Microcap Investing Tips to Know

Today is Monday, November 8, 2021.

Microcap Investing Tips to Know

Microcap stocks are an area of investing that could allow for the greatest chance of success, according to MicroCap Explosions founder Mariusz Skonieczny in the latest episode of the Early Bird podcast.

Advantages: There are many benefits to investing in microcap stocks, Skonieczny says, because there is less competition. Most retail and institutional investors avoid them.

Risks: Microcap stocks, which are sometimes called penny stocks, can also be risky due to potential scams. Skonieczny notes that about 80% of microcap companies on secondary exchanges might not be good.

Strategy: Skonieczny conducts a lot of research before investing in a microcap company, which includes phone calls with the company’s customers and management.

Final Thoughts: How much due diligence does Skonieczny put in before investing in a microcap company? Find out by listening to the newest episode of the Early Bird podcast.


Notable Earnings Today: PayPal (Nasdaq: PYPL), Trade Desk (Nasdaq: TTD), AMC Entertainment (NYSE: AMC), Coty (NYSE: COTY), Roblox (NYSE: RBLX), Lemonade (NYSE: LMND), Marriott Vacations Worldwide (NYSE: VAC), Zynga (Nasdaq: ZNGA), Cabot (NYSE: CBT), SmileDirectClub (Nasdaq: SDC), TripAdvisor (Nasdaq: TRIP), Virgin Galactic (NYSE: SPCE).

Notable IPOs Today: Bright Minds Biosciences Inc. Common Stock (Nasdaq: DRUG).

Notable Equity Crowdfunding Campaigns Ending Today: Launchspace Technologies (NetCapital), PittMoss (Republic).

Notable Economic Events Today: N/A.

Elon Musk Might Sell 10% of His Tesla Stock Due to Twitter Poll

Photo by Andreas Dress / Unsplash

Tesla (Nasdaq: TSLA) CEO Elon Musk could sell 10% of his stock in the electric vehicle giant after Twitter (NYSE: TWTR) users voted in a poll that he should do exactly that.

Details: On Saturday, Musk posted a Twitter poll asking if he should sell 10% of his Tesla shares due to proposed legislative bills that would tax unrealized gains.

Additionally: Musk said that he will abide by the results of the poll. He added that he doesn’t get a cash salary from Tesla, so selling stock is the only way for him to pay taxes.

Results: 57% of over 3.5 million users voted that Musk should sell 10% of his Tesla holdings.

Numbers: Musk owns 17% of Tesla stock, which The Wall Street Journal pegs at over $200 million. Thus, the 10% represents about $21 million. CNBC notes Musk could face a $15 billion tax bill in the coming months, which explains the reason for the Twitter poll.

Final Thoughts: Tesla is up 67% this year. If Musk sells 10% of his Tesla holdings, will the stock price dip?

Why is Ethereum’s Price Soaring?

The price of Ethereum reached an all-time high over the weekend. It is up nearly 10 times the price in the last 12 months.

Background: Both Ethereum and Bitcoin have benefited recently due to the launch of cryptocurrency exchange-traded funds (ETFs), which are the next big thing in the crypto space.

Upgrade: Another factor behind Ethereum’s surge is the London upgrade in August, which resulted in a diminished supply of Ethereum coins. This might be raising the value.

History: After the price of Ethereum peaked in May, it decreased rapidly over the next several weeks.

Final Thoughts: While the price of Ethereum could continue to rise, history tells us that it could drop after peaking.

Trends to Watch

Big Day: XRP Climbs 10% In a Green Day (Investing.com)

Carry On: What Is ‘Carry’ in Investing? (The Wall Street Journal)

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