Burke Koonce and John Fichthorn discuss the latest topics of interest in politics, financial markets, and the cultural forces that shape the world around us. This is the first episode of Season Two!
John, who is on the board of Maven, owner of TheStreet.com and other media properties, and Burke, who runs the Capitalism Maven site for TheStreet.com, have a long history together discussing markets, politics and contemporary subjects. These discussions sometimes get made into films such as Betting On Zero.
In this episode, we dive right into familiar territory we discuss Herbalife, the stock of which imploded earlier this week after a disappointing outlook. Amazing how the stock gets crushed right after Icahn sells out!
Speaking of implosions, no discussion would be complete this week without a conversation about the apparent insolvency of the largest property developer in China, which is in the process of defaulting on close to $400 billion in liabilities. We discuss what Evergrande, which we have been following for years, means for markets and whether Xi can bring himself to bail out a billionaire.
Our chat about China leads to a discussion about commodities and what we think might be in store for global commodity prices and what we think about the ESG movement at the moment. Finally, our commodities talk begets a fascinating discussion about Wall Street Bets’ latest darling, the uranium market.
We’re really glad to be back for Season Two with this super fun and interesting episode. We hope you enjoy it.
John Fichthorn is on the board of Maven, which owns TheStreet.com and other media properties. Burke Koonce is the Investment Strategist at Trust Company of the South. Opinions are their own. Not investment advice.
Reddit group WallStreetBets has become notorious for pumping several stocks. While some of the stocks which are popular in the group are the typical meme names with poor fundamentals, we can find some fundamentally sound companies as well.
While short squeezes, that Reddit traders have built their reputation for, can be a short-term price driver, they can’t impact the price action in the medium to long term. Here are the five stock tips from WallStreetBets that look good buys in the third week of September.
Beachbody (NYSE: BODY)
Beachbody went public this year through a SPAC (special purpose acquisition company) merger. The stock trades at a big discount to the SPAC IPO price of $10. It has seen some upwards momentum amid the pumping from WallStreetBets. Notably, the famous hedge fund Appaloosa which is led by David Tepper disclosed a position in BODY stock in its second-quarter 13F filings.
Why BODY is a good WallStreetBets stock to buy
Beachbody expects its revenues to rise at a CAGR of 30% between 2020-2025. The stock has been under a pressure amid the sell-off in growth names. Rival Peloton has also come off its highs. That said, company-specific factors, including a recall of products, have been weighing heavy on Peloton stock.
Wall Street analysts are also bullish on Beachbody stock and it has three buy and one hold ratings. The stock’s median target price of $11.25 implies an upside of 56.5% over yesterday’s closing prices. The stock’s street-high target price of $15 is a premium of 108% over current prices.
Beachbody’s valuations look quite reasonable after the fall. The stock is currently popular on WallStreetBets which could lead to more upside in the short term. That said, BODY is a fundamentally strong company with strong growth prospects, including in international markets. If you are looking at a WallStreetBets stock that looks undervalued, BODY looks among the best bets.
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Palantir (NYSE: PLTR)
Palantir is currently the most popular stock on WallStreetBets. The stock gained popularity among Reddit traders in the first quarter of 2021 also. Back then, the data analytics company had surged as high as $45. Arguably, WallStreetBets’ ability to pump stocks has come down drastically from the first quarter when the group triggered epic short squeezes in stocks like GameStop and AMC Entertainment.
Palantir is a WallStreetBets stock, but not a meme stock
Meanwhile, while Palantir is a popular WallStreetBets stock, it is not the typical meme stock. The stock has a positive long-term outlook considering the growing demand for data analytics. While the company expects revenues to rise at a CAGR of 30% till 2025, the actual growth could be much higher considering the number of new deals that it keeps on signing.
During the second quarter of 2021, the company closed 62 new deals valued above $1 million. Out of these 30 deals are above $5 million while 21 deals are above $10 million.
