Connect with us

Base Metals

Musk Tweets Combine With Mathematical Potential To Send Shiba Inu Higher

Both investors and potential investors in Shiba Inu (CCC:SHIB-USD) should expect more of the same from the coin. The unpredictable volatility that has…

Share this article:

Published

on

This article was originally published by Investor Place

Both investors and potential investors in Shiba Inu (CCC:SHIB-USD) should expect more of the same from the coin. The unpredictable volatility that has followed the other dog-themed cryptocurrency isn’t going anywhere.

Source: Shutterstock

According to Coinbase (NASDAQ:COIN) SHIB prices had risen by 260% in the last week at the time this post was written. But they also declined by 20% over the previous day, and 8% in the hour prior to this writing on Oct. 9.

If that isn’t volatile, then nothing is.

What Underpins SHIB Movement

The short answer to the question of what drives SHIB movement is that no one really knows. But what is certain is that investors are going to continue to speculate on the wild ride that is Shiba Inu.

That’s a near certainty given the simple mathematics. SHIB currently trades at $0.000025, a fraction of a fraction of a penny. Frankly, that’s a number we don’t often see in everyday life, so it’s difficult to understand.

But if you were to invest $100 into Shiba Inu at that price you would then control 4 million units of the cryptocurrency. And that’s incredibly tempting given that it has appreciated by a mind boggling 23,000,000% over the last year.

Given those figures, it’s plain to see why the most speculative investors are drawn to it. It essentially defies logic much like Dogecoin (CCC:DOGE-USD) did earlier in the year. In fact, speculators are wondering whether seemingly unrelated news has caused a recent spike.

Origin of Recent Spike

Shiba Inu spiked 260% between Oct. 2 and Oct. 7. In crypto, that isn’t unheard of. In the stock market that is much more rare. And it has everyone talking.

Speculators are wondering what catalyzed the movement. There was a lot of speculation that a picture posted as a tweet from Elon Musk began the spike. The picture tweet included Musk’s puppy, a Shiba Inu named Floki, and little else.

But that tweet was sent on the evening of Oct. 3, well after the spike had begun a day earlier. So, at best, Musk’s dog, Floki, had something to do with the price spike but didn’t catalyze it initially. (Yes, you read that correctly.)

The much more relevant catalyst is the concerted effort to reduce the supply of Shiba Inu and thus make it more valuable.

Before diving into that though, I’d like to note my opinion here. It’s very obvious that playing with Shiba Inu will require an iron stomach when substantial amounts of capital are concerned.

In my opinion, that makes it very dangerous. The stock market maxim that you should only invest what you’re willing to lose holds doubly true in the case of SHIB-USD.

That aside, let’s get back to what is likely the biggest catalyst for the recent price movement.

Burn to Earn

My colleague David Moadel highlighted a concerted effort by the token’s developers to reduce the circulating supply of Shiba Inu.

As he notes, to do so a “coin holder transfers a portion of his or her assets to a wallet which nobody can access. In effect, this destroys those coins and thereby reduces the cryptocurrency’s total supply.”

It looks like his prediction has proven to be correct as prices have risen as coin holders take their respective coins out of circulation. One of the most notable of whom is none other than Ethereum’s (CCC:ETH-USD) Vitalik Buterin.

Shiba Inu has a total token supply of 1 quadrillion. Buterin is a massive holder and he recently sent 410 trillion SHIB to a dead wallet location. That effectively takes them out of circulation, cupping the value of the remaining tokens.

And, according to Coinbase, there are now 398.4 trillion SHIB tokens in circulation.

What to Do

Shiba Inu still makes sense based on the mathematics underpinning potential gains. You can even say that there’s a solid economic theory behind recent SHIB gains based on basic supply and demand tenets.

Investing in it remains a subjective matter. It will sound stupid to some, but to others it remains a great potential “I told you so” investment.

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

More From InvestorPlace

The post Musk Tweets Combine With Mathematical Potential To Send Shiba Inu Higher appeared first on InvestorPlace.


Author: Alex Sirois

Share this article:

Base Metals

GeekWire Podcast: Tech pay, cloud trends, Kraken, and self-driving cars, with Qumulo CEO Bill Richter

Everyone is closely monitoring the implications of remote work as we emerge from the pandemic, so it’s no surprise that one of the most widely read stories…

Share this article:

Qumulo CEO Bill Richter is our guest on the GeekWire Podcast. (Qumulo Photo / Andy Rogers)

Everyone is closely monitoring the implications of remote work as we emerge from the pandemic, so it’s no surprise that one of the most widely read stories on GeekWire this week — right behind the Titanic’s disappearing bathtub and Facebook’s potential name change — was a story on trends in tech salaries. 

