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Why we held this stock to bankruptcy

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Invitae went bankrupt, and we lost everything. Well, not *everything*. But, we learned some valuable lessons we'll apply going forward. Today's video touches on our tech stock investing methodology, why we purchased NVTA stock in the first place, how we limited our losses, and what we'll do going forward to avoid another situation like this one.
Why are we talking about our biggest loser? Well, honesty and integrity are important to us here at Nanalyze. We can't bring up our massive NVIDIA gains without also recognizing some bumps in the road. We're also constantly learning, and we're going to use this unfortunate circumstance as a learning experience.
RESEARCH PIECES USED IN THIS VIDEO:
1. Falling Out of Love With Invitae Stock
www.nanalyze.c...
2. Here’s Why Invitae Stock Can’t Stop Falling
www.nanalyze.c...
3. Myriad Genetics Stock vs. Invitae Stock
www.nanalyze.c...
4. A Simple Valuation Ratio for Disruptive Tech Stocks
www.nanalyze.c...
CHAPTERS:
00:08 Newbie mistakes in investing
01:07 When to sell tech stocks
01:54 Our portfolio
03:12 Invitae
05:14 The writing on the wall
06:07 When we bought NVTA stock
08:25 Things start to go south
09:30 Why Invitae went bankrupt
12:04 What we learned
ABOUT US:
This video is brought to you by Nanalyze, a media and research firm founded by finance professionals with decades of experience. We share insights about #DisruptiveTechnology #stocks in a language that is future-proof and easy to understand.
Read all the Nanalyze Premium articles you'd like for free! Sign up for a 30-day trial of our monthly subscription with no strings attached: www.nanalyze.c...
DISCLAIMER: Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, along with independently researching and verifying, any information contained within our RU-vid videos or on our website, whether for the purpose of making an investment or otherwise.
#invitae $NVTA
#nvtastock
#nvta
#bankrupt

Опубликовано:

22 авг 2024

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Комментарии : 128

@Nanalyze 5 месяцев назад

@dougtrvl888 5 месяцев назад

Hello Joe , I also lost 12 K on NVTA . Looking at my 32 K gain on Cava to make myself feel better 😂 Thanks for the article . Very good points I notice now Cathy is buying more Personalis to r place it I recently bought 6,000 shares of Soundhound at 1.6 dollars & sold 4,000 of those shares at 6.5 dollars So my remaining 2,000 shares are free twice over

@Nanalyze 5 месяцев назад

Hey Doug. Glad to hear you're making money in the markets!

@LDP.. 5 месяцев назад

Great video ! Finally a channel that admits a mistake . Succes lies in one's ability to learn from mistakes! Thank you

@Nanalyze 5 месяцев назад

Thank you! We always keep the receipts for every stock we buy so post mortems are very easy to conduct.

@puddingrove 5 месяцев назад

Nice one. Lots of nuggets in this vid to learn from. Especially like, and agree with, your take of not setting up a stop loss for a stock you just purchased. Cheers

@Nanalyze 5 месяцев назад

Thank you! Yes, the stop loss kind of goes against the entire purpose of investing. That said, you could use a trailing stop if you were looking to trim a position. When exiting a position we typically use reverse dollar cost averaging.

@Leo-pd8ww 5 месяцев назад

Excellent content. Analyzing mistakes and learning from them is extremely valuable. It also shows how important it is to log your reasoning over time. Some never admit to making a mistake in the first place and simply blame everything else. Usually the ones who are calling others buffoons for making a mistake.

@Nanalyze 5 месяцев назад

That's a very good point! We've had one second coming of Nostradamus come by here and chastise us for making this mistake. We asked what that person would have done differently and they refused to answer the question. That pretty much said it all.

@karenmay5240 2 месяца назад

No ads or shows , just facts

@Nanalyze 2 месяца назад

Just the facts, ma'am

@michaelmead4306 4 месяца назад

I appreciate you. I need your advice and reason in my ear everyday so I stay on track. Made some big mistakes last year. Your guidance is very helpful

@Nanalyze 4 месяца назад

Thank you so much for the kind words. We appreciate you too!

