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    Stocks - r/Stocks Fundamentals Friday Dec 07, 2018

    December 07, 2018

    Stocks - r/Stocks Fundamentals Friday Dec 07, 2018

    r/Stocks Fundamentals Friday Dec 07, 2018

    Posted: 07 Dec 2018 09:06 AM PST

    Feel free to ask questions or talk about (not argue against) fundamentals such as tools, terms, and other important aspects of the investing world. But before you do see the following:

    Important/Basic Terms:

    • Market Cap - The total market value of a public company's outstanding shares. It can be found by multiplying the total number of outstanding shares by the price of a single share. For example, a company with 1,000 outstanding shares each priced at $5 a share would have a market cap of $5,000. Market cap is extremely important and should be used when valuing/researching a company instead of individual share price. See here for the difference between large, small, and micro cap stocks.

    • Shares Outstanding - The total number of shares held by all shareholders vs shares float which are shares available to trade.

    • Volume - Volume is how active a particular company is over a period of time in terms of trading; in other words, the number of shares that are being traded. Typically, you want to look for companies with high volume to avoid issues with liquidity and other reasons. However, if volume is much higher than the average volume in a given period, you may see wilder swings (good or bad) and volatility.

    • Dividend - A scheduled payout from a company. Dividends are used to reward investors for investing in a company. They can be paid monthly, quarterly, yearly, or on a one-time special basis. Dividends are often issued by mature companies but also companies with limited growth, REITs, and struggling companies trying to attract investors or keep current ones happy. Dividends can be great, especially for income investors, but it's important to note that they can limit growth and aren't tax efficient (you're forced to pay taxes on dividends vs just holding) when held outside a tax advantaged account. Never invest in a company solely for its dividend.

    • EPS - The amount of profit allocated to a share of common stock. This can be found by taking Net Income - Preferred Dividends/Weighted Average of Common Shares. EPS is very important in determining how successful a company is performing and where it stands in terms of profitability.

    • P/E Ratio - Stock price divided by EPS. High P/E typically indicates expectations of high growth. This is why we see companies like Amazon with relatively high P/E's. Low P/E's may indicate a company is pretty mature and that limited growth is expected. There are also formulas for trailing P/E and forward P/E.

    • EPS Q/Q - A way of measuring a company's growth rate by taking this quarter's EPS and comparing it to last years EPS for the same quarter. EPS Q/Q of 20% tells us that the stock is earning 20% more than last year while factoring in their stock price.

    • PEG - PEG ratio is used to determine the value of a stock while taking into account growth of a company's earnings. The formula for PEG ratio is a little more complex than some of the other ones we have here, but click here if you're interested.

    • Sales Q/Q - Sales is another word for revenue and doesn't factor in stock price like EPS, but is an important metric for growth, especially when a new stock is in the early stages of expansion and probably has a net loss. A net loss means a stock won't have a P/E or PEG hence sales q/q's importance.

    • Return on Assets (ROA) - Net Income/Total Assets. This formula provides a clearer picture of how well a company is managing its assets to generate earnings and ultimately profitability. Some companies will have low ROA by the nature of their business such as bank stocks.

    • Return on Equity (ROE) - Net Income/Shareholders Equity. This formula can be used to get a better idea of future growth, how debt is impacting things, and how the company compares to its peers in the industry.

    • BETA - The measure of volatility and risk of a company compared to the market as a whole. A stock with a BETA of 1 means that it will likely act similar and correspond with the market. A stock with a BETA lower than 1 typically means less volatility is expected while a stock with a BETA higher than 1 means it could potentially more volatile. These things aren't set in stone and companies can react and perform quite differently than what their BETA would initially indicate.

    • SMA - The moving average of a company's stock price over a specific period of time. SMA can be used over different periods of time and can help paint a better picture of where a company stands in terms of performance over the past few weeks/months; 50 and 200 days are common periods of time to use with SMA.

    Each of these formulas/tools are important and unique in their own way. However, no single one can be used to successfully invest alone by just itself. Instead, think of them as only a piece of a big puzzle that make up something bigger. In addition to knowing what these terms mean, it's also important to understand why they look the way they do as they can sometimes be misleading without further understanding. For a example, if dividends are 3 and EPS is a negative number, then a company might need to issue debt to keep up with the dividend payments which is bad for long term growth.

    The importance of quarterly earnings:

    At the end of every quarter, public companies will make sure everything is more or less up to date and correct; they will have their accounting teams put together things like a balance sheet and income statement for shareholders. They will often provide a run down of how things went in the most recent quarter and what kind of outlook/guidance they see moving forward. These run downs are typically under highlights in the earnings release and are always mentioned in the live conference call which investors can listen in.

    Don't be overwhelmed by all the terms here, it's a lot of info to take in and understand. Instead, look them over and take advantage of some of the great websites available out there for learning this stuff. For some great sites/tools you can use to learn about these terms, follow the market or specific companies, and aid in your investing check out the following links:

    If you have a basic question, for example "what is EBITDA," then google "investopedia EBITDA" and click the Investopedia article on it; do this for everything until you have a more in depth question or just want to share what you learned.

