Friday File: Overvalued Holds (and a Sell), plus more Video Games

Real Money Portfolio updates on DocuSign, Fairfax India and more...

By Travis Johnson, Stock Gumshoe, September 4, 2020


This would have been a good week to take a vacation.

Market soaring on Tuesday, market crashing on Thursday, but when we look back on the whole thing it almost evened out — any ebullience we might have felt in the up days was matched by the panic as the market crashed back down on Thursday, and it looks like we’ll close the week down a couple percent from where we were on Monday morning. Not a hugely ugly week, as it turns out, but it certainly felt that way given the sharp moves down on Thursday and Friday, as speculators seemed newly determined to book some profits and not hold their positions over the holiday weekend.

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So today I’m going to start with a long and loosely-organized “thinking out loud” piece regarding the growth stocks that have moved dramatically this week, including DocuSign (DOCU), which you already know I sold a chunk of a couple days ago… then I’ll dig into Fairfax India (FIH-U.TO, FFXDF) and see where that laggard stands, share some updates on the video game space and a few updated thoughts on telemedicine, and re-think Power REIT (PW), which just hit a stop loss level in the portfolio today.

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I think it was growth stock enthusiast David Gardner who coined the term, “Spiffy Pop” a few years ago… and it really hasn’t caught on outside of the Rule Breakers true believers at the Fool, but it always stuck in my mind. That’s what he calls it when the stock you own pops by as much in one day as you originally paid for the shares… and it serves as a great reminder of the value of long-term investing in the best growth stocks.

It doesn’t happen that often, but every once in a while I see it in the Real Money PortfolioThe Trade Desk (TTD) has had a couple spiffy pop moments after strong earnings, as I recall, I think Alphabet (GOOG) has had one or two in recent years on earnings beats, and in the momentum-chasing lust of earlier in the week, two spiffy pops hit the portfolio, surprisingly enough, without any real news: DocuSign (DOCU) and Shopify (SHOP) both popped by more than my original purchase price in a single day on Tuesday.

Which is really a sign of the times ...

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