Peloton (PTON) - Is it Going Down in the DM?

 

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) HOW TO SEARCH MY BLOG:	Get Updates to Your Email When I Create A New Post:

Also Coming Soon - a series on #HowtoInvest. People have been reaching especially after the spikes in Gamestop, AMC, and other stock to learn the basics. I self-taught myself how to invest beginning at the age of roughly 18 and have never stopped. To be a good investor and ensure you are not gambling (speculating), I'll cover (hardest parts of investing in RED):

Budgeting 101 - How to Fund Ur Investments?

Why Stocks as an Investment?

What is Ur Investment Profile + Personality?

How to Pick Stocks?

When to Buy Stocks?

How to Enter My Trade?

How Many Stocks Should I Own?

When to Sell Stocks?

Am I Speculating (Gambling)?

Peloton Interactive Inc (PTON)

I get many readers ask me the question: "What do you mean when you say Value Stocks"? Then I refer them back to my favorite analogy. I have stuck in my head, from my youth, that candy bars should be $50c. When I travel the country and have to stop at a gas station, I WILL NOT buy candy unless it's $50c. I'm stubborn like that. I'll get the king size bar only if it's $1 dollar. A value stock is when you've done your homework and know what you think it should sell for like my Reese's cups. A value investor like myself tries (key word) to only buy when I see my Reese's cups (or a stock) AT or BELOW this level. Yes, go ahead and make fun of me but I'm principled in that way. I apply the same standard to stocks. I prefer to buy when I see it on sale and have a price in mind. 

Don't believe me just watch moment: Go back and search for one of my best investments ever, Sprint. Sprint got "beat down" like they stole something, and I swooped in. When T-Mobile came calling, they offered a higher price to merge (as we say here "date" or "hook up" with) Sprint. It was truly a beautiful trade and we made lots of money. 

I think Peloton is starting to shape up the same way my Sprint trade did. This stock was once as high as $150 just a year ago. To me, Peloton is just a bike but the stock skyrocketed once it came public. It has fallen from grace to a low of $22 dollars. Like the winter olympics, you don't want a stock chart that is sloping downhill...not good.

Rumor has it companies may be sliding into their DM trying to hookup. I bought some Peloton today because it reminds me of whenever I find Reese's cups for $50c. Usually, it's a time to load up because I just don't see if often. With Peloton, I still struggle with the need for an overpriced exercise bike. I will probably need to interview some actual users to fully understand all the benefits, but I said the same thing about the Apple iPhone and many people are happy with paying for an overpriced phone. I think there is definitely a market for the "connected" use of the bike but clearly, I didn't agree with the price of the stock. I finally feel somewhat vindicated, now that the stock has cratered but it took a while to get here. Long story short, is I can see clearly now the rain is gone. And I think Pelton is worth some risk if Amazon, Apple or other suitors wanna hookup.

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

When to Sell - Hookup Alert: It's Official W.R. Grace Bought Out for $70 | $1500 in 5 months

#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 on 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.

If you had signed up for my Subscriber Alerts you would have just netted a big gain. Don't hate -- just participate by signing up.

When to Buy - It Goes Down in the DM

Final Detail: 

1. I got my Sherlock Holmes on and did my own personal research

2. My research found an investment firm trying to slide into WR Grace's DM

3. Strategy: Companies are like People: Sliding into DMs can often lead to Hooking Up! Hook Ups can result in the stock price going up.

4. When to Buy: - After reviewing my research I bought the stock

5. Need Some Help: Sign Up for my Subscriber Alerts - I alerted subscribers about my "It Goes Down in the DM" trade. And noted if the two companies hook up we make $$$ 

Trust But Verify - WR Grace "Detail" borken down here:

https://urbanomics.blogspot.com/2021/02/no-hail-mary-needed-wr-grace-gra.html

Keep Updated on Your Investments:

You can use a tracking site, however; this update landed in my Google Feed. Yeah they watching and listening but we'll address privacy later. Funny, this type of gossip about hooking up actually makes me $$$, TMZ does not:

https://urbanomics.blogspot.com/2021/04/subscriber-update-wr-grace-gra-going-up.html

When to Sell:

Arguably selling a stock is the hardest thing in the world to figure out when to do. We got lucky here because when your stock finally decides to get married the final price is determined for you. Last night, in my Google feed (I know, don't say it) I saw this article. So I did a happy dance and made a decent amount of $$$. 

Source:

Courtesy of WTOP

Jeff Clabaugh

April 26, 2021, 9:35 AM

Columbia, Maryland-based W.R. Grace, one of the oldest specialty chemical makers in the country, has agreed to be acquired by New York-based Standard Industries Holdings in a deal valued at $7 billion, including Grace’s pending acquisition of Albemarle Corp.’s fine chemistry services business.

Standard Industries’ all-cash acquisition of Grace is being made through its investment platform, 40 North Management LLC, one of Grace’s long-standing shareholders.

