Get started

PEG

Momentum vs Business Valuation"The momentum guys take it up to the moon, the value guys pick it up off the floor. Just watch out for the space between the two." -Confucius the trader have been reading up on the Turtle Traders and their momentum strategy. They would have bought anything as long as it meets their break out rules. Fascinating statistical strategy based on both 20 period price action and 55 day price action. Im sure they love the action in NVDA right now. However, in the valuation books. The oldies but goodies books (Intelligent Investor by Benjamin Graham, Beating the Street by Peter Lynch) they would be less enthusiastic about the current valuation. Most useful would be Peter Lynchs PEG ratio, where growth rate is used to allow paying a higher price than normal for growth stocks. The roughly 30% growth rate annual expectation in this case would mean if NVDA falls below 30pe, it would be attractive. Its almost twice that now. Thats not necessarily a reason to sell a quality stock. it just means that investors have already market up the stock and are buying it ahead of the future growth being expected. In this case, 2026s future growth. Traders gonna trade. They dont care about the future value of a stock. they care about Profit this week or this month and then on to the next one. however the investors do care. They are looking for getting a deal on something that can swell up with earnings and juicy future value dividends. Investors want a discounted price today, and 20 years of accumulated earnings so they can milk the future dividend payouts. Any who, just watch out and be aware. Its a fast horse, its also a popular one.
NASDAQ:NVDA
by optionfarmers
Binance introduces USDC/USDT pair to help Circle CollapseAfter Luna`s stablecoin collapse, UST: Now Binance, the biggest crypto exchange, recently introduced the USDC/USDT pair, and now it`s users are able to transform their USDC into Tether. And let`s be honest, who wouldn`t to that amid this market uncertainty?! On Saturday, the USD Coin (USDC) stablecoin experienced a drop in value below its dollar peg and reached a historical low. However, it later recuperated most of the losses after Circle, the company in charge of it, provided reassurance to investors that they would uphold the peg despite their connection to the struggling Silicon Valley Bank. Circle stated in a tweet on Friday that $3.3 billion of their $40 billion in USDC reserves are held in Silicon Valley Bank!! I think CZ listed this USDC/USDT pair on purpose, to generate a bank run out of its rival Circle, while they don`t have access to the full USDC liquidity. Watch out for those Top 5 investors in Circle as well: 1. Goldman Sachs: Goldman Sachs was one of the earliest investors in Circle, participating in a $50 million funding round for the company back in 2015. Since then, the investment bank has continued to support Circle, participating in subsequent funding rounds and helping to promote the adoption of Circle's products. 2. Digital Currency Group: Digital Currency Group is a venture capital firm focused on investing in companies in the cryptocurrency and blockchain space. The firm has invested in numerous companies in the industry, including Circle. Digital Currency Group participated in a $110 million funding round for Circle in 2018, and has continued to support the company since then. 3. Breyer Capital: Breyer Capital is a venture capital firm founded by Jim Breyer, a prominent investor in the technology industry. Breyer Capital has invested in a number of successful technology companies, including Facebook and Spotify. The firm participated in a $50 million funding round for Circle in 2015. 4. Accel: Accel is a global venture capital firm that has invested in numerous successful technology companies over the years, including Facebook, Dropbox, and Slack. Accel participated in a $60 million funding round for Circle in 2016. 5. Pantera Capital: Pantera Capital is a hedge fund focused on investing in cryptocurrencies and blockchain technology. The firm has invested in numerous companies in the industry, including Circle. Pantera Capital participated in a $50 million funding round for Circle in 2015, and has continued to support the company since then. Looking forward to read your opinion about it!