Palantir stock is looking bullish on the charts and trades above the short-term as well as the long-term moving averages. The stock has found strong support at the 200-day SMA (simple moving average) and currently trades above the price level. Its MACD (moving average convergence divergence) also gives a buy signal.
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Lucid Motors (NYSE: LCID)
Electric vehicle stocks have generally been popular on WallStreetBets. Lucid Motors that listed through a reverse merger with Churchill Capital IV (CCIV), is currently a popular WallStreetBets stock. That said, the stock looks like a good stock and there are several positive short-term triggers for the startup electric vehicle company.
Analysts are bullish on LCID stock
Most analysts have initiated coverage on Lucid Motors stock with a buy rating. Adam Jonas of Morgan Stanley has been a notable exception though. Earlier this week, Bank of America analyst John Murphy initiated coverage of the stock with a buy rating and a $30 target price. Murphy termed Lucid Motors stock as “the Tesla/Ferrari of new EV automakers”
“Our Buy rating on Lucid Group is predicated on our view that the company is one of the most legitimate among the universe of start-up electric vehicle (EV) automakers and also a relative competitive threat to the universe of incumbent automakers,” it said in its note.
Lucid Motors catalysts draw WallStreetBets attention
Lucid Motors is among those WallStreetBets stocks where Wall Street analysts and Reddit traders have convergent views. Later this month, Lucid Motors would showcase its assembly line which would be subsequently followed by the deliveries of its Air sedan. These catalysts could take the stock higher.
According to Murphy, “A better measure of LCID’s success than near-term financials while the company/industry is still in very early stages will be customer reservation trends (latest estimate of >10k as of June and Dream Edition fully reserved) and progress on start and ramp of production (target for SOP as of June had been 2H:21). Positive developments on both fronts will be necessary for the stock to work, which we generally anticipate.”
Overall, if you are looking at a good startup EV company, Lucid Motors looks among the best WallStreetBets stock to buy in September.
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IronNet (NYSE: IRNT)
IronNet also went public through a SPAC merger last month. The company recently released its earnings and maintained the guidance for the year. There has however been a frenzied rally in the stock and it has gained 131% over the last five trading sessions.
That said, while IronNet looks like a good WallStreetBets stock to buy considering the positive outlook for cybersecurity companies, the valuations look stretched at these prices. IRNT stock was trading sharply lower in US premarket trading today as the short squeeze seems to have lived its course.
Meanwhile, if the stock drops to near $30 price levels, it could be worth a look. The company expects its TAM (total addressable market) to rise to $41.1 billion by 2025 and has forecast its revenues to rise to $287.5 million in that year.
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Tilray (NYSE: TLRY)
Cannabis company Tilray is among the popular WallStreetBets stock. Reddit traders triggered a massive short squeeze in the stock earlier this year ahead of the merger with Aphria. However, the stock soon fell from the highs. Simply put, given the merger arbitrage between Tilray and Aphria shares, either TLRY had to some down or Aphria had to go down. The possibility of the latter happening was low, and Tilray eventually settled near the merger ratio as the merger date neared.
Tilray stock’s forecast is bullish
Analysts have a bullish forecast for TLRY stock and see a massive upside in TLRY stock. Its median target price of $16.4 is a premium of 37.5% over current prices. The stock’s highest target price of $27 is a premium of 125%. It trades very close to the street low target price of $12. TLRY stock however has a buy rating from only five analysts while 13 rate them as a hold. Only one analyst has a sell rating on the stock.
After Tilray’s merger with Aphria, Jefferies had issued a bullish note. “For us, when Aphria and Tilray combined, it was the perfect match. In Canada, a leading portfolio of brands, supported [by] an efficient cost structure. In Europe, the market is now picking up, while Tilray’s scale and Aphria’s unique German positioning make it perfectly suited to succeed,” it had said in the note.
