Blue Chips & Penny Stocks: Week 2 Stock Picks!
What is up my BCPS family! Twice in two days, can you believe that? I hope you enjoyed yesterday's installment of Insider Trading with David Harrison! David, thank you once again for your time, and all the insight before the TNF game last night. I hope everyone made some money! We have a lot to get into today, so let's get started.
Actually, before we dive into the stock analysis, let's quickly chat about general investment tips and tricks. Now, I know a lot of PredictionStrike users consider the platform as an extension of the fantasy sports world. Don’t get me wrong, it most certainly is, but don’t let that limit its potential. There is a lot more to PS than meets the eye. In my opinion, one must look at their portfolio like an investment vehicle, and not a fantasy football team. There was something that happened this week that caught my attention that I want to share with you. As we all know by now, Raheem Mostert (-15%, $2.39/share), running back for the San Francisco 49ers, unfortunately suffered a season ending injury this past Sunday. In his place, Elijiah Mitchell (0%, $1.30/share) stepped up, and had himself a day! Since he was not supposed to play much, his projection was under 5 fpts, so his stock did not increase due to production. His stock Sunday evening after the game was $1.03/share. At the time of writing, his share price is an astonishing $1.30. That is ~30% ROI in less than a week, which is insane! With the hype train full speed ahead, who knows where his stock price will be before kickoff Sunday afternoon.
This got me thinking. What is your goal as a PredictionStrike user? Are you simply using this as a fantasy football alternative? Or are you using this as an investment tool? Every decision you make has to be based on how you perceive the platform. If you are an Elijiah Mitchell shareholder, you really have two options. Option one is to keep your Mitchell shares for the Sunday game, and hope his production beats his projections. If he beats his projection, your share value will go up, and the good times keep rolling. But what if he doesn’t beat expectations? We all know Kyle Shanahan is spontaneous with his running backs, especially when it comes to committee backfields. What if Sermon (0%, $2.44/share) gets a chance to show off his skill sets, and Mitchell takes a back seat? Do I think this is going to happen? No, not necessarily, but I’m not sure I would risk my ~30%+ ROI to find out. Then comes option two; selling your shares before he plays a single game. It’s kind of anticlimactic, but you’ll get over it when you bank big returns. You can now watch the 49ers game stress free, and count all the money you made on a savvy investment, or even better, you can pocket the initial investment, and roll the profits into shares of new players. This will give you a chance to double dip, playing with house money. I am not a financial advisor, so take my advice with a grain of salt, but consider the old adage, “You will never go broke taking a profit.” Now, let's get to some stocks.
Blue Chips!
Keenan Allen, +4%, $3.68/share | WR, LA Chargers
If you're a member of the die-hard BCPS nation, you already know what time it is. Rule number one of BCPS, fade the Cowboys secondary. That should be enough to smash the buy button, but I understand if you want more than one sentence of analysis.
Is it just me, or is Keenan Allen somehow underrated?
He’s currently projected 17.7 fpts, and a receiver any QB would kill for, but when you sit around and think about the league's best receivers, how long does it take before Keenan Allen’s name crosses your mind? He has had 100+ receptions in three of the last four seasons, and the fourth season he missed it by just three catches. And that was mostly with Philip Rivers noodly old arm. Now he has young gun Justin Herbert (-7.6%, $8.03/share) slinging him the ball. If you watched the game last week, it wasn’t the prettiest performance, but you can easily tell who Justin’s favorite target is. Allen had nine catches on an astonishing 13 targets, racking up triple digit yards. He didn’t reach the endzone, but that will surely come soon enough. And, don’t forget that was against a supposedly really good defense in WFT.
This week the task becomes a whole lot easier. We all know Dallas is a Jekyll & Hyde team. Incredible on offense, terrible on defense. This analysis is short and simple. The Cowboys will score tons of points, so ALSO go buy Ceedee Lamb (+13.46%, $5.70/share). The Chargers will have to score a lot of points to keep up, and the Cowboys will have no choice but to let them. Target the QB’s favorite weapon, and good things will happen. If you don’t believe me, check out the gains on stocks of Buccaneers pass catchers last week. Enough said!
In full transparency, this selection was almost Austin Ekeler (-8%, $3.30/share), but I don’t fully trust him yet. For Austin to be a PredictionStrike “BUY,” he will have to prove he is a pivotal part of the passing game. He somehow managed to get through last week's game without a single target. Until that changes, I have to stay away. And until then, stick with Keenan Allen, and watch the money pile up.
Penny Stocks!
