I Called This Stock Too Cheap to Ignore. So I Bought It

Hey everyone and welcome back to another portfolio update for you today and it's probably one of the best ones, one of the best weeks that I've personally had since a long long time if not ever. So the portfolio was up 11.4% whereas the S&P was up 4%. So absolute outperformance after a couple of weeks of underperformance, which now means that yes, year to date we're up close to 48% whereas the S&P is up 13.85%. And so in today's video, we'll talk about the whole rate cut rate hike situation. We'll have a look at a couple of names on a technical basis and we'll have a look at the upcoming earnings week, which as you know, it's always that week before an Oracle or an Nvidia that reports. It's it's usually a boring one. Although on Friday, as you know, Friday is always going to be spicy with BJ's reporting on Friday. You you naughty one. Anyways, on on Monday, nothing really interesting. On Tuesday before the open, it is a it is an interesting week with regards to consumer sentiment. So, we do have Home Depot. Clara could tell us a little bit with regards to the buy now pay later scene. We have BU Chinese company. Then on Wednesday, we do have Target. So, here again, you get a bit more information maybe how the consumer is doing. TJX, Los or Lo, I don't know how you pronounce this. Estee Lauder, a Viking, that's I believe the cruise lines. And then after the close, we have Weeble, that's I guess the most famous name here. On Thursday, also a very, very big one. Walmart, very important. Alibaba, John Deere, and that's about it. Thursday after hours, nothing interesting. And as we've discussed, Friday is the exciting one. So it's more of a week that will tell us more about the consumer especially consumer spending in the US than than anything else. Although Alibaba could be interesting from an Alibaba cloud/ open models type of view. Then with regards to the upcoming FOMC meeting, we still have around a month until the next one. But if we go and have a look at the probabilities of a rate cut or a rate hike for the January 2027 meeting, seems like we're still here around 43% or so for one rate hike, 24.4% for two, and then we are at 26.4% no rate cuts, no rate hikes for this year, which was lower a week ago, 19.2% and a month ago was 21.8%. 8%. So, the market is now trending towards no rate hikes. We'll see. As you know, these numbers, they do change quite a lot. Moving on to the more technical part of the video. So, we do cover a couple of stocks on this list. If you want me to add more names, let me know down in the comment section below. We can always add more or remove some that aren't that interesting anymore. First up, we have here Alphabet. So, Alphabet is sitting at around $345, $346, which is right around that support line right here at the 100 day. So, if you can hold this area for the next couple of days, that might be our new support. And then we can try to go back to 350, $260. As for Rocket Lab, here we have seen a nice move, of course, from the low 60s, but even in the mid70s, we ended the week at just over just over $80. Here as well, I would like it to consolidate around that area before trying to go back and challenge $100 per share, which again with a Rocket Lab, just like with an AS Space Mobile and all the other names out there, it is an expensive name. Don't get me wrong, I'm very bullish on Rocket Lab, but it is an expensive name. When you see how much revenue they are generating right now, how much revenue they're expected to generate, we covered that many times. It is an expensive name and yeah, it's okay if this stock stays at around 80 bucks for the next 3 months or so. I don't think anyone here will be mad if that happens. Would actually be very, very healthy. Now, a name where we are finally getting a little bit more momentum probably might have to do with the fact that maybe we might not get any rate hikes this year, which is going to be very good for SoFi because they're expecting in their guidance one to two rate hikes this year. And so far, we did end the week above $18. Let's try and stay above $18 for one for at least a week or two. and then maybe we'll get enough momentum to challenge again $20 and onwards. I still believe that Sofa is one of those very undervalued name right now. Despite the market being close to their all-time highs, but this specific name, just like many other specific names, you can still find a lot of value. Amazon. Amazon, of course, after the earnings, although it did come down a little bit, but still still above a support area which is around $245. We're sitting here at $262. So, we are above that. Might be also a place where the stock wants to see, okay, are we getting a quick rebound or are we going to go back to the support area which is around $250, but Amazon, as you know, one of the best companies on the planet. Again, going back to the most, I guess, no-brainer name right now, extremely undervalued, and that's Meta. Meta is struggling to go above $600 and to stay there. We need to close a week out at $600 or more. Right now, we're at $589. We need to try and get above 600, stay there for a while, and then I do believe the stock will start to move more towards 650, eventually 700. I do think that when they will announce their next big model, which is going to be Watermelon, things are going to move. as you know headline wise a very good model super competitive could move the stock and then the other headline which I think will move the stock way more which is something I I don't need them to do but just from a sentiment switch is selling compute right if they announce that that they're suddenly selling I don't know 400,000 worth of GPUs to someone else the stock will pop and we're will be at 700 in a matter of a day or two in my opinion. But of course, in the meantime, I'll continue to accumulate more shares. New, we've covered new on Friday. If