Weekly Newsletter   Challenge account   Weekly Newsletter   

Posted by Martin June 04, 2023
No Comments


May 2023 SPX put credit spreads trading review

It looks like I forgot to report April SPX trading, so in this May report, I will report both months. Both months were losing months. In April we lost -$1,303.00 (-2.54%) and in May we lost -$5,275.00 (-10.53%) while SPX gained 1.46% and 2.71% respectively. The loses were mostly due to letting bad trades go rather than trying to repair them. Overall, our account is still up by $41,201.95 (1144.50%) while the SPX is still losing by -9.10%. Given that, we decided not to roll the trades.

Our SPX account is up +1,144.50% since the beginning of this program, and we have $26,065 in unrealized gains.


Initial SPX trade set ups


I dedicated a $3,600 initial amount that will be used to trade SPX PCS strategy per week. Today, the account is up at $44,801.95. However, due to the recent bear market, many trades are still open, and the funds are tied to those open trades. The trades need to expire or be closed for a profit to release the funds.

Our SPX strategy is designed as directional options trading. We are selling credit put spreads to collect premiums, and hopefully, these spreads expire worthlessly, or we repurchase them for a small debit.

We use a set of indicators, trend prediction (primarily based on moving averages, volume profiles, and trend forecasting), and market sentiment that generates bullish signals. The trading is based on a “trend-following strategy.” We open the trade if we have a bullish signal and a bullish trend. If we do not have a signal, we stay away. We also trade credit call spreads when we have bearish signals. In a choppy market, we stay away from or trade very short expirations (usually 1 or 2 days or up to 7 days), but the trading is muted as we need a trending market.

Unfortunately, today, the market is headline sensitive and can gap in either direction to fail and reverse. It is not easy to trade and not get whipsawed. That’s why we are managing our older trades and not opening new ones until we see a clear market direction.

Here you can see all our 2023 trades:

SPX PCS account value
Click on the picture above to see the entire list.

Last month trading


Overall, the strategy resulted in a +1,144.50% gain last month.

Initial account value (since inception: 12/07/2021): $3,600.00
Last month beginning value: $51,379.95
Last month ending value: $44,801.95 (-13.07%; total: +1,144.50%)
The highest capital requirements to trade this strategy: $19,995
Current capital at risk: -$13,065
Unrealized Gain: $26,065 (-199.50%)
Realized Gain: $3,346 (-25.61%)
Total Gain: $29,411 (-225.11%)
Win Ratio: 51%
Average Winner: $722
Average Loser: $728

As you can see, our account currently shows a realized gain of $3,346, and we have an additional $26,065 unrealized gains.


SPX PCS account value
SPX PCS account value

SPX PCS account vs SPX
SPX PCS account vs SPX index net liq

SPX PCS account vs SPX
SPX PCS account vs SPX index

If you want to receive trade alerts whenever we open a new SPX put credit spread or a hedge trade, you can subscribe to our service:



Note that if you wish to subscribe to multiple levels, you can only subscribe to one level and send us an email that you want to be added to other levels.

Also, if you like this report, hit the like button so I know there is enough audience wanting to see this type of report. If you have any questions or want to see anything else about my SPX trading, do not hesitate to contact me or comment in the comments section. Thank you!


We all want to hear your opinion on the article above:
No Comments

Posted by Martin June 04, 2023
No Comments


May 2023 Investing and Trading Report

Another month is over and it was a successful month to our investing and trading. We finished options trading on a positive note (added $6,942 of premiums income) but we also added new shares to our portfolio and started consolidating it (finally, we started creating cash reserves which were depleted during 2022 bear market). Our dividend income was also positive as we added $590 in dividends last month.

Our cash to buying power dropped a bit as we continued reinvesting our proceeds:

Cash - Net-Liq - BP 04

Our options trading delivered $6,942.00 gain last month (9.85%). Our net-liq value decreased by -1.86% to $70,463.53 value. Our overall account is up 13.18% YTD and -32.66% from when the bear market started in January 2022.