Nyheim Hines, +13%, $6.95/share | RB, Indianapolis Colts
Just a reminder for all you newbies, the penny stock category does not literally mean the stock is worth pennies. Yes, even a $6.95 stock can be a penny stock! Considering Hines is a situational back, and not an every down back, I would consider him a penny stock. He is second fiddle to Jonathan Taylor (+3%, $5.94/share), and comes in when it’s time to catch a pass. All that screams BUY BUY BUY for me this week. Here is why.
In just one week, Hines has already created a noticeable bond with QB Carson Wentz (+3%, $4.46/share). Out of the 20 routes he ran, Hines was targeted 8 times, hauling in 6 catches for 48 yards. This was all in a loss to the daunting Seahawks, and the level of competition is not getting any easier. This coming Sunday the Colts will be facing off against the very dangerous LA Rams defensive line. If we know anything about Aaron Donald and company, Wentz will need to get the ball out of his hands as quickly as possible. Seems like a perfect game script for Hines, right? If you need a reference point, the Rams allowed five catches to running backs last week to the Bears, so a huge game from Hines is not out of the question. Now let's consider the fact that the Rams are a very good team, just like the Seahawks. The Colts will most likely be playing from behind, so they cannot rely on Jonathan Taylor to ground and pound, and burn the clock. They will need to make moves in the offence to keep pace. TY Hilton (0%, $4.83/share) is still out for week two, so that means Wentz has limited options. The one major attribute missing from all pass catchers is speed, which means no spacing for receivers. Finding yards will be a difficult task for Wentz, so I am expecting a lot of check downs to our guy Nyheim Hines. Expect heavy usage throughout the game, and especially late in garbage time. 10 fpts should be an easy hurdle to cross, and at $6.95/share, we should be able to bank some decent coin.
Alright everyone, allow me to totally switch gears, and move our direction to the UFC. Now you may be asking yourself, “This is week two of the NFL season, why in the world are we talking about the UFC?” Well two good reasons actually. The first, it's topical. There is a UFC Fight Night tomorrow on ESPN+, and I want to talk about it. The second, and the much more important reason for mentioning it, is because PredictionStrike will officially be adding the UFC to the platform on November 6th! We are less than two months away from an entirely new revenue stream, and we must be prepared! Now, the fighters aren’t added yet, but that doesn’t mean we shouldn’t start getting to know our future investments. Not to mention starting to find ways to make investments profitable. What stocks should I buy? What fighters are going to give the best ROI’s? All these questions will be answered in due time, and hopefully I can help along the way! My first piece of advice would be to start listening to UFC podcasts, and finding out more about the sport and its competitors. That is how I found out about the fight I am about to discuss. What you are about to read is an example of what future BCPS articles will look like come November 6th. Enjoy!
Raquel "Rocky” Pennington (11-8) vs. Pannie “Banzai” Kianzad (16-5)
The three round bout between Pennington and Kianzad will be the final fight on the prelim card, and has the potential to be one of the most electrifying of the night. Just looking at these two banterweights records, one could easily be fooled into buying the wrong stock. Let’s try to avoid that.
Banzai, the Iranian fighter comes in with an impressive 16-5 record, and an even more impressive four fight winning streak. But when you dig deeper, the numbers seem a little fishy. Sure, she won four straight, but her opponents were less than optimal. She did not record a KO or submission, and didn’t win any of the fights in overwhelming fashion. She beat her inferior opponents with technical skill, but not with anything you would write home about. Yes, a win is a win, but there comes a point where technical precision will only get you so far when fighting legitimate fighters. Enter Raquel “Rocky” Pennington. I get it. 11-8 is not a record that spews confidence, but like Banzai, the actual story behind the record speaks volumes. When Rocky loses, she loses to world renowned champions like Holly Holms and Amanda Nunes. And her wins aren’t against a bunch of slouches. Victories on her record include a unanimous decision against past champion Meisha Tate, and a rear naked choke against past champion Jessica Andrade. This is clearly a case where one fighter is simply more experienced than the other. As for the actual fight, expect a bout where both fighters want to keep this on their feet. Pennington is actually a prolific wrestler, winning by submission multiple times, but my guess is she will pick Kianzad apart while keeping a safe distance. Kianzad will surely keep it standing, considering she only has ONE recorded takedown in her entire career. Long story short, this is a mismatch of biblical proportions. This is a David vs. Goliath situation, and the UFC has a strict no sling shot policy. If you like money, you’d invest in Raquel Pennington.
That is enough for one morning. Enjoy the UFC tomorrow night if you are so inclined to watch, and especially enjoy NFL action Sunday afternoon! I will be back Monday Morning to bring you another installment of Insider Trading previewing Monday Night Football, and who to buy on the Green Bay Packers. Remember to follow @ChipsStocks on twitter for all sorts of content on Sunday. Have a great weekend!
Happy trading,
Alex True
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