Two big trends stood out in the report from jobs site Hired:

  • Average tech salaries in Seattle are up 4.6% from last year, to $158,000, second only to the Bay Area, which saw its average dip slightly to $165,000.
  • Nationwide, the average U.S. tech salary fell 1.1% to $152,000. With the shift to remote work, “employers are expanding their addressable candidate pool, filling roles faster and paying lower average salaries,” Hired said.

What’s going on here? That’s our first topic on this week’s GeekWire Podcast.

Guest commentator: We get a real-world perspective on tech hiring, remote work, and pay trends from Bill Richter, president and CEO of Qumulo. The cloud file storage and management company joined the ranks of Seattle’s unicorns with a valuation of $1.2 billion in its latest funding round. He was previously a venture partner at Madrona Venture Group, and a leader at Isilon Systems and EMC.

“We are far more open to remote locations,” he said. “It really doesn’t make that much of a difference where they are when they appear on their video conferencing screen. And that opens up a lot of new talent pools, and then it opens up the opportunity for people that were previously living in Seattle that want to make a temporary or more than temporary location change, for whatever reason, to continue to work at the company.”

“So we’re definitely approaching things differently,” he added. “That’s not a temporary state for us; that will be the future of the way we go as a company.”

What does that mean for pay? The Hired survey shows that new employees in far-flung locations might not command as much as those in tech hubs. But unlike some other tech leaders, Richter, whose background is in accounting and finance, said he doesn’t see much merit in attempting to adjust salaries when existing employees relocate.

“It’s a global market for talent. And in exchange for the talent and the impact that the individual provides the organization, they shall be compensated,” Richter said. “All the micro-tuning of things like location and that sort of thing, that might work in the short run. In the long run, what we’ll see is a market clearing for compensation in return for talent.”

As for its remote work policy, Qumulo’s executive team has delegated decisions to its functional leaders, with a plan to learn and adjust as it goes, adopting an Amazon-like policy before Amazon did, Richter said.

Other topics this week

  • The boom in unstructured cloud data, which is fueling Qumulo’s business. My colleague John Cook makes his best effort to get Richter to disclose Qumulo’s financial data and IPO plans. Richter does share some insights into which sectors are seeing the biggest increase in data, and thoughts on how companies are viewing Amazon Web Services, Microsoft Azure and Google Cloud Platform in this environment.
  • The home debut of the new Seattle Kraken NHL franchise Saturday. Our colleagues Kurt Schlosser and Kevin Lisota got to tour Climate Pledge Arena this week. Check out their story and video. We reminisce about John’s run-in with the Pittsburgh Penguins mascot, Iceburgh, during GeekWire’s 2018 stint in the Steel City, and wonder if he’ll have a similar altercation with the Kraken mascot. We’ll soon find out.

Listen above, and subscribe to GeekWire in any podcast app.

Produced and edited by Curt Milton; Music by Daniel L.K. Caldwell.

Author: Todd Bishop

Share this article:

Continue Reading

Articles

Hawkish Powell Hits Stocks; Bitcoin Flat As Breakevens, Bond Yields & Bullion Bounce

Hawkish Powell Hits Stocks; Bitcoin Flat As Breakevens, Bond Yields & Bullion Bounce

A very mixed week across the asset-classes.

Hawkish…

Share this article:

Hawkish Powell Hits Stocks; Bitcoin Flat As Breakevens, Bond Yields & Bullion Bounce

A very mixed week across the asset-classes.

Hawkish Powell: rate-hike expectations surged higher but stocks gained, crude rallied but copper tumbled. Growth and Value stocks basically ended the week up around the same amount (while Cyclicals modestly outperformed Defensives). Perhaps most notably, rates vol and stock vol expectations are dramatically decoupled from one another.

Inflation: Breakevens soared to record highs… globally, bullion bounced but bitcoin ended the week unchanged and bonds only modestly higher in yield.