Short
by TopgOptions
USDC De-peg could Crash DAI, USDD, & FraxI want to share my thoughts on the current situation with stablecoins, specifically USDC, DAI, and FRAX. It is my belief that if USDC were to collapse, DAI and FRAX would follow suit, causing a significant crash in the entire crypto market. Recent developments support this concern. Binance has paused the automatic conversion of USDC to BUSD due to high inflows and the increasing burden of conversion support. Additionally, Circle has burned over $1.6 billion USDC in cash over the past few hours, resulting in a decrease in the total supply of USDC from 43.55 billion to 42.3 billion, down $1.2 billion in just a few hours. Up to 25% of all USDC is uninsured in the SiVB (Silicon Valley Bank) collapse, only $250,000 is guaranteed recoverable. FDIC assumed receivership of the banks $197 BN remaining assets. 50% of all start ups in the US are said to have some exposure to SiVB, either directly or indirectly. Circle group is facing potential bankruptcy if the run on USDC is not staved off.... Furthermore, only Tether is currently above a dollar, with only five of the 13 stablecoins trading at 99 cents USD. Even FRAX, which is backed by USDC, is currently trading at 0.92 USD. The general concern for all stablecoins may prompt investors to move their funds into BTC/ETH, causing a significant shift in the market. As always, it is important to stay informed and monitor the situation closely. Stay safe and make informed decisions.
GEMINI:USDCUSD
by BIG-BLACK-CRYPTO
valuation concepts for 100x bagger stocks #investing "You can't handle the truth". Except in this case, you cant handle the compounding. Compounding is so difficult for me to understand that I have to model it out for my brain to see it. Ive also lived it for decades now to believe it. If you dont know ahead of time what to look for, you wont know what to do when these generational wealth opportunities stare you in the face. Recessions are the best time to grab these. 100 bagger , 100x your money opportunities. thats whats on the table here. the apples, amazons, googles, microsofts, monster/hansen sodas of the world. did you you know netflix did 100x twice? These companies grew, quietly, and steadily. And before you knew it, they were massive. Peter Lynch made famous the concept of PEG ratio. He used the concept of comparing a companies potential growth rate to its PE Price to Earnings ratio. He tried to buy companies with good earnings growth rates and tried to pay less that that rate in PE ratio. So if a company grew at 20%, he was willing to pay 20 PE or better. Overtime, he know he would do well and his company would compound that growth into more and more revenue and value. PEG ratio concept: The fair price for a company is approximately its growth rate. PEG ratio doesnt apply for all companies. Its best for scalable businesses that are growing from small to big. Cyclical businesses that require large amounts of capital may not fall under PEG ratio because of the capital constraints and economic sensitivity. Still working on my modeling. Will share more. Hope you find it useful. Cheers!
NASDAQ:AAPLEducation
by optionfarmers
10
Peg of Stable CoinsStablecoins are cryptocurrencies whose value is pegged, or tied, to that of another currency, commodity, or financial instrument. Stablecoins aim to provide an alternative to the high volatility of the most popular cryptocurrencies, including Bitcoin (BTC), which has made crypto investments less suitable for common transactions. (Investopedia) This graph shows the pegged value of the main stable coins. Ideally, the value should be 1:1. In this crash scenario, I will stay alert on these values.
B
by andre_007
Could TerraLuna restore TerraUSD PEG with $Hi folks, The #Terra protocol is doing well and needs no further bailouts 1-2-3 or whatever planned by Do Kwon. Now we have to let the market regulate itself naturally. Indeed, the spectacular crash of the past week was painful for everyone. Nevertheless, I think it is part of algorithmic phases of the Terra protocol itself. The protocol grows by successive phases of expansion and contraction. We have simply witnessed a phase of brutal contraction. This phase could have been amplified by an hypothetical attack but no one knows right now. Now, we have to wait for the market to do its job of natural regulator. Namely, slowly raise the #TerraLuna $LUNA to the price of $0.0017 per unit. At that time, the #TerraUSD $UST will naturally PEG with the US dollar. It’s only a matter of weeks. In fact, the regulator is already playing its role. Once the market has played its role of natural regulator and therefore the TerraUSD UST will again be worth 1 US dollar thanks to its symmetry with the LUNA supply, we can begin the expansion phase of the Terra protocol. During this expansion