How To Make $300MM In A Year
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Market On Open, Thursday 5 March
by Alex King, CEO, Cestrian Capital Research, Inc.
Here are two ways to make $300MM in a year.
1 - [Insert joke of your choice about starting with $600MM here]
2 - Be Jeff Green, the founder-CEO of The Trade Desk ( $TTD ), an adtech business whose stock has been relentlessly pummelled into the ground these last few months.
Now take $148MM, parlay it into your own stock at a blended average in the $24-25/share range. (You do have to have the $148MM on hand, but as your stock was previously flying high and you were selling it as you went along, and haven’t blown it all on a brace of 250GTOs and other toys, you do in fact have this lying around the place).
This is by any standards a big insider buy, the biggest I can remember at any rate. And since the market was recently impressed by Mr. McDermott’s $4MM buy of $NOW stock, which is his shop, it’s likely that the market rewards $TTD with a move up as this news percolates through. Not least because the narrative around $TTD has been, It’s So Over Because AI.
It’s not impossible that the stock reaches $50 in the coming months. That’s still below the 200-day simple moving average after all.
The simple act of single-stock monetary stimulus by the CEO could - as with all monetary stimuli! - create its own move up in asset pricing.
Anyway, I bought some more $TTD exposure this morning in pre-market trading because although Mr. Green has a lot more $148MMs where that one came from, he could go buy the gullwing Benz, and hasn’t, so I presume he thinks the splurge will work out fine. Who am I to disagree?
Now let’s get into it. Today’s note is available to Inner Circle members only.