Wait For It … Wait For It!
It’s that time again, Great Ones!
Time to spin the Wheel of Morality?
Unfortunately, no. But I do appreciate the Animaniacs reference. No, it’s time for Great Stuff Reader Feedback!
And there was much rejoicing!
Thank you. Thank you! As Great Ones know, Reader Feedback day is the day that I, Mr. Great Stuff, answer your burning stock and market questions, indulge in your investing rants and generally just run amok.
Indeed. So, if you’d like to get in on next week’s Reader Feedback mayhem, drop me a line at GreatStuffToday@BanyanHill.com.
Now, where were we? Ah, yes … today’s featured presentation:
So, I bought DCRB right after you recommended it. As it traveled down the road, I bought more at three successively lower prices. Be honest with me. Am I A) throwing good money after bad, B) trying to catch a falling knife, C) shopping for diamonds at the Dollar Store, D) all of the above or E) something else? — Chuck the Schmuck
Thank’s for writing in, Chuck! First, I want to make clear that Chuck called himself a schmuck. Not that I wouldn’t have, but he got there first.
Anyway … Decarbonization Plus Acquisition (Nasdaq: DCRB), the SPAC that is merging with hydrogen fuel cell specialist Hyzon Motors. I’m sure many Great Stuff Picks readers are worried about that stock pick right now. The stock is down about 30% since I recommended it on February 10.
Since we’re being honest, I expected some pullback in DCRB stock ahead of the Hyzon merger. After all, we bought in about two or three months ahead of the actual merger, which is taking place in the second quarter — which just started today.
However, in my defense, nobody expected the interest rate inquisition. Amongst its weaponry are such diverse elements as: fear, surprise, ruthless speculation and an almost fanatical devotion to inflationary rhetoric!
And it’s not just DCRB feeling the heat. Speculative growth stocks across the board have been hammered since mid-February due to inflationary fears.
As I’ve said before, I believe these fears are unfounded, especially when we look past the short term. Yes, despite Wall Street’s “give me profits Now!” attitude, there are some people — like yours truly — that plan beyond the next three months.
DCRB’s merger with Hyzon Motors is one such plan.
Could I have waited to recommend DCRB and hope for a better entry price? Sure. But the market could have also not freaked out unnecessarily over inflation concerns too, and DCRB could be much higher than it was when I recommended it.
Hydrogen is the future of alternative energy, and Hyzon Motors is right there at the forefront of this movement. I mean, it already has vehicles on the ground running on hydrogen fuel cells. I’m talking semitrucks, on the road in Europe … right now.
Furthermore, the company just announced a leasing service for hydrogen-powered commercial vehicles across the pond. Hyzon hopes the leasing program will speed up the deployment of hydrogen-powered trucks with fleet operations all over Europe.
Anyway … you got me monologuing on hydrogen again, Chuck. What I’m trying to say is that I don’t think you’re a schmuck. But I do think that you won’t have many chances to buy DCRB at “successively lower prices.” DCRB appears to have leveled out.
For everyone out there, including you, Chuck, who’s worried about DCRB: Wait for it.
In the words of Aaron Burr in “Wait For It” from the musical Hamilton:
The market doesn’t discriminate between the sinners and the saints, it takes, and it takes and it takes.
And we keep trading anyway. We laugh, and we cry, and we break and we make our mistakes.
And if there’s a reason I’m still in DCRB when so many have tried, I’m willing to wait for it.
I’m willing to wait for it.
Hang in there, Chuck. DCRB’s market cap is currently a mere $302 million. Hyzon is valued at roughly $2.7 billion. I’m sure you can do the math here. Wait for it.
Editor’s Note: Big Data And AI Used To Predict No. 1 Investment Of The 2020s
A technology called “Imperium” is about to spark the biggest investment mega trend in history … with one small Silicon Valley company at the center of it all.
It’s something that only science geeks know about right now. Yet, according to experts, Imperium is set to go from 1 million users to 2 billion in the next four years, launching a stock market “gravy train” that almost nobody sees coming.
Wow, Chuck really got me rambling about hydrogen again. But don’t worry … we’ve still got time for more Reader Feedback questions, like this one from Brent R.:
Your statement that “Some experts call it MaaS” may be technically correct but let’s face it. Experts have been calling it TaaS for over five years. Please quit muddying the waters just because Ian wants to appear to have discovered a new concept.
BTW, thanks for the Letterkenny references. “Great“ly appreciated. — Brent R.
How are ya now, Brent? I’m notso’bad, myself. I could really go for a Puppers right now, though.
That said, I sees thats acronyms has gots ya downs, buddy. I think it’s time we figure’d’out.
So, there are two acronyms for this technology floating around: TaaS, or “transportation as a service” and “mobility as a service” (MaaS). Both TaaS and MaaS refer to the same technology: artificial intelligence (AI) assisted driving — aka, self-driving vehicles.
Now, you may have seen TaaS used more often in the past, but MaaS is what you will see in the future.
There are two reasons:
First, “mobility” is a much broader term than “transportation,” and this AI market is huge — it needs all the broadness it can get.
Second, TaaS also stands for Testing-as-a-Service, which has come on big during the pandemic era. So, MaaS removes any confusion between the two.
