was off limits and also if a lawyer was present ---listening is a no-no. 

Things that may you go hmmm --- we have strict rules for wiretaps but not for the proliferation of devices listening to people all day in their homes and in their bedrooms.

But it's Friday, I'm not gonna be too cranky because there is the occasional positive use case of computers watching our every move. OCCASIONALLY, they add something to my feed that I really find of use. That happened last night, I believe. In my feed was Reuters story about it reminded me that "Investors never sleep". So, as I was in bed, I took screenshots of the article so I could evaluate trades the next morning. I hope you're listening -- the Early Bird Gets the Worm.

Here were some of those details:

2 companies, Symphony Technology Group & Francisco Partners, just jumped in the Direct Messages (DMs) of and Avid Technology (NASDAQ:AVID). You chose the analogy but I liken it to:

- 2 sports teams looking to sign a player on the market

- 2 people looking to date the same person

- 2 people haggling over the same car

What this means is "usually" the price is going to go up until someone walks away. Time for me to quote Fat Joe:

#yesterdayspriceisnottodaysprice

This is one way I keep investing, simple straightforward and fun. Now the harder part is at what price point and how do you setup the trade? The funny thing is MANY years ago I traded Avid but I don't think it was profitable, I'll need to go back and read my own blog this weekend to see. Peace out its Friday!

QUOTE PRICE:

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. 

Subscriber Alert - Healthcare Insurance Stock

 My subscriber's received an alert that this stock hit levels that I would be interested in buying. I do something pretty cool ---  I set aggressive buying targets and often wait until a stock I like drops to those levels. My account was set to automatically execute this trade when the price dropped. As you can see I like deals, once an $80 stock I got in at the $55 threshold.

Guess the stock and I'll confirm it:

When To Buy - When Markets are Going Down (Mary J Blige Style)

 

PREMIUM SUBSCRIBER ALERTS:

This is a quick hitter post. I wanted to reiterate the "Loner" / "Cancel Culture" investment philosophy I sometimes use. In my previous post, you've seen I often come to the aid of companies that have flat out done or said some stupid things. We are human, make mistakes and should not automatically get canceled. But if you break the law, cause harm to another, or invade my or someone else's space --- I have a different frame of mind. Yes, I said it don't be a 'Karen', BLM hater, Asian hater...or just a hater in general. Life is short, can't we all just get along.

The following premium alerts were triggered yesterday and they represent companies I was following and waited until they got picked on. Every quarter companies release a "health check report" called a quarterly earnings report. These companies were flying high, released their quarterly health check and then got beat down. The beautiful thing I do is to set an alert and wait for it to ring. Similarly to my home buying lesson --- don't get emotionally attached or fall in love with an investment. haha I play hard to get...and it's served me well. Once these alerts trigger, I trade them and send them to my subscriber group. If you're at work on the clock, I can't expect you to search for these stocks, so I have your back and deliver them straight to your phone and inbox.

The market was down big yesterday at one point. It reminded me of Mary J Blige's song "I'm going down, when you're not around" and since I was around I bought these stocks on a down day. If you can guess these stocks correctly, I'll reveal these new purchases:

Stock 1: Hint: Zoom meetings have sent these stocks higher. Say cheese!

S******* Inc 

Health Care : Health Care | Small Cap 

Stock 2: Hint: A grumpy billionaire in my Mansa Musa network is buying this stock so we went huntin' in packs together.

B******* Inc 

Health Care : Pharmaceuticals | Large Cap 

Stock 3: Hint: What does scrolling, streaming, and banning have to do with this stock.

T*******

Communication Services : Interactive Media & Services | Large Cap 

Stock 4: Hint: It appears I beat Cathie Woods into stocks like Draftkings; however, I like this bet she making here and decided to follow Cathie here.

S******* Inc 

Communication Services : Entertainment | Mid Cap

As a cybersecurity expert, I've learned to take advantage of Machine Learning. So I use handpicked data points, enter them into a rules engine, and when my data points hits I get that information sent to me. It's the best way to have my $$ working for me while I'm sleeping. I wake up and then make investments after evaluating that data. If you can guess this stock correctly, I'll reveal the new purchase:

Stock 5: Hint, Indeed, I rolled the dice on this stock and think its a winner.