Here is our investing and trading report:


Account Value: $70,463.53 -$1,307.80 -1.86%
Options trading results
Options Premiums Received: +$6,942.00
01 January 2023 Options: +$1,466.00 +1.97%
02 February 2023 Options: $2,754.00 +10.34%
03 March 2023 Options: -$1,462.00 -2.05%
04 April 2023 Options: +$16,410.00 +8.54%
05 May 2023 Options: +$6,942.00 +9.85%
Options Premiums YTD: +$26,110.00 +37.05%
Dividend income results
Dividends Received: +$590.19
01 January 2023 Dividends: +$407.13
02 February 2023 Dividends: +$731.21
03 March 2023 Dividends: +$482.14
04 April 2023 Dividends: +$820.22
05 May 2023 Dividends: +$590.19
Dividends YTD: +$3,030.89
Portfolio Equity
Portfolio Equity: $188,305.99 -$23,819.77 -11.23%
Portfolio metrics
Portfolio Yield: 6.34%
Portfolio Dividend Growth: 22.13%
Ann. Div Income & YOC in 10 yrs: $465,525.66 224.40%
Ann. Div Income & YOC in 20 yrs: $10,815,335,024.59 5,213,446.16%
Ann. Div Income & YOC in 25 yrs: $265,366,868,002,064.00 127,917,986,322.26%
Ann. Div Income & YOC in 30 yrs: $552,070,981,810,733,000,000.00 266,121,422,134,862,000.00%
Portfolio Alpha: 30.95%
Sharpe Ratio: 7.13 EXCELLENT
Portfolio Weighted Beta: 0.56
CAGR: 218.83%
AROC: 38.05%
TROC: 2.12%
Our 2023 Goal
2023 Dividend Goal: $8,000.00 37.89% In Progress
2023 Options Income Goal: $70,000 37.30% In Progress
2023 Portfolio Value Goal: $96,532.51 72.99% In Progress
6-year Portfolio Value Goal: $175,000.00 40.26% In Progress
10-year Portfolio Value Goal: $1,000,000.00 7.05% In Progress


Dividend Investing and Trading Report


In May 2023 we have received $590.19 in dividends bringing our dividend income at $3,030.89.

Last month, we bought these dividend growth stocks:

– 20 shares of IEP @ $47.35
As IEP continued sharply lower we started adding shares of this fund to our portfolio.

– 20 shares of IEP @ $32.15
We added more shares of IEP.

Here is a chart of our account equity showing our accumulation goal and the value of all stocks in our account. It shows a nice upward-sloping chart as our equities grow. This is a result of our options trading and using premiums to buy dividend stocks:

Account Equity March 2023

And here you can see the dividend income those equities pay us every year:

Annual Dividend Payout March 2023


Growth stocks Investing and Trading Report


In May 2023, we purchased no growth stocks.


However, we sold a TMUS covered call at 155 strike price. I forgot to roll it when it got in the money at expiration and our shares were called away at 155 a share. I was mad at first but when I saw the stock falling the following week I was actually happy that the stock was called away from me. I bought shares at $130 average cost and sold at $155. Now the stock is below my original cost and in June, I started buying the shares back.


Options Investing and Trading Report


In May 2023, our options trading delivered a gain of $6,942.00.


Expected Future Dividend Income


We received $590.19 in dividends last month. Our portfolio currently yields 6.34% at $70,463.53 market value.

Our projected annual dividend income in 10 years is $465,525.66, but that projection is if we do absolutely nothing and let our positions grow without adding new positions or reinvesting the dividends.

We are also set to receive a $7,801.56 annual dividend income ($650.13 monthly income). We are 1.68% of our 10 year goal of $465,525.66 dividend income.

Future Divi on YOC 02

The chart above shows how our future dividend income is based on the future yield on cost and what dividend income we may expect. The expected dividend growth depends on what stocks we add to our portfolio and the stocks’ 3 years’ average dividend growth rate. It is interesting to see what passive income we may enjoy 10, 20, 25, or 30 years from now.


Market value of our holdings


Our non-adjusted stock holdings market value decreased from $212,125.76 to $188,305.99 last month.

