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These are Charlie's opinions, not investment/financial/legal advice. Past performance is not a predictor of future results. This is not personalized but rather general educational and informational material. Do your own due diligence and/or consult a registered financial advisor before taking any positions.
DISCLAIMER: All of ZipTrader, our trades, reflections, strategies, and news coverage are based on our opinions alone and are only for entertainment purposes. These are Charlie's opinions, not investment/financial/legal advice. Past performance is not a predictor of future results. This is not personalized but rather general educational and informational material. Do your own due diligence and/or consult a registered financial advisor before taking any positions.
You should not take any of this information as guidance for buying or selling any type of investment or security. I am not a financial advisor and anything that I say on this YouTube channel should not be seen as financial advice. I am only sharing my biased opinion based off of speculation and personal experience. An individual trader's results may not be typical and may vary from person to person. It is important to keep in mind that there are risks associated with investing in the stock market and that one can lose all of their investment. Thus, trades should not be based on the opinions of others but by your own research and due diligence.
* How Masterworks works:
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#NotFinancialAdvice
These are Charlie's opinions, not investment/financial/legal advice. Past performance is not a predictor of future results. This is not personalized but rather general educational and informational material. Do your own due diligence and/or consult a registered financial advisor before taking any positions.
DISCLAIMER: All of ZipTrader, our trades, reflections, strategies, and news coverage are based on our opinions alone and are only for entertainment purposes. These are Charlie's opinions, not investment/financial/legal advice. Past performance is not a predictor of future results. This is not personalized but rather general educational and informational material. Do your own due diligence and/or consult a registered financial advisor before taking any positions.
You should not take any of this information as guidance for buying or selling any type of investment or security. I am not a financial advisor and anything that I say on this YouTube channel should not be seen as financial advice. I am only sharing my biased opinion based off of speculation and personal experience. An individual trader's results may not be typical and may vary from person to person. It is important to keep in mind that there are risks associated with investing in the stock market and that one can lose all of their investment. Thus, trades should not be based on the opinions of others but by your own research and due diligence.
Okay folks, so we got to give a violent update on the market and plays, and I want to present the latest on Mullen, which went up again today some 40 at highs before massively selling off. I'll give my thoughts on why the Ceo sold some of his shares halfway through the rally last week on top of his already pretty damn extensive executive compensation. Usually it's heavily looked down upon to sell shares in a pre-revenue stage before the company starts scaling up in any meaningful way. but a lot of retail traders are saying hey, you know what he deserves extensive compensation and saying otherwise is just short seller fund so we'll talk about that.
And finally, for the main entree, I want to give my breakdown on one three dollar stock that you've definitely heard of before and is getting a lot more attention and likely has an imminent catalyst coming up. Let's get right into it. Markets held on to last week's gains pretty well, seeing some strength until Mr. Powell spoke about inflation being too high and the markets tanked a bit in reality.
He didn't really say anything new, but people had to be blasted with the headlines of oh, the Fed is willing to take action on inflation which I think to some extent, along with rising oil prices today, helped the market finish on the wrong side of flat. But the real fun today was in runners. You've seen a lot of spec trading. Nrsn was one of the biggest morning briefing winners we've had this year.
We briefed on this bad bad boy 30 minutes prior to market open at a little over two dollars a share and it ended up going all the way up to 818 at highs about two and a half hours later, which is a pretty decent 4x. This is on Fda clearance for their Als drug to move on through the next round of studies, which is the next step in the long process of hopeful and eventual Fda approval. Now it's worth noting that I didn't find this before the announcement came out and I'm not a genie. I found it after it already had jumped 50 cents and I was looking at this announcement and thinking, well, wait, there's no way this isn't worth more than a 50 cent jump.
That didn't make any sense to me because this is a huge catalyst for this company. This Prime C Als drug that just got clearance is their farthest along product, and this is an incredibly small company whose entire business is built on getting these products through the pipeline and to approval. Their goal is to get something to market as fast as possible. This is the one that is closest to being to market.
