July 2022 - Page 2 of 2 - WStNN.com™ WallStreetNewsNetwork® Stockerblog™ WSNN®

How to Short a Stock by BUYING a Stock

AXS Investments Launches First-Ever U.S. Suite of Single-Stock Leveraged Bull and Bear ETFs

by Fred Fuld III

Recently I wrote an article called 10 Ways to Make Money in a Bear Market. Well, now there is an additional way. You can now buy a single stock bearish ETF for certain stocks.

AXS Investments, a leading asset manager providing access to alternative investments for growth, income and diversification, today, July 14, 2022, launched a suite of eight ETFs that seek to provide leveraged long or inverse exposure to the daily performance of some of the most actively traded stocks across a variety of sectors.

“We are thrilled to be the first firm to bring single-stock leveraged and inverse ETFs to U.S. investors,” said Greg Bassuk, CEO of AXS Investments. “With the launch of this highly innovative family of ETFs, AXS has once again opened new access for traders and sophisticated investors, namely to express their high-conviction views on some of the most actively traded single stocks, regardless of whether their sentiment is bullish or bearish. AXS is excited to continue our aggressive build-out of highly differentiated ETFs designed to provide investors with unique, first-of-their-kind investments to achieve their varying objectives.”

The initial suite of AXS single-stock ETFs provides investors with leveraged long (“Bull”) and short (“Bear”) daily exposure to the following stocks:

• Tesla: AXS TSLA Bear Daily ETF (TSLQ)

• NVIDIA: AXS 1.25X NVDA Bear Daily ETF (NVDS)

• PayPal: AXS 1.5X PYPL Bull Daily ETF (PYPT) and AXS 1.5X PYPL Bear Daily ETF (PYPS)

• Nike: AXS 2X NKE Bull Daily ETF (NKEL) and AXS 2X NKE Bear Daily ETF (NKEQ)

• Pfizer: AXS 2X PFE Bull Daily ETF (PFEL) and AXS 2X PFE Bear Daily ETF (PFES)

As you can see, some of these ETFs have a leveraged bearish goal, such as Pfizer, which has a goal of providing two times the inverse of the daily performance of the price of the stock.

AXS Continues to Expand Fund Lineup with Fast-Growing Suite of First-of-Their-Kind Strategies.

Today’s rollout of these new ETFs is just one of many major strategic growth initiatives successfully achieved by AXS.

“Whether it is powerful inflation fighting tools, ways to express views on innovation, or a host of other novel investments that previously were unavailable to investors, our goal remains to be the leader in providing investors with access to the tools needed to build portfolios and to trade effectively in today’s volatile markets,” continued Bassuk. “We’re very excited about today’s news, and all that we still have in our product pipeline for 2022 and beyond.”

How Much Can You Lose by Investing in Bonds?

by Fred Fuld III

Have you considered moving out of stocks and into bonds to protect your investment portfolio? Think twice before you do.

Unless you are investing in Series I Bonds, you might want to avoid bonds at this time.

Remember, when interest rates go up, bonds drop in value. As a very simplistic example, If you have a bond paying 5%, and interest rates in general rise to 10%, a 30 year bond would drop to almost half its value.

Of course, you could sweat it out and hold on for 30 years to get your original investment back.

Even short term bonds can drop significantly, far exceeding what interest you have earned on the bond for the year.

You never know what the Federal Reserve Board will do with interest rates. Currently it looks like much higher rate hikes are in the cards due to rising inflation.

It looks like Fed Chairs are pushing for a 75 basis point (3/4%) interest rate increase for their upcoming meeting near the end of July hoping to help offset inflation.

So if rates continue to rise, how will it affect the value of your bonds?

