What We’re Reading
Wow, yeah, big few weeks here. Hope September has been treating you well so far. Speaking of treats, welcome to another edition of Babbl’s What We’re Reading, where our job is to give you direct access to some of the content we share among our team and discord while watching the markets throughout the week. Some pieces are funny, some insightful, and a couple of them are a little scary; keep an eye out.
Lone Star State of Mind
In one of the last strongholds of our Wild West, one story speaks to what it truly means to be an American: finding corporate loopholes!
“I am now known as Fallopian Rubes, Incorporated,” declared Hidalgo. “This so-called ‘heartbeat bill’ is a slippery slope of epic proportions, so I had to find a legal loophole like a true American. I know it’s been said over and over by countless people, but I’ll be damned if I let the government tell me what to do with my body…”
Now, being that this article features quotes from esteemed sources like Tanner Wolcotton, a hot tub sales representative, and that I couldn’t find any evidence of this corporation in the Texas Taxable Entity database, we can safely chalk this up to a funny but likely satirical article. However, like all tall tales, it feels like there’s a deeper moral lesson to be learned here, so I’ve started researching new locations for offshore accounts. Did you know there’s no capital gains tax in Sweden?
Profiting from Patterns with PatternProfits
PatternProfits (aka Ben) runs an insightful twitter account, posting interesting setups and daily scans of the companies in his watchlist that are looking attractive. And as of last week, he publishes a daily newsletter! I’ve followed him for some time and have gotten a lot out of his posts, so I checked out the first issue:
It’s worth checking out that article and the rest he’s posted if you like what you see below, but let’s hit some highlights:
“The put/call ratio is moving in the right direction for the bull camp as it marches closer to fear levels. Additional downside should push this indicator into an extreme fear reading above 1.0. As a contrarian indicator, this sets up well for a short term bottom in the averages as we watch for the daily cycle low to complete.”
PatternProfits, Newsletter Issue 1
Since this was posted on Sunday, a few of these moves have already played out to some degree (see: $MTTR), but there’s still room to go.
“OSUR hit the pocket pivot scan, as well as the full timeframe continuity scan after a strong performance on Friday and is now pushing up against a longer term trendline dating back to February highs and tagged several times since. The volume pattern here suggests it may be ready to push through to the upside. OSUR presents with 3 consecutive quarters of accelerating revenue growth (+27%, +85%, +97%) with estimates for annual EPS growth of +82%. On strength through the descending trendline, risk can be managed with the power of 3 moving averages below as it has a history of responding well to the 10/20MA cloud once it gets moving.”
PatternProfits, Newsletter Issue 1
Ben wrote this up in his Top Setups section. OSUR (OraSure Technologies) closed Monday at $10.90 and is trading around $11.40 today.
You can find the rest of the free sample article here, and subscribers of his newsletter get daily looks at interesting setups. If charts are your jam, that’s a good spot to get intel.
A Shameless Plug
For a few weeks leading up to this linked post, Ramsey had been researching Kroger. The share price had just hit its ATH share price and we were seeing consistently negative sentiment around the company. Falling sales, high debt, and an unrealistic valuation were common targets of analysts and retail traders alike. The day before earnings, Ramsey sent this out to you folks:
They announced lukewarm earnings the following morning and couldn’t justify the multiple they were trading at, and the share price has fallen 12.6% since that report. And the forward-looking sentiment we’re seeing has moved with the price. Here’s a sneak peek of KR’s company page on our v1.0 web dashboard from last week:
The price has returned to a supported range between $40-$41. While we know we won’t always be able to make correct calls, it’s reassuring to know that the analysis engine we’ve built does its job.
We’ll be launching our v1.0 sentiment engine here in a few months, with a few more tools than you see here. To get an early access discount (50% off) go sign up for our waitlist via this nice button:
And just a few other things you might find interesting before heading off for the rest of your day:
A twitter user seeing investors putting up their umbrella with forecasts of bear market rain:
Possibly related to this:
And this is completely unrelated:
I don’t know about you all, but I like the look of this model from Lucid ($LCID). Price looks a tad out of my range, though. However, as we all know with early automotive co’s (*cough* Nikola *cough*), the proof lives solely in the pudding, so I won’t even read the last line of the linked tweet until I see this thing driving up a hill.
Coffee is for Closers
So I think I’ll go get another cup. Thanks for being here! Throughout the next few weeks, if you come across any funny/interesting/insightful articles, send them to us either on twitter or over email (we’re email@example.com) and we’ll get them plugged in and give you the shoutout you deserve. Or maybe you run a newsletter yourself? We’d love to check it out. And one last thing: don’t forget to sign up for early access to the v1.0 news analyzer! We’re using it ourselves right now as we finish up development, and I am so happy with how it works and what it can show me. Honestly, I can get up to speed on what’s happening in the news at any company in under a minute. Thousands of articles, summarized in seconds. All that good stuff. Sorry, I’ve been known to rant about this but it’s time that retail investors start getting the same level of intel that massive funds have been getting for years. Okay I’m done, sign up here (same nice button):
Thank you from all of us at Babbl, and I hope you have a great weekend!
-Sam & Babbl Team