So logically, a huge catalyst like this should deserve a much much bigger reaction. Not to mention, just a month ago, we saw proof of how easily this thing spikes. Back in February, it went from 1, 1 to 4 50 in no time at all. And here this morning you had one of the biggest catalysts pop up and the stock barely really moved in context.
So we briefed on it and when volume caught on and awareness spread, the stock got bought up Huge. Now I didn't think it was going to run up this much, so don't give me too much credit here. I was just briefing on Catalyst that I felt had more to run, but still a fun day for the stock and I'm looking forward to seeing the next catalyst pop up for it. It's worth mentioning that if this Catalyst had dropped in January, the market probably wouldn't have rewarded it very much. probably would have gotten maybe a quarter of this move, if not less. There's been so many times when the market's given us huge catalysts this year and even if the stock cured cancer, the market's like short it and that's the reality of the market. The goal is to keep yourself informed on what catalysts are dropping, try your best to narrow down which ones are most likely to run, and then you're going to be on the front lines when something runs in. Other news: Oil was pretty hot today and I was expecting some strength from energy spec plays like Cei and Indo, Cei was up a bit.
Indo was down a bit. Overall, not super exciting. Meanwhile, Inp with the unfortunate ticker name was taken out of commission today by the share offering. That they did.
Good for the company, but certainly annoying for folks who try to trade. Energy disruption place and a constant reminder that any catalyst runner that runs really, really fast is going to be a prime candidate for dilution or insider selling. I'm still looking for more moves upward in oil and overall energy. Unfortunately, it doesn't seem like this Ukraine crisis is de-escalating.
Okay, next, we're going to move on to Mullen. But first, a word from our sponsor. So you and I both know, no matter what, Mr. Powwell says that the only thing transitory this year is the value of our hard-earned dollars and the stability of our markets, which is a huge reminder of the need to be well diversified.
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at the very least, you learn something new At the very best. you diversify your portfolio. Okay, Mullin, Mullen, Mullen, This beast has gone insane. More than doubled in a week and went as high as 4 18.
This morning Before selling off, there was some trending news that the Ceo had sold some shares, taking advantage of the recent runs, but the funny thing is that technically this was already public knowledge already for a few days, but for whatever reason, it was much more widely covered Today, about midday when the stock was rallying by the likes of Investor Place and other media outlets, which if you actually look at the chart, it corresponded pretty damn well with the sell-off That took it down dramatically, you saw this negative Pr about the Ceo selling and then all of a sudden you saw a lot. A lot of selling pressure and really in my view, short selling pressure. I'm just gonna say there are a lot of swamp creatures on both sides of this play. Take that as you will, but according to filings, he sold about 200 000 shares at prices around 165 to 166 last week, which was after the stock had already went up 3x as retail traders tried to step in to save it from the short sellers.
and from a Ceo that says that Mullen has a bright future. It's simply not a good look to be selling shares any shares pre-revenue and before they've even meaningfully accomplished anything that investors have invested into. now a decent prototype and some battery speculation isn't enough of an accomplishment that is a pre-accomplishment I made a video a while back that quite frankly a lot of people thought was in poor taste where I explained how the stock market can be pretty damn predatory because founders early comers leadership have two big ways to cash in huge on a stock. Number one by cashing in on investors by selling a good story or number two by cashing in on customers by building an actual good business.
One of them, you're in the business of just selling investors that you're going to create a business, and the other one, you're in the business of actually building a business that serves customers and gives them what they want. It doesn't matter what way you look at it, if you sell shares before you get to number two, you are to some extent cashing in on the story. And the thing is, it's so much easier to sell a story than it is to sell a good business. And the truth is that if you can get people to buy up your stock on story alone, you could sell out and take profits and then just let your investors take on all the risk of whether or not you're successful. Who cares if you're even successful? You already made all your money just in the salesmanship. Now I don't know what the reasoning behind the Ceo sales are, and some people say, you know Charlie. He did sell halfway through the rally last week, but he only sold 2.4 of his shares and this is only the second time selling shares this year. I mean, it's already been three months of the year, and he's only sold shares in two of the three months.
