Your Questions đ¤ Answered!
Join us as we answer all your burning đĽ questions from last week!
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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. Thatâs RISK. We cannot give you personalized financial advice because we are NOT financial advisors. Itâs on you to decide how much/when/what to buy/sell based on YOUR financial needs, plans, and risk preferences. It's your money and your responsibility.
Bâs Community Update
Hey, everyone! Happy Saturday! I hope that youâre doing well.
Kickstarter Perk Fulfillment: Please forgive me for the delay. Between trying to offer what former services we can while working with a contractor on completing our new website, we havenât processed the orders yet.
We figured that you cared much more about getting the level of service that you once had (i.e. portfolios, email trade alerts, SMS trade alerts, etc).Â
My hope is to start processing orders by Monday of next week so that you can start the new year #BOP style! Iâll provide an update on this in the next Q&A Substack.
Editor Position âď¸: Thank you to everyone who has already applied to our open editorial position! If youâre interested in applying, please click here to fill out the form.
Weâll be looking over all applications and reaching out to candidates starting Monday!
Have questions or are having trouble accessing your account? Please reach out to us at contact@atgdigital.media or schedule a call and our Customer Support Manager, Kate, will be happy to help.
You can also check our FAQ page on our website for an up-to-date list of questions and answers. Your question may have been addressed there.
Thatâs all for today. Until next week. â¤ď¸
âď¸ A Note From Nicole âď¸
Happy Saturday! Nicole here on behalf of the ATG Digital editorial team.
By popular demand, weâre back today with another edition of our Q&A Substack. In it, the team will address your most recent questions.
First, weâll go through questions from Paulâs YouTube channel.Â
Letâs get started!
Paul Responds to General Questions đ
Question:
An important Q is that there is a lot of commentary that the US economy will be heading for a recession because of a yield curve inversion and the lagging economic indicators that the Fed at present do not seem to be bothered about will cause this.Â
So although I am BOP on our growth stocks, is it possible they can avoid the impending doom and what might become a self fulfilling prophecy leading to falling prices. Will investors pivot to growth stocks?!
Paulâs Response:Â
Remember that the information and news that you read and know is widely understood and priced into markets. Markets are filled with smart people looking to make money.Â
So, when you read something on a free website, you need to know that this is known, understood, and already considered by people who manage money. A newspaper or website that youâre reading isnât providing you something thatâs not known by the vast majority of people making decisions.Â
We all want to make money now â preferably, yesterday! But, in the end, weâll have to wait for the supply and demand for growth stocks to come back into favor where there are persistent, steady bids for our stocks at rising prices.Â
Right now, despite strong growth in their businesses, people are still selling some of our stocks and are not yet buying ours. Can this go on forever? No, absolutely not. Could it go on for another three to six months. Yes.Â
Even if the bear market ended tomorrow, our stocks wouldnât rise overnight. So, bottom line, weâll have to take what the market gives us. Of course, the folks tempted to time the market can try to dive in and out.
But just like the bear market swooped suddenly down on us, a bull market can begin when you least expect it. Stay #StrongHands, be #BOP.Â
Question:Â
Thank you for your excellent work. Would you please share your thoughts on these two stocks as the Japanese currency is weakening day after day? Â
I am very confused about the relation between the country's currency & the stock price in the US. Thank you.
Paulâs Response:Â
Which two stocks? Iâm guessing one is SONY 0.00%â, but whatâs the other one?
A stock like SONY 0.00%â, which is technically a Japanese stock, trades in Japan. However, its business is global. The yen, however, is the currency in which transactions are recorded in Japan.Â
When the value of the yen falls, the value of the companyâs Japanese assets falls â but the value of its sales in the U.S. is rising. Bottom line: Itâs a mixed bag.Â
A falling yen is good for SONY 0.00%â because itâs more price competitive against a U.S. producer. However, itâs bad for SONY 0.00%â because the value of the companyâs assets and profits are going lower in U.S. dollars.Â
Thereâs more than that, but thatâs a general answer to your question!Â
Question:Â
On Saturday, a bunch of questions were asked. Unfortunately to get the answer you had to look back to a previous column which made it very difficult because I couldnât find all those columns they were talking about.Â
If theyâre going to answer a question, canât they just answer it there?
Paulâs Response:Â
Unfortunately, we cannot answer very long, complicated questions here or provide specifics on various stocks. The more direct and clear your question is, the easier it is to answer.Â
Also, we cannot print long explanations in the Substack â this is what our updates are for. We encourage you to watch our updates for explanations of stock questions!Â
If you want us to cover particular stocks in an update, please tell Kate at contact@atgdigital.media.
Question:
If youâre unable to buy 80-90-100 stocks how do we know which ones are your top buys. I would love to see a conviction list of 20 or soâŚ
If youâre driven by demand and supply and going-upness, why have we held for the 70,80,90% fall in stock prices as demand and liquidity disappeared?
Paulâs Response:
First, we cannot tell you what to do. You have to decide how many stocks, which ones, how much to own, and when to buy or sell.Â
You can use our general guidance in rules of the game to implement this.Â
Second, why didnât we sell at the top? Because we didnât know that a 90% crash was coming.Â
We donât have a crystal ball to tell us what markets are going to do. We make our judgments based on the best information we can come up with using our research, experience, and knowledge.Â
Through this crash and bear market, our companies have kept growing. In my experience, when companies are growing by 10%, 20%, 30%, or more, they usually donât go through a crash.Â
So, I expected demand to come back in. And since nothing has changed for most of our companies â their businesses are strong â I expect the demand for their stocks to come back.
Paul Responds to 100X Club Questions đŻ
Question:Â
TTOO was a 100X recommendation. I don't believe I have seen an update from you or Charlie. I welcome any insight. I keep thinking just hold-on don't sell. Disappointed after reverse split.