@HeathM970 5 месяцев назад

I really appreciate the look back on a stock you missed on to educate people what to look for. Thank you!

@Nanalyze 5 месяцев назад

We're getting lots of good feedback on this so we're really glad we did this exercise. Thank you you for the feedback!

@justinarnold1431 5 месяцев назад

Thank you for sharing. Up and to the right isn't assured. Sometimes we win.....other times we don't. The real take away is to figure out how to learn from it. Cheers to you all & much future growth. Great channel!

@Nanalyze 5 месяцев назад

Well put. Thank you for the kind words!

@mattmcrae1458 5 месяцев назад

Appreciate the accountability "telling on yourself", rather than burying the whole mess and seeking to distance or reframe the investment. Excellent reflections and ontinued success.

@Nanalyze 5 месяцев назад

Thank you for the kind words! No investor is perfect, and even the best can still learn something from their mistakes. At the end of the day, things could have been worse. We're glad to have a position size rule for this reason! -Wyatt C.

@MrMentalpuppy 5 месяцев назад

Smart decision to show how to search the site while talking about it. Video guy needs a raise 😂

@Nanalyze 5 месяцев назад

Thank yo for the feedback. He's doing a really solid job, agree! Raises are in order if we can keep scaling this business. Joe P.

@Sicksociety334 5 месяцев назад

Thank you for this video. I only hold on “ speculative “ stock. Everything else is in my dividend growth portfolio. Buying is easy, knowing when I’ve bought enough and when to sell is hard. Setting limits at a percentage of my portfolio makes the buying part much more manageable. Let’s be real here, at 1000% realized gain I am not going to be life changing wealthy so why would I risk more than around 1 or 2% of my total. Yes this limits my realized gain potential but it also limits my possible loss. As far as selling it will be constant reviewing and based on the business performance. This makes a lot of sense.

@Nanalyze 5 месяцев назад

Thank you for the feedback. We also take a similar approach as you - around 16% invested in a tech portfolio and 60% invested in DGI stocks. Sleeping well at night is underrated.

@prasvasu4217 5 месяцев назад

Really feeling the same with SEDG. Everyday is news that it's going down further with no bottom at sight. Made a big investment there, with reasonable price targets (and the stocks were relatively cheap to start with), now down 70-80% due to "macro-economic headwinds", and am scratching my head questioning my cost basis.

@Nanalyze 5 месяцев назад

Tech stocks are extremely volatile, and this is a side effect of investing in volatile stocks. When Amazon dropped 90%, people were thinking the same thing. When Invitae dropped 90%, they were also thinking the same thing. Avoiding bankruptcy seems to be a focal point in tough times. If SEDG management is buying back shares then they must feel comfortable with their cash position. Or, they totally miscalculated. Predicting which is impossible so we do the best we can with the facts we know!

@Wildboy789789 4 месяца назад

I sell too early, I sacrifice a win on a 10% jump... then the thing goes up 120% and I'm standing there with my 500 dollars profit lol

@Nanalyze 4 месяца назад

Oh boy... ;)

@jimmcintyre1966 5 месяцев назад

I've made mistakes myself and I think looking for exposure to a specific sector or business model is a mistake. Investing within your circle of competence is obviously important but wanting exposure to any specific thing is the cart leading the horse. What I've learned is that speculative stocks that meet my criteria of being within my circle of competence, having frugal management along with the potential for significant growth while having quality margins and with a perceived margin of safety in valuation are very few and far between. Base Carbon is one I'm bullish on now.

@Nanalyze 5 месяцев назад

We would never touch anything as small as Base Carbon. As for only investing in someone's circle of competence, that would significantly limit everyone's ability to invest as most people are highly specialized and you'll never truly understand a product or service, even as a user. It's best to focus on revenue growth and have a living methodology that you apply consistently across all tech stocks.

