This Misunderstood Stock Is a Buy
Here’s a type of stock most investors don’t know about – but it offers plenty of potential when you find the right opportunity.
It’s called a “tracking stock.”
A tracking stock is defined as a type of common stock that the issuing company intends to reflect (or “track”) the economic performance of one specific business entity – rather than the economic performance of the company as a whole.
Tracking stocks are more confusing than your standard stocks, which is why they’re overlooked by most investors and traders.
But today I’m going to reveal a tracking stock that has immense promise right now – and is worthy of your immediate trading consideration.
Liberty Media Corporation owns interests in a portfolio of assets across the media, communications and entertainment industries – which it breaks down into three tracking stocks:
- Liberty SiriusXM Group
- Formula One Group
- Braves Group.
Are you with me so far?
You have one company – Liberty Media – that owns SiriusXM, Formula One and the Atlanta Braves. But instead of combining all three business operations and trading them under one consolidated Liberty Media stock, the company breaks up the divisions… and lets them all trade separately.
With that, let’s focus on the opportunity in one of the three divisions, Formula One Group…
Formula One racing began in 1950, and now it’s the world’s most prestigious motor racing competition.
Formula One holds exclusive commercial rights to the FIA Formula One World Championship – an annual, nine-month-long motor-race-based competition in which teams compete for the Constructors’ Championship and drivers compete for the Drivers’ Championship.
Right now, Formula One has 506 million fans worldwide who attend and watch 23 races in 21 countries across five continents each year.
Unlike NASCAR, which is popular primarily in the southern United States, Formula One represents the pinnacle of motor sports on a global level.
It’s one of the fastest-growing sports in the world… which is why the recent stock pullback is worth a buy.
Your Action Plan:
Here’s how the tracking stocks break down: The Series A and Series C Liberty Formula One common stocks trade on the Nasdaq under the stock symbols FWONA and FWONK, respectively. The Series B Liberty Formula One common stock is quoted on the over-the-counter (OTC) markets under the symbol FWONB. Series A shares have one vote per share, Series B shares have 10 votes per share and Series C shares are nonvoting. Looking specifically at the Series A shares, I like buying anywhere close to support from October 2021, which runs from $44 to $46. That’s one of the best levels to grab this stock at on any future pullbacks, so plan to get positioned on any coming dips!
Monday Market Minutes
- Apple Warns COVID Restrictions in China Are Hurting iPhone Production. Late in the day yesterday, Apple announced that iPhone 14 production has been temporarily reduced because of COVID-19 restrictions at its assembly plant in Zhengzhou. Tracking.
- Midterm Implications. Going into Tuesday’s midterms, here are the scenarios we’re looking at…
- A “Red Wave.” If the Republicans take at least one chamber of Congress on Tuesday, it’ll result in more gridlock, which Wall Street loves. A split government would be a bullish signal for the markets.
- A “Blue Do-Over.” If we see the Democrats retain control, it would mean reviving portions of Biden’s “Build Back Better” agenda, which could offer a boost in infrastructure spending.
- Meta Finally Gets a Boost. Meta Platforms, which has been one of the worst-performing stocks on the S&P in 2022, is up 3% after The Wall Street Journal reported the company is planning to begin large-scale layoffs this week.