I was thinking of approaching the stock this way. Once the news of a contract with a hyperscaler is announced, I will buy some shares. Yes, this means that I will miss out on some of the returns as the share price will have jumped immediately. However, I can’t believe the value will be priced in completely from the initial price jump. Any insights on this approach?
It's actually my preferred approach as well. But my investing strategy allows me 1 speculative bet in the portfolio. The only thing, is that in the short term, if the hyperscaler gets announced, the price might run off quickly to come back down afterwards. You could try putting a limit order in at a price of 6 or 7 USD. When the price increase starts, you might have a chance to pick it up. My estimate is that if the hyperscaler gets announced, it would trade around 10 USD. DYOD.
I was thinking of approaching the stock this way. Once the news of a contract with a hyperscaler is announced, I will buy some shares. Yes, this means that I will miss out on some of the returns as the share price will have jumped immediately. However, I can’t believe the value will be priced in completely from the initial price jump. Any insights on this approach?
It's actually my preferred approach as well. But my investing strategy allows me 1 speculative bet in the portfolio. The only thing, is that in the short term, if the hyperscaler gets announced, the price might run off quickly to come back down afterwards. You could try putting a limit order in at a price of 6 or 7 USD. When the price increase starts, you might have a chance to pick it up. My estimate is that if the hyperscaler gets announced, it would trade around 10 USD. DYOD.