These Stocks Are More of a Gamble Than An Investment
And the no.1 Is a Reddit favourite.
And the no.1 Is a Reddit favourite.
As with seemingly everything in markets these days, it all ties back to the Reddit Wall Street Bets message board.
No, we’re not talking about GameStop (ticker: GME). Rather, Castor Maritime (CTRM). The dry-bulk commodities transportation firm was trading around 20 cents earlier this year until it was swept up in momentum as users of the message board recommended the company, sending shares as high as $1.95.
The stock was identified as a potential gamble using methodology from recently published research paper—from Alok Kumar of the University of Miami, Houng Nguyen of the University of Danang, and Talis Putnins at the University of Technology Sydney and Stockholm School of Economics. The group proposed looking at the average volume over 30 days compared to market cap as a way of determining what they called lottery stocks. “We assume that gambling in stock markets involves disproportionate amount of trading in lottery-like stocks,” they said.
Castor topped the research group’s list of New York Stock Exchange- and Nasdaq-listed companies that were potential “lottery stocks.” Barron’s added to a filter to the list to look at companies with market caps of at least $500 million and published the list in January.
We ran our version of that screen again this month. Castor Maritime topped our list this time.
Sundial Growers (SNDL), the cannabis stock, and Genius Brands International (GNUS), the children’s media company, appear high on the list too. The top NYSE-listed stock was AMC Entertainment (AMC), the movie chain operator that, with GameStop, became a poster-child for the so-called meme stock revolution.
And what about GameStop itself? It’s not in the top 20, but the methodology does put the video-games retailer high: Out of more than 3,000 stocks, GameStop ranks 128th as a lottery stock.
The stock scoring lowest in the lottery stock rankings was Google owner Alphabet (GOOGL).
|3.||Genius Brands International|
|8.||Ebang International Holdings|
|12.||Invesco Mortgage Capital|
Reprinted by permission of Barron’s. Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: March 22, 2021.
Following the devastation of recent flooding, experts are urging government intervention to drive the cessation of building in areas at risk.
New research from Knight Frank’s International Waterfront Index shows waterfront properties are costing more than double their inland counterparts in Sydney while in Melbourne waterside properties attract a 40% premium.
Australia’s coastline attracts some of the highest waterfront premiums in the world with Sydney topping the index — an average premium of 121% — compared to an equivalent home set away from the water.
Auckland ranked second on the list of 17 international locations — a premium of 76%. The list saw Gold Coast (71%), Perth (69%) and the Cap d’Antibes (59%) on the French Riviera round out the top 5.
Australia continued to feature prominently in the research with Brisbane’s waterfront premium coming in at 55%, with Melbourne also in the top 10 at 39%.
According to Knight Frank Australia’s head of residential research, Michelle Ciesielski, there has always been strong appetite for Sydney’s waterfront homes.
Australia’s luxury residential market has advanced, it lacks the depth of prestige markets in more established global cities said Cieselski.
“As a result, our Australian cities can achieve a significantly higher premium on the waterfront compared to a similar property inland without access to, or a view of, water,” she said.
“Also, Australia is known for its balmy outdoor lifestyle, so many buyers in this super-prime space are willing to pay a premium to secure the ideal position along the waterfront.”
The data also suggests that beachfront homes were most desirable, commanding a premium of 63% compared to harbour locations fetching 62% premium and coastal homes with a 40% premium.