****** Inc NASDAQ: J*******

Industrials : Professional Services | | Based in China

#getthebag

No Hail Mary Needed: W.R. GRACE (GRA) Investment

#MansaMusaMentality
#BreakfastClubforStocks - get your Sherlock Holmes on with news, reports, and data for stock investments ideas

This post is a part of my #MansaMusaMentality series and how I invest. Almost like case studies (known as "Detail"), I'll highlight how I invest in assets such as real estate, stocks, precious metals, cryptocurrencies, etc. And I want to foster a community culture, so I'll show you how I invest and learn from my network and maybe in the future we can crowdsource or here we call it #tribesource investment ideas for the future.

"Detail" - A Breakdown of my W.R. GRACE (GRA) Investment

Year(s): 2020

Throwback Link(s): N/A

A "Detail" post is about how I found this investment. Quite simply, I kept my ears to da streets. My life is not dedicated to stocks because it's not my main hustle but I do my research, use my network of connections, and make smart informed decisions. Because I've amassed a nice investment empire, not the size of Mansa Musa, I'll be damned if I leave it to someone to manage and eat all my profits. I (AND YOU) can manage your money yourself. Just like how I listen to the Breakfast Club for the culture, I listen, read, and aggregate data for that stock culture. Again, if I have time for the Breakfast Club morning show with Charlamagne tha God... I can also make time for my stock version of the Breakfast Club.  What's your excuse??

My best investments of all time will make the #MansaHallofFame.  W.R. Grace was too small to make the list but remember we're NOT here for medal...we're here to retire early. So we'll take the small wins to achieve the bigger goal. Independent -- Know Your Worth -- Freedom to Choose

So how did I find this stock? I got my Sherlock Holmes on and did my own research. I keep a log of my research and ideas so don't test me. How do I get my Sherlock Holmes on? Depending on your age you might prefer: X-Files, Murder She Wrote, Columbo :)   Here's what I found:

Stock Investment Idea: W.R. GRACE (GRA)

Investment Takeaways: My investment in GRA is also a lesson in life for those that want change. Like the BLM protests in the summer, it starts with strength in numbers. But it should NOT end there as change comes from having representation in positions that can truly enact change. At the end of the day, you have to have the numbers or as we say a majority of votes to get things done. Remember my post on GameStop, change/reform is being pushed by Ryan Cohen who demanded 3 seats on the  Board of Directors (BOD). 3 out of 9 means he is inching closer to having a majority (5 out of 9 = majority) if he can convince two other persons on the board of his plans for change. Majority vote (i.e., power) can include changing the strategy of the company and even removing the CEO. I hope more people understand this when it comes to #strengthinnumbers, politics, and changing the system. We need allies and you have to have the numbers. Change is a powerful thing and it can cause Congress (who makes laws which impact your lives) or a stock (which impacts your $$) to move in your favor when a majority of votes is had. So I got my Sherlock Holmes on and my #BreakfastClubforStocks report found something interesting...look here:

A small protest can lead to a ripple effect but you have to have the majority of the BODs with you. Outside of the corporate world, you need to have a majority of your local government and in Washington DC we need to have a majority of Congress voting on a bill for change to occur. This article signaled change was coming --- either through a) my network of Wall Street buddies buying up the stock which gives them the right to "VOTE" each share and change the board members or by b) #huntinginpacks, they band together raise enough cash and buy the entire company (called a takeover...note: nobody calls it a takeout).  Side Note: This works well in Corporate America to effect change but a huge reason why I don't like money in politics. One person with the biggest pockets can push for change if they buy a majority of the stock and vote. No one should be able to buy your votes when it comes to social policies in life.

Outcome: Smart calculation, I bought the stock after doing my homework. It was a good choice, because it looks like someone wants to buy the company for $65 or more. See the highlights as of 2/9/21:

"Detail" Review for the Culture: 

From where I bought, I'll make $10 or more a share off of this investment.  (If your bad a math every 100 shares means you'll profit at least $1000.

If you want the full view - a real-time update, # of share, and how I executed the trade please sign up for my subscriber alerts for real-time updates.

GRA Stock Chart on 2/13/21:

Time for find a new stock to invest in. 

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.

