Stock Investment Opportunities (examples from the past)

There are certain events, through which a lot of profit is made in a certain sector:

• At the beginning of the corona pandemic, for example, a lot of profit is made at supermarkets, because everyone starts hoarding.
• Due to the climate policy and product improvement, companies in the sustainable energy sectors are performing better than expected.
• With a growing economy in a given summer, an airline makes much more flights. The expectation with this trend is that competitors will also make more profit and turnover.
• Price increase due to raw material scarcity. Therefore, if the expectation is correct, there is a high probability that the share price of these companies will rise after the presentation of the results.

There are also certain events that cause certain companies and sectors to lose a lot of money:

• For example, fewer agrochemicals are sold and crops grown because dry summers cause crops to fail.
• Due to a power failure or failure to deliver semi-finished products on time, fewer products have been produced than necessary.

The fall in the share price when the figures are presented, which is reinforced by investors selling their shares at the same time as the figures fall, could be a buying opportunity.

Events on any given day, which directly change the share price of a company or entire sector:

• When Elon Musk said that Tesla wants to start mining lithium in Nevada, companies in the lithium sector fell sharply. The price had recovered after a few days.
• A licence is given to fly a new type of silent drone taxi.
• If cannabis is legalized in a US state, stocks in the cannabis sector will rise.
• A company is acquired or enters into a partnership (economies of scale).

This website could have been used to find lithium producing companies when Elon Musk came out with the news. Sector delivery drone is a new sector, where profits are generally not yet realized and is therefore not included. And due to extreme price falls, the cannabis sector is not interesting and therefore has not been added yet.