Joy of the Trade Investor’s Edge FREE Trade: Thursday, Jan. 20, 2022

by | Jan 20, 2022 | Stocks

Today’s free trade idea comes after reviewing all the recent news in the global stock market.

And I found a Buy It or Burn It stock that looks to be on the verge of making significant moves…

Remember, these are just ideas I’m sharing. You should only enter these trades if you’re comfortable managing the positions on your own. 

If you want me to send trade alerts with specific entry and exit levels via text and email, check out Burn Notice!

 

Microsoft Corp.’s ( Nasdaq: MSFT) $68.7 billion acquisition of Activision Blizzard Inc. (Nasdaq: ATVI) is one of the biggest deals yet for the future of gaming, if not the biggest. 

However, there’s only a 55% chance of the deal closing within 18 months… Those are not great odds, and that’s because MSFT is already considered a monopoly in its own right. So… will the Joe Biden administration let it get even bigger?! 

We shall see…

Right now, the target ATVI is trading at is about 16% below MSFT’s. So if you were to buy it at this level, you’re basically saying you’re happy with a 16% return investing for  over a year and half in this name… 

Unless someone else bids more…

This is, however, unlikely for technology in this  bearish market. So I expect the stock could sag from here. 

 

For this type of trade, I suggest shorting ATVI with a target of $75.

LFG!

WRITTEN BY<br>Jeff Zananiri

WRITTEN BY
Jeff Zananiri

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