The following shows what will happen to a 3% 30 Year Bond:

Value of a 30 year bond
If interest rates increase	30 year bond
Interest rates	3% bond	Drop in value
3%	$1,000.00
4%	$827.08	17%
5%	$692.55	31%
6%	$587.06	41%
7%	$503.64	50%
8%	$437.11	56%
9%	$383.58	62%

The following shows what will happen to a 3% 5 Year Bond:

Value of a 5 year bond
If interest rates increase	5 year bond
Interest rates	3% bond	Drop in value
3%	$1,000.00
4%	$955.48	4%
5%	$913.41	9%
6%	$873.63	13%
7%	$835.99	16%
8%	$800.36	20%
9%	$766.62	23%

The following shows what will happen to a 4% 30 Year Bond:

If interest rates increase	30 year bond
Interest rates	4% bond	Drop in value
4%	$1,000.00
5%	$846.28	15%
6%	$724.70	28%
7%	$627.73	37%
8%	$549.69	45%
9%	$486.32	51%
10%	$434.39	57%

The following shows what will happen to a 4% 5 Year Bond:

If interest rates increase	5 year bond
Interest rates	4% bond	Drop in value
4%	$1,000.00
5%	$956.71	4%
6%	$915.75	8%
7%	$876.99	12%
8%	$840.29	16%
9%	$805.52	19%
10%	$772.55	23%

Why Bond Mutual Funds are Bad

The worst possible bond investment during rising interest rates is a bond mutual fund. The reason?

There is no yield to maturity.

What that means is, if rates rise after you invest and never drop to that level again, then it doesn’t matter how long you hold onto the fund, even 50 years. You won’t get your principal back.

What can make it worse for the funds is if there are a lot of redemptions as interest rates rise and drop in value.

The fund is then forced to liquidate bonds at losses, thereby locking in losses for the whole portfolio.

Summary About Bonds

So if you have bonds in your portfolio, or you are consider buying bonds for your portfolio, make sure that you are aware of the downside.

Elon Musk Owns Shares In A Beverly Hills Entertainment Co.

by Fred Fuld III

Elon Musk is involved in a lot of businesses, including Tesla (TSLA), the Boring Company, SpaceX, and Neuralink, and almost became the head of Twitter (TWTR).

However, many investors don’t realize that Musk has been on the Board of Directors of a company called Endeavor Group Holdings, Inc. (EDR).

In addition, Elon Musk owns 7,583 shares of Endeavor Group Holdings, according to a recent SEC Form 4 filing.

Musk has been a director of the company since its IPO, but has resigned as of June 30.

So what is this Endeavor Group Holdings?

Endeavor, formerly named William Morris Endeavor Entertainment, is located on Wilshire Boulevard in Beverly Hills.

It is an entertainment conglomerate. It owns such businesses as UFC, the talent management company IMG, Professional Bull Riders, Miss Universe, and nine Minor League Baseball Teams.

The company has a market cap of $6.2 billion, and a sky high price to earnings ratio of 730. However, it does have a reasonable price sales ratio of 1.10.

Revenues year-over-year have gone from $3.48 billion in 2020 to $5.08 billion in 2021.

The Endeavor Talent Agency launched in 1995. In 2009, WMA and the Endeavor Talent Agency merged to form William Morris Endeavor, or WME.

Endeavor executives Ari Emanuel and Patrick Whitesell became co-CEOs.

On April 28, 2021, Endeavor Group went public on the New York Stock Exchange.

Disclosure: Author has a short option position in TSLA.

Elon Musk’s Letter to Twitter Canceling His Acquisition of Twitter

by Fred Fuld III

By now, you should have heard the news. Elon Musk, the head of Tesla (TSLA), has decided to cancel his acquisition of Twitter (TWTR).

Musk is claiming that Twitter is in material breach of multiple provisions of the agreement, and has also claimed that the company has more bot accounts than what Twitter claims it has.

Musk originally agreed to buy the company at $54.20 a share. Twitter stock is now down to 35.04 in after-market trading as of last Friday, July 8, 2022.

Do you want to see the actual letter dated July 8 that Elon Musk sent to Twitter’s chief legal officer through Musk’s attorney? Here is the link:

Elon Musk Letter from his Attorneys Canceling the Twitter Acquisition

712 Acre Bahamas Island Up for Auction

Little Ragged Island - Credit: Sotheby's — Little Ragged Island – Credit: Sotheby’s

by Fred Fuld III

A couple weeks ago, I reported on a Scottish island that is for sale. If you a little warmer island life, now you have your chance.

