Block (SQ) party

On Monday, we added to Block (SQ) and trimmed Alcon (ALC) on behalf of members in our Flagship strategy.

Let’s dive in.

Block party

If you’ve been following our recent trades over the last quarter, you’ve likely noticed that we’ve been slowly adding to Block (SQ), given its increasingly attractive earnings potential and solid technical setup.  

As the company recently hit two-year highs, we still think there’s upside from here given several constructive tailwinds at their backs: (i) their profitable growth story well in tact, (ii) a strong regulatory environment as a result of the recent election, (iii) continued upmarket growth in its Seller ecosystem, and (iv) momentum in crypto assets providing call option growth.  

You can read our full initiation report here (45 pages) but our original thesis is tracking nicely, and we’re pleased to be able to once again add to the fintech leader. 

Alcon (ALC) reported solid earnings this quarter but management’s decision to cut guidance has put pressure on the stock recently. Although we still like the healthcare giant, we elected to trim Alcon as a source of funds to invest into positions with more compelling risk / reward profiles over the medium term. 

The results of the trade put Flagship’s net exposure at ~100%. As always, let us know if you have any questions about the recent trades; we’re happy to assist.

– Your Titan Team

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