@jeffdavidson6033 5 месяцев назад

Thanks for the transparency. I would not have added to a down position if management was giving inconsistent guidance that would have been a yellow flag for me. I think holding on an original thesis is fine, but If management can’t be trusted it’s not time to double down until they can show more than just growing top line.

@Nanalyze 5 месяцев назад

Really good point!

@Dementia.Pugilistica 5 месяцев назад

The mentality I struggle with is when a company has risen enough that I no longer want to buy it at that price, I feel like I should be selling it. I am very good at DCAing in and if a company I like drops in price with no material difference I am ecstatic to be able to buy more. I have a similar linear exit strategy (reverse DCAing you could call it).. but the psychology of simply holding when I think it's surpassed a +EV eval is confusing to me. I am always drawn to try to reallocate capital to better opportunities, but this doesn't allow much in the way of longterm investments or 'letting our winners ride'. Exit strategy is tough.

@Bham67 5 месяцев назад

I agree. Like Nvidia. When I bought at $100 and it quickly went to $300 it is very hard to keep buying more...you just think that you should sell, which I did. I made $ but could have made 3x as much if I'd held longer or kept buying. I'm a sucker for "DCA'ing" into stocks that are dropping, but not buying more shares of companies that are doing well when they get way more expensive than what I originally paid. Sometimes that works out...like Palantir. Other times like NVTA it is a disaster.

@Nanalyze 5 месяцев назад

Spot on. Exit strategy is extremely tough. That's why setting objective rules makes the most sense. Paper gains area always just paper gains. You only capture alpha when you sell. In order to add to winners it's important to have a valuation target, not a cost basis or chase price target. Monitoring the valuation of a company over time keeps you from overpaying when you're adding to winners or buying on "dips."

@LDP.. 5 месяцев назад

I had the same problem , but i learned to look at fundamentals at that point . PE ratio , fwd PE , cash flow and if i want to hold it a long time i like a dividend aswell

@Dementia.Pugilistica 5 месяцев назад

@Bham67 this is exactly the same psychological pathology I have with investing, and incidentally occurred with the same 2 stocks you mentioned. I bought palantir at a $7 average and sold it for a $16 average. I regret that not just because it's higher now, but because there was no reason to sell. I just sold because it rose quickly and I didn't want to buy more. It was a very clear hold.

@Dementia.Pugilistica 5 месяцев назад

@@Nanalyze I agree. At first, I thought some of these rigid rules were a bit too strong, but I now see how they have great preventative and executive value.

@kibirkshtis 5 месяцев назад

thanks! I was in the same boat :(

@Nanalyze 5 месяцев назад

A lot of people were, including ARK Invest. It was a tough call.

@MrEvertonian20 5 месяцев назад

We'll now see how much the Invitae dataset is worth to a potential buyer. Cathie was of the understanding Invitae would be acquired because of their data and tech, which obviously didn't happen, but it will be interesting to see a value put on it.

@Nanalyze 5 месяцев назад

Good point. We shall see.

@PremiumCollector. 5 месяцев назад

Thanks for details on the methods! Like Buffet, I'll write covered calls. When pullbacks happen, I tend to buy them back around 50% of max profit, then reinvest the premium into the stock!

@Nanalyze 5 месяцев назад

You are most welcome! We touched on the covered call method briefly in our piece on JEPI. (ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-nd9AmdTd0g0.html) For growth stocks, you risk capping your upside, but as you know it works better with lower volatility stocks. Certainly best left to people with time to really dig into the strategy. Options can be tricky!

@stephengalea9447 5 месяцев назад

Brilliant video. I love how you specify the red flag approach to investing. This would have served me well avoiding the risky sectors and risky companies.

@Nanalyze 5 месяцев назад

It works quite well to avoid land mines. Well, most the time ;)

@rajnit5769 5 месяцев назад

Nice content and so very true. Could you please do a content on Ginkgo Bioworks - DNA?

