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    Tuesday, June 11, 2019

    Daily Advice Thread - All basic help or advice questions must be posted here. Investing

    Daily Advice Thread - All basic help or advice questions must be posted here. Investing


    Daily Advice Thread - All basic help or advice questions must be posted here.

    Posted: 10 Jun 2019 05:22 AM PDT

    If your question is "I have $10,000, what do I do?" or other "advice for my personal situation" questions. If you are going to ask how to invest you should include relevant information, such as the following:

    • 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 significant other?
    • 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.

    Please consider consulting our FAQ first - https://www.reddit.com/r/investing/wiki/faq

    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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    Beyond Meat ($BYND) Up 600% Since IPO

    Posted: 10 Jun 2019 02:08 PM PDT

    Beyond Meat ($BYND) shares moved higher once again Monday morning. The stock persists at higher than expected levels after one of the most successful IPOs of 2018 2019 so far.

    The next closest IPO of 2018-2019 has been Zoom Video ($ZM) which is up a mere 185% compared to Beyond Meat's 600%. For comparison Uber ($Uber) is down 3% while Lyft ($LYFT) is down 18%.

    Beyond Meat shares jumped as much as 34% to $186.43 per share on Monday, marking an all-time high for the company that claims to be "The Future of Protein". Shares for the company closed on Friday at $138.65. The IPO price was $25 per share.

    Shares, which began trading publicly May 2, have soared altogether 560%, reaching a market value of approximately $10 billion. This forward price-to-sales ratio of 35 seems unsustainable. Tyson Food, for instance, trades for 0.7 times their sales. Credit Suisse analysts see a price target on Beyond Meat shares of $125 based on the company's first-quarter report, as well as a 2030 sales estimate of $3.5 billion. Beyond Meat is trading for about twice that 2030 sales estimate.

    To be sure, the U.S. market certainly isn't the only one Beyond Meat is looking at. CFO Mark Nelson called Europe and Asia "very significant" markets for Beyond Meat. He noted that Europe already has a "very well-developed market" for plant-based proteins.

    Continue Reading: https://goldsilverbitcoin.com/beyond-meat-600-percent-increase-ipo/

    submitted by /u/DistinctSkin
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    Salesforce acquires Tableau for $15.7B

    Posted: 10 Jun 2019 04:41 AM PDT

    https://techcrunch.com/2019/06/10/salesforce-is-buying-data-visualization-company-tableau-for-15-7b-in-all-stock-deal/

    Couple this with Googles acquisition of Looker. Huge consolidation in the Bi/Data space.

    submitted by /u/likwitsnake
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    What are your thoughts on Slack going public? Worth looking into?

    Posted: 10 Jun 2019 05:25 PM PDT

    Just a Friendly Reminder to Ignore Financial Media

    Posted: 10 Jun 2019 06:18 AM PDT

    CNBC can be very bad for your financial health.

    Yesterday: "Tech is dead, get out of tech... a collapse is imminent"

    Today: "Tech is back... its time to get back into Tech"

    https://i.imgur.com/MwvllWx.jpg

    submitted by /u/nealosis
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    Are RTN the losers in UTC/RTN merger?

    Posted: 10 Jun 2019 08:24 PM PDT

    The otis and carrier are roughly half the value of UTC which puts the post spin off price per share at / around $70 Which means RTN shareholders are receiving $163 (2.33*70) vs today closing price of 187.

    I want a piece of the otis business, is it better to just buy UTC and get otis shares from the spin off or wait and buy otis and RTX after spin off ?

    submitted by /u/PayMe4TradeIdeas
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    How will Alibaba (BABA) being listed in Hong Kong affect its stock price in the US?

    Posted: 10 Jun 2019 11:05 AM PDT

    Question for those who traded pre algos.

    Posted: 10 Jun 2019 11:37 PM PDT

    Did price lines always have this kind of inexplicable geometry before algos? Did oblique resistance lines and triangles and all that Technical analysis stuff appear all the time in all time frames on a regular basis, the way it does now?