Tilray cannabis stock catches WSB’s eye
In the past, cannabis stocks like Sundial Growers have also been popular on WallStreetBets. Meanwhile, Tilray has also made a foray into the US cannabis market through its investment in Medmen. Also, as it realizes the synergies from the Aphria merger, the stock could deliver good returns in the medium to long term.
All said TLRY looks among the best WallStreetBets stock to buy and bet on eventual marijuana legalization in the US.
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About Mohit PRO INVESTOR
Mohit Oberoi is a freelance finance writer based in India. He has completed his MBA with finance as majors and also holds a CFA charter. He has over 14 years of experience in financial markets. He has been writing extensively on global markets for the last seven years and has written over 7,500 articles. He covers metals, electric vehicles, asset managers, tech stocks, and other macroeconomic news. He also loves writing on personal finance and topics related to valuation.
Palantir Joins IronNet, GameStop, AMC Among Top WallStreetBets Interests Amid Wejo Partnership – AMC Entertainment Holdings (AMC)
IronNet Cybersecurity Inc. (NYSE:IRNT) continues to be the most-discussed stock on Reddit’s r/WallStreetBets forum as of Thursday night, while TMC the metals company Inc. (NASDAQ:TMC), Offerpad Solutions Inc. (NYSE:OPAD), Palantir Technologies Inc. (NYSE:PLTR) and GameStop Corp. (NYSE:GME) are also seeing high interest.
What Happened: IronNet Cybersecurity is seeing the highest interest on the forum with 1,996 mentions as at press time, while mining startup TMC the metals company was a distant second with 848 mentions, data from Quiver Quantitative showed.
Real estate tech startup Offerpad Solutions and exchange-traded fund SPDR S&P 500 ETF Trust (NYSE:SPY) are in the third and fourth positions, having attracted 585 and 571 mentions respectively.
Apart from data analytics company Palantir Technologies and videogame retailer GameStop, the other stocks trending on the forum include oral care company SmileDirect Club Inc. (NYSE:SDC), Lidar company AEye Inc. (NASDAQ:LIDR), electric air tax startup Lilium N.V. (NASDAQ:LILM) and movie theatre chain AMC Entertainment Holdings Inc. (NYSE:AMC).
Why It Matters: IronNet Cybersecurity, founded by former National Security Agency (NSA) director Keith Alexander, is seen as a potential candidate for a “gamma squeeze.” The cybersecurity company’s shares surged almost 29% in Thursday regular trading session on above-average trading volume.
Shares of TMC the metals company gained almost 24% in the regular trading session. A post on the WSB forum dubbed TMC a “nuclear bomb,” citing a regulatory filing that showed the company has a total of 224 million shares outstanding, but only 2.7 million shares are publicly traded currently.
AEye’s shares surged more than 36% in the regular trading session. The lidar company is seeing high interest from retail investors after it announced the appointment of new board directors as well as the opening of new offices in Japan and South Korea earlier this week.
Palantir, a long-time favorite on the forum, has been seeing high interest after announcing a partnership with Wejo to develop an integrated data ecosystem for the automotive industry.
Price Action: IronNet Cybersecurity shares closed 28.9% higher in Thursday’s regular trading session at $41.40, but declined 14% in the after-hours session to $35.59.
TMC the metals company shares closed almost 23.9% higher in the regular trading session at $12.39 and further gained almost 33.4% in the after-hours session to $12.55.
Offerpad Solutions shares closed almost 58.7% higher in the regular trading session at $19.97, but declined almost 10.8% in the after-hours session to $17.82.
Technical analysis trends GAMESTOP CORP.
|Short Term||Mid-Term||Long Term|
Income Statement Evolution
|Number of Analysts||4|
|Last Close Price||
|Average target price||
|Spread / Average Target||-81,8%|
Dogecoin Rival Shiba Inu Overtakes WallStreetBets-Favorite Clover Health In Market Cap, Eyes Wish Stock Next
Meme cryptocurrency Dogecoin’s (CRYPTO: DOGE) rival Shiba Inu (CRYPTO: SHIB) has overtaken Reddit-favorite Clover Health Investments Corp. (NASDAQ:CLOV) in terms of market capitalization, while eyeing the market capitalization of e-commerce company ContextLogic Inc. (NASDAQ:WISH), another stock favored by retail investors, in sight.