@Nanalyze 5 месяцев назад

Ask and ye shall receive: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-7-cb8SO-d6c.html

@sicarguy4478 5 месяцев назад

$plur and $bngo for me 😢 No one to Blame but ME .....

@Nanalyze 5 месяцев назад

Accepting responsibility when making investment choices is a huge sign of maturity as an investor. You make better decisions that way for sure.

@timochka009 5 месяцев назад

I knew it was a long-term play with Plug Power, but it's difficult to look as such a negative value in my portfolio.

@Nanalyze 5 месяцев назад

We've always remained firmly convinced hydrogen isn't economically viable. (ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-xmW4q8CJku4.html) But don't sweat it! It's not over until the overweight lady with a myriad of weight-related problems belts forth a tune. ;)

@timochka009 5 месяцев назад

@@Nanalyze I just wish I saw your video 2.5 years ago when I bought in 🥲 now I'm just hoping for either a Bible level miracle, for the fat lady at least squeal for a second before giving out entirely, or for a good year to take advantage of my losses on that position.

@azulsimmons1040 5 месяцев назад

I've had a few of those stocks. I definitely keep my gambles small on stocks like this.

@Nanalyze 5 месяцев назад

We try not to think of gambling when we tie money up in any stock :) Good that you are monitoring your capital at risk.

@soundslight7754 5 месяцев назад

Thanks for sharing this lesson. Yes, it's very difficult knowing when to exit a stock

@Nanalyze 5 месяцев назад

You're most welcome.

@elagduck 5 месяцев назад

Good stuff. Sitting on $TCRT...no fun.

@Nanalyze 5 месяцев назад

We aren't familiar with them, but a helpful rule is not to invest in a company before they have meaningful revenues.

@neel-uronchondi9339 5 месяцев назад

I have 245 shares of NTLA at $34 average since 2021. It went up $200 but i didn’t sell them, now I’m still holding, don’t know what to do!!

@Nanalyze 5 месяцев назад

If your thesis hasn't changed then not much to do. We did cover a lot of our cost basis on the gene editing hype surge because it was so clearly hype. It's rare we trim on hype but in that case we thought it was merited because all gene editing stocks exhibited the same behavior.

@rochester3 5 месяцев назад

gene stocks are dead bro

@Nanalyze 5 месяцев назад

@@rochester3 Seriously? We didn't get the memo. Just exited everything bro.

@AStockTradersJourney-ps8vz 5 месяцев назад

If you can, sell covered calls against some of them or all if you're ok with getting rid of them

@brianwest7344 5 месяцев назад

I prefer to examine the entrails of a pigeon for guidance.

@Nanalyze 5 месяцев назад

Our on-staff Romanian fortune teller swears by this method.

@khalidahmad1231 5 месяцев назад

I still have 5000 NVTA share.. not sure what to do with it? Can anybody suggest some steps?

@Nanalyze 5 месяцев назад

We cannot help you as we exited right before they formally declared bankruptcy. Our understanding is that they still trade with a "Q" appended to the ticker.

@Dulitzlives 5 месяцев назад

Thoughts on Sound hound?

@Nanalyze 5 месяцев назад

It's very hyped right now, something we covered in our recent piece on AI hype: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-CK8u0wytjEQ.html

@GravelRacer1 5 месяцев назад

I sold all my shares at a profit. Get out if your ahead.

@karend4406 5 месяцев назад

Your a clown

@Nanalyze 5 месяцев назад

@karend4406 lays out some valuable criticisms of someone on this thread - we're not sure who - who he believes works in a circus. This is the sort of quality banter people have come to expect here at Nanalyze.

@FAC1806 5 месяцев назад

Now you are making me think twice about DNA....I hope it is not another NVTA!