    If you didn't trade pre algos you can also help answering this if you can suggest a market that currently trades without algos. I can then investigate that.

    submitted by /u/noooris
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    CRWD IPO

    Posted: 10 Jun 2019 06:21 PM PDT

    Any interesting insights on crowdstrike IPO? Pricing should be set Tuesday with IPO on Wednesday.

    Haven't done much DD - but its competitors have done well for themselves.

    Interested to see who else is keeping an eye on this IPO.

    submitted by /u/Spykeekuya
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    Thoughts on $USO (OIL)

    Posted: 10 Jun 2019 04:11 PM PDT

    Oil usually drops before the summer and starts running back up during summer. Technical analysis indicates that the bottom is in on $USO. Any ideas?

    submitted by /u/Sneakeraddict525
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    AMD sold too soon...

    Posted: 11 Jun 2019 02:32 AM PDT

    who's crying with me?

    submitted by /u/finwesir
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    Big Banks Are Very Exposed To Leveraged Lending And CLO Markets

    Posted: 10 Jun 2019 10:57 AM PDT

    https://www.forbes.com/sites/mayrarodriguezvalladares/2019/04/15/big-banks-are-very-exposed-to-leveraged-lending-and-clo-markets/

    By no means are banks immune to any downturn in leveraged lending. As pointed out in a very detailed research piece last week by Standard and Poor's LCD News, "Banks and hedge funds, which over the past few years have taken a back seat to collateralized loan obligations and other institutional investors in the $1.19 trillion U.S. leveraged loan market, have regained market share in recent months amid a rockier, more risk-off environment."

    Banks are very exposed to leveraged loans in several ways. For example, banks:

    • have leveraged loans on their books which they have underwritten,

    • provide loans and a wide range of credit lines to non-banks who use those funds to underwrite leveraged loans to a wide range of companies and financial institutions,

    • buy 50% of the collateralized loan obligations (CLOs), many of which contain leveraged loans,

    • provide loans and a wide range of credit lines to insurance companies, pension funds, university endowments and other investors that buy collateralized loan obligations (CLOs), and

    • are counterparties to credit default swaps which banks and non-banks use to protect against leveraged loan or CLO defaults.

    According to recent Bank for International Settlements data, leverage lending is now about $1.4 trillion, with about 71% of that lending underwritten in the U.S. In the U.S., leveraged lending is now higher than the amount outstanding of high yield bonds.

    Additionally, the vast majority of leveraged loans are covenant-lite which means that if any of those borrowers default, both bank and non-bank lenders will have very little protection against loss severities.

    Many banks and non-banks sell a good part of the leveraged loans on their balance sheets to a variety of funds and especially, to special purpose vehicles which package the loans and sell them as fixed income products called collateralized loan obligations (CLOs.)

    New CLO issuance and total CLO volumes outstanding have continued to grow since I last wrote about this in November 2018. Since 2000, CLOs outstanding in the U.S. have grown from $72 to $616 billion, an almost 760% rise. That rise is significantly higher than that of total collateralized debt obligations (CDOs) outstanding in the US, which have risen 364% in the same time period, because there has been a significant decrease in other types of CDOs, such as structured finance CDOs.

    submitted by /u/birkswithsocks
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    Thoughts on FedeX (FDX) after dropping Amazon express shipments?

    Posted: 10 Jun 2019 06:18 PM PDT

    FedeX dropped Amazon express shipments in hopes to focus on other e commerce business. FedeX will also be offering Sunday delivery in 2020. The stock is back to 2016 levels. Is this a good time to open a long position? Or do you think this move hurts the company?

    submitted by /u/Jbonez182
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    Trump: If President Xi does not attend G-20, more China tariffs will go into effect immediately

    Posted: 10 Jun 2019 09:14 AM PDT

    President Trump threatened more tariffs on Chinese imports if President Xi Jinping is not at this month's G-20 meeting.

