May 12, 2022, 1:33 pm EDT
Can Turkeys Fly?
Yes. You may be surprised to see wild turkeys can fly when you do an online search on video. However, most turkeys cannot fly. Even some wild turkeys can fly. They cannot fly long distances.
If you need to pick either an eagle or a turkey to participate in a flying contest, which one would you pick? You may be surprised that some people pick a turkey rather than an engle. They think some turkeys can fly higher or longer than eagles.
This is how we observe the behaviors of stock market investing. For example, Gamestop Corp (GME) +10% and AMC Entertainment Holdings Inc (AMC) +7% fly higher today because some people think can fly high. Indeed, these stocks can be high for a few hours or a few days but not very long.
The same principle can apply to Best Buy (BBY) +4%, Bed Bath and Beyond (BBBY) +5% that perform well so far.
Furthermore, check out the following stocks that fly high today after being beaten down for a long time: PLTR, TDOC, COIN, UBER, HOOD, U, RBLX, SQ, etc. Do you believe these stocks can fly higher tomorrow, next week, or months later?
We do not know. But we think the chances are low. When we need to pick a stock to be our watchlist candidate or portfolio members we are searching for 52-week high lists rather than a 52-weel low list. We beleive the strong ones or those who can fly to their 52-week area have a better chance to fly even higher in the future.
Recently, we added Kellogg (K) to our portfolio after publishing a stock pick article on 05/09. We consider K could fly higher because it was already at the 52-week high zone. Meanwhile, mega caps AMZN, AAPL, GOOGL, TSLA, NVDA, and FB with stocks mentioned earlier are near 52-week low levels. We picked K instead of these popular names for a simple reason.
Yes. some turkeys can fly but an eagle can fly higher and longer than most turkeys.
