🗞️The Wrap: All Stars

We’re talking Magic Metal (not an obscure punk rock genre), the MVPs of volatility, the MBAs behind the NBA and recognise the risers among the fallers. Plus, come and meet us, as we’re teaming up with General Assembly and you’re invited.

5 stocks making 52 week highs

  • Everbridge (EVBG) +13.7% in the last week
  • Zoom Video (ZM) +11.1%
  • AVX Corp (AVX) +5.9%
  • 21Vianet (VNET) +5.4%
  • Trex Co. (TREX) +1.8%

Magic Metal

Gold is grabbing all the headlines, naturally. Your grandad has held it since you needed to sign a piece of paper to own a stock! Yet Palladium, it’s little known cousin, doesn’t even have a place on the podium, and that’s because it’s in a whole other league.

33 spots apart on the periodic table but 220% difference over the last 3 years and up 3.5x since 2017, Palladium is soaring. But why? Because it’s doing its part to save the world.

The metal plays a key role in the conversion of harmful gases like Carbon Monoxide into CO2 and water vapour, especially in vehicles. As manufacturers improve their efficiencies and sustainability, demand can’t keep up with supply. According to the BBC, thefts of car components containing the metal jumped 70% in 2019.

For completely legal Palladium exposure, check out this ETF. For all that glitters, search ‘Gold’ on the Stake app for some nuggets of opportunity; long and short.

All Stars

There’s a school of stock analysis that takes fundamentals away from the financial statements and looks at the people driving the ship. They argue that management is the key to a company’s success, not any earnings multiple or assets on the BS. The NBA may be the greatest proof of this.

This article from Pitchbook lays out how the NBA’s most successful teams are the product of some titans of Private Equity. The best 4 teams in the East last year were all owned by Private Equity firms. What’s really interesting is the emphasis they placed on management and leadership.

The Bucks, Raps, C’s and 6ers all hired a great business mind to put behind the reigns of the franchise. With an emphasis on analytics and probabilities, success came for these teams. The Raptors starting 5 had no top 20 draft picks when it won the Championship last year. These analysts may be onto something when they say management is the key to success. Read the article for some more tangible examples.

In fact, Memphis’ head coach has never even played basketball. He went to Wharton, one of the best Business schools in the world, and is using some next level abstract smarts to take control of one of the league’s most exciting young teams.

Top 5 Gainers

  • Eldorado Gold (EGO) +48.2% in the last week
  • Moderna (MRNA) +25.7%
  • Dominos Pizza (DPZ) +24.6%
  • Vir Biotech (VIR) +23.9%
  • Avanos Medical (AVNS) +16.6%

Top 5 Fallers

  • Tupperware Brands (TUP) -47.3%
  • Mednax (MD)  -30.3%
  • Cornerstone on Demand  (CSOD) -33.4%
  • Genesis Energy (GEL) -32.3%
  • Kosmos Energy (KOS) -28.8%

Admit One

Respect to the FIRE guys, but maybe living off Magee Noodles and using Spotify Free isn’t for everyone. Building wealth is just as much about increasing your revenues than minimising your expenses and General Assembly is inviting you to learn more.

And the 2nd most stylish dresser in the Stake office knows all about it. My boss, Bryan Wilmot, talks about the changing world of personal finance along with industry experts from Earnd and Equitise. From the tech-enabled changes in the personal finance space to how you can take advantage of it; this talk is for anyone interested in building wealth and we’d love to see you there.

Wed 25 March 6pm-8pm, 1 Market St, Sydney.
FREE but book here.

What We’re Watching |  Real Vision

I’ve recommended Real Vision before; they’re free collection of interviews on markets are outstanding; the collection reserved for subscribers is even better.

For those who are new, Real Vision asks the questions you never thought of asking to experts you’d never have access to. We’re talking about real life Axelrods sharing their views on markets. It’s Netflix for night owls who are up till 4am watching their portfolio tick. If you’d like an especially relevant video, check out every video to do with recession here.

If you’d rather let Mr Market do his work and stay away from Doom talks, this video on machine learning and markets is awesome. I’ve plugged RV before and I will shamelessly do it again.

Trader Teaser

You have a 100 coins laying flat on a table, each with a head side and a tail side. 10 of them are heads up, 90 are tails up. You can’t feel, see or in any other way find out which 10 are heads up. Your goal: split the coins into two piles so there are the same number of heads-up coins in each pile.

You know the drill. First 3 correct replies win a 50% rebate on FX fees for their next AUD to USD transfer.

Best Buy | UVXY +65.4%

Successful* volatility traders deserve every ounce of respect you can throw at them. It takes some real gusto to trade such a fragile (and naturally volatile if you pardon the tautology) instrument. This trader saw the dip coming and bought UVXY coming at a natural level support. Needless to say the past few days haven’t been so bad for this South Australian.

*I’ve also seen (and felt) how many horribly mistimed VIX related trades are placed. Make sure you know how these exotic products work before you try and make a name for yourself as the next u/WSBGod.

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