St. Andrew’s Island, also known as Little Ragged Island, is the largest private island for sale in the Bahamas. The size is 712 acres and it is located at the southern end of the country.

There are many private beaches and large ships have deep water access on the eastern side.

The island is being auctioned by Sotheby’s with a current listing of $12.5 million with no reserve. There is a 12% buyers premium; however, there is a starting bid incentive [SBI] of 6%. A SBI is a credit to reduce the buyer’s premium by 50% related to the starting bid amount. The Sotheby’s web site has a video that shows how the SBI works.

The island, suitable for developing, has its own private airstrip. What a great opportunity.

Bidding opens on July 25, 2022 at 6 PM EDT.

10 Low PE Stocks with the Biggest Estimated Earnings Growth Over the Next 5 Years

by Fred Fuld III

Many investors, along with money managers, and hedge funds, take into consideration many factors when looking for stocks to invest in over the long term.

These can include such things as the trailing and future price to earnings ratio, the price to earnings brother ratio, and even if the stock pays a dividend.

One feature that some investors like to see is a strong estimated earnings per share growth rate over the next five years.

The following is a list of stocks that have all of those characteristics and even more.Here is what the stocks have in common:

Market cap of over $10 billion
Trailing P/E ratio less than 15
Forward P/E ratio less than 15
PEG ratio less than 1
Earnings per share growth over the next 5 years over 25%
Pay a dividend
US based companies

Here is the list of all the companies that meet the above requirements:

Company	Symbol	Market Cap	P/E
Ally Financial Inc.	ALLY	10.81B	4.16
Ameriprise Financial, Inc.	AMP	25.64B	8.97
APA Corporation	APA	10.69B	4.56
Discover Financial Svcs	DFS	26.57B	5.76
Ford Motor Company	F	43.71B	3.89
LKQ Corporation	LKQ	14.02B	13.44
Nucor Corporation	NUE	27.85B	3.78
Ovintiv Inc.	OVV	10.19B	12.22
Steel Dynamics, Inc.	STLD	12.14B	3.32
Synchrony Financial	SYF	13.84B	3.87
Westlake Corporation	WLK	12.11B	4.87

Ten stocks were promised, but an additional one is included.

Disclosure: Author owns Ford (F).

Books Recommended by Tim Knight, the TastyTrade Stock Chartist

by Fred Fuld III

Anyone who watches the online financial network TastyTrade, which was founded by Tom Sosnoff, knows who Tim Knight is.

Tim Knight is the stock chartist who appears every day on TastyTrade’s Trading the Charts with Tim Knight for only 15 minutes, at 12:15 p.m. Pacific, 2:15 p.m. Central, and 3:15 p.m. Eastern time.

In addition, he is the founder of the SlopeOfHope website, which covers stocks, options, oil gold, the economy, the Fed, and many other topics.

Knight is also an author of many books. In his show today, he mentioned several books that he recommends, including a few that he wrote himself. Here they are:

The World Connection was Knight’s first book, written when he was 16, and predicted such things as talking to people through computers, online banking, and ordering tickets online.

Timing the Market: How to Profit in Bull and Bear Markets with Technical Analysis by Curtis Arnold covers using technical analysis to trade in the stock, bond and commodity markets.

Technical Analysis of Stock Trends by Robert D. Edwards, John Magee, and W. H. C. Bassetti provides information on making profitable trading decisions by utilizing proven long- and short-term stock trend analysis.

Chart Your Way To Profits: The Online Trader’s Guide to Technical Analysis is one that Tim Knight authored. It is based around the ProphetCharts software that he created.

Panic, Prosperity, and Progress is one of Tim Knight’s more recent books. It is about the financial panics during the last five centuries.

The Fourth Turning: An American Prophecy – What the Cycles of History Tell Us About America’s Next Rendezvous with Destiny by William Strauss and Neil Howe is a book that Knight highly recommends. It shows how history moves in cycles and predicts what may happen in the future.

Happy reading!

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Have You Ever Thought About Investing in Dinosaur Bones?

by Fred Fuld III

Do you like collecting old stuff? Do you have any interest in putting your money into alternative exotic investments? Then how about investing in a 76 million-year-old dinosaur skeleton?