Life + Project Management - Pt. 1 (Skills Development) + EBAY Trade Reveal

To catch your attention, the internet and "others" try to lure you in with shocking statements, click bait, or even cool acronyms. But nah, we ain't about that here...just keeping it real. If this is for you then welcome, if you need more time to unplug from the Matrix then so be it. I wanted to talk about how I use the Urbanomics Pillars everyday to literally Project Manage my life. I don't need a degree or even a PMP (one of those shiny acronyms for being certified for managing projects) to succeed. They are the icing on the cake, as I have developed skills to manage my biggest project, my Life Project --- one that focuses on God, me, family, and friends. Notice I didn't say work, wealth, and traveling to each state/continent as my main project. Like others, I enjoy these things and they may be on my goal or bucket list, however; my project is my life.

To be balanced in life you need a strong core, that's the base of the Urbanomics Pillars. Underneath those 4 Pillars you need to manage the collection of small and large projects that make up your life very carefully. Every project you take on eats up time which is our most precious asset, every decision impacts a future decision, and distractions can derail you from your ultimate mission. So let's discuss how to manage projects and in turn manage your amazing life:

1) Develop Your Skills --- You have to be grounded in the basic things that will help you dream, set goals, make rationale data-driven decisions, manage risks, negotiate deals, and know what's fair (i.e., right vs. wrong). The skills I recommend people focusing on are the skills that are free, YES FREE!! If you need a cool acronym try this on SLAM+, it stands for:

Science | Legal | Arts | Math |  + (volunteer, teach, technology, engineering, trade, etc.)

All of these were learned for free in PUBLIC schools and have anchored my life. 

Science - I don't love chemistry, biology, or physics but I have a true appreciation for one simple technique that I use literally everyday of my life. I learned in science classes how to develop a hypothesis. In Science, a hypothesis is an tentative answer to an observation, phenomenon or scientific problem that can be tested by further observation, investigation and/or experimentation. 

In today's world, I hear so many people giving me their opinions but often I am suprised how little of it is rooted in any data at all. Funny in public school, I took something, usually a problem, and tried to find ALL the answer by identifying potential answers (solutions) and rigorously testing them over and over again. I do this everyday and for complex things I write them down.

Legal - It's sad to say but I fundamentally believe that everyone, especially people of color need to understand laws and regulations. In a litigious society, the difference between giving a statement that will be used against you or your child, illegal searches, contracts and fine print, loans and gifts, and stand your grown and imminent threat can unfortunately mean life or death. Legal laws killed Trayvon Martin, Breonna Taylor, George Floyd and countless other innocent people. It's still strange to say "lawful", "legal", "innocent" and yet they still ended up tragically dead in a mature, lawful society.

Arts - My focus on Arts is English because communicating is a lost form. So much of life is decided by the word choice you use and kids from a very early age can learn word choice, negotiation, debate, and how to write and articulate their thoughts by reading, acting, revisiting history, and through music as these are all forms with which we express ourselves in. The other art I find beautiful is speaking multiple languages -- growing up in a family and community of accents, the one thing I learned is to take the time to "listen" deeply and closely to what the other person is saying. I rarely ask someone to repeat themselves and have even told people don't try to compensate because english is your second language...say what you're saying and I'll piece it together. People come up with terms everyday to describe actions we've always known existed. The one that is top of mind is micro-aggression. Again, it's a bit fancy for me but I've always called this hate coming from haters and also when i was younger a put-down. Quick example, I can remember how mainly my white friends as early as elementary i believe would make a big deal out of saying the work "ask". I would say the word, they clearly knew what I meant but often felt it was their place to correct me and say do you mean ASK not AXE...haha you're not planning to kill me with an axe. Or I felt for some of my friends who went out of their way to emphasize the world important --- when most Americans hardly ever emphasize the first "T" --- I've always heard many say impor * ant.  So the arts helped me be an interpreter for my parents, a sympathizer for English second language persons, adventurous as I've speak African Krio, bits of Mende, Portuguese, and Spanish, but also cognizant that in the business world I needed to learn a NEW language to compete. I speak business fluently - I say important with the first "T', I emphasize ASK when I can remember, and most importantly due to another micro-aggression I felt early on I trained myself to speak slowly. While colleagues early in my career would blurt out, why are you speaking so fast...in a hurry. Again, you understood me but after my amazing presentation you needed a little something I guess to put me back in my place. Unfortunately, being an African that is proud and KNOWS his history and worth, I kept it moving. But again, I speak business -- so around 2007 I witnessed an amazing orator speak - then presidential hopeful Barack Obama his the scene and graced us with his presence. I heard the calm, smooth, deliberate, and slower pace with which he used with the world and I studied his speaking, literally. Between him and CEOs of major companies, I watch with how they "artfully" described their vision, slowly paused for questions, and elegantly drew you in with examples. I only knew of two other people with impact for me prior to President Obama and that was Christopher Wallace (The Notorious BIG) and Tupac Amaru Shakur (Tupac). Finally, history proves that words matter, and cultures since the beginning of time have had a few basic common principles -- treat your neighbor like you would want to be treated...and that fairness would take us a long way.

