April 5th Investing Tips
TL;DR:
Okta- Buy the Dip
Plantir- Buy the Dip
FileCoin- Get in now. Day trading possibilities.
BitCoin- Get in now. Day trading possibilities.
OKTA
This is a cloud security company used by Fortune 500 Companies. I use their product daily. Okta recently purchased a company that specializes in API Authentication: OAuth. I also use OAuth for almost every API I interact with.
Immediately I understood the value of the purchase as OAuth has a huge amount of SMB, Mid-Market and Developer users, but not many Enterprise users. Okta has the opposite user base. Now they can cross-sell products and have a more complete customer database.
However, Wallstreet felt the deal was over valued and the Okta stock took a dive.
When I looked up the company leadership on LinkedIn I noticed that the CEO used to be an executive at Salesforce. Salesforce is like a club that itself was born from the Oracle club. This is a powerful network of executives who run shit. I also noticed that the someone who worked at Visa is now their Director of Engineering.
Okta Thesis
Similar to when Wallstreet thought Facebooks $1 Billion purchase of Instagram was overvalued… Wallstreet is wrong here as well.
Okta Play
Buy the Dip. I bought in at $210 and I plan on selling around $300.
Plantir
This company builds decentralized data collection and analytical tools to compete with Google and other American surveillance companies. Plantir takes an ideological stance against Google’s business practices. I found this article fascinating.
Additionally, Plantir did a direct listing for their IPO. This means they did not use an Wallstreet bank to go public; they went directly to the retail investors. This means they still have not received as much institutional investment as they would have if they had submitted to Wallstreet.
Plantir’s CEO has mentioned in this interview that part of the decision to go public was so that people who have worked on the project the last many years could take out equity. This means insiders will be selling their stock to buy houses and things. The CEO needs to sell enough stock to cover almost 1 billion in shares that will be awarded to him through compensation.
Plantir Thesis
The stock is undervalued because retail does not understand their business model and institutional investors have not gotten on board yet due to Wallstreet not pushing the stock. Also, profit taking by employees will keep depressing the price. However, with the recent announcement of AWS, IBM and other partnerships: this secret will not last long.
Pantir Play
I plan on purchasing the lowest I can on Monday or Tuesday and holding in-case of liftoff the end of April and then re-evaluating.
FileCoin
Created by the same team who invented the IPFS (Interplanetarty File System). This is a decentralized market for computer storage. FileCoin is a way to monetize this technology. The group also has a stated purpose of and has recently donated 50,000 FileCoin (worth roughly $10 million USD) to Internet Archive (one of my favorite websites).
The FileCoin Thesis: I believe that the makers of FileCoin have an interest in keeping the price below $200. However, the Chinese government is heavily pushing this technology as a decentralized internet will help free them from Apple, Google, and the other American surveillance companies.
The FileCoin Play
1) Buy and hold. I believe this will be the dominate storage solution for www 3.0. Microsoft has already chosen this technology.
2) Day Trade. I believe that purchasing at the current floor ($170) and selling when it hits the $200 ceiling is a safeish GAMBLE. To do this you must use an exchange with no fees to maximize profits.
BitCoin
Nothing needs to be said about this investment vehicle. I am now a true believer. I am extra excited as Microsoft has announced that it chose the Bitcoin network when building their ION Digital ID product. Microsoft’s reasoning for choosing Bitcoin even thought there are less expensive technologies out there (like Ethereum): Microsoft believes that the Bitcoin network is the most secure payments network in the world.
CitiBank has also released a report stating that BitCoin is ready for mainstream. Other banks are making plans on connecting to BitCoin.
MicroStrategy has announced that cash is trash and has converted all their corporate cash to BitCoin, then took out a loan against all future earnings and converted to BitCoin. After Elon Musk heard about this Tesla purchased over $1 Billion in BitCoin.
BitCoin Thesis
BitCoin has had a huge bull run, but is it due for a crash? I do not believe so. In fact I believe that the technology has matured to the point where major corporations and investors will now see it as a must-have investment. However, long-time and short-term BitCoin holders see the $60,000 price point as an attractive place to take profits.
The BitCoin Play
1) Buy a dip and hold. I am actually considering taking out a personal loan at a 5.99% interest rate and purchasing now with a plan to hold over the next 2 years as institutional money flows into BitCoin.
2) Day Trade. I believe that purchasing the current floor ($57,000) and selling at the celling ($59,000) is a safeish GAMBLE.
Note: If BitCoin breaks $60,000 there may be a new floor found there. I think people are taking profits at $60,000 currently.
To do this you must use an exchange with no fees to maximize profits.
Conclusion
I am an amateur investor. I am writing this to get feedback. Please comment and ask questions. Please let me know if my thinking is wrong.
