While these stocks are limited, this one isn’t.

“The individual investor should act consistently as an investor and not as a speculator.” ~ Ben Graham

Dear Trader,

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.

There’s a big reason why this company’s shares are on the move (sponsored).

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.

TrackStarIQ Data

Here are some highlights from FA searches this past week…

 

RANKTOP 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]
1GMEAMCEntertainmentBiotechnology
2AMCGMESpecialty RetailSpecialty Retail
3NOKOPTIPharmaceutical preparationsEntertainment
4CCIVSPCESemiconductorsCommunication Equipment
5BBCCIVConsumer ElectronicsSoftware – Infrastructure
6KTELBBSoftware – InfrastructureDrug Manufacturers – Specialty & Generic
7EXPRNOVOil & Gas Equipment & ServicesDiagnostics & Research
8NAKDBNGODiagnostics & ResearchAuto Manufacturers
9AAPLNOKCommunication EquipmentSoftware – Application
10TSLAJAGXBiotechnologyConsumer Electronics
11SRNEEXPRApparel RetailSemiconductors
12GEVOSDCMedical DevicesInternet Content & Information
13RTXGTLLCommunication EquipmentApparel Retail
14BNGOGTLLRadio and TV communications equipmentMedical Devices
15ATOSWFCBanks – DiversifiedApparel Manufacturing
16SNDLTGHITelephone and telegraph apparatusAerospace & Defense
17RVIVAAPLConsumer ElectronicsSpecialty Chemicals
18OZSCNAKDApparel ManufacturingCredit Services
19AUPHAUPHBiotechnologyInternet Retail
20SPCEWKHSAuto PartsElectrical Equipment & Parts

What We’re Reading:

  1. Burma is a banana republic
  2. This week’s economic schedule
  3. 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.

Click here to learn more about valuations…

What We’re Liking (Sponsored):

-InvestingChannel

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