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    Sunday, December 9, 2018

    SEC Revives Fight Over Inability to Inspect Chinese Auditors of Alibaba, Baidu Investing

    SEC Revives Fight Over Inability to Inspect Chinese Auditors of Alibaba, Baidu Investing


    SEC Revives Fight Over Inability to Inspect Chinese Auditors of Alibaba, Baidu

    Posted: 08 Dec 2018 07:26 AM PST

    https://www.wsj.com/articles/sec-revives-fight-over-inability-to-inspect-chinese-auditors-of-alibaba-baidu-1544229843

    Statement issued in advance of accounting conference on Monday where SEC chairman plans to speak about the problem

    American regulators resurrected a long-simmering fight over their inability to inspect audits of Chinese companies that are traded on U.S. stock exchanges, saying the situation prevents investors from getting information they need.

    The U.S. Securities and Exchange Commission said Friday that, despite several years of talks with its Chinese counterparts, regulators still face obstacles to getting information needed for accounting investigations and inspections of China-based auditors.

    The SEC issued the statement in advance of a major accounting conference on Monday where its chairman, Jay Clayton, plans to speak about the problem.

    "China's state security laws are invoked at times to limit U.S. regulators' ability to oversee the financial reporting of U.S.-listed, China-based companies," the SEC said in a joint statement with the Public Company Accounting Oversight Board. "The inability to date to achieve this level of regulatory cooperation with Chinese authorities raises a number of investor protection and general oversight issues."

    submitted by /u/hemto
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    I have 30-40k I want to invest in a fairly liquid area where I can pull it out if needed

    Posted: 08 Dec 2018 05:06 PM PST

    I know next to shite about investing but was curious if I can get some general direction and ideas on how to do this, I can start researching.

    submitted by /u/runswithoutaims
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    The case for Altria (MO)

    Posted: 08 Dec 2018 01:30 PM PST

    With the volatility we've been seeing in the market lately, I think there's some good opportunities to deploy some cash. My portfolio and watch list consists of blue chip dividend stocks (with the exception of BRK.B). The two most compelling buys I find right now are BRK.B and MO.

    Here are the reasons I believe MO is a bargain right now

    • Forward PE ~ 12.5, EV/EBITDA ~ 11.3
    • Yield ~ 5.9% (on average it's around 4.5%)
    • Solid balance sheet. Debt/EBITDA ~ 1.30 (Anything less than 2.5 is considered pretty safe).
    • Interest coverage ratio ~ 14.35 which tells me the quality of their debt is pretty good.
    • Return on invested capital consistently above 30% (S&P averages 13%).
    • Management expects EPS growth (and subsequently dividend growth) of around 7-9% for the next two years. Due to the inelastic nature of tobacco and the Marlboro brand name, MO has significant pricing power. Cigarettes in the US are still pretty cheap compared to the rest of the western world (https://www.statista.com/chart/15293/price-for-cigarettes-per-country/). This combined with low capex spending and solid cash flows make for a high yield and a consistently growing dividend.
    • The new CEO (former COO), Howard Willard, has played a key role in previous large acquisitions such as John Middleton and US Smokeless Tobacco. Both acquisitions have turned out to be smart choices by management.
    • MO is well diversified. In addition to cigarettes, they sell cigars, smokeless tobacco products, wine, own a 10% equity stake in BUD (single largest brewer in the world) and have just shown they will be moving into marijuana as well. They can afford to pay for their stake in CRON with cash outright (Approx $2.3 billion in cash on the balance sheet).
    • Their recent announcement of discontinuing their e-vapor products tells me they are expecting either FDA approval for IQOS, an equity stake in JUUL (their balance sheet gives them enough room to take on some debt) or possibly both.

    Declining cigarette use and the risk of FDA regulation is often cited as a reason to avoid investing in MO. I believe their strong balance sheet, diversified sources of revenue, strong pricing power, shrewd/shareholder friendly management and opportunities for growth in alcohol, reduced risk products and marijuana will continue to generate profits for shareholders in the long run. On a more speculative level, seeing the consolidation amongst other tobacco players (BTI acquisition of RAI), there's a chance MO and PM might recombine at some point in the future. At its current valuation, I believe MO is a strong buy.

    I respect the fact that a lot of people have moral and ethical reasons for avoiding a direct investment in tobacco. This was meant to highlight MO purely from an investment point of view.

    I am long MO and PM.

    submitted by /u/vipnasty
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    When markets pullback, don't worry about "where is the bottom?"

    Posted: 08 Dec 2018 05:20 AM PST

    A better use of time is realizing that there must be "good" stocks being unfairly punished in this pullback.

    submitted by /u/PersonalFinanceKid
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    A high number of assets are invested in S&P500 index funds. Buy 501th to 600th in market cap companies and profit when they join the index?

