Glad to be back. Life has been pretty busy with a new baby born in April, being a dad is awesome. I was promoted at work, which has been going very well and I wake up every day excited to head into the office.
I am going to be renaming this newsletter away from iphawk into something that reflects the paid stock promotion focus. I have built a format that I believe can get published on a regular basis again. The majority of it will be for paid only subscribers.
During this time I have actively followed a lot of the paid stock promotions, which are pretty much nonstop through newsletter emails, YouTube videos, telegram/discord groups, message boards, and twitter/reddit. Its overwhelming and kind of amazing to watch.
Trading the stock promotions has been rather difficult with my expanded work role so I haven’t. I have some new thoughts on the paid stock promotions detailed below:
Paid stock advertising, compensated awareness, paid stock promotion are all the same thing. If a party is writing or publishing content with compensation about a company its paid stock promotion.
Nearly every stock under paid stock promotion will eventually be a disaster for shareholders. It might have a few good days or weeks of trading, but eventually will fall apart.
Stock promotion is an awful use of company capital and any Csuite greenlighting the expenditure is probably making other terrible decisions.
If your favorite “game changing technology” small cap is under paid stock promotion you need to start doing more digging and find out what is really going on.
The Plan
The goal is short to the point, actionable, and hopefully timely content that could be valuable to someone in their investment or trading decision making or even just idea generation. Some might just find it entertaining watching companies make dumb decision after dumb decision like a car accident you can’t look away from. No one wants to read 20 page deep dives on a $50m garbage company, right?
I have been using Koyfin to build a tracker to show the performance from the date of the promotion if $1,000 was invested into the stock. I will be changing the $1,000 to the amount of the actual paid stock promotion disclosure, which are usually in the tens of thousands if not hundreds of thousands of dollars. I also wanted simple metrics such as market cap, cash, current liabilities, and debt. If there is another metric I should be showing let me know. For example:
As you can see its bad. Just about all of them are like this going back at least 3 years. I no longer want to discuss if the companies are potential long or short ideas and instead will have a rating system 1 (I have no idea why they are being promoted) to 5 (Company is going to do something really dumb or desperate). I will have all of the promoted names on my watchlist and when I believe a company is likely to do something dumb it will get posted even if its not under an active stock promotion.
The content will evolve over time and any suggestions or comments are appreciated.
I am really excited to get the paid stock promotion newsletter going again. I am also working on getting my patent newsletter jumpstarted as well that will be focused on AI related patent filings.
Congratulations on the baby! How wonderful.
Bueno!!!