Rocky’s Weekly Stock Picks
Depending on how we’re invested, this last week or so could go either way. Notably the drop in tech stocks overall hasn’t been great, and we’re not going to comment on the notion that it has a lot to do with BitCoin’s exchange rate to the USD. There’s multiple opinions, from different sources with different agendas, and many good arguments and explanations for all of them. Clearly what we can all agree on, at least on the retail side of things, is that there are multiple potential reasons for things.
What we will comment on is reckless spread trading. It gets expensive fast. Onwards!
ADIL/ADILW - Not all of us are going to be able to buy the ADIL Warrants. Those that can, now is a prime time to snag them. ADIL common shares themselves are showing $2.15 at the moment, which is pretty much as low as we expect to get for the forseeable future.
Adial is a Pharmaceutical company, but they are doing something both very special and very futile. They are developing a drug that will allow alcoholics to consume alcohol without feeling the compulsion to continue drinking. They’re not calling it a “miracle drug”, because there’s no such thing, but this surely is miraculous.
If you’ve had your feet under tables, seeking good orderly direction, then you see immediately what will happen - Lots of people are going to buy this. It won’t work, we know this, and sales will drop right off a cliff once there’s a couple years of solid data to prove it doesn’t work. We’re going to be exiting, though, 100%, by the time the warrants expire, in summer of 2023.
A further analysis of graphs and stuff shows us images that confirm our bias.VLO - Valero shares are showing $81.41 at close on Friday. Ex-div is on the 2nd, which is Wednesday. This stock checks a lot of boxes for a responsible purchase. Think of a Venezuelan Sunoco. Done.
We don’t actually have any information or knowledge in-house regarding our comparison, but we can confirm that Valero is well-established and successful. Dividend payment is $.98 per quarter. Historically, the dividend increases each year, as well.GUG - Guggenheim Active Allocation Fund. $18.67, $0.119 dividend comes to 7% annualized. This might not be purchasable on Robinhood. Ex-div is Thursday, 2/3, so we have a couple days to figure it out.
ETRN - $8.16, 7.26% yield, ex-div 2/2. Midstream company. We do like ourselves some fossil fuels. But not as much as we love Nuclear!
UEC - $2.50/share. Major player in North American Uranium. We’ll refrain from suggesting options plays this time around, since that usually ends less than ideal for us. (We’re not suggesting bull credit spreads. Even if bull credit spread is a fun word to say, we’re not putting it as a suggestion).
