Friday, June 28, 2024

Buy the rumour, sell the news - And some of my strategies


Greetings again dear apes!ANALYSIS OF CURRENT EVENTS:I just figured I'd take a quick moment to say this about the recent few days. Several trolls and pessimists are still trying to get us to sell, claiming that we've seen the height of the stock price and that we'll lose our money. Well, I consider this: The share price spiked at over +100% and closed at +73% up on Wednesday. That was basically just on the rumour that FFIE are getting funding for continued production from UAE. Not officially confirmed. Thursday it spiked to 0.69 (nice) dollars, a level we haven't seen in a while, and closed on +30% and managed to break the 0.6 dollar resistance "wall". Sure today we got a bit shorted down, but it was obvious they were trying to us below 0.5 dollars and were unsuccessful at that. I was a little disappointed that we didn't get higher today. But I saw a lot of pressure upwards on much less volume than Wednesday (666 million) and Thursday (500 million?). Today we only had 191 million. We almost reached 0.6 dollars and we still closed above 0.5 dollars which had a fair bit of calls ITM, so we'll see how much pressure that will add next week. So while it would've been nice to see higher price levels today, I'm still optimistic, because for one: We got volumes back at over 100 million, been a while. We've risen from 0.2 dollars, the abyss, to more than double that newest low point. So it's a good start. Mostly I'm optimistic about the big point of this post: All that price rising and volume I just listed, was on the rumour/hints of FFIE getting funding. Imagine then what the official news will do, when/if they officially confirm that they are indeed getting funded by UAE folks. I guess that might make a lot of more cautious people feel the attraction of this stock.We also just yesterday got the uplifting news that they aren't getting delisted from Nasdaq for a while, even if the share price remains under 1 dollar, until August I believe? If the price rise above 1 dollar before that, they won't have to do the reverse split. Though if that happens, this is one time where I don't mind a reverse split, because they'll use that together with dilution to probably guarantee the injection of funds. And FFIE getting funds is the primary thing to look forward to, because even if a reverse split and dilution might lower the share price a bit initially, them getting funds to continue their production of cars I'm feeling confident will rise the price organically over time. Though who knows if the price will even drop much from a split, the rumour of the potential split was already out when we saw the big surge in price these past few days. Of course, this is not financial advice. It's just speculation. You should only invest in things that you believe in and only invest what you can afford to lose, because there's always risk involved with most investments. *****SOME INSIGHTS AND POTENTIAL STRATEGIC INSPIRATION:I was gonna feel satisfied with having 15k-20k FFIE shares. But in some strange fashion I'm currently sitting on 41k shares. BUT, I'm not all in, I've only invested a portion of my assets into FFIE, because it's much safer having a diverse portfolio. I've learned that the hard way *cough* Blood Bath and Beyond *cough* (plus other bad luck incidents and a dose of stupidity). Though I strongly believe that FFIE is a way different story than Bed Bath. for one, the leadership of FFIE are actively engaged in actions to seek funding for continued production to avoid bankruptcy. Their equation is fairly simple: [Fund Money] = [Production of cars] + [Selling cars] = [Path Towards Profit] = [Likely Stock Price Rise Organically]While the Bed Bather leadership had plenty of chances and choices to save their business (e-commerce, doing something with BuyBuyBaby which was making profit etc) but ultimately did nothing useful nor did the hyped up merger & acquisition happen either (Reddit's speculation was really convincing, or I might be a moron, or probably both). Which is another point why FFIE resonates differently with me: If FFIE ends up in bankruptcy after all, like if the fund deal goes sour because they accidentally insulted the Arabs or something, then I suspect that a merger & acquisition is MUCH more likely to happen for FFIE than for Bed Bath. Largely because of FFIE's patents, their awesome cars and AI technology and prospects of becoming a big profitable business. Just their current 400 reservations for the FF91 2.0 would yield over 120 million dollars. While historically, until last year, they had up to 14000 reservations, which show a large potential interest in their cars and if they get big enough to meet a new batch of 14000 reservations, then that's billions of dollars in revenue and way way above the profit line. Full transparency though, the moment I smell a potential bankruptcy, I'm out with most of my investment, I may keep like 10-15% of my shares just in case. If you wanna risk a M&A happening in such an event, then that's up to you. For now I'm not worried about bankruptcy. Back to my investments: At the moment, besides FFIE, I've also invested in 5 seemingly stable funds with good growth record in the past 3-5 years. Then I have some in some stocks that seem like relatively safe "tickers" that grows steadily at a decent pace. I also hold some Ethereum, which I'll probably buy more of because of the speculation that crypto are in the beginning of a long growth cycle, nothing guaranteed but it has started out promising. Then I have a portion pile of money for playing volatile high risk high reward rocket stocks with action daytrading. The latter hectic version of daytrading I can only recommend if you're stress resistant and can stomach some losses. I've been up 8k dollars one day, down 7k dollars another day and so on. My biggest issue is when to sell when riding such rockets. I think I should probably sell the moment I greedily think, "it might go a liiiittle bit higher", plus I've started selling increments here and there on different price levels, Which is how I would ride a proper squeeze as well, taking smaller amounts of profit here and there instead of trying to time everything on hitting the top of the spike. I would leave like 20-40% of the shares to try and hit near the top, but even if I think the top has been reached, I'll probably leave 10-15% of the shares juuust in case the squeeze go beyond expectations into ridiculous sums, like the 2021 squeeze that reached 450 dollars before getting subdued by illegalness.These previous two paragraphs are just inspiration (not financial advice) for you to develop your own investment strategy. If you wanna go wild and all in on high risk high reward stocks, then that's up to you. If you wanna invest with less risk but decent growth prospects, then a diverse portfolio like mine COULD work, but no guarantees for that either. Like, if another Covid-ish event occurs, then even safe bet funds can drop significantly and so on. Oh and when I can afford spare money for it, I'll most likely also get a gold bar. Mostly because owning a gold bar would be freaking cool. But they also tend to have rather stable price throughout the ages, a security in case of a market crash. I think it can also be used in the post-apocalypse to barter with, perhaps for a shotgun to fend off bandits with, plus 5 loafs of bread.Speaking of which, (sorry if this post is all over the place with topics) some people speculate that another economic crash is looming on the horizon and some even suggest that we've already entered it. I don't wanna be doom sayer, but I noticed the gold price rising and that could be an indicator that a lot of people are expecting a crash. Plus we're already in a recession and there are some other factors. What I feel certain about however, is that if a crash happens like in 2008, it will have MUCH heavier consequences globally than the 2008 one, for reasons that is another discussion. I'm wondering if crypto will actually hold or rise in value in case of a crash? I have no idea really. Don't mean to scare ya, just potentially prepare ya, as there's a bit of turbulence in the world so...Anyways, that's enough of my ramblings for this post. If you feel I'm wrong about something, you're welcome to argue why I'm wrong, I encourage it. Be well!Cheers! via /r/FFIE https://ift.tt/x9GCuEL

Comments System

Disqus Shortname

Disqus Shortname

designcart
Powered by Blogger.