@Nanalyze 5 месяцев назад

Seems like with these things you only find out when its too late

@charlesbarker9602 5 месяцев назад

I lost so much on NIO

@Nanalyze 5 месяцев назад

Don't worry man. We've all been there. We did a few really interesting videos on NIO if you're interested. We avoid Chinese VIE structures like the plague, but would consider BYD because it trades as an H share. Remember, it's only over when the BBW sings.

@khalafismail3123 2 месяца назад

COULD YOU DO INVITAE AGAIN AFTER SELLING MOST OF ITS ASSETS TO LabCorp PLEASE

@Nanalyze 2 месяца назад

That would be a piece on LabCorp and I'm not sure they're on our radar. Always best to raise names you'd like see covered on our Discord server.

@khalafismail3123 2 месяца назад

@@Nanalyze sorry could you explain more please

@Nanalyze 2 месяца назад

@@khalafismail3123 For retail investors, investing in LabCorp would be a way to get exposure to Invitae assets. We have 1000 things to cover. If someone wants us to cover LabCorp as you have asked, it's best to raise that on our Discord server so our community of paying members can chime in :)

@fancykingz6251 5 месяцев назад

That’s how I have $CRGE went bankrupt but I’ll still buy more

@Nanalyze 5 месяцев назад

Never understood the attraction to businesses that have gone bust but it appears to be a thing these days.

@therealmcgimmick 5 месяцев назад

I'm doing the same with BNGO. It's so tempting to double down lol.

@Nanalyze 5 месяцев назад

A lot of people have been asking us about BNGO but they have become too small to be on our radar. We last looked at them here: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Q8eH6VWDGVo.html

@rochester3 5 месяцев назад

Genomics is dead bro

@Nanalyze 5 месяцев назад

@@rochester3 (Makes immediate call to broker to liquidate everything related to genomics.)

@rochester3 5 месяцев назад

@@Nanalyze 2 years late ⏰

@rochester3 5 месяцев назад

@@Nanalyze AI is the new shiny toy

@MrMentalpuppy 5 месяцев назад

Wow! I didn't know that company got hit so hard. Interesting.

@Nanalyze 5 месяцев назад

It would make for a great business school case study.

@cameronvincent 5 месяцев назад

I’ve sold at 2-4$ but very sad too see nvta bankruptcy wonder who will end buying all their data. Are you guys still bullish on pacb

@Nanalyze 5 месяцев назад

Yes we are still following PACB. We're probably due for an update but our last piece is here: www.nanalyze.com/2023/05/buy-pacific-biosciences-stock-now/

@cameronvincent 5 месяцев назад

@@Nanalyze thx for the article great read

@Nanalyze 5 месяцев назад

We have over 2,400 articles of research, many of which are used to produce our videos :)

@user-ll9qk2el4d 5 месяцев назад

"Victory has a hundred fathers, but defeat is an orphan." Joe, I have to give you credit for being man enough to claim the child was yours.😂 Like a proud parent, I like to visit my "children" several times a day when the markets are on a positive streak. When the markets are down, not so much... not until they learn to straighten up their bad behaviors.🤣

@Nanalyze 5 месяцев назад

That's a great saying!

@LegaliseFinland 5 месяцев назад

fax 📠

@Nanalyze 5 месяцев назад

Is that some sort of new crypto token?

@LegaliseFinland 5 месяцев назад

@@Nanalyze This is what the cool kids are saying instead of "facts" these days 👴

@Nanalyze 5 месяцев назад

@@LegaliseFinland (Scribbles new entry in notebook.) Fax.

@justinarnold1431 5 месяцев назад

I remember these! haha

@maltlickytexas 5 месяцев назад

❤

@Nanalyze 5 месяцев назад

Glad you're enjoying our content!

@tinustrotyl7496 4 месяца назад

I sympathize with your loss. I made a 100% loss on my 10$ investment in NVTAQ

@Nanalyze 4 месяца назад

:( We can share a couple bowls of loudmouth soup and lick our wounds. We all learned something though and now we're better investors as a result! Turning that frown upside down. :)