Sell Alert: three stocks to SELL, a must-read update
23rd January 2020 |
Originally published under Growth Stock Network on 23rd January 2020.
It’s easy to get complacent and think the world is a wonderful, exciting and safe place. But it’s not, it’s evil, it’s horrible – in fact, it’s going to end maybe even this year.
Didn’t you know the world is ending? Didn’t you know the sky will rain down acid fire because polar bears are eating carbon flakes? Didn’t you know that the air you breathe is filled with super-viruses? Didn’t you know nuclear war is about to break out and the end of days are nigh?
Didn’t you know I’m being facetious?
The world ain’t ending folks. The world is a wonderful, exciting place to be. In fact, you’ve never lived in a time where there’s been more opportunity and more things to look forward to soon.
It’s just that the narrative is skewed towards those with vested interests. The stories you hear are there to grab your attention – much like my headline today.
We live in a world where attention is everything. It’s a world of the “attention economy”. Those who can grab your attention fast, and often first, and then keep it, win.
And with so many channels bombarding you to get your attention, keeping your attention is equally as hard.
That’s why the news and mainstream media hit you with fear-driven news and headlines. They show you the worst the world has to offer to terrify you into coming back to them to make sure you’re not going to blow up tomorrow in a nuclear wasteland.
This fast becomes a self-perpetuating cycle as we become more and more fearsome of the world around us. And this latest “outbreak” of coronavirus is the latest in a long line of scare-fear-driven “news” to get you to realise the world is about to end.
It’s not, and it’s highly unlikely the UK is about to go into mass quarantine lockdown.
So, don’t fret. Don’t worry too much. And try to filter out the noise and look within these events for trading and investment opportunities. That’s what we’re doing and that’s why we’ve decided to open up the portfolio a little bit.
Part of our vision for Growth Stock Network is to build a list of the best small-cap (predominately) AIM-listed UK stocks. But we are also aware that we can’t have a giant 50-60 stock portfolio to choose opportunities from.
It’s why we want to make sure we have somewhere in the region of 20 to 30 stocks (max) which gives you the right exposure to the right UK-listed stocks in the right areas of opportunity.
And by opening up the portfolio, we mean getting rid of a few to ensure we retain a good balance in numbers, UK-listed, and importantly stocks ready to capitalise on big trends and market stories.
But as mentioned, we’ve got to cut a few from the pack.
The good news is two we’re recommending to sell are in profit, one a loss. So, two out of three is pretty good. Also, these are all part of the US-listed cohort that we think now is a good time to take profits in, and to ensure there aren’t any more losses.
The first to sell is BeiGene Ltd [NASDAQ:BGNE].
The entry into this stock came about a year after it delivered some astronomical gains to early investors. And then the stock traded sideways for much of 2019 before taking off again late in the year.
However, the stock had a sharp retrace and since the start of the year hasn’t done too much. We think now is a good time to exit with about a 34% gain in just over a year.
Also, we’re recommending to sell Shopify [NYSE:SHOP].
Again, the entry to Shopify came after the stock had more than doubled in about nine months from January 2019 to September 2019. It then took a dive for a couple of months before again recently taking off again.
It’s carrying a US$53 billion market cap and has shot up to a point where we think the stock may be overvalued and trading on more hype than substance.
Both BeiGene and Shopify are currently showing a profit, that’s great. But neither fits the direction we’re taking Growth Stock Network going forward. And now would be a good time to take profits off the table from these two as we look to bring in new opportunities in the coming months.
Finally, there’s RigNet [NASDAQ:RNET]. It too has only been in the portfolio a short space of time, but is already showing a sharp paper loss. As it also doesn’t fit the direction of where we’re heading with our UK-listed opportunities and could head lower in the coming months, we think it’s best to cut your losses on this now and look to our coming opportunities in the UK markets.
Action to take: SELL BeiGene [NASDAQ:BGNE], SELL Shopify [NYSE:SHOP], SELL RigNet [NASDAQ:RNET] at market values. We will record the opening prices in tomorrow’s market for track record purposes.
Regards,
Sam Volkering
Editor, Growth Stock Network