The $70 per share acquisition represents a 59% premium over Grace’s closing stock price on Nov. 6, 2020, the last trading day before 40 North’s initial proposal to acquire the company on Nov. 9.

Regular People Language:

• 40 North Slid into W.R. Grace's DM
• W.R. Grace said I'm cool hooking up with you now that you've raised to $70. I've got expensive habits
• W.R. Grace previously rejected hooking up at $60 and then $65
• The wedding date is set for Nov 9th
• Investors like us here at Urbanomics will be paid $70 in cash. My subscribers got an alert to buy in at $54.97

My personal challenge to you...join me and #getthebag !!! Thanks to my subscribers, they benefited from a roughly $1500 gain in 5 months on only 100 shares. Do the math 200 shares = $3000 and so on

Trust But Verify:

When to Buy Stocks -- Demand Value | Don't Follow the Crowd

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) HOW TO SEARCH MY BLOG:	Get Updates to Your Email When I Create A New Post:

Coming soon is a post on Health -- The Body. You have to invest and know the data about your body. Like many people of color, I get nervous about hospitals and doctors. Thanks to my corporate job, I was exposed to annual exams and blood tests. Unfortunately, when I made the shift to being an entrepreneur I didn't keep up with my annual exams. And it may be costing me...stay tuned for a future post on Health and how that impacts your Wealth. 

Also Coming Soon - a series on #HowtoInvest. People have been reaching especially after the spikes in Gamestop, AMC, and other stock to learn the basics. I self taught myself how to invest beginning at the age of roughly 18 and have never stopped. To be a good investor and ensure you are not gambling (speculating), I'll cover (hardest parts of investing in RED):

Budgeting 101 - How to Fund Ur Investments?

Why Stocks as an Investment?

What is Ur Investment Profile + Personality?

How to Pick Stocks?

When to Buy Stocks?

How to Enter My Trade?

How Many Stocks Should I Own?

When to Sell Stocks?

Am I Speculating (Gambling)?

When to Buy A Stock

Enough talking -- pictures and videos are worth a thousand words, so I plan to move into the digital age here soon. I'm an old soul in a millennial body with a 9-5 job and a side hustle empowering underrepresented groups to find employment in the technology field (and it's cash flowing almost better than my 9-5 job!). Oh by the way, I own real estate (with tenants) and trying to grow that portfolio. So be patient as I plan to do a video series that will help you invest in yourself and #getthebag. My best asset class is my stock portfolio and yes, it allowed me to semi-retire at 37. I've documented how I've done it here on my blog (mistakes and all) for the last 15+ years. Don't believe people that say it's easy --- Trust But Verify. If they are NOT teaching you how to do it yourself --- Then You Are The Product. #facts

Leading up to my video series, which you've been asking for, here is an example of how I hunt for stocks. Sometimes I rely on my network of friends in my #MansaMusa network. They've helped me build my mini empire and I appreciate all of them as they've support me in different ways. When I got started I had a few #whentobuy rules. Last week, I shared Rule #2 - Follow Da Leader | Whale Watch | Griot Rule. Warren Buffett was great to read about, learn from, and occasionally follow but he is one smart brotha...he often requests and usually get approved the right to withhold some of his biggest trades. Why? So he can slowly build a large position and limit Griot watchers like me from following him. There are federal rules which require Warren to disclose his trades and he doesn't want his stock investments to skyrocket right away (from copycats) before he's built his large stake. I may not be a Griot yet, but like my father I'm a like to preach and teach. So I can't give everything away...I know my worth but I USUALLY try to make investments that align with my goals, risk tolerance, and personality. Two hints at what I mean and then I get to a few stocks on my subscriber list and one reveal.

Wanting Value:

  Hint 1: For years, I've written about the fact that I won't by a candy bar if I can't get it for 50c. For the longest time, that's what a Reese's or Snickers cost growing up. Yes, I believe in inflation but if you don't sell it to me for 50c or a Kings size bar for $1.00...you're not getting my money. Life is full of transactions and negotiations...I choose when I want to participate. 

A Difference of Opinion:

Hint 2: I personally like to go against the grain and as many have said...I like to walk my own path and don't follow the crowd too often. So if I see a stock getting dissed (Ex: Search for my Tesla or Lululemon trades and read my Elon Musk / Kanye West posts from years before), I tend to want to know more about the situation than just go with the crowd. Group think is very dangerous and is a primary reason why racism and oppression is what it is. Human nature is to seek the protection and worthiness from a group or gang...but it can lead to perverse outcomes - like when gangs have no rules and kids get killed, or when people with authority protect the bad apples in their group, or when people claim to have faith in something higher but the angry mob can lynch (skin color) or rape (young woman) because society or the current cultural climate doesn't communicate to them what they are doing is wrong. And then I hear the narrative, don't try and cancel those things people did back because it was a different time. I have one one --- Do Unto Others as You Would Have Them Do Unto You. I don't think in life you can ever "overlook" lynching, hate, rape, bullying ...because everyone was doing it. So When I invest...if most are doing it...I run the other way. Need one last example, we all celebrate Dr. Martin Luther King Jr and his approach to non-violence today. But in the 1960s, the FBI had him high on the list of public enemy #1s. How do you square that away...in my book non-violence teaching does not = terrorist (or communist for that matter) but they spent years watching and taping his every moves. So I take the same approach to stocks, if everyone jumps off the bandwagon I BUY:

