Updated: Dec 26, 2020
Today we'll cover some EXCELLENT “Opti-tunities!”
In this Issue: Adobe Set to keep growing year over year + Premium Subscription Preview Virgin Galactic Panic selling, insiders selling, so what next? S&P 500 Index New more contagious Virus strain detected in London. The market is waiting to hear from Federal government on stimulus package this weekend. Apple Increase Iphone production for the next year Palantir The up and coming data analytics company
Adobe: ADBE "Adobe pioneered the paper-to-digital transformation with the invention of PDF. We created Adobe Document Cloud so people can scan, edit, share, and sign documents anytime, anywhere. Today, we're revolutionizing the way people and businesses communicate, collaborate, and get work done." Graphic design, website design and any artist now uses adobe products. Every marketing company and new company is buying licenses for their software. They have sustained subscriptions every year and are still on track to the lion’s share in the future. If you look at professional ads and photos, you can bet that Adobe has had their software used. I am a user of adobe products and the individual license is around $1,200 a year. It is easy to use and very innovative. As more businesses are shifting to digitalization, this company will definitely receive many new subscribers. We expect prices to be up in the near term! Potentially $520.00-535.00 Price Forecast Current Price: $502.95 1 Week Target: $510.00 1 Month Target: $525.00 1 Year Target: $700.00 This is a BUY. Here is an example of what premium subscription options trade idea looks like this week: I think it is going up. But even if the price drops to $493.32 by December 31st, you can still break even and not lose money! Here are the critical details to observe: Sell a PUT: 31st Dec $495.00 Put Buy a PUT: 31st Dec $487.50 Put Maximum Risk: $583.00 Maximum Return: $167.00 Breakevens at Expiry: $493.32 This graph shows how the value of the contract will vary as the price moves up and down!
Premium subscribers will get the details on exactly how this works and how to do it themselves. I cashflow (bring in money and withdraw it into the bank) every month from trading these types of plays. Usually I buy about 5 of these, so I could specifically make $167.00 x 5 = $835.00 if it expires in the range I believe it will. You have to be careful though if it tests $193.32, and be patient!
Virgin Galactic Holdings: SPCE This company is leading in human space tourism and is also widening its moat with hyper sonic travel. They had some insider selling this week from Chamath Palihapitiya. He did this was for liquidity and to have some money for new projects this year. A prospectus to sell 112 Million shares of common stock was filed as well. This means that at some point in the future Virgin Galactic plans to dilute shares. This is used for more funding if the company does need it. This is very common in growth companies like Virgin Galactic. With all of this downward price pressure, it may drop to $22.00 a share in the near term but will be bought up quickly. We are pending news of when they will fly up. We will most likely get an update in January, after the holidays. Once this news is released, investors will be able to stop holding their breath and the price will go back up. I love this company because it is pushing the envelope and has a very attractive business model. I've been asked why I think Virgin Galactic is any better than Elon Musk’s SpaceX or Jeff Bezos’s Blue Origin. The answer is simple: Duration of G-force! G-force is how much force is exhibited on a human while accelerating into space than normal gravity. For example, 2 G’s is double the weight of gravity. A passenger on a normal ground to space (Spacex & Blue Origin) flight would have to withstand 3.5G force for a whopping 8 ½ minutes. There is a small subset of people who can withstand this through rigorous training. On a Virgin Galactic flight, they launch at 45,000 feet in the air. This drastically reduces the time to 1 ½ minutes of 3.5Gs. This will allow a large majority of people young and old to go. They can also fly back in where they departed. Logistically it’s much easier for the high paying customer. Spacex and Blue Origin will come back down through the atmosphere and parachute to be rescued, adding more risk. As a consumer, I’d probably enjoy space. But after a flight like that, I'd definitely want my two feet back at the Spaceport. There may be a dip to $22.00. Pending news (January) it will move back into $28.00-32.00 range. Price Forecast Current Price: $23.84 1 Week Target: $25.00 1 Month Target: $32.00 1 Year Target: $70.00 This is a BUY. Buy this on any dips. Relatively speaking this company is experiencing panic selling and this is an excellent opportunity to double or even triple your money if you buy and hold for a year!
S&P 500 Index (The General US Market) : SPY This index holds shares in the top 500 performing US companies. It is widely tracked as the US market. Investors are watching the federal government closely this week for a stimulus deal that could inject another 900 Billion dollars into the economy for COVID-19 relief. If the deal is made, the markets will roar with an upward trend. If not, we could see it stay at the $365.00 price range. Another event that just unraveled, is a new coronavirus strain that has been detected in London. London went in lockdown, which may worry investors about future impacts if another pandemic happens. Watch this very closely as it may prove to be just a regular flu (media hype) or it may create another lockdown cascade as we saw in 2020. I think our economy has shifted and would be able to withstand another pandemic since we are more digitized than ever. Zoom ticker ZM would be an excellent buy if this turned into another pandemic. (Hopefully not) This should go up to $375.00 per share on stimulus news. (Being cautious of new virus strain here) Price Forecast Current Price: 370.18 1 Week Target: $375.00 1 Month Target: $380.00 1 Year Target: $400.00 BUY on the stimulus news!
Apple: APPL Apple is a fruit company that mainly sells apples… No it's the Tech Giant that produces Computers, Iphones, Ipads and several other tech products. Recently they announced they would be increasing iPhone production for 2021. “Apple has asked suppliers to increase production of its iPhone 11 models by up to 8 million units, or about 10%, Nikkei Asian Review reported on Friday, citing better than expected demand.” I think Apple is a great long term purchase for any portfolio. It has a great track record and will add some stability to your portfolio. The stock has been moving slowly since the 4:1 split in August. However, as we move into the next year with the introduction of 5G phones, I expect the stock to increase slowly. Price Forecast Current Price: $127.28 1 Week Target: $130.00 1 Month Target: $135.00 1 Year Target: $160.00 This is a BUY.
Palantir: PLTR The company has been around since 2003 and just went public September 30th 2020. “We build software that lets organizations integrate their data, their decisions, and their operations into one platform. Our software empowers entire organizations to answer complex questions quickly by bringing the right data to the people who need it.” This is another stock I recommend for a little bit longer hold. The stock is new to the market which brings some uncertainty about the price and how fast it is moving up. However, the Q3 2020 earnings report was absolutely stellar. The company has also been around for 17 years which is a good sign to stability. On top of that, the company recently received a deal with the government. “Palantir Technologies Inc. won a deal with the U.S. Food and Drug Administration to help power drug reviews and inspections, further expanding the company’s government business as it hustles to hit a raised revenue target for 2020.” I fully expect this stock to have some ups and downs for a little while but instead of trying to time it perfectly I would begin to buy into this stock. Price Forecast Current Price: $26.08 1 Week Target: $27.00-$28.00 1 Month Target: $31.00 1 Year Target: $45.00 This is a BUY.