What Happened: Shiba Inu’s market capitalization stands at $3.56 billion as at press time as per CoinMarketCap data, compared to Medicare Advantage insurer Clover Health’s market cap of $3.48 billion. Wish platform operator ContextLogic has a market capitalization of $3.96 billion.
See Also: How To Buy Shiba Inu (SHIB)
Shiba Inu, which calls itself the “Dogecoin killer,” is up 34.2% during the past 24 hours. Over a seven-day period, the altcoin has risen 27.2%.
However, the cryptocurrency is down 76.1% from its all-time high of $0.0000388 reached in May.
Shiba Inu is an Ethereum (CRYPTO: ETH)-based Dogecoin alternative that supports projects such as a non-fungible token art incubator and a decentralized exchange known as Shibaswap.
Why It Matters: Shiba Inu’s strong gains come after it was reported that cryptocurrency exchange Coinbase Global Inc. (NASDAQ:COIN) listed the token on its trading platform on Thursday. Supporters of the coin view the listing on Coinbase as a significant development.
Shiba Inu is currently trending in the fourth spot among the most-discussed cryptocurrencies on Twitter, as per Cointrendz data.
Price Action: Shiba Inu is up 34.2% during the past 24 hours, trading at $0.000009035 at press time.
A mysterious Reddit user on the WallStreetBets page — which made headlines for driving the so-called meme stock rally in GameStop and other stocks earlier this year — appears to have predicted Amazon’s deal with buy-now-pay-later company Affirm that sent the latter’s stock soaring.
“$AMZN is up to something with $AFRM,” Reddit user RossPG wrote on Aug. 15, referring to the stock tickers for Amazon and Affirm.
“On August 12th, something very strange happened. The url amazon.com/affirm no longer led to an error message,” the user added. “In fact, it redirects to a link that says ‘Pay over time with Affirm’ in the tab title, and, if you’re on the app it says ‘Search in Pay over time with Affirm’ in the search bar.”
The user, who declined to identify themselves or speak in an interview when reached for comment by The Post, included an image of a search bar with that text that purported to show an example from an iPad.
When The Post went to that page from an iPhone, the text in the search bar did not mention Affirm and instead read, “Search in Pay over time.”
The user added that the URL was set up on Aug. 12, citing a review of the website page source.
Also, the user claimed they identified a specific node ID associated with the URL. A node ID is a unique set of numbers in a URL that directs users to a new section of content added to a website.
“It seems very unlikely they set up a specific node ID url if something wasn’t brewing,” the Reddit sleuth said.
The user added that other Amazon customers had recently noticed the addition of the word “option” on the e-commerce site’s checkout page under “monthly payments,” suggesting that there may soon be more than one option.
And finally, the user noted that Google search results for “Amazon Affirm” had changed a couple months ago, hiding a robo-generated search result that had previously been there that could have suggested an Amazon partnership with Affirm.
The user surmised that all this meant “something is going on” between Amazon and Affirm.
And sure enough, 12 days after the post, on Aug. 27, Amazon and Affirm announced a partnership, sending Affirm stock soaring more than 46 percent on Monday.
The Reddit user who appeared to be ahead of the curve claimed he owned 21 call option contracts at a strike price of $70 per share expiring in November and three call option contracts expiring in September at a strike price of $75 per share.
Those contracts give the person the chance to buy shares of the company at $70 and $75 — at any point before they expire — which should give the owner a hefty profit since Affirm stock soared to nearly $100 per share after the news of the Amazon partnership.
Shares of Affirm closed Monday well above those prices at nearly $100 per share.
