The Diary

February 23, 2021

Dear Reader,

Welcome to the inaugural issue of The Diary, your source for essential investing intelligence. In each issue we’ll be bringing you investing ideas from the front lines, plus educational tools, market trends to watch, exclusive interviews, and invaluable insight into everything small-cap.

Subscribe now to become a member of The Diary

In This Issue:

We chat with Steve Ehrlich, former CEO of E*Trade and co-founder and CEO of crypto brokerage platform Voyager Digital (CSE: VYGR) (OTCQB: VYGVF) about the rise of Bitcoin and the future of crypto
The “Unholy Trinity” that’s holding your financial freedom in its hands
A tiny $20 million real estate disruptor that’s profitable and growing
Fear and Holding: a firsthand account of buying a small-cap at $1.08 and selling it at $24.50 (it’s not what you might think)
An update on a WellTech stock we first wrote about pre-IPO, that has since gained 134%

We hope you enjoy reading this as much as we enjoyed putting it together.

And be sure to subscribe to receive The Diary straight to your inbox, twice a month.

Until next time,

Dear Retail Editorial Team

The Interview

How Covid-19 and Bitcoin’s Halving Created the Perfect Storm

How Covid-19 and Bitcoin’s Halving Created the Perfect Storm

If you’d say you’re someone who doesn’t “get” Bitcoin, you’re not alone. The cryptocurrency mysteriously appeared in 2009 after an anonymous cryptographer called Satoshi Nakamoto published an online whitepaper about the world’s first peer-to-peer, decentralized currency. Initially, Bitcoin was called everything from worthless to a scam by the mainstream financial media. It would be another two years, in May 2010, before the first ever Bitcoin transaction would take place: two pizzas from Papa John’s were exchanged online for 10,000 BTC.  

If you haven’t yet bought or traded any cryptos, you’re also not alone – their price swings (and Elon’s influence over them) can be pretty intimidating. The Diary dives into why cryptocurrencies are an important part of the future of finance with Steve Ehrlich, former CEO of E*Trade and current co-founder and CEO of cryptocurrency brokerage platform Voyager Digital, (CSE: VYGR; OTC: VYGVF), in The Diary’s  feature article.

Market News

How an army of retail traders is beating billionaires at their own game

For decades, institutional investors and giant hedge funds have been manipulating the markets with impunity… and screwing retail investors in the process.

But now the tables are turning.

See, retail investors like you are getting smarter – and fast.

Game Stop
How Big Tech gives multi-billion-dollar funds an unfair advantage in the markets
How Big Government has paved the way for institutional investors to slaughter retail investors
And how Corporate Media seduces retail investors into buying and selling the wrong stocks at exactly the wrong time

Read the rest of this article here

Recently Profitable

Urbanimmersive Inc. (TSX-V: UI; OTCQB: UBMRF)

Urbanimmersive Inc.

Small-cap companies are at risk of running out of cash for many reasons, one of which is that due to being at an earlier stage of growth, revenue generation often lags behind burn rate. 

As a small-cap investor, one of the key fundamentals you want to be looking for in a company is profitability. 

If a company proves it can reach profitability, even by a small margin, it’s a sign that Management is operating the business efficiently.

Profitability also demonstrates that a company can sustain itself as it grows. 

That’s important, because raising money often means more dilution. 

A self-sustaining company can also be more selective about when and how it raises money, so it can avoid agreeing to unfavorable terms out of desperation.

In each issue of The Diary we’ll be highlighting recently profitable small-caps for our readers. If you’d like to share an idea with us, email us at caitlin@dearretailinvestors.com

Keep reading this article here.

Opinion

I bought a stock at $1.08 and sold it at $24.50. Here’s what happened along the way.

HOPE

On July 26, 2018 I bought some shares of a small Canadian biotech company stock at CAD $1.08 – of course, the price started to fall immediately after I bought it. Not a huge deal, I reassured myself as I watched the share price slide, and my money disappear right along with it. Ugh.

Why did I choose this stock? When I started investing in small-caps, I didn’t have a whole lot of money I could afford to lose, so I decided I would stick to a fairly “risk-averse” strategy and choose companies that were profitable, or had been profitable in the past, and had a tight share structure, a strong management team, and huge growth potential. That last part is just guesswork of course. Because as much as I would love to, I don’t have a crystal ball.

Continue reading here.

Breakout Alert

Hapbee (TSXV:HAPB; OTC:HAPBF)

Hapbee (TSXV:HAPB; OTC:HAPBF)

One of our past recommendations has caught fire this past week.

In October last year, we released this report on how technology is disrupting the $4.2 trillion global wellness industry.

This new sector, called “WellTech’, has been creating massive opportunities for early investors.

The exponential rise of Peloton (PTON) last year illustrates the types of opportunities that can be found in WellTech.

However, Peloton had a huge run last year and the easy money has already made on that one.

That’s why we focused on a much newer WellTech company that was just starting out on its growth trajectory.

The WellTech company we featured was Hapbee (TSXV:HAPB; OTC:HAPBF), and the immense potential of its ability to directly influence a user’s current mood via low-energy magnetic fields.

We stated at the initial outset:

  • Hapbee has staggering long-term potential as an early mover in the WellTech boom.
  • It is backed by investors like Dave Asprey, the founder of the Bulletproof Coffee empire and the king of biohacking, who knows how to design and create a product brand and get customers to buy into it.
  • Hapbee is bound to be hugely successful as more people get into health and wellness and move away from using substances such as alcohol and other drugs to alter their mood.

We further updated on the progress of Hapbee in late December

Just a few weeks after that update, Hapbee has become the next breakout stock star.

Hapbee shares have been building momentum since it went public in late 2020.

The stock was trading around CAD $0.50 on its first day of trading.

To around CAD $0.60 in January.

Then to CAD $0.70.

Then to CAD $0.80.

In the past week, the stock finally broke out, reaching a high of CAD $1.18 on February 22nd.

The future’s still bright for WellTech, and we’ll find plenty more Pelotons and Hapbees to profile.

Stay tuned.

Are You Ready For The Next Market Move?

“Warning Signs” – Goldman Sachs
Yale’s Crash Confidence Index Higher Than Dot-Com Bubble Top
Crucial New Research: Three Fortune-Protecting Rules For Even The Toughest Markets

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