May 2022: Pay Day Moves

July 17, 2023

I'm mostly dollar-cost-averaging this month. Markets are still down, so sticking to the plan!

CRYPTO: The crypto markets were decimated the past two weeks because of the Terra Luna crash. Nobody expected a top 10 coin to fall 99.99%. There are many theories and probably thousands of YouTube videos attempting to explain the crash. The best one I watched was from Your Friend Andy. Search for him on YouTube and watch.


This month I am adding to Ethereum and Binance Coin. I am building my number of coins. I very seldom convert my crypto holdings into USD. I always look at them in terms of the number of coins or in terms of the number of Bitcoins. It is a peaceful strategy. ETH, I am adding at prices under $2000 and BNB at prices under $300. I do not trade my cryptocurrencies. When I buy them, I say goodbye to my money till 2030. The daily movements are none of my business.


DESKTOP METAL (DM): This little $650m company has been on my radar for the longest time. Seeing the share price at $2 from a high of $30 had me baffled. This company went public at $10. I thought to myself something must have gone extremely wrong. DM is a 3D printing company. I will do a deep-dive on the business, but in summary Desktop Metal is a technology company that designs and markets 3D printing systems. The company has raised $438 million in venture funding since its founding from investors such as Google Ventures, BMW, and Ford Motor Company.


So, what went wrong? The company missed earnings by a mile earlier this month and the markets punished the stock. Always remember, we never buy broken companies, but broken share prices are fair game. I am going to take a tiny position under $2.


AFRICAN RAINBOW CAPITAL (AIL): Please have a look at the ARC deep-dive I posted a few weeks ago. I am still very bullish on ARC long-term. I think RAIN is going to make it rain, but you need to be very patient. I have nothing but time. If we can catch it under R6, it is a bargain.


CLOUDFLARE (NET): NET came public in 2019. I first heard about the stock in 2020 and bought a few shares around $30. The stock exploded to $221 and there was ZERO justification for that move. In hindsight, I should have sold, but I did not. I believe the stock is now at a more reasonable price again, around $55.


Cloudflare operates a global cloud platform. Its portfolio includes application, network, and security services, which collectively help its clients accelerate and protect their IT ecosystems. The company also provides developer tools that make it possible to build and deploy applications and websites directly on its low-latency, high-security network.


Cloudflare's vast infrastructure is one of its key advantages. The company has servers in 270 cities across more than 100 countries, and its platform interconnects with over 10,500 other networks. What does that mean? It means Cloudflare is fast. Internal studies have shown that its cloud platform can consistently outperform that of other vendors, including tech giants like Alphabet and Amazon. And Forrester Research recently recognized Cloudflare as the best edge development platform on the market, citing a strong current offering and a stronger growth strategy.


SOFI: Short for Social Finance, this was one of my largest additions to and winners in my US portfolio in 2021 and I am not close to being done buying. Let me explain myself. Did you know the top 10 banks like JP Morgan, Citigroup, Bank of America, Wells Fargo hold 50% of the accounts however 50% of Americans use more than one bank. This tells me that consumers cant get everything they need from their primary bank so they are forced to have multiple relationships SOFI is trying to change this by creating a one stop shop for financial products and services so they can build long-lasting relationships with their customers (they actually call them members). SOFI received their banking charter earlier this year.


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