phase, we will see the TerraUSD UST supply increase and the #LUNA supply decrease. Once the PEG is reached, the decrease/increase of LUNA/UST will begin at approximately 612 LUNA for 1 UST until reaching in a more or less distant future the value of 1:1 or even more depending on the pace of adoption. So, let the market regulate itself and digest this contraction naturally instead of trying to manipulate it with more or less hazy hypothetical rescue plans. This is the price to pay for a decentralized currency. Moreover, we are not safe in a distant future from a new contraction of the protocol which will resorb itself to leave after a few days or weeks a new phase of expansion. Therefore, this contraction could be beneficial for all #cryptocurrency markets since it will bring a significant amount of fresh UST to the market when people will redeem their LUNA for UST once the PEG restore. And we know that cryptocurrency markets are in desperate need of fresh liquidities. So, yes, I'm long. And the impressive volume of Terra Luna exchanged speaks by itself. Have a nice day
LLong
by HenriqueV
8
🔥 LUNA Going To ZERO: A Detailed Explanation On What HappenedIn today’s analysis I want to explain in detail what happened to LUNA and to its stable coin UST. It’s a difficult subject so I’ll do my best to keep it short and simple. UST is an algorithmic stable coin, connected to its native token LUNA. This means that, in order to peg UST to $1 it makes use of algo’s that either sell or buy LUNA to keep it at $1. Example: UST is worth $0,98 USDT. The algorithm will now market-sell LUNA tokens for UST and use said UST to buy USDT on the UST/USDT pair. This means that the value of UST should rise against USDT and therefore defend the peg. This can trigger a massive selling cascade as the algorithm can trade in a circle, constantly making it worse and worse 1) The further away UST is from 1 USDT, more LUNA tokens it has to sell in order to get back to the $1 peg. 2) The more LUNA tokens are being market-sold, the lower the price. 3) The lower the price of LUNA tokens, the more tokens have to be minted (created) and sold in order to buy UST to defend the $1 peg. This creates a waterfall effect on LUNA’s price. And, eventually, can lead to LUNA being worth ZERO, as the algorithm keeps on creating more and more LUNA tokens to sell. See the UST/USDT peg below, this “should” always be 1. To prepare for events like this, the LUNA foundation has bought around 80k BTC to serve as collateral (around one billion dollars). It can lend money to defend the peg further in case of need. However, they have depleted their TOTAL Bitcoin reserves in just two days. This means that they have no other ways to defend the $1 peg, apart from printing more LUNA tokens and selling them. See chart below for the LUNA foundation’s BTC reserves Why has this happened? Simple, some entity saw that this algorithmic peg was going to be a problem and broke the system in order to make HUGE profits. Some entity market-sold billions of dollars’ worth of UST against USDT do destroy the 1:1 ratio and made a bet that the algo would create and sell huge amounts of LUNA tokens and would lead to a massive decline in value, like we have seen over the last three days. A lot of people lost huge sums of wealth, while a couple of entities got very rich by shorting LUNA into the ground. The only way on how fix this waterfall to $0 is to destroy UST and stop the algorithm.
Short
by FieryTrading
39
Russian Gold purchase.Horizontal line is the current price which the state of russia has declared that they will purchase essentially infinite gold using roubles. This chart should suffice to prove over time where the price of gold is in relation and whether that deal is ongoing or has ceased. I think this is not a true peg, or a gold backing as some have declared, but actually a limit order for a near infinite amount of gold at 5000 rub per gram. I will not be buying either gold or roubles, but I am interested in this and would like to publish it so I and others can see how it goes as time progresses.
TVC:GOLD
by FlyTheElephant
$EXPE PEG and Cup With Handle BreakoutI've put relevant notations on the chart. I'm putting this on my action list for next week. Many ways to play this one. If it opens in the upper wick that's strong. If that's the case I may go long with a stop below the day low or open. I may wait for a pullback but look for the gap to hold. It could also flag here for a few days or weeks. Either way this should be on your watch list. Ideas, not investing / trading advice. As a side note there are quite few gappers this week worthy of a watch list such as $GDYN, $SYNA, $LYV, $PFE, $GT, $TGI and $BA which I've posted an idea on.This list is only a few, it's been a great week for many stocks breaking out.
NASDAQ:EXPELong
by jaxdog