The Incremental Investor

It has not been a great time to be an investor in SQ - Square, the payments and point-of-sale solutions provider for the United States and internationally whose commerce ecosystem includes point-of-sale software and hardware that offers sellers, payment and point-of-sale solutions. After its recovery from the post December 2018 lows, it price has not been able to scale past or even attempt to regain the life-time highs of low $100's, that it reached prior to the Nov-Dec 2018 crash. While it is well off the 52 W lows of $32, it still has way to go before retaking the current 52 W high of $87. It is frustrating to see its peers like SHOP - Shopify and PYPL - Paypal scaling new 52 W highs and getting near it, while SQ pretty much looks to be languishing in the $ 50-60's range. Since small business is the mainstay of  Square, it is going to feel the impact of the current unraveling recession that is disproportionately hitting small and medium businesses, more than SHOP or ...

Many active investors and fence-sitting investors are tempted alike, to look at and consider staking out positions in companies and industries that are hit by the Covid-19 lockdown and its unfolding impact. Some members of  a Whatsapp Investment group that I contribute to and administer, had questions about the strategy of entering into Airline stocks such as UAL - United Airlines and DAL - Delta Airlines. There is always a temptation to pick up once front line stocks that have fallen close to 52 week lows, in the hope of catching its eventual rebound and  ride it through when the recovery gets underway. Some of that fancy also seems to be validated by the kind of stock price recovery that happened with UAL. UAL has rebounded more than DAL, in spite of having its profitability prospects hit worse than that of DAL. Then there is a recent  article on Seeking Alpha that suggests going long on JBLU - Jet Blue because it has a better balance sheet than most of its peers....