To be sure, there’s reason to be skeptical of the user, who created his Reddit account in 2017 and first appeared in the WallStreetBets channel on Aug. 14, just one day before posting about the Amazon-Affirm research.
On Twitter and Reddit, some hailed the purportedly amateur investigator for their work, while others poked that they could be an Amazon employee.
Amazon did not return The Post’s request for comment and a representative for Affirm declined to comment.
It’s only natural that many investors, especially those who are new to the game, prefer to buy shares in ‘sexy’ stocks with a good story, even if those businesses lose money. But as Peter Lynch said in One Up On Wall Street, ‘Long shots almost never pay off.’
In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like Betsson (STO:BETS B). While profit is not necessarily a social good, it’s easy to admire a business that can consistently produce it. Conversely, a loss-making company is yet to prove itself with profit, and eventually the sweet milk of external capital may run sour.
How Fast Is Betsson Growing?
If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Over the last three years, Betsson has grown EPS by 12% per year. That’s a good rate of growth, if it can be sustained.
I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats). The good news is that Betsson is growing revenues, and EBIT margins improved by 4.3 percentage points to 22%, over the last year. Ticking those two boxes is a good sign of growth, in my book.
You can take a look at the company’s revenue and earnings growth trend, in the chart below. For finer detail, click on the image.
The trick, as an investor, is to find companies that are going to perform well in the future, not just in the past. To that end, right now and today, you can check our visualization of consensus analyst forecasts for future Betsson EPS 100% free.
Are Betsson Insiders Aligned With All Shareholders?
Like that fresh smell in the air when the rains are coming, insider buying fills me with optimistic anticipation. That’s because insider buying often indicates that those closest to the company have confidence that the share price will perform well. However, small purchases are not always indicative of conviction, and insiders don’t always get it right.
Like a sturdy phalanx Betsson insiders have stood united by refusing to sell shares over the last year. But my excitement comes from the kr1.5m that CEO & President Pontus Lindwall spent buying shares (at an average price of about kr73.85).
The good news, alongside the insider buying, for Betsson bulls is that insiders (collectively) have a meaningful investment in the stock. To be specific, they have kr263m worth of shares. That shows significant buy-in, and may indicate conviction in the business strategy. Even though that’s only about 2.2% of the company, it’s enough money to indicate alignment between the leaders of the business and ordinary shareholders.
Does Betsson Deserve A Spot On Your Watchlist?
One positive for Betsson is that it is growing EPS. That’s nice to see. Better yet, insiders are significant shareholders, and have been buying more shares. That makes the company a prime candidate for my watchlist – and arguably a research priority. However, before you get too excited we’ve discovered 1 warning sign for Betsson that you should be aware of.
There are plenty of other companies that have insiders buying up shares. So if you like the sound of Betsson, you’ll probably love this free list of growing companies that insiders are buying.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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In this article, we discuss the 10 new Reddit WallStreetBets stocks on the rise. If you want to skip our detailed analysis of these stocks, go directly to the 5 New Reddit WallStreetBets Stocks On the Rise.
WallStreetBets, the Reddit forum with more than 10.8 million members, has become one of the hottest places in the world of finance over the past few months. This is evident from the meteoric rise in memberships – the group had only around 1.6 million members in December 2020. On January 28, the group gained a record 1.5 million members in a single night at the height of the short squeeze saga involving video game retailer GameStop. The forum is used by retail investors for market-related discussions.
Some of the most popular stocks on WallStreetBets presently include Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), NIO Inc. (NYSE: NIO), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), among others. Since retail investors do not often see eye to eye with big finance on key investment choices, the group has become a hotbed of activity around meme stocks – firms with little to offer in terms of basic fundamentals but popular because of internet interest.
On August 30, the founder of the WallStreetBets group, Jaime Rogozinski, gave an interview to news platform Kitco News and revealed that he was confident that a new type of exchange-traded product that would let investors with a stake have a say in the asset selection process would soon be launched. Rogozinski even went as far as to call the product “the next meme stock” and said the product would follow a decentralized autonomous organization model. Rogozinski founded WallStreetBets in 2012.