Source: Bloomberg

We do not that the long-end of the curve notably outperformed today (flattening the curve significantly) after Powell’s comments, in a clear signal from the market that it’s expecting a Policy error

Source: Bloomberg

Arguably, as Goldman details below, the market could be morphing back from a ‘stagflation’ narrative to a ‘reflation’ narrative

Heading into the week, the ‘stagflation’ narrative was continuing despite the fact that the S&P 500 had already bounced off of its late-September bottom and was heading back towards an all-time high.  And as we exit the week, the inflation debate seems to be evolving into a ‘the Fed will hike earlier’ narrative, with yields on 2-year Notes spiking to 0.50% — a level last seen in the first days of the pandemic way back on March 18, 2020.  Praveen Korapaty writes in last Friday’s note, “Front-end pressures mount,” that markets appear to have returned to a paradigm of simultaneously bringing forward and/or accelerating hike pricing and taking down terminal rate assumptions. Bond investors appear to be increasingly thinking that the rise in inflation that we have been observing will translate into an earlier Fed funds rate hike.

And yields on 10-year Treasuries also briefly touched 1.70% this week, suggesting that bond investors are actually also feeling fine about longer-term growth.  And this better feeling is also being reflected in stock prices with the S&P 500 breaking up above 4500 and hitting a new all-time high this week.  So, the ‘stagflation’ narrative seems to be morphing back into a ‘reflation’ narrative — something similar to what we were experiencing when the economy first ‘reopened’ last spring.

Digging into each asset class, stocks ended the week higher overall (despite today’s Powell-driven dip that sent Nasdaq down around 1% today)…

The S&P and Dow closed at record weekly closing highs…

In Canada, the S&P/TSX Composite is up 13 straight days to a new record high – the longest winning streak since 1985…

Source: Bloomberg

Rather interestingly, this week saw “get out and party” recovery stocks underperform the “stay at home and sulk” stocks…

Source: Bloomberg

Cyclicals modestly outperformed Defensives on the week…

Source: Bloomberg

Growth barely outperformed Value on the week…

Source: Bloomberg

TSLA topped FB in terms of market cap again today (to become the 5th biggest company in the S&P) as Musk’s carmaker surged to new record highs above $900…

Source: Bloomberg

But the week’s biggest gainer was Trump’s “TRUTH” SPAC which ended up over 800% (though at one point it was up over 1600%)…

Source: Bloomberg

VIX traded down to a 14 handle this morning – the lowest since before the pandemic lockdowns began…

Treasury yields ended the week higher, but the long-end notably outperformed…

Source: Bloomberg

The yield curve ended the week notably flatter (after a wild ride midweek back to last week’s highs)…

Source: Bloomberg

Policy Error? The flattening started with the June taper chatter…

Source: Bloomberg

Inflation Breakevens soared to record highs today (US 5Y topped 3.0%) across the globe today…

Source: Bloomberg

The dollar ended the week lower, chopping around at one-month-lows…

Source: Bloomberg

Cryptos had a wild ride for the week with Bitcoin reaching new record highs after BITO’s launch before fading back to unchanged on the week today (Ethereum modestly outperformed on the week)…

Source: Bloomberg

Bitcoin ended the week just above $60k, well off the $67k record high…

Source: Bloomberg

The newly launched Bitcoin (futures) ETF (BITO) ended below its opening level…

Bitcoin Futures were well bid as BITO launched but the premium over spot has faded since…

Source: Bloomberg

Commodities were very mixed with copper clubbed and silver soaring (gold and crude also rallied)…

Source: Bloomberg

Rather interestingly, the huge divergence between copper and silver occurred at a key resistance level (around 20 ounces of silver to buy copper)

Source: Bloomberg

Finally, we note Mizuho’s warning of the impact of today’s more hawkish speech from Fed chair Powell. Our view that the divergence of equity implied vol (at pre-pandemic lows) from rates implied vol (rising to the highs of the year in most markets) is unsustainable, is showing tentative signs of turning.

Source: Bloomberg

The sharp move lower in Nasdaq futures and widening of CDS indices is a warning shot, we feel, of how risk assets would break down if the Fed was to try to stamp out inflation at such an early point in the cycle as mid 2022.

Commodities relative to stocks are starting to flash some red alerts…

And if one needed an excuse to buy some protection against that whiplash reality check for stocks, VIX is at a critically cheap level relative to VXV…

Source: Bloomberg

That has not tended to end well for stocks.

Tyler Durden
Fri, 10/22/2021 – 16:01



Author: Tyler Durden

Share this article:

Continue Reading

Articles

These 7 High-Upside Stocks Belong in Your Portfolio

Navigating the stock market is a difficult task for the inexperienced. The first step in making a successful trade is understanding how prices work and…

Share this article:

Navigating the stock market is a difficult task for the inexperienced. The first step in making a successful trade is understanding how prices work and what they represent. However, one of the best approaches you can take is seeking out high-upside stocks.

