Movers and SHAKERS
Image Credit: Mob Mob (Flickr)
Reinventing Your Trading as the Market Transforms Yet Again
Momentum traders were big gainers from the Summer of 2020 until January of 2022. Only a year ago, jumping onboard the Globalstar (GSAT), Gamestop (GME), or other meme stock freight train helped turn many accounts extremely green. That trade seems to be over for now, and traders and investors may now have to pivot. Just as they pivoted after the March 2020 selloff to find opportunity investing in FAANG stocks or following r/wallstreetbets conversations - the recent economic upheaval suggests another pivot may be required for investors to survive and thrive.
About the Market Selloff
While the activities of many retail investors become running for cover when the market sells off, time should be dedicated to calmly looking at the big picture while remembering which products and services will have global appeal when the downward momentum ends.
Lining up opportunities uncovered in the current carnage will prepare you to jump when the time is right.
This isn’t simple, it involves experiencing the anxiety of red days and recognizing the potential for future green. Some of the red stocks are “on-sale” and should be further analyzed; others are approaching where they should have been valued all along. Try to determine which is which.The markets have changed, going forward they will require the work they always used to require, and the rewards may not come as quickly or easily. But interesting companies still exist.
What I Mean by Interesting
One company that seems to have its hand in everything that will be hot tomorrow, or maybe the day after, is Meta Materials (Nasdaq: MMAT). I’ll use it as an example as their earnings came out yesterday (May 10), and first quarter revenue was up 299%, while its stock price has tumbled. Like most young tech companies, MMAT still operates at a loss; this is not a recommendation one way or another.
Meta Materials was a company that flew under my radar until I learned about them at NobleCon18. They are involved in products that will help the builders of everything that we expect to see more of in the future. This includes:
- Making 5G work substantially better
- Resolving weather-related issues with automotive sensors
- Medical imaging and sensing enhancement
- Eliminating the need for expensive rare earth materials in touch screens
- And a lot more
Ken Rice, the COO and CFO of Meta Materials, said at NobleCon, “we didn’t leave the Stone Age because we ran out of rocks, we left the Stone Age because somebody invented bronze and figured out it was better…” The company is providing better materials to growing industries and is doing it with greater speed, lower cost, and improved scale.
They have over 269 active or pending patents from which to benefit; it is not a patent portfolio held to trade, this was made clear when during the NobleCon presentation, the COO said they exist to “keep everybody out of our sandbox.”
Meta materials is an interesting company with the promise of trumping yesterday’s amazing high-tech building materials with better ones. Watch the NobleCon18 video to understand how Meta Materials can essentially produce the “cloak of invisibility.”
What to Look For
History has shown us a few things about the stock market. First, it has always come back and hit new highs. Second, it confounds those that require certainty, investors are better served by placing probabilities in their corner, and third there is a rotation and while money s leaving one industry or sector, it is moving to another.
Technology has been a sector where a product or invention that was incredible when released, becomes replaced by something even better in a dozen years or so. Ignoring old technology and looking at what tomorrow is likely to demand to be better is a smart place to start looking.
Markets go up and markets go down. If it were predictable, it would already be where it’s going. What is highly probable is tomorrow’s technologies are going to be replacements for today’s. And, tomorrow is coming, there’s nothing we can do about it.
For investors and traders that are seeing more red in their portfolio than they have since March 2020, look with a level head at the possibilities, read up on some of the 6000+ small companies available on Channelchek, subscribe to Channelchek’s YouTube channel and don’t rush into anything until you’ve got a handle on your odds of success.
Managing Editor, Channelchek
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