🗞️The Wrap: Outlook

A look into the greatest fund there ever was, a pig farmer, and the most challenging Trader Teaser yet. Plus, a sneak peak at what 2020 might hold according to the worlds’ biggest players. 

5 stocks making 52 week highs

  • NantKwest (NK
  • Neolukin Therapeutics (NLTX
  • Deciphera Pharma (DCPH
  • Worthington Industries (WOR)
  • Darling Ingredients (DAR)

Pig Money

No billionaire saw their fortune grow more quickly in 2019 than pig farmer Qing Yinglin, according to Bloomberg. The Shenzhen based pork producer added US$6.5b to his fortune taking his total wealth to US$8.5b. Yinglin is a true self-made man, starting with just 22 pigs, he now processes over 5 million a year. Swine flu across Africa has driven pork prices up, and with it the value of his company, Muyuan Foodproducts (002714) by 300%.

You may have noticed the strange numbered ticker of certain foreign stocks. Like Muyuan above or HSBC which is listed as 0005 on the HKSE for example. But why? Quite simply, it’s to help western investors identify the stock with greater ease.

The top 5 on Bloomberg’s Billionaires Index are largely as expected: Gates, Bezos, Zuckerberg, Buffett and Bernard Arnault, the CEO of the company behind Louis Vuitton and Moët.

RenTech

We’ve spoken briefly about the greatest fund on earth before but this week, Renaissance Technologies deservedly get their own section. 

Founded by a Cold War codebreaker, RenTech’s premier Medallion Fund has averaged a return of 66% p.a. since their first trade in 1988. That’s not a typo. In 2008, when the S&P500 fell 35%, the Fund was up 98%. The staff is made up of mathematicians and data scientists – it’s the antithesis of the Patrick Bateman Wall St stereotype yet they demolish Manhattan and Connecticut’s biggest names year on year.

While their strategy is well guarded, understandably, it is built upon executing high frequency trades on statistical probable price movements.

A few paragraphs on the fund won’t do it justice. Read more on how they do it Bloomberg and Quartz.

Top 5 Gainers

  • NantKwest, Inc. (NK) +98.9% for the week
  • Axsome Therapeutics (AXSM) +68.4%
  • Assertio Therapeutics (ASRT) +63.0%
  • Amneal Pharma (AMRX) +47.7%
  • Renewable Energy Group (REGI) +43.4%

Top 5 Fallers

  • Gossamer Bio Inc (GOSS) -43.1%  
  • Phoenix New Media (FENG) -34.8%
  • Adamas Pharma (ADMS) -33.8%
  • Aqua Metals (AQMS) -30.5%
  • Owens & Minor (OMI) -26.1%

I’m sure you’ll hear enough holiday themed puns over the next week so I’ll keep it short and simple. Here’s when the market will be closed over Christmas and New Year.

Christmas Eve: 1pm close (usually 4pm)
Christmas Day: CLOSED
New Year’s Day: CLOSED

What We’re Reading | 2020 Outlooks

While our Year in Review may have had some bold predictions for 2020, the content in here has a few more guesses on where we’re heading. Some great holiday reading for those lucky enough to be sitting on the beach in the sun.

One Reddit user compiled a folder with the major financial institution’s 2020 outlooks. Invesco, UBS, Vanguard and a heap more have laid down what we may expect over the next 4 quarters.  

While these predictions won’t necessarily come to fruition, the thought processes and level of research is really insightful. Something to read while you’re waiting for take off.

Trader Teaser

A large white cube is painted red, and then cut into 27 identical smaller cubes. These smaller cubes are shuffled randomly.

A blindfolded person reassembles the small cubes into a large one. What is the probability that the outside of this large cube is completely red?

Best Buy | Kodak (KODK) +34%

Despite a fall of 91% from all time highs, Kodak has forced itself into this week’s Best Buy. The camera technology company has long been in the news for its sustained downturn but the stock is up 61% since a low in August. Well done to this trader who is still riding the wave.

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