MSTR MSTR Says Take These Soaring Coins
Recapping three great trades. Two that were crypto-related and one old-school bond investing.
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It’s been an exciting week in the market, with Bitcoin soaring to new highs. Its wings are anything but broken. If you’ve been following Bob Byrne or James “Rev Shark” DePorre, they've been telling you to take these soaring coins and that you don’t need to own Bitcoin directly. Both have suggested investing in MicroStrategy, which has the macro strategy of owning lots and lots of Bitcoin. It’s been a new-age winner. But this was a week where the old-school strategies proved successful, too. In particular, Doug Kass had a double on his hands when a distressed bond he recommended came to life.
MicroStrategy
Let’s start with two trades in MSTR that would make the 1980s top 40 list (that’s a Mr. Mister reference if I was being too subtle).
Back in October, Bob Byrne analyzed the chart pattern for MicroStrategy MSTR based on the company's macro strategy of being long Bitcoin. He found that the monthly chart pattern was bullish and suggested owning the stock between $140 and $180. Well, shares are trading at over $480 as I write this, down from a high of $540 in overnight trading. That's a return of over 160% in about six weeks.
Bob's latest advice can be read here, while his original research from October 7th is available here.
Now, maybe you missed Bob’s early call on MSTR. Well, sharks don’t sleep and our pal James "Rev Shark" DePorre let us know on the day after the election that it wasn’t too late to buy MSTR, or IBIT, the iShares Bitcoin Trust ETF. On November 6th, MSTR closed at $257.81 and IBIT $43.30. Today, they’re at $480 and $55.69, for gains of 86% and 29%, respectively.
Read Rev Shark's November 6th article here.
Ligado Networks Bonds
Par isn’t just the goal for a round of golf. It’s also what investors in distressed debt hope to sell their bonds for at maturity. In this case, we’re talking about Ligado Networks and their 15.5% bonds, that were trading at an 87% discount back in April. Doug Kass resurfaced this idea on Monday and by later in the week, the bonds had more than doubled. They now trade for closer to 30 cents on the dollar and Dougie thinks that they can still go to par.
We don't have a chart to share, since this is a bond trade, but consider the mental picture of starting the week off with one golden golf ball and ending the week with two.
You can read Doug's entry in Monday's Daily Diary here.