In 2023 we planned on accumulating dividend stocks, monetizing these positions, HFEA strategy, and SPX trading. We plan to raise more of our holdings to 100 shares to sell covered calls. We continued rebalancing our options trades that released buying power significantly. That allowed us to start repurchasing shares of our interest.

Stock holdings trading week 03

We aim to accumulate 100 shares of dividend growth stocks we like and then start selling covered calls or strangles around those positions. We also planned on reinvesting all dividends back into those holdings.


Investing and trading ROI


Our options trading delivered a 9.85% monthly ROI in May 2023, totaling a 37.05% ROI YTD. We plan to exceed our 45% annual revenue goal in selling options against dividend stocks.

Our entire account is still down -32.66% from when the bear market started. However, in 2023 our account is up 13.18% YTD.

Our trading averaged $5,222.00 per month this year. If this trend continues, we will make $62,664.00 in trading options in 2023. As of today, we have made $26,110.00 in trading options. This is below our projected goal. Based on the goal, we should average $5,834 options income per month. But I hope, as the year progresses, we can increase options income to our goal.


Investing and trading report in charts


Account Net-Liq


TW Account trading Net-Liq 04

The drawdown of our account is highly discouraging, but it started improving. I am not selling any stock positions, and I will be buying back those I sold to release our Buying Power. On top of that, I will be buying more dividend-paying shares as much as possible.


Account Stocks holding


TW Account holdings 04

Last month, S&P 500 grew 45.38% since we opened our portfolio while our portfolio grew 13.80%. On YTD basis, the S&P 500 grew 12.65% and our portfolio 4.32%. We are underperforming market.

The numbers above apply to our stock holdings adjusted by options premiums.


Stock holdings Growth YTD


TW Account holdings Growth YTD

Our stock holdings are underperforming the market. Hopefully, this trend will improve, and we will do better than S&P 500.

Our 10-year goal is to grow this account to $1,000,000.00 value in ten years. We are in year two, and we accomplished 7.05% of that goal.

Our 6-year goal is to reach $175,000 account value to be eligible for portfolio margin (PM), and today we accomplished 40.26% of that goal.

Our 2023 year goal is to grow this account to a $96,532.51, and today we accomplished 72.99% of this goal.


Investing and Trading Report – Options Monthly Income


TW Options Trading Income 02

Investing and Trading Report – Options Annual Income


TW Options Annual Trading Income 03


Our dividend goal and future dividends


TW Received vs Projected Dividends 03

We planned to make $8,000.00 in dividend income in 2023. As of today, we received $3,030.89. We also accumulated enough shares to start making $7,801.56 a year. Our monthly projected dividend income is $650.13, and our current monthly dividend income is $252.57.

TW Received vs Future monthly Dividends 03


I have a favor to ask. If you like this report, please, hit the like like button button, so I know that there is enough audience that like this content. Also, if there is something you want to know or you want me to change this report to a different format, let me know in the comments section.


We all want to hear your opinion on the article above:
No Comments

Posted by Martin May 31, 2023
No Comments


Technical view: TESLA Inc. (TSLA)

