My recovery plan using $SKLZ, after having lost 90% of my account in the last 3 months in a swing with LEAPs, from 40k to 5k.
In the last 3 months I have lost 90% of my money, and in the next 3 months I will get it back. This is my plan.
THE PLAN TO RECOVER
Macro environment: never before have mega-corporations, mutual funds, private equity firms, had so much dry powder available to be deployed, in an inflationary environment that makes keeping money parked on the balance sheets unattractive, pushing their managers to seek options to use the money (such as retained earnings) and not keep it in dollars while they devalue.
It is reasonable to expect that some will choose to add some kind of hedge against inflation to their balance sheets, such as buying gold, or digital assets as we have seen in recent examples. However, these options are considerably more volatile than the dollar, and many boards of directors do not appreciate the idea of subjecting their retained earnings to high volatility. (See the discussion on this topic by Sosnoff and Ratigan, in the second half of their latest podcast https://youtu.be/eTfFEq8hOMg. For those of you who don’t know who they are, stop reading right now, and please look for them, and then come back)
That is why I consider it inevitable that acquisitions of smaller companies will increase, as a measure of administration of the balance sheets overloaded with cash, in order to maintain growth in an inflationary environment.
Within this universe of mergers and acquisitions (M&A) we must be clear that the first companies to be subject to acquisitions will be those that can have high growth, low debt, and generate profits. This is where SKILLZ comes in, ticker $ SKLZ.
The trading vehicle merits: SKILLZ ($SKLZ)
$ SKLZ has 0 debt. Go check the. 10 Q. https://investors.skillz.com/financials/sec-filings/sec-filings-details/default.aspx?FilingId=15148796
Its warrants expired on August 16. See: August 16, 2021 Form25-NSE Notification filed by National Security Exchange to report the removal from listing and registration of matured, redeemed or retired securities Initial Filing Amendments. https://investors.skillz.com/financials/sec-filings/sec-filings-details/default.aspx?FilingId=15164082
- SKLZ posted its 22nd Consecutive Quarter of Growth. Record Q2 Revenue.
• Revenue beat ($ 89.5M vs consensus $ 88.2M).
• Revised FY21 revenue upward to $ 376M from $ 375M, consensus $ 376.15M – plus $ 13 million revenue contribution from the business combination with Aarki resulting in combined 2021 revenue of $ 389 million.
For more details I refer you to this illustrative analysis of – 1pitchin, where you can find more information: https://www.reddit.com/r/StockMarket/comments/p5yfpk/sklz_is_now_the_time_to_load_the_boat/
- SKLZ is also a company that in the past has enjoyed the attention of very important investment funds, such as Cathy Woods.
- Has 40K followers on Stocktwits.
- GEN -Z stock.
The trigger. CTNF RUMOR.
But what attracted my attention most powerfully is that the CTFN M&A news reporting group published the rumor reported by Sarah Cohen that SKLZ is being watched to be acquired by competitors in a takeover. (See who she is in this thread https://twitter.com/Gilberto_TFC/status/1428795628973400074?s=20)
On the technical side, SKLZ is hitting its lowest point in 52 weeks. The RSI indicator shows highly oversold. The index to which it belongs, the Russel 2000 is in the support area.
In the macroeconomic environment we find ourselves in, I give weight and credibility to the idea that SKLZ could be the object of a takeover attempt, which would increase the demand for the stock. I increase my conviction that this is possible because having reviewed the work history of the reporter who broke the rumor, Sarah Cohen, I see that it is very likely to be true.
Considering that SKLZ’s technical analysis shows that there is an advantage in buying when in an oversold state, and that the Russell 2000 index is in support at 212, from which it has bounced 4 times this year.
Considering that the warrants expired on August 16 and that their impact is over.
The following is My trade:
I bought with the money I had left over (5k) 27 contracts of $ 10 Calls, for October 15, 2021 at 1.65 each, for around 4800 dollars, on Thursday when the news of the CTFN rumor came out, and I plan to sell. half when $ SKLZ reaches 15, and the other half stay with them until the first week of October.
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August 21, 2021 at 02:21PM