The influx of retail investors on the market has fundamentally altered the dynamics of Wall Street. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
With this context in mind, here is our list of the 10 new Reddit WallStreetBets stocks on the rise. They were picked keeping in mind the hype around the companies on Reddit forum WallStreetBets.
In order to separate the best from the rest, only the stocks that have registered gains of 10% or more during the last five days were selected for the final listing. The stocks are ranked according to their percentage gains.
The analyst ratings of each firm are also discussed to provide readers with some more context for their investment decisions. The hedge fund sentiment around the stocks was gauged using data of 873 hedge funds tracked by Insider Monkey.
New Reddit WallStreetBets Stocks On the Rise
10. Lithium Americas Corp. (NYSE: LAC)
Number of Hedge Fund Holders: 9
Percentage Gain in Past Five Days: 10.41%
Lithium Americas Corp. (NYSE: LAC) is placed tenth on our list of 10 new Reddit WallStreetBets stocks on the rise. The firm operates as a resource company and is headquartered in Canada.
On August 30, investment advisory Cowen maintained an Outperform rating on Lithium Americas Corp. (NYSE: LAC) stock and raised the price target to $19 from $17, noting that constructive policy and near-term supply limits were driving lithium pricing higher.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Axel Capital Management is a leading shareholder in Lithium Americas Corp. (NYSE: LAC) with 408,130 shares worth more than $6 million.
Just like Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), NIO Inc. (NYSE: NIO), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), Lithium Americas Corp. (NYSE: LAC) is one of the new Reddit WallStreetBets stocks on the rise.
“Lithium Americas: The volatility noted above in LAC has resulted in solid returns via our options trades around our core equity position. At the current time, we are short calls on LAC, as we have done multiple times throughout the position’s life, expiring on May 21, 2021, at a $17.5 and $22.5 strike price. The volume of contracts sold at each strike corresponds to the size of the equity position we want should the calls expire in the money, and the underlying equity gets called away from us. The thought process behind this trade construction is that if we know the size of the position we want at a particular price point, there is no reason not to accumulate additional returns by pre-selling the stock we would have sold anyway.
High levels of volatility positively impact the price of options, increasing the premium we can earn from selling covered calls. To date, we have sold covered calls on LAC that have expired worthless four times, yielding a roughly 7% return on the equity position’s current value or 71bps for the portfolio overall. The outstanding covered calls appear to be trending towards a similar worthless expiration. If they do, the covered call trades on LAC will result in us owning the shares with committed capital of -$0.28 per share.
Although we believe in the fullness of time LAC warrants a $30+ valuation, the prices achieved in early January of this year were not justified by the underlying fundamentals. Some will argue we should have sold down our position. We had already established our option positions and believe LAC is an emerging major in the lithium mining industry. Thus, we decided to maintain the position unchanged. Although still relatively high, the current $15 per share valuation is not crazy compared to where we think the firm should be trading based on fundamentals, so we are no longer overly concerned with the position as is.
LAC management also took advantage of the volatility issuing stock on January 22 for $22 a share. The ~$400 million in proceeds will be used to develop Thacker Pass, the US-based clay lithium deposit, which will likely be the largest producing Lithium mine in America when turned on. In our opinion, the stock issuance could not have come at a better time. LAC management has advanced the project through various development stages (de-risking), but with the share issuance, they have significantly reduced the need to bring in an outside partner to develop the asset as the first phase of the project is expected to cost roughly $581 million. After-tax and at an 8% discount rate, the Thacker Pass project’s present value is approximately $2.6 billion (the firm’s current market capitalization is $1.5 billion). Although the share issuance was dilutive, increasing the total shares by 17%, we believe it will, in the long run, prove a forward-looking, value-additive decision by management.