    The president previously threatened to put levies on another $300 billion in Chinese goods if an agreement is not reached soon.

    https://www.cnbc.com/2019/06/10/trump-if-president-xi-does-not-attend-g20-more-china-tariffs-will-go-into-effect-immediately.html?__source=iosappshare%7Ccom.apple.UIKit.activity.CopyToPasteboard

    submitted by /u/NineteenEighty9
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    In a long term, why would an index always go up?

    Posted: 10 Jun 2019 08:27 AM PDT

    The two most common reasons I have heard...

    ...companies are constantly working to generate higher revenues and profits

    ... and inflation

    Are there other reasons why you would think index would always go except market crashes, corrections but then eventual recovery and higher highs?

    submitted by /u/megaboogie1
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    How will oil companies survive?

    Posted: 10 Jun 2019 11:40 PM PDT

    Companies like Exxon and Shell are huge businesses, but I assume their revenues will be eroded as the world adopts more electric cars. How can they survive? Are there alternative uses for oil? Can these business evolve into different industries?

    submitted by /u/mastermascovich
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    G20 to hit tech giants with tax crackdown by 2020

    Posted: 10 Jun 2019 06:35 AM PDT

    https://www.telegraph.co.uk/technology/2019/06/09/g20-hit-tech-giants-tax-crackdown-2020/

    The new measures, which are due to be rolled out in 2020, take a "two pillar" approach that will see companies pay more in countries despite the lack of a physical presence and profit in those regions.

    Those companies that continue to book profits in offshore tax havens will then be subject to a global minimum tax rate.

    The move from G20 ministers is set to face opposition from Washington, which plans to retaliate against officials in Europe hoping to impose new taxes on US tech firms.

    The technology industry has warned that the White House may take serious measures against any tax crackdown. Jennifer McCloskey, vice president of policy at the Information Technology Industry Council, a trade association headquartered in the US capital, said any taxes perceived to be discriminatory against American companies could face an investigation.

    If I could I would be buying all the stock I could get in tax planning consulting companies. They're going to have so much work if this comes to pass that they'll have trouble finding room for all the money.

    submitted by /u/wanmoar
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    Little known biopharma company, NovaBay Pharmaceuticals, soared 874.8% in one day after having its product made available in Amazon.com

    Posted: 10 Jun 2019 11:01 PM PDT

    NovaBay Pharmaceuticals Launches Avenova® Direct on Amazon.com

    EMERYVILLE, Calif.--(BUSINESS WIRE)--

    Original formulation of Avenova® for the management of bacterial dry eye is now available at an affordable price without a prescription

    NovaBay® Pharmaceuticals, Inc. (NYSE American: NBY), a biopharmaceutical company focusing on commercializing Avenova® for the domestic eye care market, announces that Avenova® Direct is available at affordable pricing and without a prescription on Amazon.com through the Company's new direct-to-consumer online channel. Avenova, the leading lid and lash spray, is designed for the removal of bacteria and debris on and around the eyelid margin that contribute to bacterial eye infections, which represent approximately 85% of the dry eye market. The Avenova Direct page on Amazon.com is available here.

    complete press release: https://finance.yahoo.com/news/novabay-pharmaceuticals-launches-avenova-direct-105000424.html

    submitted by /u/markyu007
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    Why do NASDAQ index funds and ETF's have expense ratios that are 10x or more higher than total market funds?

    Posted: 10 Jun 2019 01:46 PM PDT

    I just noticed that QQQ has an expense ratio of 0.20%, and Fidelity's FNCMX is at 0.30%.

    Meanwhile on the total market side, ITOT is at 0.03% and FSKAX is 0.015% (ignoring Fidelity's newer "ZERO" variant with no expense ratio at all). S&P 500 index funds seem to have fees in line with total market funds.

    Why are NASDAQ index funds SO much more expensive? Does the NASDAQ simply charge a lot more to license their trademark? Or do funds charge more because it's more popular among daytraders, who are less sensitive to fees? I know there are a lot of securities on the NASDAQ exchange, but these index funds only actually hold 2 - 2.5k of them at a time... which is about the same number of holdings as a total market index fund has to manage.

    submitted by /u/BadMoonRosin
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    Cannabis stocks poised to explode?

