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#StrongHands 🙌 #BOP 🚀 Nation Update ️️️️️️️️️️️️️️️️️️️❤️️
Hi, I’m Paul Mampilly.
Welcome to my company's Substack, where we provide daily coverage of #OGI (opportunity, growth, and innovation) market trends, macro level analysis, and stock picks.
Like our name suggests, at ATG Digital, we go Against the Grain to support everyday people on their investing journeys.
ATG also represents seeing the world for what is abundantly clear to see — an opportunity for incredible growth and the BRIGHT and PROSPEROUS future that lies ahead.
To aid you on your journey to financial freedom, we have five paid plans starting at $9.99 for you to consider.
With a subscription you get:
Premium Content: Weekly market and stock updates via email newsletter.
Stock Picking Guidance: Flash (buy/sell) alerts with targeted price points.
Model Portfolio Access: Access to LIVE portfolios.
Webinars: Private events with the team based on ideas preselected by you.
(Purple Tier Members)
Just visit atgdigital.media to see which plan is the best fit for your journey!
Substack 🥞 subscribers: 5,774 (+1)
We Want Your 🫵 Thoughts!
On Monday, Paul released a Substack on Bitcoin USD (BTC-USD) . . . and today, he put out a poll! 👇
Let us know what you think by clicking on one of the options listed above! 🤩
Dean: Up Nearly 150% 📈
Last week, I mentioned that I really wanted to cover a tiny stock that we hold in our Diamond Tier model portfolio.
This stock was bid up in an unusual way — in fact, most miss these sort of opportunities . . .
But this commonly overlooked strategy is why we encouraged community members to continue building a position in Carvana Co. (NYSE: CVNA) when it was $4 a share!
Now?
CVNA 0.00%↑ trades for an eye-watering $120 a share — a gain of 3,000% if you bought or added to your position when we mentioned it during the bear market.
In fact, Paul named this the “Comeback Stock for 2023.” 👇
We still hold CVNA 0.00%↑ in our Gold Tier model portfolio at a much smaller gain of 380%.
But we’re thrilled that some were able to get exposure to a much larger gain when it traded under $10.
Now, it wasn’t easy to capitalize on this sort of opportunity. There was doom and gloom news everywhere.
The average CVNA 0.00%↑ stockholder probably felt like this as legacy finance called for this company to go bankrupt:
But it didn’t, and there’s one ingredient to this 3,000% gain recipe that really brought everything together. 👀
Heavily Shorted Stocks 📉
When legacy media creates gloom and doom narratives, the natural strategy for most investors to employ is shorting the stock.
To short a stock is to bet against the stock, or to bet that the stock will go down.
This usually creates a cascading effect, where potential buyers avoid the stock and many holders sell it, leading to the stock price plummeting.
As investors open shorts, the short interest of a stock grows, which indicates how many of the available shares of a stock are being shorted.
This creates a HUGE opportunity for investors who understand the fundamentals and health of a company that is heavily shorted.
Such was the case for CVNA 0.00%↑! We knew that despite its debt issues, that it was very, very cheap near the bottom.
And as CVNA 0.00%↑ reported that its debt issues were resolved, the stock began to rise!
This caused those who were short to buy shares of CVNA 0.00%↑ to close their positions, leading to the stock price increasing over a very long period.
We employed this same strategy with The RealReal Inc. (Nasdaq: REAL), which we hold at nearly a 150% gain!
The Set Up 🎲
Oftentimes stocks are shorted irrespective of the company’s growth, balance sheet, or prospects. That was the case with REAL 0.00%↑ and CVNA 0.00%↑.
We like to be in these sorts of trades: where the company’s health and prospects look good but the bad news surrounding the stock is exaggerated and reflected in its short interest.
As the companies report — and people realize that the doom and gloom narratives are smoke and mirrors — investors like us have a good chance of profiting once the stock is bid up and shorts cover.
It doesn’t require the company to report amazing results, either.
Take REAL 0.00%↑, for example . . .
