Welcome back, everyone. Happy Weekend.
I want to start this update by giving credit where it’s due. I have a trader in the room—an excellent operator by the name of Zoug . He is a course holder, he trades the exact same process as I do, and when he talks, I listen.
He flagged two stocks this week that grabbed my attention immediately.
Now, full disclosure: Both of these companies are struggling subscription-based models. Both of them are trading roughly 75% off their all-time highs.
If you follow the crowd, these are “dead money.” But if you look at the charts, we are sitting at deep, multi-year structural support. If you believe the thesis that this is a temporary sentiment dislocation rather than a bankruptcy spiral, these could be the best risk/reward opportunities on the board.
I nibbled on both of these on Friday. Here is the breakdown.
