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Zip Co’s (ASX:ZIP) shot up more than 15%, but will the zip continue to go up?
Wealth Within’s chief analyst Dale Gillham and senior analyst Filip Tortevski don’t think so, they say the company’s ‘not making any money’.
“This stock, obviously the darling of the COVID era where everyone was at home and trading from their bedroom (…) one look at this company, it’s still not making any money,” Fil Tortevski said.
“It is one of those darlings people are buying into, can it repeat the feats?…”
“How many times have we seen that a stock that’s gone zooming up made people heaps of money – I’m talking retail investors (…) and people that don’t necessarily know how to trade,” Dale Gillham said.
“They make money and it just tanks and they lose all their money, but then they want to see it repeat exactly that again, and it’s not going to happen.
“It will not repeat that big run. It’s not making money, so how’s it supposed to grow if it’s not making money?
“Rule number 1, buy stocks that actually make money. Rule number 2, refer to rule Number 1!”
Top Stock picks
Webjet (ASX:WEB) is Wealth Within’s HotCopper ‘Hot Stock’ tip for this week, a company that this week spun out its B2C operations to a new listing Webjet Group (ASX:WJL).
The Proceed with Caution is Fortescue Metals (ASX:FMG) and the ‘Not Hot’ stock this week is Woodside Energy Group (ASX:WDS), which has been losing ground.
You can see the Hot Stock Tips show on HotCopper every Tuesday, it’s followed by Wealth Within’s live YouTube show every Tuesday night at 7pm AEST.
Dale Gillham is Chief Analyst at Wealth Within and international bestselling author of How to Beat the Managed Funds by 20%. He is also the author of Accelerate Your Wealth—It’s Your Money, Your Choice, which is available in bookstores and online at www.wealthwithin.com.au
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