    Posted: 10 Jun 2019 10:29 PM PDT

    Its hard to find someone under 25 who doesn't frequently smoke pot. I believe a shift from alcohol towards cannabis is possible in the future. With the explosion of legality and frequency of dispensary's all over north america wouldn't it be smart to start investing in the future "Budweiser and Smirnoff"(s) of cannabis?

    Is it not possible in 10-15 years we will see these budding companies explode in value with a huge demand coming? We may see ads for brands and hybrids of company specific weed or strains potentially as common as alcohol ads? Not to mention the potentially huge medical CBD market.

    Obviously there are a lot of hurdles. But what is everyone's thoughts?

    submitted by /u/KifDawg
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    Deutsche Bank Rating Cut by Fitch as Instability Sows Doubts

    Posted: 10 Jun 2019 10:25 PM PDT

    Can we get the correct information on the Canon google search result? The stock ticker on the left side knowledge panel should say NYSE: CAJ

    Posted: 10 Jun 2019 10:23 PM PDT

    Can we get the correct information on the Canon google search result?

    The stock ticker on the left side knowledge panel should say NYSE: CAJ. Search in "Canon" on Google. Head to the feedback button on the bottom of knowledge panel. Click the stock ticker line to request an Edit.

    submitted by /u/Goatfairplay
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    Learning to be a less passive trader, where to start?

    Posted: 10 Jun 2019 09:08 PM PDT

    As someone who's never done a ton of DD, only bought into a handful of companies, and has never traded anything more interesting than a few well known companies on the nyse, I'm looking to become a better investor. Where should I start? Where can I find good beginners resources for doing research, how should I pick companies, and what types of investments should I try to make that are high risk/reward without being too difficult for an inexperienced investor?

    submitted by /u/platypoo2345
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    BYND Bulls...help me understand

    Posted: 10 Jun 2019 08:58 AM PDT

    I have been on the outside looking in on Beyond Meat. I get the urge to go and buy puts right now because of how overvalued this stock seems. There are so many companies working on similar products. What happens when Tyson runs out their own products and undercuts them. I have read numerous places that BYND does not even have the tastiest product. I understand first mover advantage, but only to a certain extent.

    I by no means am saying this company is a dud, but god it seems like the short squeeze is only the real reason this keeps going up.

    What is your reason to hold and not take some gains here?

    submitted by /u/zspero
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    Tax Implications of using M1 Finance?

    Posted: 10 Jun 2019 04:09 PM PDT

    Hello, I got drawn to the fact that M1 Finance uses a "pie" model and also fractional shares. It also has automatic investment, which simplifies things in life. I have a question or two about potential tax implications years down the line.

    I currently made a pie of 25 different stocks, so pretty much my "pie" is 25 different securities. These are all dividend stocks from major companies on the Stock Market. I initially will put $1000 into my M1 account, but I also want to setup an automatic investment of $100 a week.

    Now, comes the hard part with the taxes. Essentially, once per week M1 Finance will make 25 trades on my behalf buying a fraction of each of those shares by evenly splitting up the $100. This adds up to 1,300 trades per year(52 weeks x 25 different trades per week = 1,300). Not to mention any dividend payments these stocks will pay me. This can be a lot of accounting at the end of the year.

    Is this a bad strategy? From what I understand EVERY TIME you buy or sell any security, you create a taxable event. This can become a problem one year from now when I have to do my taxes. Anybody have experience with M1 Finance, especially the taxes portion of it? Anybody did their taxes with Turbotax and import the 1099 from M1 onto there? I know M1 Finance provides you with all the 1099 forms you need at the end of the year. Will all pertinent info be in there regarding 1,300 trades?

    PS: I will crosspost this as I am not sure which sub to ask about this.

    Thanks in advance for any tips regarding this question.

    submitted by /u/throwaway4983243
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