March 1, 2024
(UBER JOINS THE DOW TRANSPORTS, WHILE MICROSTRATEGY GOES ON A BITCOIN SPENDING SPREE)
March 1, 2024
Hello everyone,
Welcome to March.
Uber joins the Dow Transports
Unlike the Dow Industrials, the Dow Jones Transport is not hitting historic highs. The last high was hit in November 2021, and it is now almost 7% below that mark.
Under Dow Theory, the Transports should confirm a new high in the Dow Industrials. The theory is that if you were shipping more, which is what the Transports represent, it’s a positive sign. Uber is not a shipping company, but then neither is Avis, and it is listed in the Transports too. It’s a ground transportation company like Uber. Uber did underperform after its inclusion but shot up again after its first buyback announcement of $7 billion was made on Feb. 14. Uber has far outperformed every other Transport stock in the past 12 months, up 133%. The top performer on the Transports, Matson, is up 68%, while Union Pacific, Old Dominion, CSX, and Kirby are up around 20% to 30%. Uber is overbought as shown in the chart. Wait for a sizable pullback.
The gender pay gap continues.
Men continue to outstrip women in the salary stakes, with men’s annual salary $11,542 greater than women’s, according to newly released data for Australian private companies. It’s a gap of 14.5%, down from last year’s 15.4%. In 2022-23 men’s median annual base salary was $79,613 compared to $68,071 for women. Thank goodness investment returns don’t discriminate based on gender. Investment/trading returns/success is mostly based on behavior.
Under Sea Carbon Storage – a technological leap.
Germany aims to cut its emissions to “net zero” by 2045. To achieve this the country plans to enable underground carbon storage at offshore sites. Specifically, Germany foresees enabling the transport of carbon dioxide and its storage under the sea in Germany’s exclusive economic zone, except in marine conservation areas.
Last year, Denmark launched an ambitious project that aims to bury vast amounts of carbon dioxide beneath the North Sea.
MicroStrategy dosed up on Bitcoin.
MicroStrategy has been buying up Bitcoin in large parcels recently. The latest purchases were made with cash between Feb. 15 and Feb. 25, according to a filing with the US Securities and Exchange Commission on Monday. The company now has a total basket of around 193,000 Bitcoin.
Michael Saylor, the chairman and co-founder of MicroStrategy, started buying Bitcoin in 2020 as an inflation hedge and alternative to holding cash. Bitcoin is up 460% since Saylor began buying. The value of the holdings briefly swelled to $10 billion earlier this month when the price of Bitcoin reached a more than two-year high. With Bitcoin halving coming soon, this stock is one to watch. It could well be a buy the rumour, sell the fact sort of event. When Bitcoin rises, this stock will rise along with it and vice versa. So, perhaps with a Bitcoin target of around $127,000.00, it might not be a bad idea to buy a small parcel when MicroStrategy does pull back.
Cheers,
Jacquie
