Provides leveraged exposure to the daily performance of Microsoft (MSFT) stock. Seeks to deliver 200% of the daily returns of MSFT before fees and expenses. Now — the numbers.
The stock trades 26% below its peak. The market has trimmed its expectations for the company.
It paid $3.14 per share over the last 12 months, with payments going back years without a break — regular cash for whoever holds the stock.
This stock swings about 2.3 times as much as the market average. Big rallies — and big drops — can both happen fast.
The balance sheet offers little cushion against a rough stretch. Report-card grade: 1/100.
Buyers haven’t stepped back in yet; the price hasn’t found its footing. Report-card grade: 3/100. For a turnaround signal, the stock first needs to close the gap with the market.
We grade companies — revenue, margins, balance sheets. This is a fund, so there is no report card to give. That is not a low grade; it is a different kind of thing.
One-line summary: a basket, not a business. Judge it by what it holds.