The lithium market remains an area of interest and focus for us. This reflects our belief that the most exciting investment opportunities to capture secular trends in EV’s and batteries are found upstream in the mining industry. It is also a reflection that there is a greater diversity of lithium investment opportunities relative to other battery metals.”
9. Penn National Gaming, Inc. (NASDAQ: PENN)
Number of Hedge Fund Holders: 40
Percentage Gain in Past Five Days: 11.43%
Penn National Gaming, Inc. (NASDAQ: PENN) is ranked ninth on our list of 10 new Reddit WallStreetBets stocks on the rise. The firm owns and manages gaming and racing properties. It is headquartered in Pennsylvania.
On August 5, investment advisory Stifel reiterated a Buy rating on Penn National Gaming, Inc. (NASDAQ: PENN) stock with a price target of $108. Steven Wieczynski, an analyst at the firm, issued the ratings update.
At the end of the second quarter of 2021, 40 hedge funds in the database of Insider Monkey held stakes worth 1 billion in Penn National Gaming, Inc. (NASDAQ: PENN), down from 42 in the previous quarter worth $907 million.
Along with Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), NIO Inc. (NYSE: NIO), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), Penn National Gaming, Inc. (NASDAQ: PENN) is one of the new Reddit WallStreetBets stocks on the rise.
“Shares of regional casino operation Penn National Gaming, Inc. increased in the quarter on strong share gains in the online sports betting and gaming markets in Michigan and the opening of the large Illinois online sports betting market. Strong sequential growth in revenue and sustained margin improvement in its brick and mortar operations also helped boost the share price. We think these positive developments will lead to improvements in the company’s balance sheet and its EBITDA to free cash flow conversion.”
8. The Beauty Health Company (NASDAQ: SKIN)
Number of Hedge Fund Holders: 33
Percentage Gain in Past Five Days: 12.85%
The Beauty Health Company (NASDAQ: SKIN) is a California-based firm that markets aesthetic technologies and products. It is placed eighth on our list of 10 new Reddit WallStreetBets stocks on the rise.
On August 11, investment advisory Benchmark maintained a Buy rating on The Beauty Health Company (NASDAQ: SKIN) stock and raised the price target to $25 from $18, identifying contracts with retailers and international market expansion as growth catalysts for the firm.
At the end of the second quarter of 2021, 33 hedge funds in the database of Insider Monkey held stakes worth $665 million in The Beauty Health Company (NASDAQ: SKIN).
In addition to Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), NIO Inc. (NYSE: NIO), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG), The Beauty Health Company (NASDAQ: SKIN) is one of the new Reddit WallStreetBets stocks on the rise.
7. Peabody Energy Corporation (NYSE: BTU)
Number of Hedge Fund Holders: 18
Percentage Gain in Past Five Days: 16.32%
Peabody Energy Corporation (NYSE: BTU) is a Missouri-based coal mining firm. It is ranked seventh on our list of 10 new Reddit WallStreetBets stocks on the rise.
On August 2, investment advisory B Riley maintained a Neutral rating on Peabody Energy Corporation (NYSE: BTU) stock and raised the price target to $11 from $7, appreciating the second quarter earnings report of the company.
At the end of the second quarter of 2021, 18 hedge funds in the database of Insider Monkey held stakes worth $297 million in Peabody Energy Corporation (NYSE: BTU), down from 21 in the preceding quarter worth $122 million.
Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), NIO Inc. (NYSE: NIO), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG) are some of the new Reddit WallStreetBets stocks on the rise, along with Peabody Energy Corporation (NYSE: BTU).
6. Hut 8 Mining Corp. (NASDAQ: HUT)
Number of Hedge Fund Holders: 4
Percentage Gain in Past Five Days: 22.08%
Hut 8 Mining Corp. (NASDAQ: HUT) is placed sixth on our list of 10 new Reddit WallStreetBets stocks on the rise. The firm operates from Canada and engages in cryptocurrency mining operations.
