🗞️ The Wrap: Satellites
Bills, bonds, brokerage…this wrap has it all. We have a look at the latest technology being used to produce “alternative data”, we go all in on ETFs and give away some tickets to an ETF summit, all while working through the hardest Trader Teaser ever.
5 stocks making 52 week highs
- Nordic American Tankers (NAT) +63.9% in the last week
- Teekay Tankers (TNK) +44.8%
- RingCentral (RNG) +36.5%
- International Seaways (INSW) +21.8%
- Frontline (FRO) +18.5%
Eye from the sky
It’s something straight out of Billions. Oil traders are using satellites over the Middle East to predict production levels, and therefore price levels. It’s called alternative data. Companies launch satellites into space and then on-sell the findings to hedge funds energy producers and traders. The market isn’t always convinced by official data and reports released by authorities; so they go out and source it themselves!
So what are they seeing? According to one satellite company, oil production has ramped back up to normal levels since the mid September attack. Maybe that’s a good sign for your hip pocket at the bowser.
For those bearish on black gold, $DRIP is the go to ETF for Stake traders when they take a punt on an oil pullback. Be careful though, it’s 3x leveraged; experience traders only.
The name’s Bond
We’ve been seeing bond related ETFs popping up in our most traded lists all year. According to the Financial Times, this is a global theme with fixed income ETFs having record high money inflows. The research argues that an increase in volatility and uncertainty is leading to an increase in popularity.
How do they work? Simply, a Bond ETF pays the coupon as a dividend every month but the ETF’s price in the market is subject to underlying rates. In recent times, these ETFs have been making new highs, the underlying bonds held in the funds have increased as rates have fallen. For those not versed in the bond market, here is pretty simple explanation.
Our good friends at Equity Mates did a great episode on getting exposure to bonds as a retail investor, click here to check it out.
Top 5 gainers
- Nordic American Tankers (NAT) +63.9% in the last week
- Teekay Tankers (TNK) +44.8%
- RingCentral (RNG) +36.5%
- Pennant Group Inc (PNTG) +25.6%
- Diamond Shipping (DSSI) +34.3%
Top 5 fallers
- Arbutus BioPharma (ABUS) -39.1% in the last week
- Puma BioTech (PBYI) -35.6%
- Consolidated Communications (CNSL) -23.7%
- James River Holdings (JRVR) -23.3%
- DBV Technologies (NIO) -29.6%
Talking about ETFs
While we’re on the topic of ETFs, Stake’s been able to secure some free tickets (retail is $132) for Stake traders (that’s you) to the global ETF Conference, ETFs Down Under held at the ASX on October 16.
Some great speakers (Peter Costello and Graham Tuckwell for starters) are providing insights on what’s going on when it comes to the markets and ETFs. Plus, some of the crew from our office will be there absorbing some wisdom.
We’ve got 10 tickets left that we’ve secured for you. So if you’re in Sydney and want to get to the event, please reply to this email. Price Time priority applies!
Land of the Free
Times are a changin’. As you may be aware, 4 of the 5 biggest trading platforms in America have reduced their brokerage costs to zero. CEO Matt wrote up a great piece on how this is possible. If you haven’t seen it or would like to see it again, have a look here.
What we’re watching | Inside Bill’s Brain by Netflix
It’s probably sitting front and centre on your Netflix home page but if you haven’t watched Inside Bill’s Brain, you’re missing out. We follow Bill from his childhood to Chief Executive. While we spend time hearing from Bill and his family on his work on Microsoft, the most interesting parts are what he is working on now days; his quest to improve world sanitation using technology and nuclear energy venture. Definitely something new to consider now the Bachelorette is hogging the airwaves again.
And yes, he really is a genius.
Best Buy | Frontline (FRO) +28.7%
Oil tanking stocks have certainly not been living up to their name recently; they’re flying! This trader made note our our “recent highs” list last week and added 28% to their portfolio. It comes back to Newton’s first law: “ a [stock] in motion will remain in motion”.
