Carnivore Trading, a rapidly growing secretive group of Hall of Fame traders led by the legendary “Trader Z”, announced today that the Cyber Security industry will be its new sector focus. The company provides macroeconomic, sector, fundamental and technical research and analysis, as well as real time trading alerts to its subscriber base. Focused on institutional quality equities with over $300 million in market capitalization, Carnivore’s last three sector focuses were uranium, marine shipping, and bitcoin mining companies.
“Trader Z drove us into uranium before the stocks took off, recognizing that a catalyst for the sector had emerged in the Sprott Uranium Fund,” said Dutch Masters, one of the Carnivore Traders. “Before uranium, he drove us into the bitcoin miners, recognizing a subtle, but powerful shift had taken place there. The bitcoin miners, some of them with the backing of funds like BlackRock and Fidelity, could now hold the bitcoin they mine instead of selling it thereby driving the value of the companies’ balance sheet assets up rapidly. We thought this shift would be recognized by the market and drive up stock prices, which it appears to have done. The management teams of some of these miners have shifted their focus on making money on the public stock increasing in price rather than solely on making money mining and selling bitcoin, which we thought was a major change in strategy that could benefit shareholders, and we have been correct thus far. Our trade thesis was that bitcoin prices would at least hold up or go up, and this would provide even more octane to those stocks.”
Carnivore previously had identified early on that the marine shipping trade industry presented opportunities and it has now become one of the hottest sectors in the market over the past 8 months. Carnivore even sent its people down to the docks to count ships and talk to the longshoremen and truckers pulling containers out of the port to find out what they were experiencing. This “boots on the ground” research combined with analysis of shipping demand and supply and pricing led to Carnivore triggering its first moves into the sector in April 2021 with names like ZIM Integrated Shipping, Golden Ocean, and Genko Shipping.
“Everyone is on this trade now that the sector is showing up on people’s top Relative Strength screens and articles are being written about the “perfect storm” in the industry, causing it to boom after 15-20 years of being fairly benign. We have a unique way of identifying opportunities and aren’t afraid to do ground level research” Dutch further stated. “For example, we didn’t hear anyone on Wall Street talking about the marine shipping trade in early 2021, but we could see the ships stacking up down the coast of California trying to get into the Long Beach Harbor and the number of ships just kept growing. That piqued our interest and that’s when we started digging in. With reopenings after the pandemic driving up consumer demand and with a set number of container ships operating globally, you can’t just drop a new ship into the water when you need it as they take years to build and get testet, so the supply was limited and demand was skyrocketing. We knew prices had to follow and we were right.”
“With this new sector focus on Cyber Security, what we see is plenty of demand, that’s no secret, but the technical analysis is telling us that these stocks have consolidated now for a period and that they may be ready to move again. Of course we love the big dogs in the space like Zscaler, Fortinet, CrowdStrike and Palantir, but we found a sleeper, a smaller one that we like called Identiv (Nasdaq: INVE) that we think will participate and seems to be breaking right now,” said Masters.
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