Now is your chance. The auction house Sotheby’s will be auctioning off the skeleton of a Gorgosaurus dinosaur on July 28, 2022 in New York City.

This 22 feet long and 10 feet high skeleton is estimated to be hammered at between $5 million and $8 million.

How About Investing in Elvis Presley’s House?

by Fred Fuld III

Everyone knows who Elvis Presley is, the King of Rock and Roll. So how would you like to own his three-bedroom, 1,260-square-foot house where he lived during 1943 and 1944, with a possible price of less than $50,000?

Elvis Presley Jailhouse Rock – Credit: Wikipedia

Yes, it’s possible. The house that Elvis lived in with his parents, Vernon and Gladys Presley, is going to be auctioned off by Rockhurst Auctions, on Sunday, August 14, 2022, at the Holiday Inn at 3411 Elvis Presley Blvd., in Memphis, Tennessee.

The house was originally located at 1241 Kelly Street, in East Tupelo, Mississippi. It was carefully dismantled and preserved, ready to be rebuilt. The dismantling was videotaped, and the house is currently stored in a trailer, which is included as part of the auction.

The estimate is between $30,000 and $50,000 with a starting price f $25,000.

What a great casita this would be to reconstruct in the back yard of an Elvis fan.

Almost a hundred other Elvis artifacts will also be offered at the auction.

Elvis has left the building.

Worst Performing SPACs: Are They Dead or Will They Rebound?

by Fred Fuld III

A SPAC is a Special Purpose Acquisition Company, also known as a blank check company. It is a company created specifically to raise money as a publicly traded company in order to finance a merger or acquisition opportunity within a set timeframe, usually two years.

They have no operations but go public with the intention of merging with or acquiring a company with the proceeds that were raised from the SPAC’s initial public offering. The SPACs are generally sold at $10 a share or often in $10 units which includes of one share of common stock and one or more out-of-the-money warrants or a fraction of a warrant. The units, stocks, and warrants usually start trading on either the NYSE or NASDAQ.

Probably the most famous SPAC (which no one remembers the original name of but most remember the new name after the merger) was Social Capital Hedosophia (former symbol: IPOA). This is the company that merged with Richard Branson’s Virgin Galactic (SPCE), the space travel company.

Unfortunately for most investors who invested in these SPACs, the investment hasn’t turned out well, especially when measured from the stock’s high to todays price. Many came out at $10, then started dropping and never looked back. Other SPACs jumped way up in price, then later tanked way below the original $10.

For example, Romeo Power (RMO), a southern California manufacturer of lithium ion battery modules, came out at $10 a unit. Some poor soul paid 38.90 a share right after Christmas in 2020. What a Christmas present.

The stock is now trading at 44 cents a share. This is a drop of 98.9% in share price.

Another example is a company called Ucommune International Ltd (UK), a provider of agile office spaces in China. An investor paid 241.40 a share on a split adjusted basis a couple weeks before Thanksgiving in 2020. Happy Thanksgiving. The stock is now 3.71 per share, a drop of 98.2%.

To explain how the split worked on this stock, there was a 1 for 20 split on April 22, 2022. That means that if you had 100 shares to start with, you would end up with only 5 shares. So the investor who paid the high price, if had a 100 shares, actually would have paid 12.06 per share, for a total of $1206. However, after the split, he would have only 5 shares at 3.71 per share, or a total value of only $18.55.

So here is a list of SPACs that have fallen dramatically.

SYMBOL	LOSS
RMO	98.9%
UK	98.2%
LOTZ	96.6%
MILE	95.4%
DAVE	95.1%
UPH	94.8%
RIDE	94.5%
SFT	93.9%
IRNT	93.0%
NKLA	92.8%
MNTS	92.2%
GOEV	90.7%
GMTX	90.4%
SPCE	88.6%
ATIP	88.3%
MAPS	88.3%
VIEW	86.9%
ME	85.4%
LVOX	84.7%
BBAI	70.6%
MYPS	64.6%

Disclosure: Author didn’t own any of the above at the time the article was written.