Math - Basic math, calculus, and most importantly probability and statistics have by far been the single best skills I've learned and use hourly. My most favorite class was prob/stat in college as it changed my life. Used by poker players, who often make great investors, I learned about how to calculate the odds of events happening. Tack on my learning of decision trees, applying this calculation to making everyday decisions and my world slowed down to a crawl. I was able to make informed decisions at school, in job selections (I graphed pros and cons on all the offers I received), at work, and in life. I used this to determine what houses to buy, where to live, what investments to make, and more importantly how to prioritize my TIME. This is the hardest concept for someone that grew up poor --- learning that you can't be everywhere and do everything. Time is your most precious resource and focusing on your most important areas, when you trust someone else (outsource), and when to admit you failed. Because you aren't taking enough risks if you haven't failed at something in life.

+ - To round out your skillset this is where I see volunteering, learning technologies, trades, mentoring, and teaching as a way to continuously improve over time.  You must expand your circle, give to others and upgrade your skills as time goes on. These are the ways to do them. 

Part 2 - Will cover how to manage projects from investing, renting homes, etc. 

Another Free Trade Reveal: Ebay had been in the dumps. Paypal is no longer a payment option that can be used on the platform. Disagreements between the CEO and outside investors led me to believe change was coming. And it has it a big way. This culminated with Ebay selling its classifieds business to a European company just this past week. This contract will net a healthy profit is Ebay can stay above $32 going into Jan 2021.  Ebay currently trades in the $55 dollar range and I may sell Ebay before that date as this position has already collected roughly 60+% of the gains.  Time for another investment to find:

Ceasars Update: I'm All In...Were U

Quick Update: Ceasars Entertainment's acquisition (i.e., hook up) with El Dorado is approved by all remaining state gaming commissions...the deal is officially sealed.

I most recently wrote here about my Ceasars' trade: Ceasars and El Dorado Hook Up

You also learned in this post about my drive to independent and bout it bout thanks to Master P, Diddy, Robert Smith, and countless black business men. Even though I still have a 9-5 as they say, I have to stay game ready. After spending time with the family, it's back to work. Grinding through the day's news and articles to sharpen my craft...like being in the gym or music studio. I love data analytics so I look for public news available to everyone, analyze the risk, and think deeply about what the projected outcome will be. Many will laugh because being a contrarian I often don't think too hard...I often ask what does the everyday person think will happen and usually I invest and sometimes bet that "the opposite" will occur. Sharks were circling this iconic Ceasars brand awhile back and my billionaire buddy Tilman Fertitta made no secret about it when he was trying acquire the brand I believe a year or so ago via his Golden Nugget holding. Data provided to you in plain sight, now I just needed to evaluate the business and the risk. Well, I didn't have to go far...I practically used to call Vegas a second home for a minute. I'd go 3 sometimes 4 times a year to relax, sports bet, and just let loose with my friends. Where did we often find ourselves...at Ceasars one of the most iconic and recognizable brands in the world. When El Dorado tried to slide into Ceasars DM, many said laughed and said who is El Dorado...they are smaller, less known, and even that the deal would consolidate too much power. I laughed that sounds a lot like our politics and world today. The rich get richer and leaders across the world continue to consolidate power.

So the investment was simple, the gaming industry would salivate at a gigantic new company that will document across the US (casinos are in the South, 4 in New Jersey alone, tracks in Indiana and of course, gaming in Vegas). Then COVID hit and many bailed on their position...need proof look as Ceasars stock price as it dropped to $6. Yes, I flinched as they said no one would go to Casinos a potential hot spot for infection and the gaming commissions would balk at so much consolidation. But I block out the noise and look deeper --- there was too much money to be made, too much power now in the hands of a few players...and citizens who rather be drinking and playing slots then worrying about their health.  So from $6 to know it's well over $12 dollars. We get a little less than $9 bucks paid out being shareholders and the remaining balance is given to us in stock of the newly formed El Dorado/Ceasars entity.  

