In November, Beth Kindig discussed winning tech stock picks on the Fox Business News show ‘”Making Money With Charles Payne.” Below are video previews of her discussion and an overview of what the two of them discussed.
Despite the current tech rout, we still believe that Roku has the top operating system, is priced reasonably and fits well with smart TVs. Another advantage for Roku is that it has the first-mover advantage in the advertising-based video on demand (AVOD). Roku not only benefits from the cord-cutters but also the brand advertisers. When Beth wrote her initial thesis in 2018, she used to hear questions, “What about Google, Amazon, Netflix, etc.?” Now, the stock has been a multi-bagger for her readers.
Asana is another excellent example of our stock-picking strategy. In this article, you can review how I/O Fund used to blend both fundamental and technical analysis to make gains on this cloud stock. You can also view the webinar from our portfolio manager Knox Ridley where he explains the patterns. Our premium subscribers receive regular trade notifications, trade setups, and market updates from Knox, which helps them to navigate the uncertainties in the markets. The I/O Fund went onto recently closed ASAN for a 285% gain in less than 10 months.
We have been building our positions with one or two strong picks in a year. For example, we have a position in Nvidia since 2018. We had rightly predicted that Nvidia would be a major player in Data Center and Artificial Intelligence. The market questioned our thesis back then. However, we have been firm and increased our position in the stock. Rather than rest on our laurels with long-ago entries from 2018, we continually buy and release our entries. For example, we were able to buy back into NVDA multiple times in this range, which led to 57% returns in less than 2 months. On 9/28 we stated in our service “If we see price move between $200 – $196 starting today and into Friday, that's a strong buy.”
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As you notice in the recent results, the company’s data center revenue accelerated by 55% YoY to $2.94B. Since we entered the stock very early, we have had big gains in Nvidia. Nvidia is also forefront in the Metaverse. We have covered earlier this year and we continue to be bullish on Nvidia.
Source: YCharts
We always like to start with small positions in a company and then build large positions. Our portfolio manager Knox Ridley guides us to entry and exit positions since he is an expert in technical analysis. Knox also tracks the broader market which helps us to develop a good risk management strategy.
Zoom is another cloud winner, which we started coverage well before the Covid-19. Beth has been bullish on the company due to the great product fit. In her own words, “Product-market fit is what led me to call Zoom Video the best IPO of the year in 2019, why I encouraged investors to know their winners during the cloud selloff, and why we reiterated a buy signal on my research site when Zoom Video was at $65.”
I/O Fund was also one of the early investors of Bitcoin. We started to build positions in Bitcoin in 2019. You can view our sample entries and exits here plus our press release on how Bitcoin contributed to our gains this year.
Short selling of ARKK
There are reports that investors are betting against ARKK Fund and the short interest in the ARKK has been increasing. Tuttle Capital Short Innovation ETF was launched to give an inverse return of ARKK. We believe that the investors are betting against the fund due to the macro environment shifting towards heightened inflation/slowing growth. High beta, low quality, and heightened risk assets tend to underperform in these environments, and ARKK has express no interest in pivoting their portfolio for this macro picture. However, we have a diversified risk management strategy in place. We recently have begun to book gains in high fliers and cut losers that would continue to struggle in a low growth environment. Since the secular bull market began in March of 2009, we have seen 3 slow down periods, which culminated in deep corrections. Each time the FED was forced to reflate the economy, and thus shifting risk-on assets back in the driver seat. We believe that we are entering one of these environments now. Regardless of the noise, and expected volatility, the bull market is not over yet. We always root for Ark and also for innovation so the I/O Fund (respectfully) hopes the shorts get burned!
I/O Fund is comprised of a team of analysts who share their research publicly as they build a portfolio of 30 stocks. Our team has record results for a retail Fund and we also have four-digit gains on some of our free newsletter coverage. You can learn more about our premium service by clicking here or sign up for our free newsletter here. clicking here or sign up for our free newsletter here.
Disclaimer: This is not financial advice. Please consult with your financial advisor in regards to any stocks you buy.