Hottest Stocks in CW 01/21

The "Fear of Missing Out" – FOMO for short – leads traders to buy stocks whose price has already risen significantly. This is what happened last week with the Play Magnus Group. The Norwegian company, which only went public in October 2020, is a provider of online chess services. The reigning world chess champion Magnus Carlsen is the name giver and co-founder. Just like the royal game itself, the stock is experiencing a real hype right now. The stock price rose by more than 20 percent over the week. In a YouTube video, trader Nicolas Barghoorn (KoljaBarghoorn), who has the stock himself weighted at around 19 percent in his wikifolio Gaming Aktien mit Kopf, explains why this is the case and whether the stock still has potential.

The "buying the dip" trading motive is evident when traders buy falling stocks in the hope of a bottoming out – in other words, the imminent turnaround. This behavior could be observed last week with Haier Smart Home. The buyers of the stock were betting on a special situation. Trader Christian Scheid (Scheid), who focuses on such cases in his wikifolio Special Situations bought into Haier Smart Home on 6 January and commented in the process: "The company has also been listed in Hong Kong since 23 December 2020 (H stock, current price EUR 3.33), while the D stock currently costs around EUR 1.78 in Germany. Then there is also the A stock, which is listed in China (current price: EUR 4.01). The reductions of the D-stock to the A-stock and to the H-stock are clearly too high – especially since the D-stock represents the same rights."

Profits were taken on the Siemens stock in particular last week. The stock of the German conglomerate is currently trading at around 123 euros and has thus doubled in price since the Corona low. The recovery, which had stalled over the summer, has recently picked up again. This was reflected in a weekly increase of around five percent. Many traders took this opportunity to cash in.

A good captain is the last to leave a sinking ship. Good investors, on the other hand, behave completely differently. They minimize losses and dump "sinking" stocks. In 2021, the Titanic among such securities remains Wirecard. Long since shipwrecked, the stock is now in the hands of the gamblers. Rumors determine the price and cause extreme swings in both directions. Last week, for example, the stock initially traded at 36 cents, then jumped to over 1.30 euros by Wednesday, only to fall back to 41 cents at the end of the week. Not for the faint-hearted.

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