Nice work for all who got in on the trade...now time for a new stock to invest in.

One of my many trips to Ceasars:

#datadriventrades #againstthegrain #payitforward #ifnotnowthenwhen

Other recent examples of going against the grain:

Sprint -- Traded down to $4 and Wall Street gave it a 35% chance of being approved. Outcome: T-Mobile Acquired Sprint for one of my biggest trades ever

Covid-19 -- I called for shutdowns, masks, and collective unity. Most people thought it's fake and would rather kick it at the beach. Multiple rounds of stimulus means people are hurting, bankruptcies are rising, lockdowns will continue as cases spike. Vaccines are rarely found in the first year...so the Federal Reserve can only inflate the economy for so long. Be safe and be ready

E-Trade (ETFC) --- Hookup Alert

Investing In Yourself – Using Pillars to Build Your Core	https://urbanomics.blogspot.com/2015/04/urbanomics-pillars-path-set-for.html
Setting Budgets + Saving for Black Swans	https://urbanomics.blogspot.com/2013/02/personal-finance-budget-101-free-credit.html
	https://urbanomics.blogspot.com/2019/11/hey-henry-high-earner-not-yet-rich.html
How to Open My First Brokerage Account	https://urbanomics.blogspot.com/2015/04/personal-finance-101-starting.html
Diversify your Life (Mind, Body, Soul, + Investments)	Search My Blog

Don't wanna go on livin' without you

I got the hook up holla if you hear me (Ughhhhhh)

And if we say bye bye bye then take my heart with you

I got the hook up holla if you hear me (Ughhhhhh)

Can we go on livin' without you

I got the hook up holla if you hear me (Ughhhhhh)

Artist: Master P + Sons of Funk ~ Song: I Got The Hook Up

So for a short period of time, I've decided to open up my portfolio to help educate people. United we stand and by investing you can be independent, self-owned and bout it bout (thanks P). You can follow wild Reddit investing pages that chronicle how one person made $1M out of his $35K retirement account but those stories never tell you how many people flamed out taking crazy risks. This is about investing in yourself and your goals for the long-term. It's about diversifying your streams of income so that you make decisions on your own terms. It's not a overnight dream, but a long-term goal that you have to plan for. Being musically inclined, I remember a time when Master P said Ughhhh but more importantly I always heard him say "independent, black-owned and I'm bout it bout".  Yes sir, I remember this like it was yesterday but it was over 2 decades ago since Master P dominated the scene. Flashback: In high school, I used to go back and forth about which record label was the best. My man Darryl Baxter was definitely in the No Limit Records camp (the record label of Master P) and so was Ed Whitney. I've always gone against the grain, so to make this a competitive debate each day I took the other side and would always say Sean Puffy Combs and his Bad Boy record label was better. I know --- two successful black men meant we all were right at the end of the day but those debates were memorable. But what they didn't know was I was in the No Limit Camp way before I was a fan of Bad Boy because my dad (being a music lover) brought home a "tape" from the "record" store back then. Don't ask me how or why but he had a tape of Master P's "Ice Cream Man" which I played on repeat over and over and over. The moral of this story is similar to Master P, I write this post to plan a seed in one person's mind just like Master P did when he had a whole generation repeating that phrase. And for the record, NO, I was not inspired to be the "Ice Cream Man" but to be independent black-owned and yes bout it bout it. Next time I'll tell you about Suave House and my clique but let's stay focused.

If you haven't noticed, over the years I've had my fair share of stock hookups. On Wall Street, we call this activity: mergers, acquisitions, and takeovers. My search for value sometimes leads others in the same direction and I get lucky if a big investor or company buys out the company I own for a nice premium --- a hookup. No long story today but I wanted to highlight E-Trade Financial. I like to do research to find my next investment and often benefit from small clues hiding in plain site. If you don't believe me go back and read my posts on Sprint. It will go down as one of my most memorable investments because it was based off of the fact that the CEO (Marcelo Claure) and the Chairman of the Board (Masayoshi Son) both sold their houses before the deal was ever close to being finalized. haha who sells a $10M crib next to Sprint's headquarters unless you're on good authority you won't need it anymore.  