It is a value investing approach. A good value investor looks for companies with low prices relative to their intrinsic worth and is willing and able to buy shares when they’re cheap. There is no one-size-fits-all strategy, but intelligent risk management demands caution.

I’m taking a deep dive into high-upside stocks that are looking to break out of this list. But at the same time, all of these companies have solid operating models; these aren’t fly-by-night operations. But a word of caution before moving forward: even the best consensus estimates are just estimates in the end. They can go wrong. It’s very important to make sure the stock that you are interested in actually matches your risk-return profile.

With that in mind, here are seven high-upside stocks to buy:

  • Occidental Petroleum Corp. (NYSE:OXY)
  • Penn National Gaming (NASDAQ:PENN)
  • Fox Corp. (NASDAQ:FOX)
  • ChargePoint Holdings (NYSE:CHPT)
  • Barrick Gold (NYSE:GOLD)
  • Teladoc Health (NYSE:TDOC)
  • Shopify (NYSE:SHOP)

High-Upside Stocks: Occidental Petroleum Corp. (OXY)

Source: bht2000 / Shutterstock.com

TipRanks 12-Month Consensus Price Target: $39.21 (17% upside potential)

Occidental Petroleum is a privately owned company that produces and sells crude oil. The stock of this American multinational corporation has been steadily rising over recent decades due largely to increased sales from its operations in Latin America, especially Colombia.

However, the Covid-19 pandemic was devastating for Occidental Petroleum and other companies in the space. The energy company was already dealing with the $57 billion purchase of Anadarko Petroleum. At the purchase, many analysts questioned the wisdom of accepting so much additional debt to finance the purchase. The pandemic added to the company’s miseries. In response, Occidental is disposing of non-core assets to decrease leverage.

But now, things are getting back to normal, and energy prices are on the move. Therefore, OXY stock has all the potential for a comeback.

Penn National Gaming (PENN)

Penn (PENN) National Gaming logo on the website homepage.Source: Casimiro PT / Shutterstock.com

TipRanks 12-Month Consensus Price Target: $95.33 (26% upside potential)

Penn National Gaming operates casinos and racetracks with 44 facilities spread across America and Canada. It also owns a 36% stake in Barstool Sports company.

Over the last decade, the regional land-based casino operator has done very well, a rare outlier the last year. Penn National Gaming’s revenue for 2020 was $3.579 billion. In 2019, annual revenue came in at $5.301 billion, representing a decrease of 32%.

However, things are doing very well in the year thus far. But by investing in Barstool Sports, the company has carved out a niche in mobile sportsbook betting.

High-Upside Stocks: Fox Corp. (FOX)

The Fox Corporation (FOXA) headquarters in New York City.Source: Leonard Zhukovsky / Shutterstock.com

TipRanks 12-Month Consensus Price Target: $44.50 (13% upside potential)

Fox Corporation has become one of America’s most successful media companies. They produce and license news programs for distribution through cable television systems as well direct broadcast satellite operators.

With advertiser spending rebounding, things are looking pretty good for FOX. Most recently, the company reported record earnings for the fourth quarter and fiscal 2021 financial results. Revenue grew by 20%.

A rise in advertising revenue was seen across all three segments: television (51%), cable network (17%) and other revenues (30%). With the pandemic slowly receding into the background, things will only get better from this period. According to Executive Chairman and Chief Executive Officer Lachlan Murdoch, “We look forward to the year ahead, anticipating the return of normalized sports and entertainment calendars and the start of the midterm election cycle.”

ChargePoint Holdings (CHPT)

CHPT a chargepoint charging stationSource: Michael Vi / Shutterstock.com

TipRanks 12-Month Consensus Price Target: $32.89 (54% upside potential)

ChargePoint operates the largest network of separately owned EV charging stations, active in 14 countries. As the world pivots towards clean energy, companies like ChargePoint stand to benefit immensely. We have already seen President Joe Biden release a comprehensive $2 trillion infrastructure and economic recovery package that has a significant EV component.

To accommodate the expected growth of EVs by 2030, AlixPartners estimates $300 billion is needed to build out global infrastructure, including $50 billion in America, a feat that would take quite some time and effort. But as the Chinese proverb goes, “A journey of a thousand miles begins with a single step.” Under Biden’s infrastructure plan, 500,000 charging devices would be installed in a national EV charging network in America by 2030.

