🗞️The Wrap: Trillions

The biggest IPO in world history, how a rainy day affects your portfolio, and one book that promises to beat the market. We also invite you to share your morning coffee with the Stake team. Read on to make sense of it all.

5 stocks making 52 week highs

  • ArQule (ARQL) +114.6% in the last week
  • Neolukin Therapeutics (NLTX) +63.1%
  • Express Inc (EXPR) +57.3%
  • Genesco (GCO) +42.6%
  • Powell Industries (POWL) +27.0%

Aramco

A company almost as big as Amazon and Apple combined, Saudi Aramco officially started trading Saudi Stock Exchange just hours ago. The US$1.9t oil company experienced a 10% price surge as trading went live, hitting the daily ceiling for Saudi stock price movements.

So just how big is this behemoth? Well you’ll need 13 digits and 4 commas to quote its value. Its revenue is over US$330b, earned through the extraction of 13.6m barrels per day. That’s how big. When you consider Shell and BP each produce around 4m barrels a day, you can’t see why such a valuation has followed this company.

Market Blizzards

With the smoke that has been blanketing the east coast of Australia, it got me thinking; does weather affect the market? Sure, the higher level weather events like natural disasters may generally lead to sell offs but what about rain, or heat, or snow. Turns out it’s been asked and answered before.

A study from earlier this year found that high temperature had far less of an effect on stock price movements once an air cooling system was installed in the NYSE. You can see why. Scores of hot, bothered traders can make more rational decisions once cool. At the time (1903) the bulk of trading was done on Wall Street so the behaviour in the room did influence the market. 

How about in more modern times? Another study that looked at trading and weather data across 26 countries from 1982 to 1997 found sunshine was positively correlated to stock returns but rain and snow are unrelated to returns. Of course, even if this is true, it’s more of an interesting tidbit of information rather than anything that trading strategies should be based on.

Most Traded Exotic ETFs

  • VelocityShares 3x Inverse Natural Gas ETN (DGAZ) +18.6% in the last week
  • Direxion Daily Small Cap Bear 3X ETF (TZA) -3.3%
  • ProShares Ultra VIX Short-Term Futures ETF (UVXY) +0.2%

Most Traded Small Caps

  • Aurora Cannabis (ACB) -1.61% in the last week
  • MoneyGram (MGI) -15.1%
  • Denbury Resources (DNR) -8.9%

Stake Breakfast Club 

We’ve already shared a few lattes and avocado toasts with Stake Traders in the last few weeks. Now  we want you to come along too.

A chance to unload any and every bit of feedback you have about the platform, be the first to hear what’s on the horizon and enjoy some bacon and eggs.

While our breakfasts are in Sydney, all ages, account sizes, types of investors invited. Let me know if you’re interested. 

The Year That Was

You would have received an email from us yesterday with some super interesting insights into the year that was and the year to come. If you missed it, you can catch up on it all here.

What we’re reading | The Little Book That Still Beats The Market

Return on Capital and Earnings Yield. According to Joel Greenblat, they’re the only two metrics you need to beat the market. His systemised approach to investing has never failed to beat the market…as long as you are willing to wait 3 years and persevere through down years. In fact, over any three year period, the method has never lost to the market, according to the author.

I’m not a snake oil salesman. The approach isn’t for everyone and past performance doesn’t indicate future results, but the promise is enough to read the book. Check it out

Trader Teaser

I draw 4 cards from a deck of cards. What is the probability I get the 2 red Kings and 2 black Queens?

Best Buy | Digital Turbines (APPS) +71%

A rocket in 2019, Digital Turbines (APPS) is powering portfolios around the world and has previously featured in Best Buy. Here’s a trader from WA who has enjoyed the ride hopping in at $4.82 in June and has ridden it all the way to a 71% gain. 

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