The Wrap: Schooled
Last week we had a look in the mirror, this week you’re about to be taught a lesson. We remind you of your HECS bill, get ringside for round 2 of a heavyweight battle and have a brand new Weed stock which has hit the US blazing.
Student Debt? You’re not a-loan.
US student debt is hitting record highs. Millions of students have deferred US$1.56trillion in debt while sitting in lecture halls watching YouTube (or in the case of would-be Stake users, TradingView). For the record, Australia’s GDP is US$1.32trillion.
Of course, this money has to come from somewhere. Apart from the government, there are scores of private companies offering rates of 4–12% to students. Naturally, a mix of low income, no asset individuals with a potentially six figure debt isn’t exactly a desirable combo. WIth delinquency rates of 11%, it’s a high risk, high reward game for those offering loans. The situation has recently been labeled a crisis with 44 million Americans affected and the total sum eclipsing both Auto and Credit Card debt.
For those not scared by these numbers, some of these companies, are available to trade on Stake like Navient, SLM and Nelnet.
New stock alert! In weed we trust | CannTrust Holdings
Pot heads rejoice. Another week another weed stock. This week CannTrust (CTST), which was previously only listed on the Toronto Stock Exchange, joined the ranks of the other Canadian marijuana stocks on the NYSE.
This is one of the most talked about stocks in the space, with the Motley Fool believing that CannTrust has a shot at being one of Canada’s most profitable pot stocks and The Green Fund going all in on CTST.
We have no opinion (that we can share) other than knowing that CannTrust will be one of the most followed new listings on Stake for 2019.
Trade Your Way to NYC
We’ve plugged this one a few times, because we think its a ripper. Australia’s Next Top Trader is a competition run by Equity Mates aimed at University students with one hell of a prize. Starting on March 11, the trader who gains the highest % return over a 6 week period is rewarded with a trip to Wall St- flights, accomodation and a tour of the NYSE. Follow the link to register and for more info.
SEC vs Musk Pt 2
If you’ve ever seen those kids on leashes in shopping centres, I can guarantee the SEC has asked their parents for advice on controlling wild things. Censoring one of the 21st century’s most polarising entrepreneurs is no easy task.
Following an “agreement” that Musk pass all tweets and content by Tesla before sharing, there was a surprising lull in news out of Elon’s corner of Silicon Valley.
That was until he tweeted this:
The SEC deems Musk is influencing investors and Musk could find himself tangled in a battle with serious repercussions… all over 101 characters. Remember, the infamous 420 tweet resulted in a US$20million fine and loss of Chairman position.
We prescribe to the rule that buying and selling moves stocks, not news or tweets….however Musk’s tweet seemingly got people moving…. Tesla’s share price is down 2.3% this last week, decreasing Musk’s net worth by about US$250million. That’s a US$110million decrease for every % Tesla falls.
Top 5 Stocks Powering Education on Stake
1. Career Education (+19.14%)
2. Hailiang Education (+3.30%)
3. Chegg (+2.37%)
4. Pearson (-1.28%)
5. China Distance Education (+3.75%)
