George Soros became one of the most famous currency traders in the world based on his bet against the Bank of England in 1992 on what became known as Black Wednesday, where he made over $1 billion on the trade.
In the months leading up to Black Wednesday, George Soros had been building a huge short position in pounds sterling. He recognized the United Kingdom was at a disadvantage when Britain joined the ERM, believing the rate at which the UK was brought into the Exchange Rate Mechanism was too high.
Black Wednesday occurred in the United Kingdom in September of 1992, when the British government was forced to withdraw the British pound from the European Exchange Rate Mechanism (ERM) after it was unable to keep the pound above its agreed lower limit.
A couple of months ago, George Soros bought shares of BP. BP is involved in the oil and natural gas exploration, field development, and production; midstream transportation, storage, and processing; and marketing and trading of liquefied natural gas (LNG), biogas, power and natural gas liquids (NGLs). This purchased was a new position for Soros’ as he bought 270,000 shares a value at the time of $10 million.
Recently, George has been on another buying spree and bought stake in three different companies.
During the fourth quarter, George opened a new position in ATVI, purchasing 758,000 shares, which were worth over $45 million at the end of Q4.
Last Game Super Cycle for games was in 2013. In 2013, PlayStation 4 and Microsoft’s Xbox One were launched. The launches acted as a cornerstone for the entire industry. When the consoles were bought, they also bought video games. That year, shares of Activision Blizzard ATVI and Electronic Arts EA rose 69% and 58%, respectively. With the release of new consoles with cloud gaming capabilities this year, this might be a smart bet for George.
George also bought 75,000 shares of Pioneer Natural Resources in Q4 worth $11.353 million. Pioneer Natural Resources is an oil company that operates in the Permian Basin in Texas. It’s the biggest, most productive oils shale in America, but, personally I’m not high on anything oil related stocks at this time, can you blame me.
Our third stock on the list is a new one – literally. BellRing started trading publicly last October, after it spun off of parent company Post. PowerBar is the most widely known of the new company’s brands. It’s made a strong start in the markets, and has a successful niche product line. These are likely the factors behind Soros’ purchase of 300,000 shares. At the end of Q4, the quarter of purchase, those shares were worth $6.387 million.
Jefferies analyst Robert Dickerson writes of BRBR, “We still foresee higher FY’20 EBTIDA relative to guidance. Given the strong Q1 start to the year, we’ve increased our EBITDA forecast to $209mm… BellRing should still grow revenues ~20% this year and EBITDA results can likely top guidance, all while the company remains well positioned in the fast-growth convenient nutrition category.”
Dickerson starts his coverage here with a Buy rating and a $27 price target, suggestive of a 27% upside potential.
I'm personally not in love with any of his picks, but that's why he is the billionaire. At the end of the day, I'm just try to catch a couple of his crumbs, but these crumbs he can keep to himself.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advice. Do your own research before making investment decisions.
Posted via Steemleo
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Great point, one can trust, but should verify and/or only take trades that fit your trading plan. My trading plan is to follow the Smart Money and take similar trades.
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Pioneer went on a huge boom-bust cycle in the past 5 - 10 years.
The UAE actually started dumping oil in hopes to slow down the growth in the area, which succeeded. Growth came to a halt, but the damage was already done with all the oil drilling and exploration in the area.
If the UAE tries to cut back production in hopes of propping up the price, this could lead to a huge expansion in drilling in that area again.