There is only 1 reason that anyone buys a stock, and that's because they believe it is a good investment that will generate capital appreciation. Like regular investors, insides may sell shares for a few reasons, including freeing up capital for a large purchase, paying taxes, sending a child to college, or having to divide assets due to a divorce. SOFI The insider buying train doesn't seem to end with Anthony Noto I have continued to add to my position of SOFI, I will continue to add shares at depressed prices, and I currently have cash-backed puts expiring on 6/17 at a strike price of $6.50, which at this rate could assign me additional shares. In this article, I will discuss the continuous buying spree from Anthony Noto (SOFI CEO), commentary at the Piper Sandler Global Exchange & Brokerage Conference by Chris Lapointe (SOFI CFO), and the possible reverse split which could occur. If you want to read about how SOFI is building the AWS of Fintech to deliver Banking as a Service (BaaS), you can read my article here. I can't predict the future, but I am confident that SOFI will ultimately turn into a great investment. Yes, shares of SOFI could remain on the ropes, but a knockout blow is unlikely to occur. The key word is an investment, and I am not allocating capital to SOFI as a trade to make a quick buck. Just because my timing hasn't been optimal doesn't mean I am incorrect on SOFI as an investment. Anyone who has been bearish on SOFI has been correct, and as a bull, I have seen nothing but red in this investment. Several have indicated that the rallies are nothing more than dead cat bounces and should be looked at as opportunities to exit the position. Since the November $24.65 peak, shares have continued to make lower lows, and every sharp bounce has faded away. This time when SOFI declined, the rally never came even though there was significant insider buying and strong earnings reports. SOFI's sell-off last summer was met with a sharp rally into insider buying and what the street touted as a great Q3 in 2021. Over the previous 6-months, shares of SOFI have been down -60.84%, and since SOFI went public 1-year prior, shares have collapsed by -74.20%. This has been a painful investment for many as the growth trade has left many accounts decimated. Every time SoFi Technologies ( NASDAQ: SOFI) looks like it could rebound, shares are stopped dead in their tracks.
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