    Posted: 08 Dec 2018 02:44 PM PST

    A high number of assets are invested in S&P500 index funds, thus increasing the demand for companies who are included in the index. Would buying companies who rank say 501th to 600th in market cap be a good strategy?

    The reasoning is as soon as one of the 501th to 600th largest company grows to qualify and become a member of the S&P500 companies, it should create a large demand from funds and ETFs tracking the index and ultimately increase the company stock price?

    submitted by /u/B2KMTL
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    Opening an IRA December 2018 vs January 2019?

    Posted: 09 Dec 2018 01:53 AM PST

    I plan on opening a Roth IRA, but before I do I'm wondering if there's a reason for me to wait until next year to start investing or if I should create the account before this year ends. Any advantages / disadvantages to either in terms of taxes or anything?

    submitted by /u/DawsonBriggs
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    Inverse ETF for leveraged credit?

    Posted: 08 Dec 2018 10:40 PM PST

    Anyone know of any inverse ETFs for leveraged credit bonds?

    submitted by /u/SafeLawfulness
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    Time to get in?

    Posted: 08 Dec 2018 10:24 AM PST

    Hello all first time posting thanks for having me.

    I have been wanting to get into the stock market for some time now. I have been playing around with a very small chunk of cash in Robinhood to learn how everything works and I think I'm ready to do a larger sum in a fidelity account.

    Everytime I want to make that move, the stock market seems to really drop. I know that means its a good time to get into it since the cost is lower for stocks. But I wanted to get your guy's and gal's opinions... Is now a good time to get into the market or is there more bear market to come?

    Thanks!

    submitted by /u/redkid-1234
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    Daily advice thread. All questions about your personal situation should be asked here

    Posted: 09 Dec 2018 04:04 AM PST

    If your question is "I have $10,000, what do I do?" or anything similar. There is no single answer to this question, but we will also need A LOT MORE information if we are to give some sort of answer

    • How old are you?
    • Are you employed/making income? How much?
    • What are your objectives with this money? (buy a house? Retirement savings?)
    • What is your risk tolerance? (Do you mind risking it at blackjack or do you need to know its 100% safe?)
    • What are you current holdings? (Do you already have exposure to specific funds and sectors?)
    • Any other assets? House paid off? Cars? Expensive girlfriend? (not really an asset)
    • What is your time horizon? Do you need this money next month? Next 20yrs?
    • Any big debts?
    • Any other relevant financial information will be useful to give you a proper answer.

    Be aware that these answers are just opinions of Redditors and should be used as a starting point for your research. You should strongly consider seeing a registered financial rep before making any financial decisions!

    submitted by /u/AutoModerator
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    Cannabis stocks in Australia

    Posted: 09 Dec 2018 03:10 AM PST

    Evening

    Keeping it simple. Are there any cannabis related stocks we can invest in on the ASX ? Medical government or neither ?

    As someone who diversifies across as many asset classes as possible, I am looking for what could be the leading companies in this area 5-10 years down the track. Maybe there are none yet here ?

    Similarly interested in renewable energy companies ( though that is for another day and an easier pick if we break it down to what makes up this sector, lithium , cobalt , solar etc)

    Thanks in advance for any responses!

    submitted by /u/leeebro
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    What is the most risky investment type in crowd lending/equity?

    Posted: 09 Dec 2018 01:53 AM PST

    What is your opinion on p2p lending and equity such as business lending, property lending and startup equity?
    It seems there are alot of different types: p2pmarketdata.com how would you rank the riskiness of these types of crowd investing? One of the types must be more risky than the other in this market?
    My take is, starting with the most risky:

    1. Startup equity
    2. Receivables financing
    3. Consumer lending
    4. Property equity
    5. Business lending
    6. Property lending

    submitted by /u/WarrenBuffMyFreedom
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    Finally taking control of my finances and realizing that my newish job has kind of shit options in the 401k

    Posted: 08 Dec 2018 11:20 AM PST

    The job where I just hit 6 months at has just allowed me to enroll in the 401k program. Looking at the options for my investments it looks like the only option right now for a target date fund is with American Funds which have very high expense ratios.

    Here's an imgur album with my options: https://imgur.com/a/hJBA2O9

    Any advice? Is the target date fund for 2055 or 2060 the best way to go? I'm also considering only putting in enough to get the max match from my employer and then look into other investment options.

    submitted by /u/sandandwood
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    Looked all over Google, but No Answers

    Posted: 09 Dec 2018 12:25 AM PST

    I'm a high school student and I'm looking for investment competitions.