- Elon Musk is an idiot for $420 tweet -- nice try, I invest in a genius and Tesla

- Kanye West is mentally crazy -- He's not the president, my mentor, impactful to my daily life...but IMO he seems to be savvy at music and business...oh by the way he's now worth over 5-6 Billion after a well executed clothing partnership with Gap. I don't have to agree with him to know he's going to appreciate in value: 

URBANOMICS: TESLA - MY BEAUTIFUL DARK TWISTED INVESTMENT

- Lulemon is finished after the then idiot CEO made harsh comments about plus-sized women and leggings -- He's a bum get rid of him and people still will buy ridiculously price leggings, yoga pants and clearly Yeezy's. 

URBANOMICS: Value Investing - Look4Leaders / FollowUrGut

#GettheBag - Premium Subscriber Alerts

Here are a few stocks from this Quarter's Subscriber List Premium Alerts:

• I***** - Beaten down technology company, that may get back up after being knocked back down
• M**** - With everyone jumping on the hot new thing...the old reliable has been thrown away. It may to soon to ask an old star to retire when the team isn't ready for a transition
• A**** - This company stumbled and decided not to IPO. But the SPAC route seemed like an ideal fit. No one's paying attention but the re-opening trade could have us running around like Mad Men
• F**** - Good ole fashion insurance was left out in the cold, but whoa interest rates are rising and everyone is jumping on banks, insurance and other interest rate sensitive stocks. 

Reveal - ViacomCBS (VIAC)

• V**** - Television and Advertising has been left for dead as streaming is the future. A quote taken from Barron's: "An analyst wrote that the recent run-up “doesn’t fully discount risks” from pressure on V****’s own legacy cable-network business, nor the risks to content-licensing revenue from the crumbling of conventional cable channels."

Haters gonna hate. Our Reveal is we own ViacomCBS (VIAC), recently the best performing stock in the S&P 500. Stay tuned for a "Details" writeup...but wondering when did I blog about ViacomCBS, Sept 2020:

URBANOMICS: How Being Risk Focused Allows Me to Play Defense + Offense

If you want to follow the crowd, by all means go ahead. However, I'd rather walk my own path. Reach out if you want to subscribe and monitor the trades I'm making in my portfolio. 

Also, guess the stock and I'll reveal if you're right.

Subscriber Alert Reveal - Hartford Financial Services Group Inc (NYSE: HIG)

  

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) HOW TO SEARCH MY BLOG:	Get Updates to Your Email When I Create A New Post:

Subscriber Alert Reveal

Enough talking -- pictures and videos are worth a thousand words, so I plan to move into the digital age here soon. I'm an old soul in a millennial body with a 9-5 job and a side hustle empowering underrepresented groups to find employment in the technology field (and it's cash flowing almost better than my 9-5 job!). Oh by the way, I own real estate (with tenants) and trying to grow that portfolio. So be patient as I plan to do a video series that will help you invest in yourself and #getthebag. My best asset class is my stock portfolio and yes, it allowed me to semi-retire at 37. I've documented how I've done it here on my blog (mistakes and all) for the last 15+ years. Don't believe people that say it's easy --- Trust But Verify. If they are NOT teaching you how to do it yourself --- Then You Are The Product. #facts

Hello and happy Friday. The reveal is real so let's get it on. The reason why I created a subscriber alert services is because most of us have a 9-5 job. I was doing a 15 minute consult with a healthcare professional and they noted the hardest this is to find time research new stocks to buy. I understood the problem and presented my solution: Get stock alerts or what we call a "heads up" directly to your phone or email notifying you of trades before I even execute them.

The truth is you're busy and you want to partner with someone who is watching the stock market frequently. While most of our trades are long-term and can afford to wait until you get home, some trades are event-driven...news spreads...yes it goes viral and we want to take advantage of that. Here is an example of a stock that was communicated to my subscribers as we wanted to advantage of viral news and trade this stock quickly.

1) Yesterday, Hartford Financial Services Group Inc (NYSE: HIG) starting moving up quickly and it was reported on the news that Chubb Insurance was looking to hook up, slide into their DM, blowing up their Bumble inbox. Look at the time of the news release: 3:52 EST

2) I sent an alert to my subscribers immediately

3) This alert was time time sensitive, we wanted to trade on this news before it went VIRAL and before the market closed. Pay attention to the times. The market closes @ 4PM we wanted to get these trades in before that. I got my trades executed @ 3:55 and 3:57 EST.

4) In less than 24 Hours, here are my gains.  I'm up 56% and 34% on these trades. It's a small amount but I stand to make roughly $400. Trust but Verify:

Time to find another trade to make. #getthebag