top of page
  • Writer's pictureTLivingstonBlog

Sea Limited

Sea Limited, $SE, was a monster winner in 2020, rallying all the way up from $50 to $280. It recently came across my radar as I screened for stocks approaching new highs. There are a few things that are attractive to me about Sea Limited. First, the sustained, prolonged uptrend in 2020 is a sign of extreme strength and a clear sign of massive accumulation. For most of 2021, SE has been consolidating in a very large base. These types of bases offer enormous potential. It's almost as if all the pent-up energy acts as rocket fuel. Once released, it can result in immense moves higher. SE has really been tightening up recently, which is something I always like to see before a stock breaks out.

A company founded in Singapore, Sea Limited operates three businesses in the areas of entertainment, e-commerce, and financial services. Garena is their online gaming platform, Shopee is their ecommerce platform for Southeast Asia, and SeaMoney is their digital payment and financial service provider. A couple of things caught my eye when researching SE. First, it is a large-cap growth stock with a consistent track record of strong sales. Big liquid leaders like this are the type of stocks that funds tend to traffic into during strong bull markets. In addition, I believe the trend towards e-commerce, online gaming, and digital payments, which was accelerated due to COVID-19, will continue in the coming years. Finally, Sea Limited's management currently owns over 30% of its' shares, an indication that they too are bullish on the company's future. In addition, SE has seen a steady increase in fund ownership over the past year, indicating that institutions and hedge funds like what they are seeing as well. While I still believe there is the possibility of a summer shakeout in the coming weeks, I am closely monitoring SE for an entry point. When a stock like SE sets up, you don't want to miss the opportunity to own a true market leader.

To learn more about swing trading and trading in general, visit my course page.

Disclaimer: This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this post constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog or the associated Twitter and Instagram feeds. The stock or stocks presented are not to be considered a recommendation to buy any stock or stocks. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.


Commenting has been turned off.
bottom of page