Technical view

TSLA is forming stage #4, though last week it attempted to recover the previous losses. The stock is still trading below 200-day MA and struggles to break up. It seems TSLA didn’t participate in the recent tech rally and that should be concerning. Musk is cutting prices of cars in order to attract more buyers, and this is proof that TSLA is just a very overpriced car maker, not a tech company. In order for TSLA to get more customers Musk must make more cars (or cut prices of those already built that are collecting dust in the manufacturer’s storages). Compare it to Apple (AAPL), for example. Apple is no longer a device manufacturer. It builds new phones, but it is not its primary business driver and revenue maker. AAPL now focuses on added value, added services. It has services that bring in revenue every day, every month, and every year without APPL doing anything. They just sit and collect cash. And now they have added new services, such as a credit card, and savings accounts. And they will hook up more customers and collect more fees. They have AppleCare, AppleOne, iCloud, Apple TV+, Apple Music, and the list goes on. And all these services tie customers firmly to Apple. And once you are hooked up, it is hard to switch to other providers. Switching to Samsung, or Google, for example, would mean a complicated transfer of all data from Apple to Google, transfer all your photos, music, files, videos, etc. And so, people stay. And pay hard earned cash. Look at Tesla on the other hand. What can this company offer to its customers? Just a car. It doesn’t matter that they are a leader in batteries, or self-driving cars (which still cannot drive on their own and keep crashing), or all the innovations Musk is claiming and announcing every year but failing to deliver (Cybertruck, Semitruck, etc.). It doesn’t matter that he is involved in Starlink (no revenue so far), solar roof (no revenue), Starship (no revenue), or whatever else. In order to bring in more customers, Musk must build more cars, build more Starlink devices, create more solar roof shingles, and create more rockets (and burn them when they fail). Without that, there is no scalability. You can’t sell Tesla “autopilots” to customers, if there are no Tesla cars to begin with. And on top of all this, Musk keeps infuriating its customer base. His customers are recruited from left wing bases, environmentalists, and people showing their status. They are not right-wing rednecks or conservatives. Conservatives despise electric cars. They mock drivers in Priuses and now in Tesla’s. They buy diesel trucks, not Teslas. And now Musk is aligning himself with people like DeSantis and infuriating left wing buyers.

That being said, I still think Tesla is just a car maker and its price will slide and align with other car makers like GM, or Ford. Its fair value is at $89 a share as of today, but as the market gets saturated, it will drop further down to $30-ish levels.

Technical view weekly

Tesla’s revenue is growing lately, though in 2023 Q1 we saw a drop. We need to see if that is going to be a continuous trend or just a dip. But if we look at what composes the revenue stream, it is mostly automotive sales and services only. There is no revenue stream that would be recuring independently from car sales.

Technical view weekly

Tesla took the biggest hit in free cash flow. The Q1 report indicated a drop of 80%!

Technical view weekly

The company’s EPS is also seeing declines:

Technical view weekly

One positive thing is that Tesla has a plenty of cash on hand and declining debt:

Technical view weekly

Tesla has about 3.5 bn outstanding shares and the company was diluting investors between 2010 and 2022. Since 2022, the number of shares remained the same.

Technical view weekly

The stock is still extremely overvalued. It is trading well above its $89.54 fair value. So, you can play it as aggressive and risky growth play. As a value investor, you should pass this opportunity.

Technical view weekly

Technical view weekly

The stock is now MODERATE SELL

This post was published in our newsletter to our subscribers on Sunday, May 28th, 2023. If you want to learn more about our stock technical analysis subscribe to our weekly newsletter.

We all want to hear your opinion on the article above:
No Comments

Posted by Martin May 24, 2023
No Comments


Technical view: ARK Innovation ETF (ARKK)

Technical view

ARKK is in stage #4 but morphing into stage 1. The stock started moving down sharply. As the tech stocks recover, ARKK will follow. If you like risky investments, this could be a good ride. I won’t touch it with a long pole, though. The stock may be propped by risk-loving retail investors, but I think, ultimately, the stock will fail. The fund is filled with junk stocks that makes investing in ARKK very risky. The recent purchase of Palantir (PLTR) will not make any difference. It may have propped the stock and the fund briefly, but it won’t last long term. The fair value of ARKK is $38.43 so, it trades at fair value and it may stay here for a long term period.

Technical view weekly

The stock is now MODERATE SELL

This post was published in our newsletter to our subscribers on Saturday, May 20th, 2023. If you want to learn more about our stock technical analysis subscribe to our weekly newsletter.

We all want to hear your opinion on the article above:
No Comments

Posted by Martin May 20, 2023
No Comments


That damn debt ceiling!

The debt ceiling was put in place by Congress during World War I and its purpose was to shift debt management from Congress to the government. Before, it was Congress who approved all expenditures. But during the War, it became difficult for the government to go to Congress and get approval for increasing war effort costs. So, Congress shifted this manner to the government, but it established a limit after which the government must have sought Congressional approval. If approved, Congress raised the ceiling and within the new limit, the government could do its day-to-day operations. But that’s when the circus started.