    See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.

    submitted by /u/AutoModerator
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    $CRON UP 35% pre market

    Posted: 07 Dec 2018 05:23 AM PST

    GE makes it official, lowers dividend to a penny

    Posted: 07 Dec 2018 10:52 AM PST

    GE LOWERS DIV TO A PENNY - SAUCE

    I just wanna say... shoutout to all those puts.

    submitted by /u/endstreet
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    Here’s Why Microsoft Stock Could Overtake Amazon on Cloud Infrastructure

    Posted: 07 Dec 2018 05:23 AM PST

    The cloud infrastructure market is expected to reach $83.5 billion by 2021, up from $40.8 billion in 2018. Amazon Web Services was launched in 2006, which means it took twelve years for the infrastructure-as-a-service (IaaS) market to reach $40 billion – but will take only three years for the next $40 billion to accumulate. Therefore, the investment window for cloud infrastructure stocks is far from over.

    https://beth.technology/microsoft-stock-overtake-amazon-cloud/

    submitted by /u/techpreneur_13
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    Common Intra-Day Stock Market Patterns |

    Posted: 07 Dec 2018 07:22 AM PST

    Common Intra-Day Stock Market Patterns

    9:30 AM:

    The stock market opens and there is an initial push in one direction (may take a couple minutes to get going).

    9:45 AM:

    The initial push often sees a significant reversal or pullback. This is often just a short-term shift, and then the original trending direction re-asserts itself.

    10 AM:

    If the trend which began at 9:30 is still in play, it will often be challenged around 10 AM. This tends to be another time where there is a significant reversal or pullback

    11:15 to 11:30 AM:

    The market is heading into the lunch hour, and London is getting ready to close. This is when volatility will typically die out (for a couple hours), but often the daily high or low will be tested around this time. European traders need to close out positions or accumulate a position before they finish for the day. Whether the highs or lows are tested or not, the market tends to "drift" for the next hour or more.

    11:45 AM to 1:30 PM:

    The lunch plus a bit of a time buffer. Usually, this is the quietest time of the day. Best for day traders to avoid it.

    1:30 to 2 PM:

    If the lunch hour was calm, expect a breakout of the range established during lunch hour. Often the market will try to move in the direction it was trading in before the lunch hour doldrums set in.

    2 to 2:45 PM:

    The close is getting closer and many traders are trading with the trend thinking it will continue into the close. That may happen but expect some sharp reversals around this time, because on the flip side, with the close getting closer many traders are quicker to take profits and/or move their trailing stops closer to the current price.

    3 and 3:30 PM:

    These are big "shake out" points, in that it will force many traders out of their positions. If a reversal of the prior trend occurs around this time, the price is likely to move very strongly in the opposite direction as traders are forced out of losing trades with time winding down. Even if the prior trend does sustain itself through these periods, expect some quick and sizable counter-trend moves. As a day trader, it is best to nimble. Don't get tied to one position or one direction.

    3:58 to 4 PM:

    Market closes at 4 PM; after that liquidity dries up in nearly all stocks and ETFs, except for the very active ones. Close all positions a minute or more before the closing bell, unless you have orders placed to close your position on a closing auction or "cross" (see NYSE and NASDAQ closing auction info).

    Considerations

    Big news events can throw a wrench in these tendencies, resulting in big trends, reversals or movement through the lunch hour (or other time) which would be uncommon without some sort of external catalyst. The times provided are estimates only, and therefore can be incorporated into a trading strategy (if you adequately test if the tendency is reliable) but the tendencies should never be used as a strategy or trade signal on their own.

    submitted by /u/endstreet
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    S&P Down 4.5% First Week Of Dec. Exact Same Numbers As First Week Oct

    Posted: 07 Dec 2018 08:06 AM PST

    Following a little trend here. Though obviously history can't repeat itself again. Just interesting looking at the first week of Oct vs this week.

    submitted by /u/jersday
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    Time to buy Low Volatility stocks? Sanford Bernstein seems to think so...

    Posted: 07 Dec 2018 05:05 AM PST

    Sanford Bernstein is telling clients to buy low volatility stocks with a flattening yield curve a headwind for momentum stocks.

    Just some food for thought...

    Over the past decade, the S&P500 has had 12 negative quarters. Over the same period, the Russell 1000 Low Volatility index has outperformed the S&P500 8 of those 12 quarters for a whopping return north of 24%+...

    ​

    While you may hear market commentators say "buy value", sure sounds like "buy low volatility" makes more sense...

    submitted by /u/QuantalyticsResearch
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    Anyone know where I can find daily headlines of stocks on the move along with a short description of why?

    Posted: 07 Dec 2018 09:34 AM PST

    For example:

    "Par Pacific +3% as Oppenheimer starts coverage at Outperform"

    I'm working on a project to scrape these headlines but want to respect seeking alpha's (where the above headline is from) terms which prohibit scraping their content, so looking for other sites that do this.

    submitted by /u/scuba-steve-0
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    How does future market influence stock market?