Despite showing minimal growth in its latest earnings, the stock was bid up.
One reason for this is that REAL 0.00%↑ was heavily shorted, and still has a short interest of nearly 20%.
REAL 0.00%↑ provides a platform for individuals to buy and sell authenticated, high-end luxury items — including clothing, handbags, shoes, jewelry, and other accessories.
REAL 0.00%↑ also employs experts to authenticate each item to ensure its quality.
In its Q1 earnings report, it saw total revenue increase by 1% year over year (YoY) to $144 million.
As the stock price continues to surge, investors who shorted the stock will be forced to buy REAL 0.00%↑ to cover, or close their position.
This will likely cause the stock price to surge even higher.
But if you consider that REAL 0.00%↑’s consignment revenue increased 13% YoY, you can see that the company is moving in the right direction.
Not to mention that its gross profits improved about 18% to $107 million.
It also has $165 million in cash, representing about 23% of its current market cap.
It won’t take much buying pressure to push this stock higher considering how heavily it’s shorted.
As a result, we’ll continue to hold REAL 0.00%↑ in our Diamond Tier model portfolio to capture more gains on the stock.
Tiny Stock, Big Potential 🚀
Our Diamond Tier model portfolio is on the ground floor of innovation. It gives you exposure to new technologies and solutions that are just budding up.
Using a venture capital investing model, we’ll likely see some companies explode, some acquired by larger companies . . . and, if we’re being honest, some may not make it.
That said, big winners in this portfolio could compensate for some losers!
For more on this portfolio, including two huge gains, check out the Diamond Tier model portfolio by clicking here!
#GBC100: Wednesday, May 15, 2024
The #GBC100 is up 0.68% today.
Created on September 22, 2022, the #GBC100 is an index/portfolio comprised of opportunity, growth, innovation, and crypto-related investments.
Our goals with the #GBC100 are twofold . . .
First, we want readers to get a sense of what our investments are doing in the market, because they can sometimes perform very differently than traditional indices (like the S&P 500 or Nasdaq 100).
Second, we’d like to eventually turn the #GBC100 into an ETF.
That way, instead of owning hundreds of growth stocks, you can get exposure to ATG Digital thinking — in opportunity, growth, innovation, and crypto — all in one place.
To learn more or to express your support for the launch of an ETF (by completing a poll), click here.
Tomorrow: Dean will be back to discuss a Millennial Boom stock! 🏡
Like we said before, some CVNA 0.00%↑ buyers were able to bag 3,000% gains . . . 🤯
If you were one of them, please let us know in the comment section!
If you’re not yet a member of the ATG Digital family but would like the chance at other incredible investing opportunities, click here to join today! 🥳
Subscriptions start at just $9.99.
On Wednesday, May 15, 2024, we hope to welcome new members soon! 🤗
❤️️ This Substack made — by US, for YOU — with love. ❤️️
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Join us, be #BOP 🚀, be #StrongHands 🙌, #GoATG! ️️❤️️
Disclaimer/Legal Stuff Written in Plain English
What you read/watch/hear is OPINION, not financial/investment advice. Treat it no different than when you read/watch/hear your favorite author/YouTuber/podcaster. Despite our best efforts, we get things wrong and make mistakes. Investing is risky. There is no guarantee you will make money. Your investments may lose value. That’s RISK. Past performance is no guarantee of future results. Employees, contractors, and owners of ATG Digital, LLC own/trade/transact in the stocks, options, and crypto that are the subject of our trade alerts, updates, reports, and commentaries. We cannot give you personalized financial advice because we are NOT financial advisors. It’s on you to decide how much/when/what to buy/sell based on YOUR financial needs, plans, and risk preferences. There are no guarantees. Loss of your capital is an outcome that you should evaluate carefully with a financial advisor before you trade, speculate, or invest. It's your money and your responsibility.
I bought 700 shares of CVNA a couple of years ago at $30
BITCOIN 🚀🐂🌖