Stock news for the week ahead - The Fifth Week of January

Weekly update on trending stock of our portfolio

Marathon Patent Group (NASDAQ: MARA)


Our premium members know that we bought the stock at the price of $8.23 on the 17th of December. Marathon has given us more than 179% in just one month. In the last week, the stock price dropped more than 18% and is currently traded at $18.30. The reason for its drop is due to the high correlation with Bitcoin that fell more than 11% in the last week. 

Bitcoin fell from $37,000 below $32,000. What lies behind this drop, is the new presidential administration that carried with it the last-minute rule making by Treasury Secretary Mnuchin. His proposal goes to exchanges about cryptos requiring detailed information from anyone who is withdrawing holdings to unhosted wallets. Ever since then, the crypto is facing a freeze! 

However, with the BlackRock (NYSE: BLK) news going around regarding the $7.8 trillion money manager might be directing some funds into crypto and the posted job offering of a VP of blockchain, we rest sure about Bitcoin’s future. Huge institutions such as BlackRock show strong trust in Bitcoin.

Action taken: In response to this drop, we bought more Marathon shares at the price of $18.00.

Ocean Power Technologies (NASDAQ: OPTT)


Another stock we hold in our portfolio and strongly believe in its technology capabilities is Ocean Power Technologies Inc. The stock has been up 95% since last week and is finely giving back to us after three months of holding. Its technology is now in the spotlight and is starting to pick up investors’ attention. By using the dollar cost averaging method, we have an average price on the stock of $2.95 which is now trading at $5.60. 

Our total return on the stock is now 89%. We at FDGT, believe that this company is holding the future of electricity or next-generation electricity in its hands. These products are designed to convert ocean waves into electric power. This is achieved with a direct drive generator that continuously charges an onboard pack battery or energy storage system. The fact that it does not require any kind of infrastructure is what makes it a leader in innovative and cost-effective ocean energy solutions. However, the stock price should shortly be corrected before its peak (that has just started).

We did not sell any shares from this rise since we believe it is nothing compared to what has yet to come.

XL Fleet Corporation (NYSE: XL)


We bought XL Fleet at the beginning of December at the price of $18.58. The stock price highest high was $32.59 on the 23rd of December where we sold 50% of our entire position at the price of $31.00. This automatically gave us a return of 66% in just two weeks.  

The stock is rallying up again in the last few days after BTIG covered the stock with a Buy rating and a target price of $30. In addition to that, analyst Gregory Lewis expressed his belief for XL fleet being the leader in the market of electrified fleets of commercial vehicles. If the price goes up this week, we will probably sell some or all the remaining shares. The reason we might give up our entire position is hidden in our premium group. If you want to gain instant access click here!

After its rally on Friday 9%, we did not take any action since we are expecting greater movements this week.

The9 Limited (NASDAQ: NCTY)


We added this stock to our portfolio under the section Internet of Things on the 30th of December. Our average price on the stock is $12.95 which is actually high for the time being. Even if the stock went up 22% on Friday and touched the price of $11.20 it is still considered undervalued. The stock price rallied after signing contracts with investors in the cryptocurrency mining industry. 

The company plans to release a new company under a subsidiary NBTC to operate the business. However, the company for those who do not know is an online, mobile, TV and Web games provider in China. The company is also providing technical consulting services. We are waiting for the price to jump and pass the previous highest high of $18.60. Now that the company has joined the crypto world, a possible correlation between the movement of the bitcoin can attract investors from (MARA), (RIOT), (EBON) to join the rally.

Stocks we added to our Watch List

Albemarle Corporation (NYSE: ALB)

Albemarle Corp is a fine chemical manufacturing company that operates in three major sectors such as catalysts, bromine specialties and lithium. According to Benchmark Minera Intelligence global lithium demand is expected to outstrip the supply by approximately 228K metric tones in 2025. In 2020, supply and demand were nearly even. 

The company said that it is preparing to expand its capacity for lithium production and is already investing nearly $50 million in order to double the production in Nevada. The company is providing its lithium batteries for EVs and consumer electronics. The new presidential administration “blue wave” could mean federal subsidies for lithium-ion batteries and Albemarle is on the top beneficiaries that this government support can enhance. 

Westwater Resources Inc (NASDAQ: WWR)

Westwater Resources is an exploiter and developer of U.S based mineral resources for clean energy production. The company exists since 1977 and was called Uranium Resources until 2007. The company operates in diversified energy materials. Its primary resource exploitation is lithium, graphite, uranium and vanadium. Its projects include lithium exploitation in Columbus Basin with an area cover of 14,200 acres in Nevada and Sal Rica of 13,260 acres in Utah. However, its principal project is the Coosa graphite project covering an area of approximately 41,965 acres in Alabama. Moreover, the company holds projects of 188,700 acres in New Mexico for various uranium projects.

As mentioned above, the focus of the blue wave has brought this stock back to life with a jump of 32% in just three days. In October, the stock price used to be higher than it is now at $11.72 which then dropped to $5. In the latest news, the company sold all of its uranium projects in New Mexico to enCore Energy (OTCQB: ENCUF) for $1.5 million in encore shares meaning 1.5% ownership. In a separate statement, the company said that is putting its focus on producing graphite batteries. The full plan will be presented in 2021, and a startup is expected to begin in 2022.

Natalya C. - Junior Analyst at FDGT Academy

Natalya C. - Junior Analyst at FDGT Academy

I am a stock analyst/investor with prior experience and knowledge to BSc Accounting and Finance. After completing my degree and exposure to the accounting firms I decided that the direction I should choose is towards the Investment world. I completed my masters in Investment Management where it gave me solid fundamentals to build my career on. I have examined a lot of different aspects of investment, from REITS, derivatives, currencies, bonds, equity and hedge funds. I never stopped learning about the market which is why I can analyze and write articles for FDGT community always personally opinionated. My passion are green energy and electric vehicles stocks as a whole. I also had my share of analyzing the work form home stocks that are coming to take over in the upcoming years.