• Breaking News

    Wednesday, February 7, 2018

    Disney Earnings: $1.89 per share vs. expected EPS of $1.61 Investing

    Disney Earnings: $1.89 per share vs. expected EPS of $1.61 Investing


    Disney Earnings: $1.89 per share vs. expected EPS of $1.61

    Posted: 06 Feb 2018 01:08 PM PST

    Revenues: $15.35B vs. 15.45B expected

    Media and networks: $6.24 billion vs. $6.35 billion expected

    Parks and resorts: $5.15 billion vs. $4.86 billion expected

    Studio: $2.50 billion vs. $2.75 billion expected

    Consumer and interactive: $1.45 billion vs. $1.52 billion

    https://www.cnbc.com/2018/02/06/disney-earnings-q1-2018.html

    submitted by /u/gronkspike25
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    Disney CEO Iger: ESPN streaming service to cost $4.99 per month

    Posted: 06 Feb 2018 01:26 PM PST

    Disney CEO and Chairman Bob Iger said it will cost $4.99 to stream ESPN, in Disney's first ever direct-to-consumer offering.

    The company announced in August it would launch its own ESPN video streaming service in early 2018. The platform, which will feature about 10,000 sporting events each year, will have content from the MLB, NHL, MLS, collegiate sports and tennis' Grand Slam events.

    https://www.cnbc.com/2018/02/06/disney-ceo-iger-espn-streaming-service-to-cost-4-point-99.html

    submitted by /u/gronkspike25
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    Snapchat Earnings: Loss of $.13 vs. expected loss of $0.16 per share

    Posted: 06 Feb 2018 01:17 PM PST

    Revenue: $285.7 million vs. $252.9 million estimated.

    Daily Active Users: 187million vs. 184.2 million estimated

    Average Revenue Per User: $1.57 vs. $1.36 estimated

    Currently up ~25% after hours trading.

    https://www.cnbc.com/2018/02/06/snap-earnings-q4-2017.html

    submitted by /u/gronkspike25
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    US Senate Hearing on the Regulation of Cryptocurrencies

    Posted: 06 Feb 2018 09:42 AM PST

    https://www.banking.senate.gov/public/index.cfm/2018/2/virtual-currencies-the-oversight-role-of-the-u-s-securities-and-exchange-commission-and-the-u-s-commodity-futures-trading-commission

    The SEC and CFTC are opting to let these markets grow naturally instead of outright banning all market activity like China or other nations have done. To them cryptocurrencies are reminiscent the early days of the internet. The long term value is very unclear but they definitely do see the potential for distributed ledgers and digital currencies to have a profound impact on finance markets. Furthermore, Giancarlo made comments about how cryptocurrencies are what got his children interested in financial markets and how the government owes it to the younger generation to take a thoughful and calculated approach to regulation. They're mainly targeting ICOs, which they argue are mostly securities, and the obvious scams/ponzis.

    submitted by /u/DonaldObama911
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    XIV is finished

    Posted: 06 Feb 2018 06:22 AM PST

    Credit Suisse issued the following PR:

    https://www.credit-suisse.com/pwp/cc/doc/credit_suisse_age_event_acceleration_xiv_etns.pdf

    Credit Suisse AG Announces Event Acceleration of its XIV ETNs New York February 6, 2018 Credit Suisse AG ("Credit Suisse") today announced the event acceleration of its VelocityShares™ Daily Inverse VIX Short Term ETNs ("XIV") due to an acceleration event. The acceleration date is expected to be February 21, 2018. Since the intraday indicative value of XIV on February 5, 2018 was equal to or less than 20% of the prior day's closing indicative value, an acceleration event has occurred. Credit Suisse expects to deliver an irrevocable call notice with respect to the event acceleration of XIV to The Depository Trust Company by no later than February 15, 2018. The date of the delivery of the irrevocable call notice, which is expected to be February 15, 2018, will constitute the accelerated valuation date, subject to postponement due to certain events. The acceleration date for XIV is expected to be February 21, 2018, which is three business days after the accelerated valuation date. On the acceleration date, investors will receive a cash payment per ETN in an amount equal to the closing indicative value of XIV on the accelerated valuation date. The last day of trading for XIV is expected to be February 20, 2018. As of the date hereof, Credit Suisse will no longer issue new units of XIV ETNs. On February 2, 2018, the closing indicative value was USD 108.3681. None of the other ETNs offered by Credit Suisse are affected by this announcement.