Link: Sprint-t-mobile-hookup-alert.html

My trade in E-Trade (no pun intended) started from the fact that apps like RobinHood, Dough and others were massively disrupting the retail stock trading space. With 20 years of investing under my belt, I can truly tell you the hardest problem to overcome is the fees which eat into your profits when making a trade. RobinHood and others have helped to reduce those fees to $0. TD Ameritrade and E-Trade were hurt badly kinda like how record sales were impacted once streaming became a thing. So along came Charles Schwab (SCHW) who decided to hookup with TD Ameritrade. There were rumors that consolidation was coming to the industry but I was slow and missed an opportunity to trade AMTD. So I kept an eye on ETFC and decided if I couldn't get the first option, I would trade the second option. Morgan Stanley (MS) came calling and slid into E-Trade's DM. The terms are Morgan Stanley will give ETFC shareholders 1.0432 for every share of MS. This is a good example where my current trade is not yet profitable (note: it was prior to COVID-19 market crash) but you need to have patience. However, if the deal closes in the 4th Quarter as expected, this trade will become profitable once closed or when my trade expiry date (Jan 2021) hits. 

Always remember, there is strength in numbers

Hookup Alert - Caesars Entertainment (CZR) + El Dorado Resorts (ERI)

If at first you don't succeed (first you don't succeed),
Dust yourself off, and try again
You can dust it off and try again, try again

Artist: Aaliyah

Song: Try Again

Rest in Peace to the Great Aaliyah. Gone to soon but your music lives on in our hearts.  So I gave you a story about another one of my good friend’s Tilman Fertitta, who is the owner of the Houston Rockets, The Golden Nugget, and Landry’s Restaurant chains, etc. I saw him on TV the other day still sounding a little cautious, however; with things re-opening I’m sure his worst case fears are dissipating. See here for my risk breakdown of how Tilman danced with debt and got very lucky: https://urbanomics.blogspot.com/2020/03/a-house-of-cards-pt-2-debt-gift-curse.html

Cue the music: a billi a billi --- he’s an old money billionaire, so there's a few things to learn. Thanks Lil Wayne I’ll take it from here. I wanted to highlight a trade my buddy Tilman brought to my attention a little less than two years ago. It’s no secret I like diamonds in the rough and Caesars Entertainment (yeah home to Caesars Palace in Las Vegas) was one of those gems I started looking at a few years ago. An iconic venue in Las Vegas, Caesars (CZR) is known worldwide and I’ve partied many a times there myself. But Caesars  over the years had taken on a lot of debt and hadn’t really done much.  So when Tilman and his Golden Nugget company made a play for Caesars I decided then was the time to strike.  This is a quick lesson for those just starting out in investing. Look for investments within your life that give you OPTIONALITY. Does it have a good MOAT --  that wide body of water surrounding castles like in Game of Thrones were there for a reason…to keep would be attackers at bay. Caesars brand is like that MOAT -- an iconic branded designed to keep people coming back to their properties. While I like good management, I like the right price even more. I followed CZR as it dropped into the $5-7 dollar range back in 2018 and apparently I wasn’t the only one watching. Pretty soon my boy Tilman and his Golden Nugget company were trying to slide into CZR’s DM. The stock shot up and I decided to pick some shares up as I was a little bit late to the party but believed it had more room to run up. After eight months of Golden Nugget trying to hook up, CZR ghosted on them.

My next lesson is stay clear headed. I got nervous and sold my position which ended in a loss. I should have stayed the course but I took the loss. Likely a result of listening to NOISE --- like being inundated with posts on Facebook and one of the reasons I don’t logon to the platform much. If you listen to NOISE you tend to move with the herd…and I am no sheep. I prefer going against the grain. Sheep will tell you to be patient for change when you clearly see systemic issues right in front of your eyes. I’m not having any of that.

But I am human; I panicked and sold my position for a loss. See below, the “L” I took back in 2018:

The nice thing about investing is it’s just you and a market of 10K+ stocks. If you’re right, you had the guts to make the call. If you’re wrong…it’s on you. All people want in life is a fair shot…the game not to be rigged…the knee taken off of our necks.  My "I told you so moment" was just 3 months later when rumor had it Caesars was now flirting with Eldorado Resorts (ERI).  Not happy about the “L” I took just a few months ago I felt a bit vindicated in CZR as an investment. I jumped back in as the two confirmed they were hooking up. My position was in the GREEN and I was on to the next trade. My 2019 positions for CZR:

Then COVID-19 happened and I watched the closure of casinos and gathering spaces to halt the spread of the virus. CZR cratered and fell as low as $3.52 on March 18^th. I held strong this time…not following the herd…knowing CZR’s worth (in the stock market we call this intrinsic value). That’s what makes some of us different. I know my worth, which then helps me evaluate the worth of everything in life. CZR intrinsic value is iconic, trust I have the pictures to prove it.

