Yo, Pit Crazies,
Microsoft Corp (Ticker: MSFT) has been the poster child for how to do nearly everything right over the past decade.
It all started with a move to the cloud.
I worked at a financial tech startup in 2010 and the Microsoft account manager’s mantra was Help Grow the Cloud. The company was focused and moving in that direction big time.
And the move paid off.
Back then, MSFT was a $25 stock. Now it is $250.
Yet that’s also the issue moving forward …
It’s hard to have that kind of exponential growth in a $1 trillion company.
My complaint about Big Tech right now is not that it didn’t build great franchises, but rather how do they keep growing at the scale for the current size?
I am interested in the $500 million to $5 billion size. That’s where a tasty treat awaits, and the stock below is a great example …
MYSTERY STOCK
What is it and how can you take a bite of profits?
Go Get some Portillos!
Yes, my mystery stock is Portillo’s Inc. (Ticker: PTLO), the king of Italian beef sandwiches with an Italian sausage thrown in just to make it great.
Beefy!
Portillo’s is a Chicago institution that is flooding the USA with tasty treats for all meat lovers.
I have been selling puts in it for about four months, but bought shares on Tuesday using some of my put proceeds to finance the purchase.
Remember …
– Trading is about timing
– Investing is about holding
Great investing happens in the $500 million to $5 billion range, which is where Portillo’s sits – with room to grow exponentially, unlike a behemoth like MSFT.
If calls get cheaper I will buy them, but for now they are pricey and I will just sit on some shares.
I am keeping a little powder for allocation here so I can add more if the price is right.
The Rundown
Cap Gains
Bill hit another nice trade as the squeeze factor has shorts covering QuantumScape Inc. (Ticker: QS). Mar17/Feb03 9 call calendars closed for a 41% gain.
.
To Your Trading Success,
AG