    submitted by /u/llevar
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    Icahn: The market will one day 'implode' because of these wacky funds using so much leverage

    Posted: 06 Feb 2018 02:13 PM PST

    https://www.cnbc.com/2018/02/06/billionaire-investor-carl-icahn-there-are-too-many-derivatives-and-the-current-market-is-a-rumbling-warning.html

    LOL @ Ichan, who's business model is literally to use leverage that's at a way higher multiple than 3 like some of these ETF's/ETN's. Big banks leveraged 7-10x. Ichan just mad that ordinary Joe got a ticket to the leverage party. Also mad at ETF's because they can outperform his (and many others) fund in the long run for way lower fees.

    submitted by /u/Eddie_Quesadilla
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    Remember 50 Cent. "Basically they come in every day and they buy 50,000 VIX calls worth 50 cents."

    Posted: 06 Feb 2018 08:59 AM PST

    Who did not sell during the Great Recession?

    Posted: 06 Feb 2018 04:29 PM PST

    I'm interested to know because most of the people I know tragically lost their nerve and sold at exactly the wrong time.

    Is fear stronger than greed when it comes to the behavior of investors?

    submitted by /u/Henry_Doggerel
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    Three reasons why Apples stock price is going to take off this quarter

    Posted: 06 Feb 2018 12:25 PM PST

    1. The reaction to Q1 earnings was wrong and at some stage sense will return. The current quarter included 13 weeks instead of the 14 weeks included last year. Adjusting for this sales rose by 20%, EPS rose by 22% and unit sales increased by 6%. A level of growth that deserves a higher PE multiple than the current 16.4.

    2. The iPhone X was only released on November 3rd meaning it only contributed to sales for 8 weeks and probably delayed purchases prior to that. The true impact of the iPhone X will become much clearer in Q2 and with significant contribution to revenues and margins. The iPhone X is the best selling iPhone and has pushed up the average selling price by about $100 to $796. That momentum has continued through year end and until the end of January and shows no sign of slowing down. Priced from $999 that by itself will drive margins higher.

    3. Finally from Cook's comments on the call, Apple seems to be planning to use about $160 billion of its cash to pay dividends and buyback stock. At current market cap of $800 billion that represents an incredible 20% of stock outstanding.

    Given these three factors alone, I fully believe the EPS forecasts are achievable and that a PE multiple expansion is possible. However even assuming the PE multiple remains unchanged, the earnings growth alone would increase the SP by 20% from current levels.

    This post is not a recommendation to buy or sell any security or derivative. Stocks are not suitable for all investors. Please do your own research.

    submitted by /u/InterestingNews1
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    Be wary of the phrase "The fundamentals of the economy are sound"

    Posted: 06 Feb 2018 06:13 PM PST

    Over the past few days I have been hearing this phrase repeated over and over again... "The fundamentals of the economy are sound". While this may be true at the moment, there is a slight flaw in this thinking. If you are waiting for clear evidence that the economy is NOT sound to rebalance your portfolio (sell equities) I can pretty much guarantee that will be too late. There are a lot of smart investors out there with very sophisticated methods for determining when the economy will begin to slow down.

    In other words, while you and I will be waiting for bad jobs numbers to be released by the commerce department, or a drop in the University of Michigan consumer sentiment index, there are hedge funds that contract out satellites to count the number of cars in your local strip mall. Corporate insiders will be reading regional sales figures that will scare the shit out of them and they begin to increase their exposure in US treasuries in their personal accounts. Sovereign wealth funds will shift to a risk off position the moment they realize they are about to go war, etc...

    I should mention two disclaimers for this post. 1) Market timing is not a wise way to invest and 2) Many "sophisticated" investors fail to beat the markets.

    My point remains, if you are waiting for a "signal" to sell equities, public information like jobs numbers, etc... should not be your catalyst.

    submitted by /u/warrenfgerald
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    An Inventor of the VIX: ‘I Don’t Know Why These Products Exist’

    Posted: 06 Feb 2018 12:26 PM PST

    China demands compensation for U.S. solar tariffs: WTO filings

    Posted: 06 Feb 2018 05:01 PM PST

    Wynn is out @WYNN

    Posted: 06 Feb 2018 06:48 PM PST

    Wynn is out at WYNN, if it drops below 135, I might be a buyer.

    https://www.cnbc.com/2018/02/06/steve-wynn-is-out-as-ceo-of-wynn-resorts.html

    submitted by /u/Teddy125
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    From 2011: A time to EVALUATE your jitters

    Posted: 06 Feb 2018 03:32 AM PST

    Source: A time to EVALUATE your jitters

    An oldie but goodie from the Bogleheads community circa 2011. Regardless of what the market ends up doing, I feel this is a good post for the younger folks who are expericing volitility for the first time or those who forgot the lessons learned from the last decade.