Since then, Congressional parties used the debt ceiling for their petty agendas, holding the US economy hostage. When Republicans were in power, none of them had any issues raising the debt ceiling and Democrats opposed it. When Democrats were in power, the tables turned around. They had no issues raising the debt ceiling and Republicans opposed it. When you look at it from this perspective, you will see how petty and stupid these politicians are.

And since then, this debt ceiling limit, which was also designed to curtail the spending, failed to do so. The national debt rose nearly 400% in the last 20 years.

debt ceiling

But if you see politicians fighting over the spending, remember, next time when voting, that these politicians are fighting over expenditures such as Social Security, Medicare or Medicaid, Veterans’ programs, higher education, department of health expenditures, education, justice, and veteran affairs (among others). These are the biggest mandatory and discretionary expenditures.

debt ceiling

Remember these politicians and in this case Republicans that they are the ones who will be responsible for your social security pay cut, or your Medicare failure. When at the voting booths, vote them out. They do not care about you. They have their retirements and Medicare secured but the government and they and their families will be taken care of no matter what. It is you who will be the useful fool cutting out your own welfare when you reach retirement.
Of course, you may be outraged over the raising expenditure and debt. You may be angry over Biden’s reckless spending, but you should not be supporting anything that cuts your benefits for which you worked hard your entire life and paid (involuntarily) into the system.

debt ceiling

Despite all this circus, the markets held well. There were rattles about the debt ceiling, but it seems that the market expects politicians to strike a deal in the end. At least for now. That’s why we are mostly flat with some wobbles around. And tech stocks even exploded upwards last week (mostly on better-than-expected earnings). The FANG index (FGNU) skyrocketed a whopping 16% last week!

It seems that investors are finally waking up and realizing that all the stocks like META, TSLA, NVDA, AMD, NFLX, AAPL, AMZN, SNOW, MSFT, or GOOGL are still the best growth stocks in the market and selling them out is foolish. The investors were selling out of these stocks, and today, they are hastily buying back at higher prices. You may argue that these stocks are overpriced, and they are, but they will perform well better in today’s FED environment than last year’s FED policy. These stocks will outperform the market this year.

The latest market worries are about the debt ceiling and regional banks turmoil. It is my opinion that both will be resolved. The banks had a way better week last week and the debt ceiling is still on the table. Both parties will have to give up some of their agenda and get the things done.

We all want to hear your opinion on the article above:
No Comments

Posted by Martin May 17, 2023
No Comments


Technical view: Apple Inc. (AAPL)

Technical view

AAPL is in stage #2. While all the “technical gurus” on CNBC were recommending selling Apple because it was technically doomed to go down when it approached the downward sloping trend line, the stock defied them all and kept rising, so I hope you were not listening to them and kept buying. The stock broke above that “magical line” and continued up. The stock is now approaching its all-time high price, so get ready for another wave of “TA gurus” on CNBC telling you why this is the time to sell. Although there may be a dip at that resistance level as weak hands will start selling getting out break even, eventually, that dip will be bought and the stock will go higher.

Technical view weekly

One reason all the bearish gurus will tell you to sell would be a dip in earnings, but they are looking at the short term, not long-term trend. Apple is no longer a device manufacturer. They are in staples industry now (their main revenue comes from all sorts of subscriptions and services revolving around the phones and not from selling the phones themselves). As Warren Buffett recognized this five years ago, people are now addicted to iPhones and if they have to choose between a new car or iPhone, they buy iPhone. And Apple does everything it can to keep people addicted. Just look at their latest savings account effort. So Apple’s revenue may be down this quarter, but it is rising long-term:

Technical view weekly

Company’s free cash flow is also showing a growing trend. There are dips and spikes on quarterly basis, but long-term trend is clearly up:

Technical view weekly

The same can be said about earnings:

Technical view weekly

Apple raised a lot of debt between 2013 and 2017 and again between 2020 and 2021 but started retiring that debt since. If the trend continues this will be a good sign.

