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Greedy's Vault - Week 2

Page 1

LevWedge Studios Presents

FRIDAY OCTOBER 20, 2023

WHAT'S INSIDE:

Puppets | Perspective | Finance

VOL.2

The Power of Compounding Mr. Market - what’s moving Greedy’s Tickers - Top Bulls & Bears Greedy’s Take - The cost of a new truck Coming at ya - Next week’s preview

A Note from Greedy... The Power of Compounding Interest 2.0 Dear Mutants, Warren Buffett, the Oracle of Omaha and an investing genius, wisely reflected, **"My wealth has come from a combination of living in America, some lucky genes, and compound interest."** But what is it about compounding that's so magical? At its core, compounding interest is simply the concept of earning interest on interest. The beauty of it is that even a 1% difference in your returns can be the deciding factor between a comfortable retirement and a luxurious one. Let's unpack this. Every 1% edge you gain over the market's average returns doesn't just add a percentage to your savings – it multiplies over the years. If the average market return is, say, 7%, then an 8% return, when compounded over decades, doesn't just net you a bit extra – it can mean the difference of millions. Every day you let pass without harnessing the power of compounding, you're leaving money on the table. Money that could have been working for you, growing, multiplying. As Buffett also said, **"Someone's sitting in the shade today because someone planted a tree a long time ago."** Are you planting your financial tree? Here's the thing, Mutants: Don't waste time. And more importantly, **DON'T WASTE GREEDY'S TIME!** Every moment counts in the world of compounding. Your financial future, the dreams you harbor for yourself and your loved ones – they're all intertwined with the decisions you make today. To end on another note from Buffett: **"The stock market is a device for transferring money from the impatient to the patient."** So, be patient, let compounding do its job, and watch as your financial landscape transforms. Yours in compounding success,

Stay Greedy, Mutants.

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FRIDAY, OCTOBER 20, 2023

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Mutants, today I want to share a personal tale. It's one that highlights a turning point in my life, and underscores the importance of the magic we've been discussing: compounding interest. Flashback to early 2013. The cold winter breeze swept through Denver as Kandace, my ever-supportive wife, and I made our way through the city. She was gearing up for a pivotal job interview—a sales position that promised a potential escape from Metro Detroit. Ah, Metro Detroit... a place where I, an unemployed individual with a trail of failed jobs and unfruitful educational endeavors, desperately sought a fresh start. It was me who urged us to chase the sun and head westward. Kando, being the daring spirit she is, eagerly jumped on board with the idea. But why is this detour down memory lane significant? Because on that day, as Kandace geared up for her interview, I was somewhere you might find familiar. I was at the precipice of my investment journey. A raw, unrefined novice, eager to understand the labyrinth that is Wall Street. To keep me occupied during her interview, I dove into a book: The 25 Habits of Highly Successful Investors: How to Invest for Profit in Today's Changing Markets. It wasn’t a groundbreaking read by any means, but nestled within its pages was a gem that would shift the trajectory of my life. A simple compounding interest chart. To most, it may have been just numbers on a paper, but to me, it was as if Thor's hammer had struck my brain. That chart showcased the enormous difference even a mere 1% can make. A subtle shift in investment returns, when compounded over years, could be the chasm between ordinary and extraordinary wealth. It was my epiphany. My mission was crystal clear: seize those additional interest points, even if it meant metaphorically punching Wall Street in the face. Although the nuances of how I achieved that will be tales for another day, the message I want to impart to you today is this: **Every 1% isn't just a number—it's a gateway to potential fortunes.** Let this story be a testament to the wonders of compounding. As you embark or continue on your investment journey, remember that every single percentage point matters. And if a guy from Detroit can harness its magic, so can you. Stay greedy and keep compounding, Mutants!


www.greedyshow.com FRIDAY, OCTOBER 20, 2023

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Mutants, the warning signs are there, and they're hard to ignore. The recent PPO reading (percentage price oscillator) gives a significant hint of the stormy weather on our investing horizon. This indicator, for those unfamiliar, can be a powerful tool in identifying the direction of the market. And right now, it's pointing us towards a more cautious path. Mid-day Friday brought us another jarring reality check: a mere 250 bullish trends amidst a vast sea of 900+ bears. That's a staggering imbalance, to say the least. Such a setup inevitably points to some financial discomfort ahead. But, here's where the silver lining is, mutants. While many might be running for the hills, we see opportunity. This is the time to start sifting through the Bears list meticulously. Remember, the market is cyclical. Many of today's downtrodden Bears could very well be tomorrow's roaring Bull trades. So, gear up. Let's comb through the rubble, look past the temporary gloom, and scout for those undervalued gems. As we've always said, in every downturn lies an opportunity. Our task is to find it and capitalize on it. Stay sharp, stay vigilant, and always be on the hunt for the next big thing. Until next time, keep those mutant instincts sharp! - Greedy