you missed that video, that will be in the top right corner. Sailing with Dlo, although new did get a pop. DO did not. We are here above above that support area, which was previously a little resistance. We closed out the week above $15. Now, let's try and continue that momentum to go above 16 and to challenge $18. Again, here as well, I do see a company that is fairly valued, if not undervalued, $und00 billion company in the future in my opinion. Netflix did finally get a bump from the low7s. We closed out the week at $78. Why is that? Bill Atman's Persian Square. We're going to talk, well, we talked about all of his move, but we're going to talk about all of the other super investor moves in Monday's video, but here as well, we got that push and we are now above the 50-day on the daily and the 200 on the weekly, which is sits just under 78. Let's try and stick at that support area and try to go back above $80 per share here as well. It's one of those names that you can find a lot of value in. Another name that has done extremely extremely well for most of us which is of course Nebus. Nebus right now is in no man's land. It's in the discovery zones of course at 277 bucks was up 30% after earnings. We covered that amazing report in my opinion. The guidance for 2027 whenever that will be announced 3 months from now, four months from now is going to be incredible. We've talked about this time and time again. I think this is a multiple hundred billion dollar company in the future. Not next year or so, but in the future, I do think there is significant upside left for this name. Looking at Reddit here as well, we got a lot of momentum because Reddit got included in the S&P 500. We closed out the week at $178. We can now continue that momentum and go back above 180, challenge 190 bucks. I think this is a $200 stock right now. Maybe even more depending on how bullish you want to be with your own thesis. I think once we get Yes, I know there's a lot of I think and I believe because we're investors. Our job is to speculate and to be as close to reality as possible, but with a Reddit, it is a growth company that's becoming more and more profitable. And I do think that what's missing here is one big headline that says renegotiated the AI licensing agreement with Google and it's now worth three, four, five times more than the original one. I believe it's a question of when that will happen, not if. Moving on to another one that has been crushing it, and that's Axon. Axon is back above $612 per share. It is definitely an expensive name to own right now. The pullback unfortunately did not last that long, but yeah, it's in a good area right now. Let's try and see if it can hold $600 this time. Then lastly, we have Marcado Libé still around the same area $1,844 shares. As long as we are above $1,800, that's fine by me. Make that your support area and then we can challenge 1,900 2,000 later down the line. I almost forgot this one. Uber. Uber also just like with the Netflix finally getting rid of that low 70 area. We're now at 75, close to $76. We have the momentum right now to try and go and challenge $80 per share. If not, let's try and still close out next week at around the same area. I think that could be quite healthy for this name. Moving on to the portfolio itself. And here there is a decision to make for me. one the PayPal bull spreads still doing quite okay. Of course with PayPal we still have again the same headlines Stripe and Advent or Advent I think is the name they are still interested in acquiring the company. Now we know that the last time that they made a bid PayPal rejected it and PayPal is now at that price which means that if they were to be acquired I would assume they would have to pay $70 if not more. Ideally, they pay something closer to $80. Whether that will happen or not, I don't know. That's not up to me. That's up to them. But the fact that the stock is now at $60 or so, it could it could just push the Stripe and or someone else to just pay more. Pay way like $10 more, $15 more. I don't know. Maybe cash and shares remains to be seen. But the value to me if they were to say 7075 best case scenario $80 per share boom next week that's the headline I'll be I'll be probably selling my position here I'll take my win well my small win that compensates for the losses of before and I'll move on as for corewave now this position right here if you didn't notice is up but is not up that much that's purely because when Coriv was going down constantly. This was a type of a position that would allow me to not lose that much anymore on the downside but try and get a little bit more on the upside. Right now it is following the stock one to one or close to it one which probably means either I sell and go with another strike price or just transfer this to straight out shares. Again, one last thing before we look at the portfolio and the moves that I made up until now. We have an 86% EPS rate for the S&P 500 and a 76% revenue beat rate also for the S&P 500, which is very good if you ask me. Just shows you how strong the companies are doing. Moving on to the portfolio itself, nothing much has changed here with regards to the ranking. Nebuse still by far the biggest position 23.5%. Now I am selling cover calls here. So I do believe right now the strike is at $320 for October and if it continues like this I might just have to roll them up and out maybe for a December or so because the premiums are just insane insane. You can try and do weeklies, but then again, yeah, you you are at the risk of having the stock move 40%, 50% or so in a matter of a week. Although, I do think that right now it might start to chill out a little bit. Then we have SoFi. Since SoFi is back above $18 per share, that's here at the number two spot. AMD still doing very well, number three. Then we have Google at number four. Rocket Lab, Oscar. Oscar is is at above $32 per share. I'm up 101% on that