Paulâs Response:Â
The 100X Club is intended to be a portfolio. Reverse splits are completely normal for small stocks because theyâre often unable to maintain stock prices above $1.Â
Reverse splits donât change anything, they simply reduce the number of shares in the company to get the stock price higher. Toni and I will look to cover this stock in our update this week.Â
Question:
I suppose Paul will continue recommending new stocks in this service, especially during the current bear market as the prices are low.Â
However as I explained to you, I have many losses now from my positions in 100X and no cash available for investing in new positions.Â
So, would Paul recommend selling some of the existing positions even at a loss, in order to create cash for buying into new recommendations at the current low prices?Â
Or just keep the existing positions (hoping for their rebounce in previous highs) and do nothing for the new ones, as I have no cash to follow?Â
This is not personal advice I am asking for, but it has to do with the handling of the existing 100X portfolio versus buying new positions.
Paulâs Response:Â
The basis for 100X stocks was long term. And the goal there was to replicate how venture capital allocates money, which is that you allocate to many companies.Â
And you only need a few big wins to generate massive returns. We canât know when a company is going to start rocketing up in price, or if itâll be acquired by a bigger company.
Small, illiquid stocks can go up and down in a big way before paying off. Check out this Substack where we secured a 150% gain on one stock after it crashed!Â
Maintaining a #BOP mindset isnât easy â especially during a bear market â but it can pay off in a big way!
Paul Responds to #GBC90 Questions đ
Question:Â
Is the GBC portfolio meant for tracking purposes only? Or when stocks are added to its portfolio, are these essentially BUY recommendations for our members?
Paulâs Response:Â
This is a passive index portfolio to tell us what our stocks are doing. Weâd like to turn into an ETF so that people can buy into our worldview and investment philosophy with one click.Â
Question:
Does Paul have âskinâ in the game? GBC90 â Are these just suggestions or does he actually purchase all of them? Fair question it is!Â
If he does not put skin in the game, then how are we to trust his suggestions if he is not willing to do the same. I know he is not hurting for money in any manner, but does he play the game too???
I was with him at BH almost from the beginning, when he only had his first two services, and I made some money and lost some too, both ways, actually lost more than gained. Â
However, I did not purchase everything he suggested and that may be the problem.Â
Also when he got off into Options, I did not understand them completely, purchased Quantities too large, 10 â 20, and got burned when they went south. Â
I made some really good money on a few Options, but lost much more than gained. So for Options, I stay with a Quantity of 1 -2 and maybe 3, but that is it.  Â
Looking at the Options portfolios, they look as if there are far more losers than gainers.
Paulâs Response:
No one is required to buy anything. Weâre a research publishing company. Iâm not going to buy everything that we publish research on.Â
My financial portfolio is still set up based on my previous contract which required me not to own any stocks I recommend. As a result, I have a massive high concentration on a few stocks, all of which are down by 50% to 80%.Â
Iâm not going to sell these just to provide the claim that I have skin in the game. My investments all fit the #OGI (opportunity, growth, innovation) profile and the liquidity, and tax ramifications of changing this now are substantial.Â
I have been buying some of the #GBC90 stocks. However, with my current $1 salary at ATG Digital, I have no cash flow in, and plenty of cash flow out.Â
So, these are small daily purchases to buy into stocks like COIN 0.00%â, $ZOOM, PLTR 0.00%â, and a few others. Itâs a small but growing part of my portfolio!Â
Question:Â
Paul, with ZBRA, SPLK, GFS having the largest portfolio weightings in the GBC-90, would it be safe to assume these are your top 3 buys?
Paulâs Response:
The #GBC90 is an equal-weighted portfolio. Every stock is purchased in the portfolio with $1,000 at the closing price on the day we mention it in my Substack.Â
My sense is that youâre getting this by simply looking at the stock price. Instead, please start using market capitalization to interpret how big or small a company is.Â
Market capitalization or stock market value = stock price X number of shares outstanding of the company.Â
B Responds to Questions đ
Question:
Do you know if you might end up having a monthly report sent out each month like Banyan Hill does? I miss getting the monthly reports from Paul that reassured me why I was holding on to certain stocks picks.Â
Bâs Response:
Unfortunately, we donât have the capacity to send out a monthly report at this time. However, weâll discuss what capacity we do have to do something similar.
I sincerely apologize for the inconvenience and hope to get something going for you soon.
Question:Â
When I go to âRebound Profit Trader Portfolioâ and click on âOpen Positionsâ, all I get are the Closed Positions. Maybe the âOpen Positionsâ isnât working
Bâs Response:
Thank you for bringing this to our attention. We have since fixed the issue. If for some reason this change isnât reflected when you go to look again, please try logging out and back in to see if that helps.Â
Hope This Helped!
We hope that youâve enjoyed this Q&A â and that youâve had some questions answered along the way!
With any additional questions, remember to reach out to us at contact@atgdigital.media or schedule a call with Kate.
Weâll be back on Monday with all our usual content.
Until then, enjoy your weekend! â¤ď¸ď¸
Thank you Paul for saying the truth!!! That was invigorating " we did not know that the stocks would fall 90%" It is a question that is still on my mind why you did not give us a heads up before the bear market... now imaging if you did not see it coming ...we could not for sure see it!! It would be nice if next time you give us a heads up so if we do not want to go through that we can get out....From following you I have understood that the price and the timing is as important as all of your rules, so now I try factor that also into account... not easy!!! Thank you again for your time and all of the Teams extraordinary work and for taking sera of us!!!!
I really appreciate the work you are doing and the help we are getting. I would not have had a clue what to do and would probably have lost all my investment! Thank you!