    Posted: 07 Dec 2018 08:36 AM PST

    I noticed that future market is sort of a 24 hour trading platform for the actual market. I also know that people buy/sell contract rather than the actual stock. But I am not sure how these contract actually has any say on the price of the actual stock (for example the SPX and SP500 future market). Can someone share some insight?

    submitted by /u/dodget
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    Fairly priced SaaS stocks for the long term (10 years+)

    Posted: 07 Dec 2018 04:13 AM PST

    The SaaS stocks that I love are all trading at such high revenue multiples (OKTA, NOW, WDAY), that it seems foolish to purchase them. They're all really really "expensive", as their future earnings are already built into the current stock price.

    What are some SaaS plays that are more moderately priced, but that will be excellent players down the road? I'm not day trading here.

    Obviously this is highly speculative. I've just been doing some research for over a month and have not been able to land on any Cloud Princres that I feel happy purchasing at the current valuations. I'm looking for a long term investment.

    Thanks for your comments in advance.

    submitted by /u/crypto_amazon
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    Name your favorite book, magazine, blog, or anything like that for investing and market news

    Posted: 07 Dec 2018 12:13 PM PST

    Try to stay away from the typical top google search results. GO!

    submitted by /u/i_am_trippin_balls
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    Energy saving technology legit? $VTXB

    Posted: 07 Dec 2018 09:35 AM PST

    https://vortexbrandsinc.com/ $VTXB Technolgy legit? Any insight?

    submitted by /u/Stocksnmoney2
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    DGRO up 15% after hours?

    Posted: 07 Dec 2018 01:58 PM PST

    Anyone have any idea what is going on here? Trying to figure out if this is real or not haha

    submitted by /u/panther8644
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    Suggestions for conservative portfolio for 100K pension

    Posted: 07 Dec 2018 12:57 PM PST

    I'm looking for a reliable portfolio for my dad's pension. Preferably stable companies with high dividends. He's got roughly 100k to invest that needs to be making him more money and it's a shame to see that number going down instead of going up. Any stocks you guys invested in that you trust to remain stable and offer a decent dividend? What are you guys invested in? Any suggestions are appreciated

    submitted by /u/Jake_Proce
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    r/Stocks Daily Discussion Friday - Dec 07, 2018

    Posted: 07 Dec 2018 04:08 AM PST

    These daily discussions run from Monday to Friday.

    Some helpful links:

    If you have a basic question, for example "what is EPS," then google "investopedia EPS" and click the investopedia article on it; do this for everything until you have a more in depth question or just want to share what you learned.

    Please discuss your portfolios in the Rate My Portfolio sticky..

    See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.

    submitted by /u/AutoModerator
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    Best put options to buy right now?

    Posted: 07 Dec 2018 08:15 AM PST

    What are the best puts to buy right now? I was thinking of just focusing on the main tech stocks.

    submitted by /u/jetsettr
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    Is there any way to download stock data to Excel or CSV?

    Posted: 07 Dec 2018 06:13 AM PST

    Did some quick search and it seems like people have been using Yahoo's API for that but it has been deprecated.

    Is there any way now, to download the data so we can play with it with our own algorithms?

    submitted by /u/juzatypicaltroll
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    So $FTNW (FTE Networks) is trading @4 after being giving a PT of 35, but I can't figure out what changed?

    Posted: 07 Dec 2018 09:28 AM PST

    Where to buy CD Projeckt SA stock?

    Posted: 07 Dec 2018 08:16 AM PST

    Can anyone tell me how I can buy some CD projeckt SA stocks? I'm from India btw

    submitted by /u/Soulfilming
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    Parent Company or To-Be Acquired

    Posted: 07 Dec 2018 07:03 AM PST

    In a situation where a company is going to buy out another publicly traded company should you go purchase stock in the parent company or the new subsidiary to maximize your return?

    submitted by /u/Savoy_
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    Best VIX stocks?

    Posted: 07 Dec 2018 10:46 AM PST

    I just researched some vix related stocks, and saw that VXX went from close to $800 down to $40. Why isn't everyone buying this stock, is everyone still bullish?

    submitted by /u/triathlononline
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    VOO alternative to Europeans?

    Posted: 06 Dec 2018 03:36 PM PST

    I am new to stock trading. I just want to buy my first sp500 index fund.

    I am confused because I just found out that as an European I cannot buy any VOO.

    My broker is interactive brokers.

    ​

    On other reddit threads I saw a few alternatives.

    Can somebody tell me (in a very simple way) what the difference between these is:

    SXR8 vs VUSA vs IUSA vs CSSPX

    Which one should I buy?

    submitted by /u/vovr
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    CAN SLIM Method

    Posted: 06 Dec 2018 07:58 PM PST

    Has anyone had any success with the CAN SLIM method? I'm just looking to hear success stories from people with experience using this method.

    submitted by /u/alexmandaro
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    When people say "buy gold" during bear, what exactly does that mean?

    Posted: 06 Dec 2018 03:26 PM PST

    Noob here, i gathered they dont literally mean buy actual gold bars, so what exactly are they talking about here.

    submitted by /u/Illidariislove
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