As the market continues its turbulent journey, the coming week promises some potentially significant earnings reports that could provide more direction (or more volatility). Here's a snapshot of the heavy-hitters on the earnings calendar: 1. **Microsoft Corporation (MSFT)** - Market Cap: $2.45 Trillion - Expected Earnings Date: 10/25/2023 - EPS Estimate for Sep/2023: $2.65 - Previous Quarter EPS: $2.35 - Earnings Timing: After Hours

5. **Amazon.com, Inc. (AMZN)** - Market Cap: $1.32 Trillion - Expected Earnings Date: 10/27/2023 - EPS Estimate for Sep/2023: $0.58 - Previous Quarter EPS: $0.20 - Earnings Timing: Not Supplied

2. **Alphabet Inc. (GOOG)** - Market Cap: $1.76 Trillion - Expected Earnings Date: 10/25/2023 - EPS Estimate for Sep/2023: $1.45 - Previous Quarter EPS: $1.06 - Earnings Timing: After Hours

6. **Mastercard Incorporated (MA)** - Market Cap: $372.71 Billion - Expected Earnings Date: 10/27/2023 - EPS Estimate for Sep/2023: $3.21 - Previous Quarter EPS: $2.68 - Earnings Timing: Pre-Market

3. **Visa Inc. (V)** - Market Cap: $442.13 Billion - Expected Earnings Date: 10/25/2023 - EPS Estimate for Sep/2023: $2.23 - Previous Quarter EPS: $1.93 - Earnings Timing: Pre-Market

Given these high-stake earnings releases, the market could certainly see some action. Whether you're looking for opportunities or trying to hedge risks, it's crucial to be informed and ready. Stay tuned, mutants, and let's navigate these market-moving events together!

4. **Meta Platforms, Inc. (META)** - Market Cap: $801.65 Billion - Expected Earnings Date: 10/26/2023 - EPS Estimate for Sep/2023: $3.57 - Previous Quarter EPS: $1.64

And remember, always prioritize understanding over hasty decisions, and keep those compound interest principles in mind. The more informed you are, the better decisions you'll make. Stay sharp and STAY GREEDY!

📈


www.greedyshow.com FRIDAY, OCTOBER 20, 2023

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1

PNT

POINT Biopharma Global Inc.

1

KELYA

Kelly Services, Inc.

2

OLK

Olink Holding AB

2

FANH

Fanhua Inc.

3

FUSN

Fusion Pharmaceuticals

3

DXC

4

BHVN

Biohaven Ltd.

4

BCSF

5

SP

SP Plus Corp

5

BBCP

DXC Technology Company Bain Capital Specialty Finance, Inc. Concrete Pumping Holdings, Inc.

6

METC

Ramaco Resources, Inc.

6

FBP

First Bancorp

7

GNE

Genie Energy Ltd.

7

SPFI

South Plains Financial, Inc.

8

POWW

AMMO, Inc.

8

DMLP

Dorchester Minerals, LP

9

SHCR

Sharecare, Inc.

9

FA

First Advantage Corp

10

IDT

IDT Corp

10

GAIN

Gladstone Investment Corp

Bulls

Bears

Greedy’s take - BEARS Mutants, there's always a flip side to the roaring bulls – the bears that lurk in the shadows, signaling the stocks that might be under duress. Here's a quick spot check on two such tickers that have caught my eye from the hundreds that have hit Greedy’s Tickers lists throughout this week. These may be battered and bruised now, but for the discerning eye, they might just be opportunities waiting to be seized! PayPal Holdings, Inc. (PYPL) Current Situation: Trading at deep value after a significant tumble of over 80% from its highs during the pandemic. Pros: Staggering $5 billion annual stock buybacks - a strong indicator of company confidence. A dominant player in the payment space with a robust user base. Cons: New CEO at the helm, introducing potential unpredictability. A sector that's seeing rising competition, which may challenge PYPL's dominance. Greedy's Take: With its current valuation, PYPL is more a long-term play. Be patient, mutants. It might be a bumpy ride, but the destination could be worth it

Match Group, Inc. (MTCH) Current Situation: Retreated almost 80% off its pandemic highs. Ouch! Pros: Diverse portfolio including Tinder, Hinge, BLKB, Chispa, and more. Revenue consistency with user fees contributing 95% and advertising at 5%. Tinder, the star player, driving 57% of total Direct Revenue. Strong commitment to shareholders with significant talks of stock buybacks. Cons: New CEO introduces a measure of uncertainty. The online dating space, while lucrative, is also fiercely competitive. Greedy's Take: MTCH is setting itself up as a multi-year swing trade. It has its risks, but its diverse portfolio and commitment to shareholder value make it an interesting watch.

Wrapping Up: Just remember, Mutants, every bear market in history has been followed by a bull market. But it's essential to do your homework, be patient, and look beyond the short-term pain to potential long-term gains. And as always, don't let the bears scare you; instead, learn to dance with them!

