The Geo Group Gains +5.22%

Riley Rosebee Trends with No Friends

6 months ago

3 MIN READ

Happy Monday.

Welcome to Trends with No Friends.

For those just joining us, here’s an overview…

We launched this publication to help investors sift through the noise and discover stocks with high relative strength and a low social following.

Why is relative strength relevant?

Markets trend. Stocks that have outperformed are likely to continue their outperformance.

Why is a low social following important?

Peter Lynch once shared, “If you find a stock with little or no institutional ownership, you’ve found a potential winner. Find a company that no analyst has ever visited, or that no analyst would admit to knowing about, and you’ve got a double winner.”

Lynch invested in an era where Wall Street analysts were prevalent. Today, as the Wall Street analyst industry dissolves, identifying stocks with a low social following indicates a stock is dismissed // uncovered by investors.

Stocks that display both high relative strength and a low social following may be ripe to rip.

It was a muted day in the market. The Russell 2000 was the strongest major index. $RUT rallied +0.50%. The S&P 500, Dow, and Nasdaq Composite closed flat.

Consumer discretionary, real estate and utilities advanced more than +0.50%. Energy turned down -0.63%.

New 52-Week Highs led New Lows — 126 vs. 11.

The Best of the Best

The Geo Group ($GEO) is the best of the best. The immigration center and private prison REIT ripped +5.22% and closed at its highest price since July 2019.

Here’s the daily chart.

And monster monthly chart.

$GEO has 172 followers on Stocktwits.

AssetMark ($AMK) is a notable new high. The wealth management service provider propelled +6.57% and closed at an all-time high.

Here’s the daily chart.

And weekly chart.

$AMK has 55 followers on Stocktwits.

Informatica ($INFA) is a notable new high. The enterprise cloud data manager marched +4.34% and closed just off its December 2021 all-time high.

Here’s the daily chart.

And weekly chart.

$INFA has 174 followers on Stocktwits.

The Worst of the Worst

GameStop ($GME) is the worst of the worst. The meme-stock stumbled -3.73% and closed at its lowest price since February 2021. $GME is down -30.13% since its March 26th earnings report.

Here’s the disastrous daily chart.