First off, 2021 is playing out to be a real life movie. As if things have not been wild enough, the past week added even more drama than ever before with the GameStop story around Suits vs. Retail, Robinhood, Hedge Funds, Reddit, WallStreetBets and more. Even Hollywood could not have written a better script. I won’t bore you with the details, but will include links if you wanted to read up more on this.
Now, let’s talk Innovation. This is the last of the sectors I’ll be focusing on in terms of portfolio allocation for the next 5-10 years. When I bring up the word Innovation, I am referring to companies that are going to totally disrupt the way we see the world as it operates today. These companies span various industries such as Technology, Space, 3D Printing, Electric Vehicles (EVs), Green Energy, Manufacturing, CyberSecurity and Agriculture.
As always there are so many choices to choose from. The easiest way to go about it is just to look at companies doing very interesting things from the crowd. Some of my top picks include:
NEXE Innovations Inc ($NEXE🇨🇦 / $NEXNF🇺🇸) - This stock was another great recommendation from Wealth Research Group. NEXE is focused on commercializing the K-cup pods for coffee machines. What’s interesting about their approach is that they are developing plant-based and fully compostable Nespresso-compatible coffee pods from bioplastic and wood fiber, which is better for the environment.
Palantir Technologies Inc ($PLTR) - Palantir just seems to keep winning all sorts of contracts these days, both domestic and international. The price has rallied too much for me, but this could be a great buy on a major market correction.
Crowdstrike Holdings Inc ($CRWD) - Crowdstrike is focused on Cybersecurity, so this one is just a no brainer. With everything going digital, Cybersecurity will be more and more of a focal point in the coming years.
Rocket Companies Inc ($RKT) - This is another no brainer stock. This stock has pretty much hovered around the same area since it IPO’d in August last year. Leadership owns 95% of this company, that should tell you a lot and the fact that it is profitable and continues to grow. Heck, my house mortgage is with Rocket, so might as well be a shareholder as well.
Plantx Life Inc ($PLTXF) - At the price this is trading at, this to me has a huge long term upside potential for this industry. Many people are turning more and more to plant based diets. This is what Plantx is focused on. Food is a necessity, therefore this has a huge moat if they can succeed.
ARK ETFs ($ARKG, $ARKK, $ARKQ, $ARKW) - I’m usually not even a fan of ETFs, but anything ARK ETF is pretty much a smart move if you don’t want to worry about picking individual stocks. This is because ARK focuses on innovative companies and actively manage these company allocations in their buckets frequently, compared to the traditional passively managed ETFs.
🔥 IPO Hotlist
IPO names that caught my attention for this week:
TELUS International (Cda) Inc. ($TIXT) - Expected 2/3 IPO date. Canada pretty much has 3 large telecommunications operators and Telus is one of them. I grew up in Canada, so I know.
Stocks I will be watching for potential upside/downside swing plays:
GameStop Corp. ($GME) - Looks like all eyes are on GameStop right now.
First Majestic Silver Corp. ($AG) - Based on the fact that Silver seems to be the next target of the retail army.
Sprott Physical Silver Trust ($PSLV) - Based on the fact that Silver seems to be the next target of the retail army.
Bitcoin is still doing its thing, in what feels like an accumulation in the $30K to $34K zone. There is talk of Bitcoin rising after February 4th. I don’t know how true this is, but I’m just the messenger and sharing anyway.
🗺 One More Thing…
This week in the markets will continue with the battle of the Hedge Funds vs. Retail. Feels like the Battle of Winterfell à la Game of Thrones. Expect the unexpected with all eyes on $GME. Just try not to get caught because the institutions have a lot of tricks up their sleeves. Regarding the supposed squeeze on Silver, I’ve personally been bullish on Silver and even wrote about it on Dec 13, #trends 0002 : Precious Metals and Jan 3, #trends 0005 : Commodities. So for me personally, I’ve been accumulating on some of the mining stocks I mentioned before. Regardless of what happens, I feel Silver still has a massive upside in the coming months.
The Whole Messy, Ridiculous GameStop Saga in One Sentence - The Atlantic
PlantX Launches Baby Products Vertical with Else Nutrition - Yahoo Finance
As always, this is not financial advice. I use this as a way to journal my thoughts and share with anyone else interested enough to want to read this, as well as for educational purposes only.