    For context this post was written during the August '11 sell off.

    submitted by /u/chak2005
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    Kodak Says Scammers Are Already Selling Fraudulent KodakCoins

    Posted: 06 Feb 2018 08:33 AM PST

    https://www.bloomberg.com/news/articles/2018-02-06/kodak-says-scammers-are-already-selling-fraudulent-kodakcoins

    Eastman Kodak Co. is warning that several fraudulent websites and Facebook accounts are promoting and even claiming to already be selling its planned digital token.

    The 130-year-old company said last week that verifying the "accredited" status of potential investors for the digital KodakCoin token could take several weeks, sending its shares down 13 percent. Over 40,000 investors expressed interest in the offering, the Rochester, New York-based company said last week.

    submitted by /u/COMPUTER1313
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    Why Carl Icaln hates index funds so much?

    Posted: 06 Feb 2018 12:09 PM PST

    I just saw the segment on CNBC with Carl Icahn. I understand why he wants regulation in 3X ETFs, crypto, ect. He also went off on passive investing, and how it is a bubble right now. What is his theory behind this? Why simply buying a total market index fund and hold for 20 yrs such a bad idea with Icahn?

    submitted by /u/Cosmos1980
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    The Dow vs All companies headquartered in Iowa

    Posted: 06 Feb 2018 06:40 PM PST

    If it's a dumb benchmark, shouldn't all the headlines be referring to the S&P 500 instead?

    submitted by /u/PineapplePina
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    Good Books/Education Mediums to look into?

    Posted: 06 Feb 2018 11:05 PM PST

    So far I have read a 'A Random Walk Down Wall Street' and 'Liars Poker' and am currently reading 'The Intelligent Investor' but would like to know of any other resources to look into. I have learned a bit from reading so far but I feel like a lot of it is going over my head and I'm not fully understanding everything in the books.

    submitted by /u/sumrandouser
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    Pseudo Robo Investing

    Posted: 06 Feb 2018 10:46 PM PST

    Investigating robo investing / smart beta tools which can be applied on a desired set of stocks / securities. As an example rather than handing my money to wealth front or investing in an ETF (which has a predetermined set of stocks), are there any tools available which I can provide with a list of desired stocks, and it weights them for me (using one of multiple different strategies, i.e. beta, growth, market cap, etc.)?

    I don't think this belongs in the daily advice thread, but if mods see fit do move it.

    Thanks

    submitted by /u/kromy46
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    Historical research of the best trailing stop loss %?

    Posted: 06 Feb 2018 06:40 PM PST

    Trying to set my stop losses, don't want it too tight to not allow stocks to have breathing room. Don't want it too loose to take excessive losses. Is there research anywhere regarding the "sweet spot" %?

    submitted by /u/diduknowitsme
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    $VIX now at its highest level since 2008

    Posted: 06 Feb 2018 04:32 AM PST

    Bitcoin Is Less Volatile Than Stock Market Volatility Index, SEC Chair Says

    Posted: 07 Feb 2018 01:11 AM PST

    Bitcoin Is Less Volatile Than Stock Market Volatility Index, SEC Chair Says

    http://for.tn/2E9Ma7b

    submitted by /u/bobbyw24
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    Which Stock To Buy When Given One Month Interest Free Margin?

    Posted: 07 Feb 2018 01:07 AM PST

    Robinhood gold waives the fee for the first month. If you can borrow money for 0% for any single month what should you put it in?

    I'm interested in both low risk and higher risk ideas.

    submitted by /u/aramadia
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    401k large cap allocation

    Posted: 06 Feb 2018 08:31 PM PST

    Is it a mistake to hold a large cap value fund, large cap index fund, and large cap growth fund in a 401k? I'm trying to figure out if it is redundant, and maybe just stick to one growth and one value

    submitted by /u/hamburger_time86
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