Technical view weekly

Apple is paying dividends and the company increases it by 4.35% on annual basis. A 5-year average growth is 5.63%. That is also good:

Technical view weekly

But the biggest deal is shares buybacks. Apple is retiring shares outstanding on a very rapid speed. Their buyback rate is at 4.72% 5-year average (or 3% annually). They are now at the level last seen in 2000.

Technical view weekly

Apple is undervalued based on its recent EPS estimates. It trades at the average P/E valuation, but its expected fair value is way above the stock price. The fair value by 2025 is now at $216.91 a share, giving a potential for 10.23% annualized growth. However, the valuation window is closing and if the stock continues higher, is soon will be trading at its valuation and you may miss an opportunity to buy.

Technical view weekly

Technical view weekly

The stock is now AGGRESSIVEE BUY

This post was published in our newsletter to our subscribers on Saturday, May 14th, 2023. If you want to learn more about our stock technical analysis subscribe to our weekly newsletter.

We all want to hear your opinion on the article above:
No Comments

Posted by Martin May 12, 2023
No Comments


Here we go again, the market circus continues.

Once again the market’s participants are freaking out about known issue that is probably no issue at all anymore. No one knows what is going on. The Media are trying to explain to us who pooped first but in the end, they are as clueless as everybody else. And the market circus continues.

In the morning, futures were up and the markets rallied led by tech stocks. Then they turned around and nosedived. Some blame banks, others easing inflation, or coming recession. Yes, it is the recession that has been coming since 2022 but has not arrived yet. And since it is the most anticipated recession in the US history, it will be coming for some time in the near future. And it may even arrive in the end if enough circus makers will feed the hydra of recession fear.

market circus

So, what’s the deal here? I think, the problem is that we received consumers’ sentiment report and it showed that people are not as eager to buy crap as they were in 2021. And suddenly, all the naysayers are screaming in unison “We told you so.” They fear that consumer will stop spending his hard earned money, companies will report less profits, and the economy will fall into the recession. Finally.

But the problem with this narrative is that the labor market is still extremely strong. Stronger than what the FED would like to see. And the stronger the labor market is, the more money a consumer makes and he is always ready to buy a new TV. Or go for an expensive vacation. I know it first hand as my family just purchased a vacation in Oregon that would cost arm and leg… you know, the flight, car rental, hotels, food… and new and fancy gifts in the gift shops on the main street in Portland.

My entire portfolio is hopelessly bleeding red, except Google (GOOGL) and Icahn’s IEP. Yes that same IEP that was trashed by Hindenburg not so long ago and crashed 40% is up 6% on shares buyback announcement. MPW crashed over 7% today after the company beat all estimates on their EPS and revenue. I guess they must have said something about their tenants and it was probably something nasty, so investors pooped their trousers.

Other than that, it is a nice, calm and steep rock falling on the floor today. Nothing to be worried about. For sure, the market circus is not over yet. It may end once we find out who the clown is.


We all want to hear your opinion on the article above:
No Comments

Posted by Martin May 11, 2023
No Comments


Technical view: Restaurant Brands International Inc. (QSR)

Technical view

QSR is in stage #2. This could become another Texas Roadhouse restaurant if done correctly. Patrick Doyle is a great CEO and has a very good track record of turning struggling businesses around and making them profitable. I think this could be another opportunity to make this a great investment although the stock is overvalued when compared to the company’s underlying adjusted operating earnings. The weekly chart indicates that the stock moved nowhere since 2017. If my expectations for Patrick Doyle will be correct, this may change.

Technical view weekly

The company pays dividends, and the current dividend yield is 3.14% (dividend payout per share is 2.20). The company increases its dividends every year by a decent 4.1% (5-year average annual growth), or 1.85% annually. Nothing extraordinary but given the nature of this company, I think it is acceptable.

