Top Pick Tuesdays – December Picks Update

This week we are revisiting our final Top Pick Tuesday’s from December 2023. While it has not been a long time since posting these ideas, this update serves as a reminder of the challenges in this ever-evolving business. We had fantastic results in November, but unfortunately December’s progress is far from glamorous but as the expression goes: “if you don’t win, you learn”. Let’s dive in and see what happened!

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Barrick Gold Corp (GOLD:NYSE)
Price at Preparation: $17.73 (Dec 1, 2023)
Price at Update: $15.59 (Jan 22, 2024)
Gain/Loss: -12%

Update

Barrick Gold Corp (GOLD:NYSE) was chosen on the back of the gold commodity price breaching $2000 USD per ounce. As of this update, the spot gold price has risen up to approximately $2040 USD per ounce. Looking at the visual guide included, we can see there was an initial upward trend before displaying weakness at the start of 2024. This stock has come down to our support line at $15.54, historically a point of potential rebound. However, if the stock continues to decline past the support at $14.14, that is earmarked as the point to cut the position completely. The Price Target (PT) of $21.23 remains unchanged, which still offers a meaningful upside. Since gold is cyclical, there is a high probability of a rebound.

iRobot Corporation (IRBT: NASDAQ)
Price at Preparation: $38.63 (Dec 11, 2023)
Price at Update: $17.38 (Jan 22, 2024)
Gain/Loss: -55%

Update

iRobot Corporation (IRBT: NASDAQ) is facing headwinds. Chosen for it’s upside potential on the Amazon (AMZN:NASDAQ) buyout offer of $51.75 USD per share, which at this time remains unchanged. However, the purchase needs to still be completed and agreed to by the world’s regulators. Recently the stock plunged approximately 40% in one day due to news that said the ECB (European Commission Board) intends to reject the deal, where the deadline for the decision is February 14, 2024. The word “intends” is not definitive and Amazon has refused to comment – So the original plan stands until confirmed news that alters the course of this deal.

NIO Inc. (NIO:NYSE)
Price at Preparation: $8.42 (Dec 22, 2023)
Price at Update: $5.98 (Jan 22, 2024)
Gain/Loss: -29%

Update

Our final pick of 2023, NIO Inc. (NIO:NYSE), was driven by news catalysts showcasing new battery technology and long range potential. However, the hype was short-lived. Looking on the visual aid below, you can see the stock gained momentarily above the $9.24 support/resistance line before embarking on a downtrend through multiple support lines. Breaching the previous 52-week low of $7.02, the stock slid to $5.98. As per the original plan, exiting the trade at our “cut” level is the strategy, looking for the next opportunity.

For updated content on all our Top Pick Tuesdays, consider our Theta Bandits Discord community, a hub for traders to share ideas and strategies for various tickers daily.

Disclaimer: This article is for informational and educational purposes only, not investment advice. We recommend researching and consulting with a financial advisor before making investment decisions. All actions based on this information are at your own risk.

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