But full stop when you're running a company that's likely on the verge of a liquidity crisis, hasn't achieved any of its main objectives and is the subject of predatory loans. It's inappropriate to sell a single share, but you look at the filings, it seems the entire company is set up to reward substantial compensation to the people at the very top, which again, would be acceptable in some sense if they were already far along and getting huge results. The problem is that it seems like the compensation is prioritized over the actual success of the company. In fact, just the last two years, the Ceo has been compensated a combined 35 million dollars in salary plus bonus plus stock awards, and effective July 1, 2021, the compensation committee approved an even better contract shocking, I know they approved it, who knew, and he will now receive an annual base salary of 750 000 plus incentive compensation of 1 million shares of common stock each year.
He is also entitled to reimbursement of 500 000 per year. But it gets worse because if you look at the severance cause, the company is forced to pay out ten percent of the company's market capitalization to Mr. Ceo upon termination. I haven't seen that one before.
At the end of the day, it seems like no matter what way you turn, the Ceo is guaranteed to make a ton of money from this, yet he still wants to start dumping shares. and we haven't even talked about a lot of the other leadership. And if he's willing to sell at 160-ish halfway through a rally, who's to say that he's not going to sell as it goes up more and more. And who's going to say that those catalysts aren't going to drop two days later and cause the price to go? When a Ceo sells you, you get about two days before the filing comes out.
And more importantly for talking about direct impact to stock price. Ceo obviously sees the prices rallying. Who's to say he doesn't want to go and dilute massively now when he can get a bigger price for his shares. On one hand, I see some seriously predatory short selling and perhaps even coordinated media campaigns.
On the other hand, I'm obviously not a huge fan of this company. I'm just not sure which is the worst swamp monster At the end of the day. This stock will run until people lose interest or the company makes a move that is so dilutive that prices get destroyed. It's up to you to weigh the risk versus reward, but whatever you do, make sure to have a very, very tight risk management plan. Okay next. so Ticker Bbig has been staging an attempt at a comeback, and it's picking up steam in retail interest. We haven't talked much about new opportunities in the stock since last year, but let me go ahead and give you my updated due diligence on it. Here's my spreadsheet breakdown: So Bbig was, of course, a hot momentum in short squeezed candidate stock in 2021.
It got killed in the risk off environment, just like most short squeezed stocks and most stocks in general. but as of late, it's been attempting a nice comeback. They own eighty percent of Lomo Tiff, which is similar to Tick Tock, and has hundreds of millions of downloads and tens of millions of monthly users. Lomo Tiff is trying to fill a space dominated by companies like again, Tick Tock, which is valued at 50 billion, and Snapchat, which is valued at 57 billion.
Bbig's total value. Right now, the entire company is at 288 million, and that includes not just Lomotif, but other ventures that Bbig owns. So in some sense, if Lomo Tiff achieves just five percent of the success of Tick Tock, that would earn Low Motif a 2.5 billion dollar valuation, of which 80 percent would be owned by Bvig. Again, Bbig's total value right now is only 288 million.
So if they do succeed in any big way, shape or form, then there's a lot of rallying potential for the company, and people see that as a unique opportunity. I see it as growth is much easier said than done. But so far, Lomotif has been doing pretty well. They increased their average monthly community by more than 400 percent in the last three years.
According to Zash, they have significant presence already in Brazil, West Africa, and parts of Asia. They are looking to expand presence in Latin America, South America, and Europe, and some recent developments that promote low Motifs continued expansion or their snap integration, Facebook integration, push into India, social media awareness campaigns, positive Pr releases by Variety Magazine and Fortune, and some music festivals and Tv presence. They also purchased Ad Riser, which helps them monetize low Motif and can incentivize creators to upload on its app. They also own Kryptide, which encompasses different blockchain and smart contract projects.
Like, for example, they run Enft.com which is a streaming music Nft platform. The first Nft created sold a million copies in 57 seconds, which apparently was from a Canadian rapper named Tory Lanez. They also run an Ar and Vr Metaverse project. They also run Cw machines which are consumer-focused bitcoin mining solutions.