position. So, very happy with this one. Remember remember the post earnings reaction. We went back down to $27 or so. We are now at above $32. I do believe that an executive from United Health is going to join Oscar. Then at number seven, we do have Meta. Once this name starts to move, it will probably enter the top five position in the portfolio super quickly. DLO is at number eight, but I did add more. We'll talk about that. Then we have Micron, Rubric, Cash Position, Palanteer, Uber, Robin Hood, New Reddit, Axon, Netflix, and a couple of shares of Nvidia. Now, I did again increase my meta position by 5.88% at $591. I do feel like Pac-Man. And I did also increase my local position by 7.18% at $1427. It was a very good quarter. The company is undervalued. Now, what I did also do is I sold 31% of my rubric position at $97.71 for a 42.3% gain. Now, here, as you can see, I'm taking some off the table. The stock has had an amazing run in recent weeks and months. Earnings are, I believe, two weeks out. I like the company a lot, but it is getting pricey right now. You know what they say about taking profits and I know I know what many of you will say right now. You say this and yet you do not touch Nebus. That is correct because with a nebuse first of all I'm I'm in a very very good position right here up 429% overall because well I kept averaging up. But with an abuse, I I am feeling okay with keeping what I have and I don't need to take profits on that position per se. With a rubric, it has gone up substantially without an earnings, right? Without a real catalyst. And so once we get to earnings, maybe they they substantially beat it, etc., etc., and it makes sense. But as of right now, it is quite pricey. There was a huge runup without any company specific news. So I was like, you know what, pre- earnings looks good. We'll take some off the board. Still 3.5% of my portfolio. And if we continue to go up, that's fine. That position will continue to appreciate. And if we go back down because of a post earnings reaction, I now have the cash to add more to that position. As for the rest here, Palanteer is already up 57%. So I'm not going to chase that one. As for the rest, a Reddit I did want to buy more Reddit, but then they got added to the S&P 500 and well, didn't have much time to add, but hey, if we do have a tiny pullback with Reddit or if it stays around these prices, I'm okay adding at $178. No problems there. With Axon, above 600 right now, to me is a bit too expensive to add. Netflix is one where I said before I rather wait until the next earnings report to get a little bit more news to be a bit more comfortable adding to this position because the reason why we sold a shift 4 for example is not because I see this as a bad company. No, it is in my opinion an undervalued company but there are too many question marks, too many things going against the stock right now. And so to me I said you know what I rather raise cash and add to other names that don't have that many question marks. Now the reason I do not sell a Netflix is because yes Netflix might have one or two question marks but it is a very very strong and profitable business right now and I expect that to stay the same for the foreseeable future. I don't see this as a declining business. Plus it is a position worth just over 2% in the portfolio. So I do have time again these positions if the next earnings report is much better than what the market feared okay stock will go up and I'll have to average up no problem but if it's worse then at least I did not put more money into that position for the sake of having a lower average or or something like that you have time you have to make the decisions for each and every position right like I said with the nebuse I'm okay not taking profits there but I did take profits with rubric I did take profits with a micron, with a rocket lab. It really depends on the company, the position, the timing, and especially how much a certain stock has gone up in a short period of time. Now, could it be that a quarter from now, two quarters from now, I'll sell a position here just because I want to raise cash or something like that? Could very well be. Things change, stories change, and I just have to adapt. You might not like this way of investing. That's completely fine. That's what works for me. But right now, I am feeling quite comfortable with this portfolio. And of course, yes, I do still have my retirement portfolio, which is purely Mellie, Meta, Amazon, Google, and I think right now 11 or 12% in cash. Of course, a lot can change, especially in the back half of the year. midterms in the United States, rate cuts, no rate cuts, a lot of things can still change. I mean, the Iran situation still is not resolved despite a thousand of the same posts. We don't know. We don't know what might happen. And so, right now, we've had a tremendous week. Tremendous week. But things can change quite rapidly, right? Remember when we were talking about, oh, everything's down, everything's red. Nebus was down 40% in a week. that name was down 50% in a matter of two weeks or so. Remember those times? Now everything's back up. So things can change very very quickly in this market might be a good thing for you, might be a bad thing for you. Of course, if you sell options, it's very good. Volatility is good for you. But to say that oh there are no opportunities in the market, there are always opportunities in the market if you know where to look. But I have to say this is something that Peter Lynch has said. Sometimes the best stocks out there are already in your portfolio. The grass is not always greener somewhere else, right? Stocks are not always better somewhere else outside of your portfolio. Sometimes just look at your portfolio and you might say, "Actually, I don't mind owning more shares of that company." Anyways, that's all I've got for you today. See you all in the next one. Bye-bye. Hey.