5 intriguing stocks to target outside U S triblive.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from triblive.com Daily Mail and Mail on Sunday newspapers.
Can you make money going against the Wall Street Bets crowd?
Yes, but you can also lose a lot and fast.
Investors and traders who frequent the Wallstreetbets forum, part of the website Reddit, have rammed up stocks with questionable fundamentals such as GameStop Corp. (GME) and AMC Entertainment Holdings Inc. (AMC).
They take glee in tormenting short sellers, who bet on certain stocks to decline. If they can cause the short sellers sufficient pain, the shorts must buy shares to undo their negative bets, which pushes the stock up even further.
This maneuver is a classic short squeeze, the kind Ray Dirks used to orchestrate decades ago. But Dirks didn’t have the Internet. Roaring Kitty and his fellow traders on Wallstreetbets do. They can squeeze the shorts quicker and harder.
John Dorfman: Nebraska residents sweep Derby of Economic Forecasting Talent triblive.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from triblive.com Daily Mail and Mail on Sunday newspapers.
John Dorfman
AP
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While many individuals and governments have fallen deeply into debt during the pandemic, many companies have strengthened their balance sheets.
Each year (2001-06 and 2011 to the present), I’ve compiled a list of companies that qualify as Balance Sheet Powerhouses. Until now, the largest number of companies that made the list was 42, in 2006. This year, 61 companies made it the honor roll.
I enjoy compiling this list because I believe investors pay slavish attention to every tick in a company’s earnings and not enough attention to a company’s balance sheet (assets versus liabilities).
John Dorfman
Bloomberg News
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You might think, in the aftermath of Tesla and GameStop’s huge recent gains, that momentum investing has gone crazy.
Maybe so, but momentum stocks were popular even before the Reddit “Wall Street Bets” frenzy. There have always been folks who like to jump onto a speeding train, but they have had more success lately than usual.
According to Standard & Poor’s, momentum stocks surged 28.3% in 2020. Value stocks, the beleaguered school of investing to which I belong, inched up 1.4%.