Investing Update
What I'm buying, selling and watching
The market has been in the midst of a continued growth and technology stocks selloff. With cyclicals, energy and value leading the continued rotation out of growth and tech, I’ve added to many of those holdings at the lower prices.
When stocks or sectors of the market fall out of favor, that is the time I want add or start new positions in companies that I like. If you’re buying a stock at higher prices or near all time highs, you should be buying with both hands when a stock is down 20-30%.
Moves I’ve Made
Square (SQ) - After trimming this stock a few weeks ago, I’ve added shares back at a much lower price. Earnings were a blow out last week and I loved what I continue to hear on their conference calls. The ecosystem being built by Square is flying under the radar in my opinion. Adding Jay-Z to the board after purchasing a majority stake in his company Tidal, is interesting to me.
CrowdStrike (CRWD) - After a steep pullback I added to my position. With the Colonial Pipeline cyberattack this past week and the seemingly daily news of companies being hacked, this has been my play on cyber security.
DraftKings (DKNG) - In the midst of a deep selloff I added to my position. The TAM (Total Addressable Market) for this industry is microscopic vs what it will be in the coming years. Have been bullish on this company since it came public.
Peloton (PTON) - It’s been a rough few weeks for Peloton. Sold some of my position as it hit a sell trigger level. Then it went down lower, so I ended up buying more shares at a much lower price.
Uber (UBER) Added to my position. Nothing really changed with Uber to warrant the extent of its selloff.
What I’m watching.
General Motors (GM) - After waiting months for delivery of the newly designed Cadillac Escalade I can see GM’s bold statement with their redesign and changes. It’s a drastic improvement from the previous model. Wait times are still months out for new large trucks and SUVs. The demand is there and once the chip shortage is under control, I think new sales will fly. The Cruise division is the wildcard within this stocks value. How much are investors figuring this into their price? I’m waiting for a pullback for a better entry point.
Zillow (Z) - From where I closed my position, Zillow has come down almost 30%. I think it gets under $100 a share, where I will buy it again. Still believe this is a disruptor long term in the real estate industry. My business uses it daily to find information on homes. Searching for homes is now becoming synonymous with Zillow. The SNL skit from February sure didn’t hurt it’s popularity.
Disclaimer: This is not investment advice. You should not treat any opinion expressed as a specific inducement to make a particular purchase, investment or follow a particular strategy, but only as an expression of an opinion.