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Suggestions for a speculative punt?

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  • adindas
    adindas Posts: 6,856 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 29 November 2020 at 8:30PM
    Motivation of taking calculated risk in investing in individual stock.
    I quoted what Warren Buffett said "Risk comes from not knowing what you’re doing”
    Case study Example Amazon.
    "So, if you invested $500 at the IPO price (May 15, 1997), you would have purchased 27 shares. You would now have 324 shares after the stock splits. Those shares would be worth $568,620 at the current price of $1,755 per share."
    But this article was written in  Nov 24, 2019  where the stock price was  $1,755 per share." Today November 29, 2020, Amazon stock is already US$3,195.97
    So at the current stock price the value of having 324 shares will be US$1,035,494.28.
    Your risk  losing money of US$500, your reward is to make you a millionaire in about 23 year time. Supposed you could still make a decision which one you choose ?
    Moreover with the stock like Amazon there are a lot of anylists opinion available which will allow a retail investor to make  an informed decision and taking a calculated risk accordingly. Unfortunately I was not on this Amazon Boat, but at that time investing is only for the wealthy people or institutional investor. The information is not available like what you have seen today. But I also learn the lesson and will not repeat the same mistake again.
    There are other cases where you will see the case like this are repeated time after time. Good example is the stock in EV and or technology such as Tesla, Nio, Xpeng.
    Nio for instance, I got Nio at around US$5.00. I had to sell it at around US$10 due to admin problem.
    Reentered late September 2020 at around US$17.00 with non ISA account and I am still holding it now. The current price of NIO is US$54.00, so 200%+ in just two months. I will keep this stock as an iron stock as I fully believe that this stock might end up like Tesla. They got backed up by the chinese government so chinese goverment wil do whatever it takes to keep them afloat.
  • adindas said:

    But this article was written in  Nov 24, 2019  where the stock price was  $1,755 per share." Today November 29, 2020, Amazon stock is already US$3,195.97
    So at the current stock price the value of having 324 shares will be US$1,035,494.28.

    Thing is most people wouldn't hold a £500 investment to £1m. 
  • Back in 1997 Amazon was a simple online book seller.
    No Analyst could see how it would end up.
    One person caring about another represents life's greatest value.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Back in 1997 Amazon was a simple online book seller.
    No Analyst could see how it would end up.
    Even Amazon didn't foresee the lack of competition in the Cloud space for so long.  The retail side of the business performs worse than Walmart. 
  • adindas
    adindas Posts: 6,856 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 30 November 2020 at 12:43PM
    adindas said:
    Another Unicorn SPAC, Apex Technology Acquisition Corp (NASDAQ - APXT) is going to merge with Microsoft cloud SaaS / partner AvePoint .
    Premarket today already jump 39.58% very volatile. Everybody love a stock to jump in that scale but not many people would like or prepare a nerve to drop in that scale as well.
    Good to be put it on the radar ?? A quote from Warren Buffett "Risk comes from not knowing what you’re doing”

    Watch out this New SPAC, but please do your own due dilligence. As it is still in its infancy, there has not been a lot of coverage by wall street Analysts.
    It is still a baby crawling but nurtured and taken care by titans. Later they could use their relatives connection and influence to grow. In the future they might be acquired by Microsoft.
    This is the company PPT presentation. Look at their current customers.
    Hopefully, they will grow up and soon be able to run. Just look at how the technology company like Palantir (already mentioned on this thread) and Snowflake octopus growth in relatively short period.
    Looking into the daily price volatitlity and given that the share price is still relatively low it seems there are a lot of extreme speculators pump and dumb, day traders, short sellers are playing.
  • adindas
    adindas Posts: 6,856 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 1 December 2020 at 9:39PM
    Wacht out this new SPAC from Richard Branson VG Acquisition (VGAC). It intends to acquire an EV company to compete head to head with Tesla. It is recently launched, so this SPAC is still under the radar of many hedge funds, institutional investors. I have started building up position and will keep cost avaraging it as I believe it might explode when they have identifed the target.
    Richard Branson company has reputation to make you money. My SPCE virgin galactis has gone up 65% since I bought it late September 2020.
    But please do your own due diligence.
  • adindas said:
    Wacht out this new SPAC from Richard Branson VG Acquisition (VGAC). It intends to acquire an EV company to compete head to head with Tesla. It is recently launched, so this SPAC is still under the radar of many hedge funds, institutional investors. I have started building up position and will keep cost avaraging it as I believe it might explode when they have identifed the target.
    Richard Branson company has reputation to make you money. My SPCE virgin galactis has gone up 65% since I bought it late September 2020.
    But please do your own due diligence.
    Just a thought, but if Richard Branson is able to make so much money, why does he need to raise funds?  Instead he is asking for others to contribute to a business proposition his group will manage.

    By no means any guarantee, and highly risky in my opinion.

    If you're after a speculative punt go ahead.  My latest acquisition is Ceres.  They design electric conversion technology and sell the production rights to manufacturers.  Bosch recently won an award with their technology building a hydrogen power plant in Germany, and there are talks about it being the next big thing in Singapore and rumours in the UK as well.
  • csgohan4
    csgohan4 Posts: 10,600 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    what's going on with NIO and Xpeng, they have had large drops
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • tom9980
    tom9980 Posts: 1,990 Forumite
    Part of the Furniture 1,000 Posts Name Dropper I've helped Parliament
    Hindenberg research have attacked various EV companies and battery makers in China so they all dropped in price. They have links to short sellers, ultimately it's all noise and you either believe in a company long term or shouldn't have invested in the first place.
    When using the housing forum please use the sticky threads for valuable information.
  • The US House of Representatives might also pass legislation today that could see Chinese companies listed on US Exchanges come under increased risk of being delisted if the audit practices they are subject to do not meet US standards three years in a row.  The first delistings would actually therefore be in three years' time, but the general theme of the US-China tensions is aligning with the declaration of short positions as noted by tom9980 above and also perhaps a general slowing of the EV mania we've seen in recent weeks and months.
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