Market Assessment – As of Saturday, March 26, 2022 at 1:06 p.m.
Since our last letter of March 7, the DOW Jones Industrial Average moved up about 2,000 points to close on Friday, March 25 at 34,861.24 – up about 2,000 points.
Those stocks we mentioned, that we said were selling at “Once in a Blue Moon” bargain prices: Netflix (NFLX), Facebook (FB), Pay-Pal (PYPL), Teladoc (TDOC), CRISPER (CRSP) and Sunrun (RUN), all moved up strongly. The Market has been incredibly resilient in the face of major bearish headwinds; The War in Ukraine, Rampant Inflation, Big Interest Rate Hikes, and The Covid. We think the “Bottom is In” regarding those quality speculative stocks.
Below we are featuring two “Very Speculative” stocks that we bought in the last week or so.
The first Stock Pick is Alset EHome Int. (AEI) which closed at $.534 on Friday. We began buying the stock on March 14th at prices from $.47 to $.48 per share. On Wednesday 3/22/22 it got as high as $.72. Huge buying in the stock.
We originally bought it because it was reported in the Insiders section of the FINVIZ.com site that an Insider bought $1,500,000 worth of the stock at $.38 per share. That was enough for me because the stock was skyrocketing on huge volume. So I bought in. Later, I tried to do some research on the stock at finance.yahoo.com, but really couldn’t figure out what they do. . .things like “a diversified holding company principally engaged through its subsidiaries in the development of EHome communities and other property development, financial services, digital transformation technologies, biohealth activities, and consumer products… (A bunch of blather).
But what I did find out later was that the company had an IPO in November of 2020 for $15 Million – 2,142,857 Shares @$7.00; another Equity Sale in May of 2021 for $32 Million- 6,311,637 shares @$5.07; Another Equity Sale in July of 2021 for $32 Million – 15,000,000 shares @$2.12; And the most recent Equity Sale in December 2021 for $30 Million- 50,000,000 shares @$.60. So regardless, the company should be well funded and have plenty of cash. It was also reported that on 12/08/21 the CEO Ambrose Chan bought $4.4 Million of the stock at $.60 per share.
The reason for all the buying became clear to me on March 22 when the company announced that it plans to embark on a cryptocurrency mining business through Alset Mining Inc., a wholly-owned subsidiary.
We will be buying more of the stock on Monday 3/27/22.
The second Stock Pick is Tilray. Inc. (TLRY) $8.56. This is a “Pot” stock. Tilray merged with Aphria on May 3, 2021, to create the world’s largest cannabis company.
The new company continues to trade under the TLRY stock symbol. All of the major pot stocks soared last week on news that the U.S. Congress passed a piece of legislation supporting marijuana research, and more significantly, will be holding a floor vote on the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act next week.
The House of Representatives previously passed that legislation but it stalled in the Senate.
The stock is ripe for a short squeeze — if you look at the chart, you can see that in October of 2020, the stock moved from $5.00/Sh to over $65.00/Sh in just 4 months – due to a short squeeze. Back then it had a very small float (shares available to trade). The float is much higher now – 447.82 Million shares, but also has 65.84 Million shares Short — per Finance.yahoo.com which is 13.97% of the float, as of March 15th, 2022. That’s a large percentage of the float, especially if the stock is selling at the low end of its trading range. I’m sure the shorts are terrified — the stock traded 450,000,000 shares in the last 3 days, equal to its total float outstanding. If the Reddit Boys get involved, the stock could easily go to $40. I could use the money.
I began buying the stock at $5.53 on March 18 and bought more on March 23 at about $6.20, and was lucky enough to buy more on March 24 at $6.57 just as it was exploding to the upside – to double my position. We don’t plan to sell either of these stocks until they get a whole lot higher.
Joe Cotton has won 3 National Stock Picking Contests with yearly percentage gains in excess of 96%. His 2020 Wall Street’s Best stock contest winner was Inovio Pharmaceuticals (Symbol INO) with a 742% 1-Year return.
Joe Cotton has won three National Stock Picking Contests with yearly percentage gains in excess of 96%. His 2020 Wall Street’s Best stock contest winner was Inovio Pharmaceuticals (Symbol INO) with a 742% 1-Year return.
This article is not investment advice, nor is it in any way to be construed as investment advice. For Investment Advice consult a Registered Investment Advisor or a Certified Financial Planner. Joe Cotton’s website is www.cottonstocks.net. NKY’s Joseph W. Cotton is publisher of the market newsletter, Cotton’s Technically Speaking. He is a graduate of Xavier University, a former bank manager and credit analyst, and a former Fidelity Investments registered investment representative. Contact him at cottonstocks@hotmail.com
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