The goal is to provide customers with what they need to start mining themselves. Interesting idea of selling the shovels instead of digging for gold yourself, right? But anywho, to really understand Bbig, you have to understand the big Holy Grail catalyst it has, and that is the Holy Kryptide spinoff. We talked about this a decent amount back in the fall, yet it has continued to get kicked down the road more and more now. How does the spin-off work? Well, for every 10 shares of Bbig, you get one share of Kryptide via the dividend. The play is that Bbig has heavy short interest and shorts are responsible for paying dividends on shortages. Thus, the speculation is that some shorts will choose the cover prior to the record date to avoid paying out the dividend, and others will be forced to buy If this catalyst brings enough positive momentum, but also importantly, retail traders and many Bbig bulls feel there is substantial evidence of synthetic shorts, and the rush to cover fake shorts is something that a lot of people think is going to cause a massive rally and a massive squeezy Mcsqueazy. That said, as of right now, we were waiting for the record date and the date at which this kryptide spinoff is going to occur, and we don't have that information yet. There's also some gamma squeeze anticipation before options dated to expire on April 14th expire.
So what are my thoughts on this play? Well, usually the majority of retail heavy stocks movement is driven by retail buying it on speculation of a catalyst, not the catalyst itself, which is important to keep in mind, but it's also kind of the point when it comes to setups like this. if enough retail traders rally shorted stocks up and create insane risk around certain sets of catalyst. While there's also a lot of short selling, it can certainly induce others to cover and cause a massive squeeze. And if you look at the last year plus, Bbig has had plenty of evidence and opportunity after opportunity where you've gotten massive pump and dump squeeze rallies and now you're trading at the lowest quartile on the chart.
thanks to the risk-off sell-off that we had earlier this year, it's an interesting play if you look at it from a trading momentum standpoint, especially if it continues to see this level of retail interest. I think the fundamental case overall is fairly weak, but if you look at it from a technical standpoint, I mean you have a lot of upside. You have a lot of short sellers who want this down massively. You have a clear catalyst coming up at some point, and you have retail watching it heavily.
Those things coming together could set this up for another massive rally. Anyways, folks that caps off today's video, I do want to thank Masterworks again for sponsoring us. Link down below: Learn about investing in some art, and if you're looking to learn how to trade with our step-by-step lessons, private chat, daily morning briefings, private chat, and of course, full price target list. I'll go ahead and put a link to Zip trader you below coupon code.
never give up, We'll get you a sizable discount, have a good one folks, and I'll see you in the next video.
B
I love Charley, but I hate it when he covers these no-name little shit stocks. I’m not putting my money anywhere near them
Why no ooga booga?
This is a great video. I learn alots watching your videos and it’s helpful to me investing money is quite difficult to me but all thanks to Mia Frank she helped me alots
Why didn’t you tell us
Wait until the vans start rolling out
MULN just a concept? Must of missed the early buy in
The biggest mistake you can make when investing is to think that you are smarter than the market. It’s almost impossible to time the consistency, you will miss out on great opportunities if you do this. simply DCA into high conviction stocks and let your position grow.
Thanks Charles ⬆️⬆️⬆️⬆️!
I bought puts on MULN
Investing in the stock market is the best option to make a passive income.
Virtually all the markets are crazy, most people pay more attention to the shiniest position on the graph, I’m keeping a diversified portfolio.
My advice to new investors: Buy good companies stocks and hold them as long as they are good companies. Just do this and ignore the forecasts and market views which are at best entertaining but completely useless.
Checkout SOPA, NEWS hit today 900% yoy growth and with 173% cost to borrow it could be the next MEME stock! It was trading at $70 a share back in November
So who sold MULN because of this ???????? Yup yup yup
Call it for what it is, MULN is dog. It will fail.
Your videos will serve to expose you for what you are in the not too distant future.
MARA LOVELY MARA!!!
watch charlie on mute sometimes, it's hilarious
GEVO got good news today (3/22).
They just signed a 7 year contract for their green jet fuel..
Looks like the shorts have pushed the stock down a lot (22% short interest)
Any thoughts?
I was able to build a huge income stream during the COVID-19 pandemic investing with a professional trader, Mrs Miriam Kojnok
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