Happy New Year guys! Here's a stock pick that will give you a thick red packet come 2021. FUTU; The Robinhood of China, has recently broke out of a short-term downtrend. This can be a long-term play or a short-term play depending on how you see it.
FUTU is a long-term hold because of the increasingly affluent Chinese population. The Covid-19 crisis catalyzed an increase in retail investors globally this year and FUTU has become the platform of choice for many Chinese investors as of late. Additionally, with Hong Kong becoming a hotspot for more Chinese IPOs, I would only expect more Chinese/Hong Kong customers joining FUTU's trading platform to get a piece of the new hot stocks (past IPOs include Mingyuan Cloud, Nongfu Spring etc...). We can see this from FUTU's Total paying clients: at 115,000 (Q3 Earnings Report) - representing a 137% increase y-o-y. Additionally, their client retention rate is > 98% for the seventh straight quarter and their earnings grew by >500% y-o-y. Really impressive.
FUTU also represents a short-term swing with its recent break of a short-term downtrend, technical indicators are also looking to turn bullish as well!
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Sold half my position two days ago at $57.3. Will look for continuation to the upside (hopefully, who knows!) in the coming weeks.
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I have sold the remaining of my position today, leaving a small share size to swing FUTU over the coming months (Have taken my initial capital out when I bought FUTU and some more). Do be careful as the price action the last few days have been parabolic, trade safe and lets end the week on a green note!
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To those who have held onto this baby till today, congrats! You have doubled your investment in 2 short weeks!