Hi Ho Silver AKA Reddit Silver Squeeze, Sea Limited & Novavax

Podcast Transcript

Welcome this is Jeffrey Kamys with another edition of Stock Smart, the February 1^st, 2021 edition. Yep a new month, but the same old shenanigans from the Reddit crew and wallstreetbets now starting a position against silver and this is way more complicated than just, you know going after shorts. It’s actually they have to go so essentially there’s been some rumors or posts about going after shorts trying to short in silver and the way that they’re doing this by purchasing the SLV ETF and the SLV ETF underlying is it has a trust and the trust says that with regard to the investments inside the trust inside the ETF. They have to have that much silver on hand.

[00:00:54]
So the way that a short works and this is why it makes it so much more complicated is the way that you would short it to create a jump or a boom in the price is by buying up silver at all the exchanges that you can and so overnight, you know over the weekend we’ve had shortages in the exchanges because they’re buying silver coins, people are buying any silver bars, whatever they can get their hands on in terms of silver is being bought. So in essence they’re going to try to create a position against the ETF SLV by saying hey, we’re going to buy so much of the SLV ETF,

[00:01:30]
You need to back it with all this silver and if we buy all the silver that’s available then that’s going to drive the price up like crazy well it has gone up, in between it was up at a high about 10-11% today,  highest silver has been in 8 years. So it is happening and it’ll be interesting to see if they can actually, you know, accumulate enough. I mean, you’ll see people and silver is everywhere right? I mean your grandmother has it in her silverware she got from her wedding or was passed down as an heirloom from the family. So silver’s everywhere. So the idea of really creating short on silver is kind of unreal, but there is an attempt going on today to do that.

[00:02:11]
And so it remains to be seen what’s going to happen. But SLV is definitely in play up up as much as over 10% in the morning.

STOCK WATCH

So let’s get to a stock I’m watching. Stuff that’s kinda interesting is SE. Which is Sea Limited, so SE trading at about 230, 2.75 a share right now. Definitely in a range where if you’re looking at just a technical measure of the chart, it’s a beautiful technical chart. I mean, it’s really just an upward arc it has no negative down side since March really of 20, it’s just straight up like a slope of a mountain and moving really through its resistance at 233-234. If it gets there we’re going to have more of a break out. Now. This company is pretty interesting.

[00:03:06]
You know, it’s not Chinese it’s you know, when you buy it, you’re going to buy an ADR which is an American depository receipt which is essentially, an ADR is when there’s a company that’s overseas like Alibaba, Tencent, they will work with a bank locally, a United States bank, to produce the certificate, the ADR, and the bank actually owns the shares through the company that is  overseas. You own essentially what’s called an American depository receipt and so but it’s not Chinese, it’s a Malaysian company.

[00:03:41]
And so it’s not going to be hurt by, you know, if some of these Chinese companies get hurt, you know, because we’ve had some of this talk over the last year, you know, it’s not going to be subject to any of that. Delisting not that really any delisting went on with either Alibaba or Tencent, they talked about it, but it didn’t happen. It’s got great revenue growth, 163% last year. They have it’s a digital entertainment company. They have a division called Garena, which essentially is a platform of digital content from games and digital entertainment and it grew, the revenue grew from something like 81% last year. And they have a battle royal game called free fire and it was launched in 2017. It’s one of the highest grossing games in Southeast Asia and Latin America.

[00:04:34]
And so that’s been really a big source of growth for the company. They also have another platform, a payments platform called SeaMoney and that raised about 18 million used with their mobile wallet that they have in the third quarter, so they have 15 million users now using that, profitability is going up. They have a company called Shopee, which is losing money, sort of like how Amazon loses money, but their AWS division makes tons of money for them. So it’s kind of offsetting losses there and it’s still kind of reasonably valued. So it’s a good stock to take a look at, I know we’ve added it, we’ve watched it today, it made a big move.

[00:05:25]
It jumped up about 7% and overall up $16 today, 7.5% pretty much and if it breaks through at 233-234, probably going to go and reach another all-time high so definitely one that you want to keep an eye on.

THE AVERAGE INVESTOR

So I did have a question, question is from Heidi and Heidi wanted to know should she sell her Novavax. So Novavax is taking part in the vaccine process and the stock has been on a tear lately. It’s up from in early like January, it’s up from 127 pretty much just doubled in the last week. So when you look at a stock like this, it’s at 264 right now, up from like a 127 only like a week ago. So to me, I’d be fighting like a, I’d definitely be cutting the position.

[00:06:23]
So if I own the stock, there’s no support below. Yes, it’s growing, today it went up again about 20% but there’s no support for it. If it falls it could fall all the way to 175. You’re going to lose a lot of your money if you’ve made money in this if you sat in this in January, and you got in in January, you double your money, take half off. If you like to stock, you think there’s still gains, take half, put it in the bank, and take your gains, so the worst thing is to be greedy here and be a pig, you don’t want to lose everything that you worked so hard to gain because you’re greedy and if the stock goes up, it’s okay and Buffett always says there’s always opportunities. There’s always opportunities there were opportunities last week, AMC, GameStop,

[00:07:04]
You name it, Bed Bath & Beyond, FIZZ, there are lots of opportunities but taking a loss like that you’ll remember and if anybody whoever gambles, if they gamble in Vegas you’ll always remember your losses more than you’ll remember your wins. Whatever that is about I don’t know what it is something in our psychology, but you’ll regret it, if you don’t take some money off the table. So being a pig and how pigs get slaughtered, hogs get fat. it’s true. And we’ve all had to learn it the hard way. So if it were me and I’m sitting there and I double my money, take half off the table and let it run for free and see what it does.

[00:07:38]
And as a technical reader, technical analysis, when it starts making that downhill pattern, have a stop loss in there, you know, get rid of it, cover it with the stop loss and get out of it if it stops dropping, you know, or read the chart and maybe set kind of alarm for yourself. If you’re using a dashboard, set an alarm for yourself, if it hits like 250 and it starts making two or three days of a negative pattern then you’ll know it’s time to get out. So that’s what I would do. Thanks for the question Heidi and we are growing. I’m not going to have as much time.

[00:08:13]
I’m super excited because we’ve only had about a week of episodes, and we’ve already had 25-30 questions in my inbox today. I’m going to try to go through some of those and maybe answer two or three in the next session. But today that’s it for Stock Smart. This is Jeffrey Kamys signing off. You have a great day. Thank you.