    1)Do you know about any good ones? Online based

    2) Can I participate in competitions held by universities? Even if their requirements are of university students?

    I've tried searching many but to no avail..I really hope I'm able to find help. Thanks!

    Also, if you guys aren't aware of any, could you please upvote this so it comes to other people's attention so maybe they could help? I'd really appreciate it. Thank You

    submitted by /u/unbeatable18
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    Interested in researching economic bubbles

    Posted: 08 Dec 2018 01:00 PM PST

    Does anyone here know of any quality videos, books and/or research papers on the topic of Economic bubbles? I'm very fascinated by the topic after following Bitcoin for the past year or so and I would like to expand my knowledge beyond reading posts by Redditors (no offense, I love mostly all of you). Anyone here else interested in the topic? Share some knowledge! Knowledge is power as they say.

    Cheers

    submitted by /u/hank_kingsley
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    Publicly Traded Global Macro Funds?

    Posted: 08 Dec 2018 11:27 PM PST

    Hello r/Investing,

    I've been digging around but haven't come across a global macro fund that's publicly traded (e.g., ETF, mutual fund). Is anyone aware of any? I'm looking for pure macro funds, not funds tracking indexes or simply going long and short. I'm guessing that these don't exist due to liquidity concerns with the strategies concerned, but would love to know if some do.

    Cheers,

    E/R

    submitted by /u/Echo_Roman
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    Anyone invest in commodities?

    Posted: 08 Dec 2018 01:10 PM PST

    I heard in the podcast "the investors podcast" that commodities are at 100 year lows. In the podcast the guest called out uranium as particularly low. Does anyone here invest in such things or have any additional commentary?

    submitted by /u/mtortilla62
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    Looking for a website that would allow me to track a collection of investments in a specific time frame (11/02/18 - 12/03/18)

    Posted: 08 Dec 2018 06:26 PM PST

    For a School Project, I was supposed to have been monitoring a "Model Portfolio" consisting of 7 stocks, 1 Mutual Fund, and 1 ETF from November 2 of last month to December 3rd of this month. We were given MorningStar Direct to work with online, however the system seems to have locked me out, and I am unable to access any of my data necessary to finish my project.

    I'm looking for a website that I can add my stocks/MF/ETF to, which would allow me to collect Total Return YTD information and Allocation percentages across that given timeframe.

    Here is an example screenshot of the data that I was supposed to have collected from MorningStar, however cannot due to issues on my end. If anyone can point me in the direction of a website that can collect this same data in my specific timeframe and specific stocks, I'd greatly appreciate it!

    submitted by /u/DolphinsPhan
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    Getting ready to buy some CDs for the first time.

    Posted: 08 Dec 2018 12:06 PM PST

    I have an Ameritrade account and was going to spread about 100k around over the following time horizons. I just want to make sure I am not missing anything!

    CDs are pretty easy, right? Just put the money in and wait for them to mature. Are there any tax strategies or anything else that I need to keep in mind when making this move.

    Thanks!

    BANKofAMERICA..... 2.7% 12 months
    Wells Fargo.............2.785% 12 months

    Morgan Stanley........2.85% 18 months
    CitiGroup Bank....... 2.921% 18 months

    CitiGroup Bank...... 3.073% 24 months
    Wells Fargo............3.144% 24 months

    CitiGroup Bank.......3.276% 36 months
    Wells Fargo............3.299% 36 months

    CitiGroup Bank.......3.582 60 months
    Wells Fargo............3.608 60 months

    Update: Thank you to everyone for their advice and insight. I will definitely talk this over with my broker on Monday.

    submitted by /u/Nic871
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    Investors should not worry about AT&T's dividend payout capacity

    Posted: 08 Dec 2018 04:58 PM PST

    AT&T

    Did a little study on AT&T. Here it goes: if you think AT&T dividend yield of 6+% is a bit much, it actually is. However, its forecast for next year's dividend coverage appears more than enough to cover for its dividend payout, therefore, it's best to sit tight and enjoy the company's ever-growing payouts.

    https://www.gurufocus.com/news/782443/cant-sleep-because-of-your-att-investment

    submitted by /u/markyu007
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    were stock buy backs the only thing that came out of the tax cuts?

    Posted: 08 Dec 2018 04:25 PM PST

    What are some good investment articles/blogs that you read on a regular basis that give an overview of the market and also provide some predictions on where they think the market will go next?

    Posted: 08 Dec 2018 11:21 AM PST

    When did share buy backs become a thing?

    Posted: 08 Dec 2018 07:14 PM PST

    Why is this a good use of a company's capital?

    Seems very short sighted to prop / drive up a stock price.

    It's like legal stock manipulation.

    submitted by /u/DaDaDaonald
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