On August 3, investment advisory Craig-Hallum initiated coverage of Hut 8 Mining Corp. (NASDAQ: HUT) stock with a Buy rating and a price target of $10, underlining that the firm had the right combination of hash, power, agility and diversity.
At the end of the second quarter of 2021, 4 hedge funds in the database of Insider Monkey held stakes worth $2 million in Hut 8 Mining Corp. (NASDAQ: HUT).
Tesla, Inc. (NASDAQ: TSLA), Apple Inc. (NASDAQ: AAPL), NIO Inc. (NYSE: NIO), Amazon.com, Inc. (NASDAQ: AMZN), and Alphabet Inc. (NASDAQ: GOOG) are some of the new Reddit WallStreetBets stocks on the rise, just like Hut 8 Mining Corp. (NASDAQ: HUT).
Click to continue reading and see 5 New Reddit WallStreetBets Stocks On the Rise.
Disclosure. None. 10 New Reddit WallStreetBets Stocks On the Rise is originally published on Insider Monkey.
Posted on: September 1, 2021, 08:12h.
Last updated on: September 1, 2021, 11:17h.
Skillz (NYSE:SKLZ) stock is soaring Wednesday as the mobile games provider receives increasing attention on popular financial social media sites, including Reddit’s notorious WallStreetBets.
In early trading, shares of the esports tournament provider are higher by more than nine percent on volume that’s already more than triple the daily average. Earlier today, the embattled stock traded up by as much as 15 percent. Wednesday’s bullishness in the name comes after it jumped 11.1 percent yesterday.
Data indicate that Skillz ascended to the top five in terms of message volume on WallStreetBets over the past 24 hours, and is among the top ten trending tickers on StockTwits, another trading forum.
Discussions of Skillz on the Reddit forum WallStreetBets are up more than 4,000% over the past 24 hours, and have surpassed talk of Corsair, GameStop, and AMC,” reports Seeking Alpha, citing Quiver Quantitative.
Video game retailer GameStop and movie theater chain AMC are among the stocks WallStreetBets traders focused on over the past year, amassing significant profits in some cases, while bringing notoriety to the Reddit forum. The aforementioned statistics and the sudden enthusiasm for Skillz could be signs that the name is getting close to “meme stock” status.
Skillz Stock Has Meme Credibility
The phrase “meme stock” was born from the Reddit forum WallStreetBets, or WSB in social media lingo. The cartel of retail traders is industry agnostic, meaning they’re flexible on companies’ sector and industry classifications. But there are some hallmarks WSB traders typically look for.
Notably, the names that often gain prominence in the forum are misunderstood in some form, struggling in terms of price action and heavily shorted. Skillz stock checks at least two of those boxes. The shares are down 41.15 percent year-to-date and are heavily shorted. As of Aug. 13, 57.28 million shares of Skillz were on loan to short-sellers, or 23.46 percent of the total float, according to Dow Jones data.
Since March, at least three bearish research reports emerged attacking Skillz, sparking significant downside in the stock.
Outsiders view the short interest component as essential to WSB trades because of the belief that the army of Reddit traders will band together, buy a stock, run it higher and force short sellers to cover their bearish positions, fanning the flames of the rally in the process.
Potential Catalysts for Skillz Stock
Interestingly, the two-day rally in Skillz arrives almost exactly a year after Keith Gill, the WSB trader known as The Roaring Kitty, got the party started with GameStop.
Specific to Skillz, the name has some other possible catalysts lingering.
It’s residing 14.76 percent below its 50-day moving average. If the current rally is sustainable and takes the stock above that technical indicator, bearish traders could grow antsy and cover positions. That’s because it’d be bullish in technical analysis terms for the stock to reclaim that line, which it hasn’t traded above since July.
Second, Skillz has been rumored to be a potential takeover target. If that speculation gains momentum, and more importantly, credibility, the stock would almost certainly rally. That would likely put shorts in a bind, too.