VERI and CVNA

The trading and portfolio/management departments are constantly at war about funding. The trading department wants a guarantee the funds are there for Thursday's ipo purchase of GSKY. Trading says they want GSKY to be the largest initial position for a trade to date and seeks a guarantee to that end. 

We do want to make GSKY our largest trade to date and have every confidence that our extensive experience in dealing with IPO's proves profitable. We're employing several difference trade strategies which I'll explain trade by trade.

PVTL, ROAD, and GSKY
These are our IPO plays. Statistics prove there are, inordinately, larger percentage moves amongst recently IPO'd stocks versus stocks that have been trading for longer periods. Thus, we know there are great trading opportunities in intelligently, trading recently placed offerings. 

NFLX
NFLX is the quintessential example of a stock the portfolio managers and traders fight over. Trading says if pm's get all the best stocks, it handicaps trading, and they have a point. Bear in mind though, that we are able to trade long term holds, although generally only do so on pull-backs. 
We feel very comfortable being long NFLX and the thoughts are to part with this one after the first of the year. 

MELI
The MELI trade is the quintessential high quality stock at a discount situation.

Getting back to long term holds and the portfolio managers dilemma, they very much want CVNA and VERI in the fold.

CVNA
Carvana is religion around Smartgene Holdings and we want as many shares as we can grab as soon as we can grab them!

VERI
Due to the inherent,  speculative nature of a $300 million company, our position would be small, but this is a huge compliment to a company of this size that we'd even take this position so early in the story.  

Comments

Popular Posts