My last lesson - do your own deals…own your own masters. It helps to be good in math but stop giving your dough to someone else if you can’t quantify that value they are bringing to the table. It’s not personal, it’s your independence and I treat it as such.

As you see above, I even opened a new stake in CZR yesterday because I have conviction the deal gets done. I’ve already been sent the follow merger terms to review and on May 12th things became clearer as Eldorado Resorts provided a timeline to close the $17.3 Billion acquisition of CZR that's not too far off. There are approvals pending from the states of Indiana, New Jersey and Nevada and then it will be sent to the Federal Trade Commission. The math is this: ERI is paying Caesars shareholders the sum of $8.40 plus an amount equal to $0.003333 (the “Ticking Fee”) for each day from March 25, 2020 until the closing date of the Merger (the “Closing Date”), multiplied by (ii) a number of shares of Caesars common stock (the “Aggregate Caesars Share Amount”) equal to (A) 682,161,838 plus (B) the number of shares of Caesars common stock issued after June 24, 2019 and prior to the Effective Time pursuant to the exercise of certain equity awards issued under Caesars stock plans or conversion of Caesars’ outstanding convertible notes (the “Aggregate Cash Amount”). Subject to the proration procedures set forth in the Merger Agreement.

The Truth is all that legal language above don’t mean much. Keep Life Simple, Treat People Fair:

At $8.40 a share in cash plus shares in the new company, I break it down like this:

-             If you bought below $8.40 à You’re getting all your cash back, some profits, and shares in a New Company ERI ( a free roll as my       gamblers call it)

-           If you bought above $8.40 below $10 à I’m no gambler but any returns on your investment 80% and above is close to a playing with the house’s money. If you add in the free shares you’re receiving in the new company that = getting Optionality (most of my money back to move on to new investment plus free shares in a new company

I started this blog many years ago because I’ve witnessed system racism all my life. Early on I knew I needed an exit plan because Corporate America wasn’t thinking about diversifying its ranks. No mentors, I was one of the fastest rising African American’s to make the senior management ranks because I worked harder and longer than most. I could probably count the number of African American director’s at my company (which is the next level) on 2 hands in a company that boasts over 15K people so I knew that glass ceiling was real. I look forward to change but until these institutions are dismantled you’ll see me here diversifying myself for those moments when someone brings terms to me that aren’t equitable for me or my family…I always have the OPTIONALITY to say no. Sadly there is no strategy for racism, bad policing, and hate. I only know to do what my late African father taught me to do. Know My History, Know Where I’ve Come From, Treat Others with Respect, and to be the King I was meant to be…all while still not taking shit from anyone. I put love out into the world and expect it back. That’s all I ask for. 

Peace and Love ✌

Full Disclosure: I am long CZR option contracts. Fancy BS for I think the stock will go up

1st Quarter 2014: 3 PREMIUM STOCK ALERTS / 1 Free Reveal

1st Quarter 2014: 3 PREMIUM STOCK ALERTS

Please contact me directly (email_urbanomics@yahoo.com) to subscribe to this quarter’s premium stock alerts.  Find out what I have my eye on and more importantly when I will be adding these stocks to my portfolio.

1st Quarter 2014 Premium Stock Alerts

This quarter’s picks are late, but better late than never. I've been researching these stocks over the course of the last 3 months or more and found 3 stocks with margin of safety and the right catalysts.  Please see the following stocks that were recommended to subscribers receiving premium alerts. 

Stock #1: **********

Details 

Sector: Services Industry: Cable Systems Tip: Keep your eye on the clock.

Stock #2: **********

Details Sector: Services Industry: Specialty Retail, Other Tip: This stock was sold...to the highest bidder.

Stock #3: **********

Details 

Sector: Services 
Industry: Rental and Leasing Services
Tip: Turn up the radio while you rent this.