Badness Rating:

The Idea

An experiment to see if you can use Chat GPT as a tool for investing.  However, this isn’t as easy as asking generative A.I. “which companies should I invest in to get large returns, please?” This is because Chat GPT has special protocols built in (at least until it becomes sentient – but then we’ll have bigger problems…) In fact, if you ask it a variation of that question, you’ll get:

"As an AI language model I cannot provide financial or investment advice as it involves risk and requires a deep understanding of the financial markets."
- Chat GPT

So, basically the opposite of the solicitations I get in my LinkedIn DMs from financial advisors. 

But, just as Somersault does for clients, the key to maximizing this technology is asking questions that give you the baseline information you need and then adding the context yourself.

Experiments Parameters:
  • 2 month timeline
  • 3 public companies chosen for each side
  • Companies have gone public within the past 12 months
  • All investments were made on April 28, 2023
  • $200 total investment – split between public companies analyzed by Chat GPT and the due diligence of human investors

Somersault A.I.

Learn more about how Somersault uses generative A.I. for content marketing strategy.

Chat GPT Stock Analysis

1 Jowell – $JWEL

Shang-hai based Holding company ecommerce platform for cosmetics, health and nutritional supplements and household products.  (had never heard of it before.) GPT inquiries provided insight into this social commerce program allowing independent sales representatives to create their own branded stores. It has a referral marketing program which incentivizes growth. Budding entrepreneurs in China who are looking for financial independence could flock to this. 

Investment Details:
  • Shares: 99 
  • Cost/share: $0.34
  • Total Return: -$11.88 (-35.29%)
Investment details:
  • Shares: 1.249763 
  • Cost/share: $26.41
  • Total Return: -$1.27 (-3.84%)
2 Teledoc Health, Inc. – $TDOC

Teladoc Health, Inc. is a telemedicine and virtual healthcare company that provides medical consultations and care to patients remotely via phone or video. Teladoc has been incorporating chatbots powered by chat GPT technology to improve patient engagement and triage services. Chat GPT gave 3 projections on why this is a good investment:

    1. Patient Triage: Teladoc’s chatbot uses GPT to help triage patients based on their symptoms and medical history. Patients can use the chatbot to describe their symptoms, and the chatbot will analyze the information to help determine the next steps.
    2. Medical Advice and Information: Teladoc’s chatbot uses GPT to provide patients with medical advice and information. Patients can ask questions about their symptoms, medications, and medical conditions, and the chatbot will provide personalized answers based on the patient’s medical history and other relevant information.
    3. Appointment Scheduling: Teladoc’s chatbot can schedule medical appointments for patients based on their needs and schedule.
3 Marcus Corporation – $MCS

The Marcus Corporation is a hospitality and entertainment company that owns and operates hotels, movie theaters, and entertainment venues. They also produce and host events such as concerts and comedy shows. Chat GPT growth projections:

    1. Diversified Business: The Marcus Corporation has a diversified portfolio of businesses, which includes hotels, theaters, and restaurants. This allows the company to weather downturns in any one industry and capitalize on opportunities in others.
    2. Strong Brand: The Marcus Corporation is known for high-quality, upscale experiences, and has a loyal customer base.
    3. Geographic Reach: The company has locations in multiple states, giving it a wide geographic reach and increasing its potential customer base.
 Investment details:
  • Shares: 1.936331 
  • Cost/share: $17.61
  • Total Return: -$5.16 (-15.14%)

Human Stock Picks

Recommendations and due diligence provided from a group of 4 individuals in finance.

1 Procore – $PCOR

Procore is a construction project management software uses in over 150 countries. I initially heard about Procore through Somersault’s work increasing course registrations for West Michigan Construction Institute. While this is changing quickly, construction has been a slower adopter of tech relative to other industries. However, I’m seeing that progress increase steadily as the craft trades are booming. Plus, summer months are traditionally the busiest time for construction companies.

Investment Details:
  • Shares: 0.943939 
  • Cost/share: $52.97
  • Total Return: +$11.14 (+22.28%)
1 Sun Country Airlines Holdings, Inc. $SNCY

Airlines get hammered in times of recession. However (from Prof G advice), analysts have been saying that a recession is only a month away for the past 9 months. Yet, there’s no data to support that.

In Q1 of 2023, SNCY cargo and charter block hours grew by 5.2% and 32.9% respectively. While cargo makes up about 12% of global air transport revenues, it accounts for roughly 25% of industry profits. As long as the recession staves off for another month, then the huge growth in charter flights will be very profitable as airlines have better opportunities to negotiate profitable contracts with clients who require custom services.  They also have lower operating costs than passenger flights. They also announced they’re buying five new Boeing 737 aircrafts. If that growth (especially in the cargo) continues to trend, then they’ll be flying high.

Investment details:
  • Shares: 1.5113355
  • Cost/share: $19.85
  • Total Return: +$4.13 (+13.78%)
3 Pitney Bowes – $PBI

An interesting find and recommendation from one of the smarter investors I personally know. PBI has been absolutely hammered over the past 8 years. 90% decline in annual cash flow and 80% decline in stockholder value leading to a ‘junk’ credit rating. In a bit of a hostile, behind-the-scenes Succession lite shakeup, they recently had a new interim CEO: Lance Rosenzweig. Mr. Rosenzweig has a history of turning things around. This was the only stock that I also took out an small options call for – thinking the stock could get a boost from the positive news and new leadership team.

 Investment details:
  • Shares: 1.439523 shares
  • Cost/share: $3.52
  • Option Call: $10 (expired worthless)
  • Total Return: -$10.97 (-64%)
A.I. Chat GPT icon

A.I. Total Return:

- $18.31

human investor idea

Human Total Return:

+ $4.3

Key Takeaways:

This was basically like a less sexy, action-free version of the Terminator. And while that sentence is not true, humanity still triumphed! 

That said, a two month time period is really too short to accurately determine ROI in the markets. I'm sure I'm not the first to try to use A.I. to invest and I definitely won't be the last. With a flood of new generative A.I. companies entering the market, I'm quite confident we'll see a (expensive) software emerge in the next 12 months that will be able to leverage large data models to amazingly accurate market analyses. 

And THAT is the company I'll be investing in. 

Other takeaways:
  1. I will not be able to quit my day job any time soon.
  2. Why the hell do I do options trading. Seriously.  

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