In our weekend digest, we summarize the best pieces published from the working week. These can be read in full by clicking on the link over the name/ticker.
Editor’s Picks – Interviews and thoughts on a market crash
Pietari is one of the UK’s most popular investors on eToro with around 8,000 followers and over 1,500 copiers. CopyTrading allows copiers to invest their own money to proportionally replicate Pietari’s positions. He has developed a successful Long Equity strategy, with a 2021 return of 37.4%.
Top suggestions include seeking dividend payers, looking for uncorrelated asset classes outside of stocks and not doubling down on marrying up trades.
Jesse gives a helpful summary of what we learnt from the speech of Fed Chair Powell.
Stocks – FTSE continues to push higher, US equity rotation continues
Citigroup started the year well, now up 9.6% from December 31st closing price. Bank stocks generally edged up over the first week of the year as yields on longer-term Treasury bills are rising. Citigroups share price trades at just 80% of its tangible book value. Inflation has been a topic among many this year. Banks are a great way to hedge yourself against this.
Wall Street analysts surveyed by Bloomberg currently have diverging views on Wise shares. 40% of analysts currently have a “BUY” rating, with another 40% with a “HOLD” (neutral) rating. 20% have issued a “SELL” rating.
Citi sparked the latest sell-off, as the bank downgraded their analyst view on WISE from HOLD to SELL on Monday, stating that the company’s growth expectations were excessive. Despite the mixed views, the consensus 12M target price across analysts is currently set as ~860, representing a potential return of 42% from the latest price.
The company has a mutually beneficial relationship with DWAC. They are also going public via their own SPAC merger with CF Acquisition (NASDAQ:CFVI). This may be part of the reason that DWAC rose yesterday. Rumble tweeted out that they had set new historic highs for their weekly video consumption and user uploads. All of this seems to be driving the conservative media movement which is gaining more traction.
Analyst recommendations provided by banks and brokers are a helpful guide in seeing what Wall Street and Institutional Investors think regarding the current price and future outlook of the stocks that they are analysing.
The analysis generally consists of in-depth fundamental evaluation of the company’s financial results, management team, industry, competitive forces, and technical factors. The stocks are then assigned a “BUY”, “HOLD”, “SELL” rating to indicate whether the stock is expected outperform, perform in-line, or underperform the market over the next 12 months. This is usually accompanied by a “Target Price”.
Since the start of December, Dustin has purchased an extra 6.5 million shares, taking his total to 16.24 million. That’s 17% of the company worth a total of $1B, double the investment that he had before December. Note that all these purchases were made after the stock dropped on earnings. The CEO is taking advantage of buying shares at this price.
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