Technical view weekly

The business’s revenue is steadily growing at 9.25% annually. That is good news for this company. I consider these positive metrics. We only saw a decline in earnings in 2020:

Technical view weekly

Unfortunately, the free cash flow is erratic. A one-year average is -13.79%, 2-year growth is +18.51%, and 5-year average is again -7.33%. A bit of a zig-zag performance:

Technical view weekly

QSR’s debt is large and growing. The company doesn’t have enough cash to cover the debt. That is very negative.

Technical view weekly

Given the valuation of the company and its financial situation, I think it is not a complete disaster. There are worse investments out there. Nevertheless, this still makes this investment a speculative one. When investing in QSR, invest small amounts of money. I also recommend utilizing options to lower the cost basis and generate income.

Fundamentally, the stock is overvalued, trading ways above its estimated fair value of $52.03 per share:

Technical view weekly

Technical view weekly

The stock is now MODERATE BUY

This post was published in our newsletter to our subscribers on Saturday, April 29th, 2023. If you want to learn more about our stock technical analysis subscribe to our weekly newsletter.

We all want to hear your opinion on the article above:
No Comments

Posted by Martin May 09, 2023
No Comments


Airbnb (ABNB) drops 12% AH

Market participants exercise their idiocy once again. Airbnb, Inc. (ABNB) came out with quarterly earnings of $0.18 per share, beating the Zacks Consensus Estimate of $0.10 per share. This compares to a loss of $0.03 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 80%. A quarter ago, it was expected that this company would post earnings of $0.27 per share when it actually produced earnings of $0.48, delivering a surprise of 77.78%.

Yet the idiots out there were disappointed because bookings didn’t meet the arbitrary expectations of Wall Street. The same idiocy we saw recently with many stocks (example given is Netflix and their subscribers, or Apple and the number of sold iPhones, etc.). Generally, this number doesn’t matter. Next quarter, it can be a totally different number and the opposite story. Reacting now to the past numbers that are already history is idiotic. Look ahead. Look to the future. What is the prospect?

But this is a great opportunity to add shares of this company to a portfolio. I ranked this stock as an aggressive buy in my weekly newsletter and this selloff provides an even better opportunity.

We all want to hear your opinion on the article above:
No Comments

Posted by Martin May 09, 2023
No Comments


Technical view: Alphabet Inc. (GOOGL)

Technical view

GOOGL is in stage #2. and extremely undervalued. The stock is recovering from the recent bear market very fast. It reached its intermediate resistance, but it seems to have the momentum to breach it. Despite all bearish talks, GOOGLE is improving its finances, and cutting costs, and that is what investors like. It will have eventually a very positive impact on the stock price. During 2020 and 2021 the company over-hired its staff so, now it is time to cut unnecessary employees. People think that this is bad for the company and the economy, but in 2020-2021 the hiring spree was unusual and extreme. The company is just returning to its normal employment levels.

Technical view weekly

Google sports a growing revenue. You can see only a few drops during 2020 and 2022. But at the end of 2022, we could see its revenue back up and higher. Its 5-year average revenue growth is at 18.66% and that is really good for a mature tech company.

Technical view weekly

Free cash flow is also growing though in 2022 we saw a slowdown. It is recovering since then:

Technical view weekly

The company has plenty of cash on hand and very little debt, although lately, we can see the cash going down. That can be a result of investments or R&D expenses.

Technical view weekly

So, let’s check the expenses of the company. We can see rising expenses at R&D. That could be caused by investments in AI development.

Technical view weekly

Google increased shares outstanding significantly in 2014. Since 2019, the company started buybacks and slowly decreased the shares outstanding. We can see a jump in the last quarter of 2022. Let’s see if it is just a temporary thing or if the company will be issuing more shares and diluting shareholders.

Technical view weekly

Fundamentally, the stock is very undervalued, so this is your opportunity! Do not miss it, it may not happen again.

Technical view weekly

Technical view weekly

The stock is now AGGRESSIVE BUY

This post was published in our newsletter to our subscribers on Saturday, April 22nd, 2023. If you want to learn more about our stock technical analysis subscribe to our weekly newsletter.

We all want to hear your opinion on the article above:
No Comments

This site has been fine-tuned by 14 WordPress Tweaks