🐻🕺🏽


www.greedyshow.com FRIDAY, OCTOBER 20, 2023

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Greedy’s take - bulls Gather 'round, Marsh Mates! As we venture into the investment wetlands, our trusty crocodile, Greedy, is here with keen eyes and unmatched instincts, guiding us through the muck to spotlight opportunities lurking below. Let's zoom in on SNAP's intricate terrain.

Snap Inc. (SNAP) - Navigating the Mangroves Within the marsh, appearances can be deceiving. While many may see just the surface, Greedy's seasoned eyes discern the complexities beneath. At first glance, SNAP may not resemble a traditional gem, given its limited cash flows. Yet, it’s in these murky waters that the potential for significant finds can often hide. Financial Snapshot Diving deeper, SNAP's finances reveal a stable equilibrium. About $4 billion in debt is almost perfectly counterbalanced by its cash reserves. In the language of our wetlands, it's neither sinking nor swimming freely but treading water competently. Revenue: The Quest for Growth The thick vegetation of the tech sector often requires firms to constantly grow, pushing through to find new, sunlit patches. For SNAP, the challenge lies in accelerating its revenue amidst a dense canopy of competition and economic shifts. Greedy's Cautionary Tail Given SNAP's speculative nature, even the most seasoned crocs in the swamp must tread with care. It’s the kind of territory where a cautious approach suggests venturing in with just 1-5% of your total treasure hoard. This ensures minimal risk while still keeping an eye on the potential feast. Greedy's Wisdom Every venture into the marsh brings its own set of challenges and rewards. With entities like SNAP, the risk sings a louder tune, but the harmonies of potential gains can be tempting. If you’re considering navigating these waters, arm yourself with knowledge, move with patience, and always trust your instincts. Remember, in this vast wetland of investing, being prepared is the key to survival. Stay sharp, stay vigilant, and let Greedy lead the way!

🐊🔍🌿


www.greedyshow.com FRIDAY, OCTOBER 20, 2023

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Gather ‘round Mutants, class is in session

The True Cost of Impulse: Spike's Shiny Truck Tale Gather 'round, Mutants, and let me regale you with a tale that ties everything we've discussed neatly into one package - with a giant, shiny bow on top. Meet Spike, a young lad of just 19. Bursting with energy, oozing talent, and having a knack for a unique skill that has his wallet thickening by the day. Spike, in his newfound prosperity, does what many of us have dreamt of at that age: he decides to splash his earnings on a sleek, spanking new truck. Cost? A cool $50,000. You'd think, "Ah, a debt-free life with a sweet ride to boot!" .....But here’s the twist. What if I told you that truck - in all its chrome and polished glory, came at a future cost of a whopping $7.3 MILLION? You see, in the grand scheme of things, that truck, 50 years down the line, would probably be rusting away in a junkyard. But that $50,000, if wisely invested in the SP500 (an index of the top 500 stocks for the uninitiated), would've transformed into $7.3 million. Yup, you heard that right. Now, the lesson here isn’t to renounce all worldly possessions and live like a hermit. It’s about recognizing the power of compounding, the value of delayed gratification, and the hidden costs of our choices. It’s about realizing that every financial decision we make today has long-term consequences that ripple through our future. Moreover, it's about understanding the allure of habits. Once you get used to the high of driving a brand-new vehicle, it's a tough habit to kick. And trust me, it's a habit that comes at a premium. Before you part with your money, especially on big-ticket items, pause for a moment and think of Spike. Ask yourself: "Am I buying a temporary thrill or investing in lifelong prosperity?" Choose wisely, Mutants. Your future self will thank you. Until next time, invest smart, live well, and always remember to compound your gains. Greedy signing off!


What’s coming next week? Here’s what Greedy and Petey are thinking about...

Hey, Marshland Mavens! It's Greedy here, your favorite finance croc, chomping through the markets and spitting out the boring bits. **The Big Stock Safari** So, I put on my snazziest sunglasses and dived deep into the market waters, hoping to find some juicy morsels. But all I came across were some 'meh' charts. Big names like General Motors, Home Depot, Electronic Arts, and Cardinal Health? More like the unsalted crackers of the stock world right now. **Taking a Swing in the Swamp** Look, in the grand dance of stocks, not every tune's a banger. Most charts right now are like off-key karaoke – not exactly music to my scaly ears. I mean, why swing at a ball that's way outside the swamp? **Stock Soup of the Day** Peering into the murky waters, I noticed a few familiar faces: mall stocks, a sprinkle of gold, and some other not-so-spicy tickers. It might not be gourmet, but hey, sometimes you find a golden fish in the muddiest waters. **Greedy's Croc Chomp** Here's the thing, pals – the market's looking murkier than my favorite lounging spot after a rainstorm. But remember, it's when things get muddy that the fun starts. Because, trust me, mud means two things: a great spa day and hidden treasures. So, keep those eyes peeled, laugh at the chaos, and as always... Stay Greedy

🐊🕶️😂


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