reflecting on this week’s moves

| | | | | | | | SMITH'S TAKE How This Week Changed Markets | | | | |
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| | | | SCOTT WELSH’S TICKER TALES Friday Great Value Trade (BB) Speaking of meme stocks–isn’t everybody the past few weeks?--remember BlackBerry?
Back in the day, the little devices were the rage of Wall Street and everywhere else. The internet-accessible phone-like things were so in-demand and addictive, they were called…well, you know what they were called. (Hint: it rhymes with BlackBerry).
Then the company fell behind better companies with better devices and disappeared from view.
Many probably don’t even know the company still exists.
But it does.
And in 2020, it fell down to the long-term lower Band and was far below “fair value” (the 800 SMA).
Here’s the chart:
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| | | | In March 2020, the price was $3.85.
By December 2020, it made it to the 800 simple moving average/”fair value” at $8.00.
In a moment of meme insanity, BB actually went above $28.
Deep Value stocks don’t always jump right back to “fair value”. Sometimes it takes a while.
But sometimes they do jump back quickly.
And BB was an example of that.
Happy trading, — Scott Welsh
P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The charts above use weekly candles and a 30 week simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45. | | | | |
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SMITH'S TAKE How This Week Changed Markets SCOTT WELSH’S TICKER TALES Friday Great Value Trade (BB) Speaking of meme stocks–isn’t everybody the past few weeks?--remember BlackBerry? Back in the day, the little devices were the rage of Wall Street and everywhere else. The internet-accessible phone-like things were so in-demand and addictive, they were called…well, you know what they were called. (Hint: it rhymes with BlackBerry). Then the company fell behind better companies with better devices and disappeared from view. Many probably don’t even know the company still exists. But it does. And in 2020, it fell down to the long-term lower Band and was far below “fair value” (the 800 SMA). Here’s the chart:
In March 2020, the price was $3.85. By December 2020, it made it to the 800 simple moving average/”fair value” at $8.00. In a moment of meme insanity, BB actually went above $28. Deep Value stocks don’t always jump right back to “fair value”. Sometimes it takes a while. But sometimes they do jump back quickly. And BB was an example of that. Happy trading, — Scott Welsh P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The charts above use weekly candles and a 30 week simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45. |
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