Against this backdrop, ChargePoint, an industry leader, becomes an enticing prospect for any portfolio. Most recently, analysts expected the company to narrow losses to 12 cents apiece. But ChargePoint reported a second-quarter loss of 13 cents. However, sales finished at $56 million — an increase from their prior year’s same quarter by 61% and beating expectations.

Looking ahead, ChargePoint expects revenue between $60 million and $65 million for its third quarter. In addition, the company hiked full-year revenue guidance between $225 million and $235 million, from $195 million to $205 million, for the fiscal year ending January 31, 2022.

High-Upside Stocks: Barrick Gold (GOLD)

Closeup of a large gold nugget. stocks under $10Source: Shutterstock

TipRanks 12-Month Consensus Price Target: $25.79 (31% upside potential)

Barrick Gold is a Canadian multinational mining company that engages in the production and sale of gold and copper and mining-related activities such as exploration for new deposits or mine development on old ones to increase its reserves quantity.

Global miners have been a major hot topic in the investment world this year. Shares of global mining companies skyrocketed to record highs last year. It turns out these stocks were not worth their value, though, as prices fell with international turmoil.

Barrick’s latest EPS figure of 29 cents beat analysts’ expectations by a narrow margin. The company reported revenue of $2.89 billion, which missed estimates of $2.92 billion. Even though gold production fell 9.4% in the second quarter, realized prices rose 5.5%. This is because there were more buyers than ever before, thanks to people who wanted one safe-haven asset during this time of uncertainty caused by pandemic fears and a weakened dollar.

Barrick restated a capital investment plan of $1.8 billion to $2.1 billion on the bright side. The production plan is reaffirmed at 4.4 million ounces to 4.7 million gold ounces and 410 million pounds to 460 million pounds of copper.

Teladoc Health (TDOC)

The Teladoc (TDOC) logo through a magnifying glass.Source: Postmodern Studio / Shutterstock.com

TipRanks 12-Month Consensus Price Target: $200.95 (45% upside potential)

Teladoc Health is multinational telemedicine and virtual healthcare company. They have primary services including, but not limited to, medical opinions via teleseminars or email correspondence, AI-powered analysis on prescription drugs and patient records from various providers such as hospitals or insurance companies.

Last year was a satisfying one for the company. Due to strict lockdowns, patients turned towards telemedicine for their needs. It led to a bonanza for companies like Teladoc, which saw full-year revenue jump 98% year-over-year to $1.1 billion. However, now that things are getting back to normal, there is a fear that a slowdown may occur. In the second fiscal quarter, Teladoc finished with a net loss of $133.8 million, or 86 cents a share, which more than doubled the loss from the year-ago period.

Looking ahead, the company anticipates third quarter revenue between $510 million and 520 million, with a net loss range of 78 cents to 68 cents a pop. For the full year, they guided for $2 billion to $2.025 billion in sales alongside an expected per-share loss range from $3.35 to $3.60.

High-Upside Stocks: Shopify (SHOP)

shopify logo sign on building facadeSource: Beyond The Scene / Shutterstock.com

TipRanks 12-Month Consensus Price Target: $1,709.95 (20% upside potential)

Shopify is the go-to platform for e-commerce stores. It offers secure, reliable and scalable cloud services that enable online retailers to sell their products across different channels with a single click of a button from anywhere in the world.

In announcing second-quarter 2021 financial results, the tech giant, for the first time, achieved a $1 billion revenue quarter on record gross merchandise value (GMV). Total revenue ended up at $1.1 billion, an increase of 57% from the year-ago period. GMV was $42.2 billion, a jump of $12.1 billion or 40% year-on-year. Adjusted net income came in at $284.6 million, or $2.24 per diluted share. These figures compare very favorably with adjusted net income of $129.4 million, or $1.05 per diluted share, last year.

Shopify’s digital commerce trends were very strong in the first half of 2021. It combined the secular growth in e-commerce, stimulus distributed this March and April, and lower than expected operating expenses. As a result, full-year 2021 adjusted operating income is expected to outpace last year’s results.

On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence.

More From InvestorPlace

The post These 7 High-Upside Stocks Belong in Your Portfolio appeared first on InvestorPlace.




Author: Faizan Farooque

Share this article:

Continue Reading

Trending