LevelFields alerts users to an Activist Investor buying stock in GME on Aug. 31, 2020. Based on scenario data showing past 6- to 12-month price gains, a long position is entered the same day. Within 45 days, the stock is up 119%. When the famed short squeeze kicks in a few months later, there are many opportunities to sell at a 1000+% return.
Activist investors purchase over 5% of a company and file with the U.S. Securities and Exchange Commission that they intend to actively press for changes at the company. This often involves putting pressure on the CEO directly or by influencing other shareholders to pressure the CEO to make changes. Activist investors can also convince the Board to fire CEOs that are not performing well, reduce company assets to increase income, alter the strategy of the company, cut staff via layoffs, or sell the company to another.
Not all activist investors are effective at doing these things. However, those that are can change the trajectory of the company's financials and as a result, it's stock price. Over the subsequent months, as the activist influences changes, the company's financials improve and the share price often rises.
LevelFields AI tracks high performing activist investor moves and sends alerts to users notifying them when a new activist takes a position in a company. Often, there is a price jump on the day of the event to trade. Over a longer period of time, the returns are more lucrative if the activist helps to successfully improve the operations of the company.
Months before the now infamous Gamestop short squeeze, an activist investor took a large position in the company and filed with the SEC as an activist investor. The share price was only $6 then.
Those who bought on this news and held would have been rewarded with some of the most amazing 1-year gains of all time. But you can see from the chart above, the gains reached +100% months before the short squeeze even began. This was the activist influence and subsequent news buzz about it.
If you use LevelFields, we'll alert you to these events so you don't need to monitor the news or lurk in Reddit forums all day.
Often times, events are catalysts for other events. For instance, the presence of an activist investor caused media attention, which increase the share price as awareness grows. Likewise, the event may trigger analysts to upgrade the stock, causing additional media attention, which gets more investors interested which drives up the share price.
Events move markets and shape opinions. If you want to stay ahead of the game, monitor events using LevelFields.