Category

Andrew Keene

Trading Strategies

How to Stop Worrying and Start Raking It in This Month

By , Money Morning - • Print | Email

No matter how tempting it might be to try and jump on stocks in the news, the truth is trading the headlines won't get you very far.

Frankly, it can even put you behind – I'll share a horror story in a minute.

I understand how tough it can be. How often do you find yourself watching the news and all of a sudden, you see some story on a stock you own? Whether it's good news or an "uh-oh" moment, you get the urge to pop online and check your positions.

If you resist the temptation, good – that's the right move, and I'll show you why in a second. Otherwise, you might run in and make a buy or sell decision… in a rush, in an emotional state. That never really ends well.

Turns out the smart thing to do is actually pretty simple… Full Story

Turns out the smart thing to do is actually pretty simple...

Trading Strategies

How to Play IBM's $19 Billion Spin-Off News

By , Money Morning - • Print | Email

I'd say, "It's hard to believe IBM is 109 years old," but the truth is "Big Blue" has been showing its age for a while now.

Believe it or not, International Business Machines Inc. is actually one of the longest-listed companies on the Dow Jones Industrials, listed from 1932 to 1939, and most recently in 1979. The way the Dow is shedding "legacy" companies these days, who knows how much longer IBM will be there.

It was a little before my time, but once, IBM was the bluest of the blue-chip stocks – in fact, it practically put the "blue" in "blue chip."

There's a lot going on in the company's trophy case. IBM employees have been awarded five Nobel Prizes, five National Medals of Science, and a huge array of prestigious awards.

IBM manufactured the most powerful, widely used computer system in the world for nearly two decades. The company's track record of innovation was unmatched… for a while.

Don't get me wrong: This company is still pulling off impressive technological feats. It's just that nowadays, a whole lot of other companies are, too. Once it was one of the most valuable companies in the country; now it's in 34th place on the Fortune 500.

Its stock is down from its 2013 all-time highs of $213, and not many analysts expect it to get back there anytime soon. Then again, it may not have to.

IBM still has one of the most popular, valuable brands in the word. Just close your eyes and think of "IBM," and I'd bet you can see its famous "eight bar" logo. And, like I said, it's still got more than a few tech aces up its sleeve.

And that is the key to IBM's latest move – why it made such a huge splash. And that's why I'm making a very, very rare buy recommendation today… Full Story

And that's why I'm making a very, very rare buy recommendation today...

Trading Strategies

A “Comeback Kid” Stock You Can Cash In on Now

By , Money Morning - • Print | Email

Today I want to talk about a stock that was a trailblazer in the early 2000s – and it's making a comeback.

I want to take you back to a time (not too long ago) when your cell phone wasn't right in your pocket.

Instead of using your smartphone's Google Maps app, you kept an actual foldable map in your car's console for long drives. And the day you finally got a GPS device was a day to be celebrated; no more printed out directions or taking a wrong turn. Your GPS told you exactly where you needed to go.

There was no question about who the top dog of the industry was… Full Story

There was no question about who the top dog of the industry was...

Trading Strategies

Here's the Right Profit Plan for This Wild Market

By , Money Morning - • Print | Email

We've seen the Dow swing from 29,100 to 26,763 since the highs of Sept. 2 – and if that's not "volatility," I don't know what is.

That's probably pretty scary for buy-and-hold investors, but the thing is, as traders, we absolutely need that volatility; if stocks won't budge, most trades just won't make money – definitely not the kind of money that frees you up to spend an hour trading and the rest of the time doing what you want.

So we need markets to swing around a bit, and that means we also need a good plan to stay on the winning side of those big moves.

It turns out "plan your trade and trade your plan" is an old Wall Street saying for a really good reason.

Let's do it – it's easier than you might think… Full Story

Let's do it - it's easier than you might think...

Trading Strategies

Don't Fall for the Nikola Rebound - Buy This Stock Instead

By , Money Morning - • Print | Email

Nikola Corp. saw its stock gain 3% yesterday – despite still being in the middle of a major fiasco.

As I told you last week, Nikola has been dealing with legal issues regarding a slew of fraud allegations. And while the company was thoroughly investigated and mostly cleared, the investigation's impact is still playing out.

The biggest loser happens to be Nikola's founder and chair, Trevor Milton. It was announced on Monday that the founder voluntarily resigned – 10 days after short-selling firm Hindenburg Research released a report claiming Nikola was an "intricate fraud."

Milton's resignation only further spooked already-shaken investors, and the stock plunged nearly 30% in premarket trading on Monday. While Nikola had a backup plan already in place – including adding Stephen Girsky, former vice chair of General Motors and a member of Nikola's board, as chair of the board, effective immediately – investors still piled selling pressure onto the stock.

Now, while Milton has stepped away, he's nowhere near done. Here's what the young founder had to say…

"I asked the Board of Directors to let me step aside from my roles as Executive Chairman and as member of Nikola Board of Directors. The focus should be on the company and its world-changing mission, not me. I intend to defend myself against false allegations leveled against me by outside detractors."

But regardless of whether Milton "clears his name" or not, Nikola is still in a tough spot. And it's going to be one that's hard for the company to bounce back from – especially as the stock continues to move down.

So, while the new low price tag on NKLA might seem attractive, I'm not going for it. There's a much better move you can make to keep your portfolio safe and profit from this scenario… Full Story

Trading Strategies

How to Play Snowflake Stock Now

By , Money Morning - • Print | Email

The Snowflake IPO certainly had an impressive run, and its stock more than doubled at its debut, leaving it with a value of around $70 billion.

Though the stock did dip a little on Thursday (it did climb back up mid-Friday), it hasn’t stopped a small group of insiders and pre-IPO investors from boosting their net worth.

But here’s how regular investors should play it….

Read more...

Trading Strategies

The One Profit Play I See in the Nikola Scandal

By , Money Morning - • Print | Email

Would-be electric truck maker Nikola Corp. is one of the biggest stocks of the mobile-investing craze of the past six months. Its stated goal is to "transform and disrupt the transportation industry globally."

Last time I checked, the global transportation sector was worth in the neighborhood of $6.5 trillion, so there's no denying Nikola is aiming high. As I've said many times here, the electric vehicle industry is the future. Tesla has blazed the trail and proven it. (Get it? Nikola? Tesla?)

It's just that Nikola hasn't really built anything yet.

With a $30 billion market cap, it's the world's biggest truck maker that hasn't built or sold a single truck. Nikola's ideas and concepts are awesome, but there's no getting around the fact that they're just ideas and concepts.

That hasn't stopped retail investors from snapping it up. NKLA shares have been on a wild ride since the pandemic started. At one point in early June, the stock scraped the $80 level, and it still sells for more than three times what it did at its IPO.

But now the company is under attack by a very aggressive short-seller. These attacks have already slammed the shares by as much as 36%; there's no telling how much the short-seller may have made in the process.

It's more important than ever for regular investors to know just what's going on here, because there is a profit play to be made… Full Story

It's more important than ever for regular investors to know just what's going on here, because there is a profit play to be made...