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GameStop Stock is Proving that the Rules Have Changed

Shares of GameStop Corporation have been on fire recently, and it's caught the eye of investors old and young. The majority of the gains have been attributed to the infamous WallStreetBets community on Reddit. GameStop was publicly ridiculed not more than a few months ago for not having enough long shares to be lent out for short selling. Short interest has been through the roof for a while now, and as of Friday's close, the borrowing rate for GameStop shares was $23.50, about 35% of the share price.  Some call it The Robinhood Effect, others simply call it a cramped bandwagon. Either way, this GameStop foolery has shown the power of retail investors. Generally, market movers and institutions have been the go-to scapegoat for funny business in the stock market. This, however, is a clear indication of how much influence small retail investors can have.  And who can blame GameStop short sellers? GameStop has been clinging to brick-and-mortar stores with a death grip that has drag
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Why Altcoins Make For Bad Investments

  Bitcoin's recent run has ushered in yet another wave of loud-mouthed permabulls. Generally, the emergence of these fair-weather fans is directly correlated with the price of Bitcoin. Since Bitcoin's recent run-up, however, many altcoins haven't performed to par as they did in late 2017, when they skyrocketed alongside Bitcoin's run to its previous all-time high. Bitcoin, in the past two weeks, has pulled back somewhat from new all-time highs, which begs two questions: Will altcoins follow suit, and if so, which one/ones? Bitcoin and altcoins are in unchartered territory, from an investment standpoint. They are not commodities, because they don't exist physically. They cannot be considered property for the same reason. The argument of them being a realistic currency is hard to make, as currencies shouldn't make 3-7% jumps overnight. It is also not a stock, security, or equity, since its ownership comes with no privileges.  So, from an investment perspective: wh

Tesla Continues Parabolic Rise; How Evergreen Will Play Options

Tesla has had a twelve month run that, if one can assume that a conservatively managed fund will average 6% YoY, equates to 190 years worth of gains. For much of this time, Evergreen Financial Research has pushed the case that shares of Tesla were extremely undervalued, and that the company was gripped by the lapels and held underwater by most mainstream financial news outlets. For the first time ever, Evergreen Financial Research believes that Tesla has, from a valuation standpoint, grown into its well-deserved shell. Tesla remains an interestingly valued firm; while Tesla seems to be overvalued by a fundamental perspective (EPS 1094), there is hardly a shred of a guarantee that the market will not continue to value Tesla based on the assumption that the firm succeeds in pioneering the transition to renewable energy, and eats every ICE automobile in the process. Tesla shattered many bears' expectations in Q2 of this year by posting a profit, and those who follow the stock know tha

FinTwit Roundup: 11 August 2020

Early Monday morning, the Russian Federation (more specifically, Vladimir Putin, President of Russia) announced that a new COVID-19 vaccine is not only effective, but that Putin's own daughter has already been vaccinated with it. In one of the greatest multi-generational mic-drops of all time, Russia decided to name the vaccine Sputnik V . Unsurprisingly, the news was met with great skepticism - partly because vaccine headlines have become a daily occurrence, and partly because a Russian nanobot vaccine wouldn't be the weirdest conspiracy theory that turned out to be true. Gold, silver, and other precious metals crashed today to levels not seen since ten days ago. The markets are in pure shock.    As one Twitter user points out, this is the largest negative one-day percent drop that Silver has seen since the bankruptcy of Lehman Brothers.  The -15% drop was surprising, but not as much given the macro environment. Markets have been quite lackluster for a few days now, leading so

AMD Continues to Grow; Poised to Steal Market Share from Intel, Nvidia

Two of AMD's highest selling consumer/enthusiast CPUs - Ryzen 9 3900X (left), Ryzen 7 3700 X (right) Shares of Advanced Micro Devices (NASDAQ: $AMD ) have torn through the $70's as if it were a blink, shooting up following the most recent earnings report. As of Thursday's market close, shares of $AMD traded at $86.71/share. Given 1170000000 shares outstanding, this gives AMD a market cap of $101.45 billion.  AMD's earnings showed a continuation of healthy reports and good news. Revenue increased 8% QoQ and 26% from 2Q2019, while operating expenses increased by 6.2% QoQ and 20.1% YoY. Gross margins gained 3pp YoY but lost 2pp QoQ, and for the past quarter were 44%.   We believe AMD to be very uniquely positioned. AMD has risen in market share over Intel for seven consecutive quarters. The last time that CPU market share was this close between two manufacturers was in 2005. While Intel Corporation's CPUs tend to perform better on a per-core/per-thread basis, AMD's

Apple, Inc. Passes Saudi Aramco on Track to be World's First $2T Company; Shares Overvalued

Article by Christopher Larson of Evergreen Financial Research ( @tophlars ) Shares of Apple, Inc. ( NASDAQ: $AAPL ) traded higher today, reaching a market cap of $1.90T, before rolling over and erasing most of the day's gains on Tuesday afternoon. Apple has been on fire recently (in a good way), after they reported better-than-expected sales this past quarter. One of the more memorable items on Apple's balance sheet was the company's current cash position: $192.8 billion in cash on-hand, or about $45/share of cash. On this, Kaden McBride ( @McBrideKade ), Chief Analyst at Evergreen Capital, tweeted, "I guess you can save quite a bit on R&D when you don't innovate." Apple, Inc. has 4,280,000,000 shares outstanding. To reach a record-breaking market cap of two trillion, shares of Apple would need to reach a price of $467.29 per share. Evergreen feels safe issuing a "Soft Sell" rating to Apple, or a 2/5 rating, based on current prices, and with resp

Evergreen Financial Research Report - Nvidia Corporation ($NVDA) 2H2020