Our portfolio updates for the week ending on November 22, 2024 are as follows.
Sold Century Link’s Bond
I planned on holding the junk bond (CCC rated) I bought from Century Link a lot longer, but the financials in the latest earnings report were awful — like, just ass. Their net income and profit margin both went negative. 🚩
There was a chance that we could’ve made more, but risk needed to be mitigated here.
We sold after holding for only 2 months. We received 0 dividend payouts, but exited with a 19% price gain. And then…
Bought Nine Energy Services’ Bond
With the Century Link proceeds, we picked up another junk bond (CCC+ rated) 😂 from Nine Energy Services at $75. It’s has a 13% yield and the potential to gain 25% in overall price.
The company’s revenue has been increasing and debt is being paid down. Profit margins have been weak, but at -7%, that’s fine for this bond.
I feel that if we hold this until the company redeems it, we’ll have a return in the 50-60% range. Well worth the risk in my opinion.
Bought 2 Growth Stocks
Wait, what?!? I know right. I talk so much smack on growth stocks. But when I start buying, you might want to pay attention.
One of the predictions I have for 2025 is that Starlink is going to IPO and just pop off 🚀.
Since we can’t invest directly in Starlink, we did the next best thing and invested in ASTS and STM and using HTGC’s cash dividend and some BulletShare money.
If you haven’t heard of these, I’ll cover the important highlights.
ASTS
ASTS is part of SpaceX (Starlink is too) and is building the SpaceMobile satellite constellation.
This is a space based cellular broadband network that will allow existing, unmodified smartphones to connect to satellites in areas with coverage gaps. Like whoa!
Its BlueWalker 3 prototype and BlueBird commercial satellites are among the largest commercial communications arrays in low-Earth orbit.
STM
On the other hand, STM is all about microchips — microchips that Starlink will probably use in its satellites in the near future BTdubs.
Do a deep dive into both companies and you’ll see why these growth stocks made me deviate from our dividend income focus.
And if you think I’m full of poo-poo ka-ka… Remember when I talked about that AI Pharma company? Well, looks they merged with another company.
Our AI-Pharma Play Got Bought Out
Recursion (RXRX) has been buying up tech companies and recently acquired EXAI. Therefore, RXRX will show in your brokerage going forward (if you followed us in buying).
For every 1 share of EXAI we own, we will get 0.7729 shares of RXRX.
Normally when an investment we’re in gets bought out, we sell with the news and pocket the profits. This time is very very different though.
This merger between RXRX and EXAI could potentially create an AI-driven drug discovery titan. The combined entity will integrate RXRX’s biological mapping capabilities with EXAI’s molecular design expertise, forming a beast in the drug discovery platform.
I’m super bullish about this move
AI assisted healthcare is a sector that most people don’t even acknowledge when talking about the potential of AI, but they will be once breakthroughs start hitting the news.
There’s always risk in stocks, especially stuff like this. So I wouldn’t put any more than 1 to 2% of your total portfolio in RXRX. But when this takes off, hold on to your knickers!
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