I hopes wes figure’d’out for ya, Brent.
Anyway … my good buddy Ian King believes that MaaS — or TaaS — is a massive investing opportunity, and he’s right. It doesn’t matter what ya call it or what letters you use to describe it … AI-assisted vehicles are the future.
If you wanna find out more about MaaS and the considerable investing opportunities this technology offers, click here to find out more!
Simon Suez, “Sand”
Could it be we have some relief for the sand shortage? Can we dredge the canal, make chips with the sand and open up the shallows for more ships to pass? — Capt. Spike
If only it were that simple, Capt. Spike. It’s good to hear from you again, by the way.
Great Ones, I’m pretty sure I don’t have to recap the whole ship-stuck-in-the-Suez-Canal situation. Suffice it to say that the Wall Street talking heads used the situation to beat the inflation drums non-stop.
Because of the beached ship, economists promised shortages, higher prices, the downfall of civilization as we know it! Dogs and cats living together, mass hysteria!
I mean, they were pushing this bleak inflationary outlook so much that Great One Ron V. wrote in asking if we were “heading for the last chapters of Atlas Shrugged and back to the new dark ages?”
Well, the ship’s free now. The canal is clear. And all talk of a shipping-induced inflationary economic collapse is gone from the headlines. Hmmm … it seems like if it were that dire of a situation, they’d still be talking about it. No so much, I guess.
And, as you can see, Capt. Spike, they left all the sand in place. A real shame, that.
Ain’t No Party Like A Privacy Party
The big difference between old-time party lines (which I remember, my mother used to get mad at the neighbors) and the new “back to the future” stuff is that with a party line you had no way to choose who might be listening. — Tom B.
You know what, Tom, you’re right. Thanks for writing in!
In case you missed it — shame, shame, shame on you! — Tom is talking about the Great Stuff article on Spotify’s (Nasdaq: SPOT) acquisition of Locker Room parent Betty Labs. Locker Room is a so-called “live audio” app that’s basically a Clubhouse clone. You log into a private room and talk with people, much like the old party lines of the ‘80s.
But Tom brings up an excellent point. The big difference is that Locker Room and Clubhouse have privacy controls, so your mom can’t pick up the other line and quietly listen in … or the NSA, for that matter. Hi NSA!
So, I guess that’s a pretty big bonus right there in favor of Locker Room. I’m still not sure how popular a market this is going to be, but if it helps keep one of my favorite music streaming companies in the black, I’m all for it.
To Bear Or Not To Bear…
Hello, frikin love the Letterkenny reference. Also, if I were really a bear, I would sell all positions, right? — Huston S.
Okay, well, I tried to resist it, but I just became a mid-term market bear… like a market crash level bear…uh oh. :(
Now the real trouble is what can I possibly do with that?? Is gold the right hedge? Is it blockchain? Perhaps some other commodities I should look to. Should I even be a bear at all??? I’m still heavily investing in some volatile stuff, so I’m looking for some legitimate foresight as always. — Also Huston S.
Huston, how are ya now? You sound a bit panicked, my man. First things first: Breath.
Second, don’t sell anything without doing due diligence. The stocks in your portfolio … you bought them for reasons, right? You bought them with target returns in mind, right?
Now, ask yourself: “Do those reasons still exist?” and “Is my target return still realistic?”
If you answered yes to those questions, don’t sell. If you answered no … well, you might want to take profits.
But these aren’t bear-market strategies. These are questions you should ask yourself regularly when you review your portfolio. You guys do that, right? Review your portfolios?
Being a market bear doesn’t mean selling everything you own. Don’t do that.
What it means is that you take profits on riskier investments like growth stocks or cutting-edge tech stocks or companies without a clear and immediate path to profits. And you only do this if you can’t weather the losses over the short term.
Remember, no bear market lasts forever. And you might kick yourself later for selling once these stocks rebound. And they will rebound.
Now, Huston, if you’re really concerned about a bear market or economic instability, there are ways to invest and protect your money. Gold and bitcoin are solid stores of value. Meanwhile, market stalwarts and consumer goods companies like Microsoft, Walmart, Procter & Gamble or Campbell’s are all solid bear-market investment ideas.
Just be sure not to panic buy or panic sell, and make sure your investments agree with your risk tolerance.
Keep calm and Great Stuff on.
Or … you can get the simplest answer to bear market volatility from my colleague Mike Carr.
Mike just created a silver bullet that can pierce the stock market’s insane volatility. One trade. Once a week. That’s all it takes.
And it’s a trade so simple … it can be replicated using the exact same ticker symbol each and every week. It doesn’t get any easier to deal with this market than that.
Sheew … I’m all tuckered out now. My apologies to Matt Damon, we won’t have time to get to him this week. And anyone else I didn’t get to … I’ll try to get to you next week as well.
Remember, no matter what’s on your mind, Great Stuff has you covered. Drop us a line at: GreatStuffToday@BanyanHill.com.
And for all those numerous readers writing in saying “Add me!” or “Sign me up!” … first off, how’d you receive this? Second, all you have to do to sign up for Great Stuff is click here!
Once again: Just click here if you want to sign up for Great Stuff!
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Until next time, stay Great!