“The individual investor should act consistently as an investor and not as a speculator.” ~ Ben Graham
Welcome to today’s edition of Wall Street Connected.
Coming off of what was a volatile week between retail traders on Reddit and short-selling institutions on Wall Street, many platforms have placed limitations on the amount of shares retail traders are able to buy or short on a select group of securities.
After some short-selling institutions lost as much as 53% of their capital during last week’s numerous short squeezes, platforms decided to limit transactions of securities such as Gamestop (GME), Naked Brand Group (NAKD) and Sundial Growers (SNDL) to as little as one share per trader.
These stocks are ranking #1, #8 and #16 on this data table, respectively.
This decision of limitation caused quite a bit of controversy amongst retail traders and media outlets as it was said that platforms placed these limitations in order to limit the losses of institutional short-selling firms, while many retail traders were reporting as much as millions of dollars in profits as a result of an epic week of short squeezes.
While these limitations were temporarily reversed last week, they were re-implements over the weekend in some cases on only a handful of securities.
These scenarios were taking place on a group of speculative stocks, one stock received no limitations and is known for being one of the fastest-moving higher-priced securities in the market.
It is currently ranking #20 on top searched stocks by FAs (total traffic) over the course of last week.
Known for making fast moves on high liquidity, the stock which is ranking #20 on top searched stocks by FAs (total traffic) over the course of last week is Virgin Galactic (SPCE).
Since recovering from the COVID-19 crash of early 2020, Virgin Galactic has risen from $14/share to as high as $59/share in less than one year.
That’s an impressive move for a company which many traders and investors hadn’t even heard of before it began its bull run in 2020.
Catalysts for the stock outperforming the S&P 500 include space travel, space tourism, Elon Musk’s well-known fondness of the company, and SpaceX.
Here are some highlights from FA searches this past week…
|RANK||TOP SEARCHES BY FAs (Total Traffic) Previous Week [STOCKS]||TOP SEARCHES BY FAs w/ AUM>$1B (Total Traffic) Previous Week [STOCKS]||TOP INDUSTRY SEARCHES BY FAs (Total Traffic) Previous Week [EQUITIES]||TOP INDUSTRY SEARCHES BY FAs w/ AUM>$1B (Total Traffic) Previous Week [EQUITIES]|
|2||AMC||GME||Specialty Retail||Specialty Retail|
|5||BB||CCIV||Consumer Electronics||Software – Infrastructure|
|6||KTEL||BB||Software – Infrastructure||Drug Manufacturers – Specialty & Generic|
|7||EXPR||NOV||Oil & Gas Equipment & Services||Diagnostics & Research|
|8||NAKD||BNGO||Diagnostics & Research||Auto Manufacturers|
|9||AAPL||NOK||Communication Equipment||Software – Application|
|12||GEVO||SDC||Medical Devices||Internet Content & Information|
|13||RTX||GTLL||Communication Equipment||Apparel Retail|
|14||BNGO||GTLL||Radio and TV communications equipment||Medical Devices|
|15||ATOS||WFC||Banks – Diversified||Apparel Manufacturing|
|16||SNDL||TGHI||Telephone and telegraph apparatus||Aerospace & Defense|
|17||RVIV||AAPL||Consumer Electronics||Specialty Chemicals|
|18||OZSC||NAKD||Apparel Manufacturing||Credit Services|
|20||SPCE||WKHS||Auto Parts||Electrical Equipment & Parts|
What We’re Reading:
- Burma is a banana republic
- This week’s economic schedule
- Monday: ISM Manufacturing and construction spend
What We’re Watching:
Valuations are a topic of debate amongst traders and investors on a regular basis.
For example, with Gamestop rising from $20/share to nearly $500/share in only two weeks, one could say it’s slightly overvalued.
What We’re Liking (Sponsored):
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