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    Friday, October 25, 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: 24 Oct 2019 05:10 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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    WeDontWorkAnymore: "WeWork plans to axe 4,000 staff. Yesterday it was only 2,000." Most should be NYC based.

    Posted: 24 Oct 2019 07:49 AM PDT

    https://www.ft.com/content/ffa49378-f5b4-11e9-a79c-bc9acae3b654

    Represents about 30% of the current workforce.

    Mr Claure added: "But I will promise you that those that leave us will be treated with respect,
    dignity and fairness. And for those that stay, we will ensure everyone is aligned and shares in
    future value creation." WeWork declined to comment.
    One former employee told the FT that there was "a lot of anger" inside the company, with staff
    venting their frustrations about the sums Mr Neumann stood to collect under the SoftBank deal, including a $185m "consulting fee".

    Many disgruntled WeWork employees hold shares in the company that were issued to them at a
    value above the $19.19 a share at which SoftBank is offering to buy them in a $3bn tender. The
    SoftBank offer values WeWork at about $8bn, far below its recent funding rounds including a
    SoftBank-led round that valued the company at $47bn this year.

    One person who joined WeWork more than three years ago said he received a grant of stock at the
    time that was priced at $20 a share, while the thousands of people who joined in more recent years
    received stock at higher valuations.

    submitted by /u/4BigData
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    Amazon stock drops on earnings miss

    Posted: 24 Oct 2019 01:07 PM PDT

    https://www.cnbc.com/2019/10/24/amazon-earnings-q3-2019.html

    EPS: $4.23 vs. $4.62, according to analysts surveyed by Refinitiv

    Revenue: $69.9 billion vs. $68.8 billion, according to analysts surveyed by Refinitiv

    AWS: $9 billion vs. $9.1 billion, according to analysts surveyed by FactSet

    Amazon also gave soft fourth-quarter revenue guidance in the range of $80.0 billion and $86.5 billion, far below the street's average estimate of $87.4 billion, indicating the all-important holiday shopping season may be underwhelming.

    submitted by /u/coolcomfort123
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    Another one of SoftBank backed start up is in troubled waters

    Posted: 25 Oct 2019 12:19 AM PDT

    Fair, a car subscription start-up that partners with Uber and is backed by SoftBank, will cut 40% of its workforce with immediate effect. Several co-founders and CFO are also being let go.

    https://www.ft.com/content/8e299ea8-f647-11e9-a79c-bc9acae3b654

    The start up is only 26 months old and is based in California. In a previous 350 M$ funding round, the company was valued at well above 1B$. To date Fair has raised about 500 M$ in equity and 1.5 B$ in debt.

    https://techcrunch.com/2018/12/20/fair-com-gets-385m-led-by-softbank-to-grow-its-flexible-car-ownership-model-globally/

    submitted by /u/rjsh927
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    Intel earnings beat: $1.42 per share, vs $1.24 expected

    Posted: 24 Oct 2019 01:08 PM PDT

    Reuters: California wine-country fire began near damaged PG&E tower

    Posted: 24 Oct 2019 07:12 PM PDT

    https://www.reuters.com/article/us-california-wildfire/california-wine-country-fire-began-near-damaged-pge-tower-idUSKBN1X30Y7

    GEYSERVILLE, Calif. (Reuters) - A wind-driven wildfire that forced some 2,000 residents to flee their homes in Northern California's wine country on Thursday erupted near the base of a damaged high-voltage transmission tower owned by Pacific Gas and Electric Co, utility and fire officials said.

    The company, a unit of bankrupt holding company PG&E Corp (PCG.N), acknowledged in an "electric safety incident" report filed with the California Public Utilities Commission that one of its power lines malfunctioned at about the time and location of the fire's origin on Wednesday night.

    The report said a PG&E technician inspecting the site on Thursday found the area taped off by state fire department personnel who brought to his attention "what appeared to be a broken jumper on the same tower."

    Here we go again.

    submitted by /u/COMPUTER1313
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    NOKIA loss of 24%

    Posted: 24 Oct 2019 05:10 PM PDT

    Are you guys buying Nokia off of the low price or waiting for an upturn from 5g? I'm personally optimistic about Nokia after this price drop.

    submitted by /u/DevTheSledge
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    Why would a company buy back its own debt?

    Posted: 24 Oct 2019 06:24 PM PDT

    Today LLY announced an offer to purchase up to $2B of its own outstanding debt:

    https://www.prnewswire.com/news-releases/lilly-announces-cash-tender-offer-for-up-to-2-0-billion-aggregate-principal-amount-of-its-outstanding-debt-securities-300944931.html

    LLY has grown to be a decent chunk of my portfolio as it has grown quite a lot in the last 2 years, but has been floundering for the last 6 months. As I consider my position, I am wondering what the implications of this move are. Do they just want to prop up their own valuation by removing a chunk of their liabilities? Wouldn't that money be better spent on potential investments that could yield more than the interest on the debt?

    submitted by /u/seyon35
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    Square is joining the Free trade party

    Posted: 24 Oct 2019 12:45 PM PDT

    Square announced they will trade stocks for free and allow fractional share purchases.

    https://www.cnbc.com/2019/10/24/square-launches-stock-trading-on-its-popular-cash-app.html

    submitted by /u/InvestingNerd2020
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    It's only a loss if you didn't learn from it

    Posted: 24 Oct 2019 02:57 PM PDT

    Otherwise it's a lesson.

    submitted by /u/17_snails
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    Twitter shares tank 20% after earnings miss on the top and bottom lines

    Posted: 24 Oct 2019 04:34 AM PDT

    https://www.cnbc.com/2019/10/24/twitter-twtr-earnings-q3-2019.html

    Earnings per share: 17 cents, vs. 20 cents expected

    Revenue: $823.7 million, vs $874.0 million expected

    Monetizable daily active users: 145 million

    submitted by /u/coolcomfort123
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    A question from newbie

    Posted: 25 Oct 2019 02:06 AM PDT

    Hi and hello.

    I am not sure this is the right reddit but I will try it.

    I have just started college and I have some money aside. It is approximately $1,000.

    My question is what is the best way to invest it to make money. I know many of you might say invest it in books, courses and stuff. I have other money for that. I just want to invest this 1,000 to actually make money.

    The best scenario would be if I could get like $100 back every month which is crazy and probably not possible.

    I will be grateful for any advice.

    submitted by /u/Perwool
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    Guaranteed 4% Return by Government to Invest Cash By Overpaying Payroll Taxes?

    Posted: 24 Oct 2019 01:56 PM PDT

    So, my first post - please prove me wrong.

    For one of my companies, my payroll tax money was remitted to US Treasury in excess of the required amount - by Just a few hundred dollars.

    The US Treasury refunded me the overpay ...and an 4% additional (annualized) for "59 days of interest".

    What if I did this intentionally in the future and sent in an extra ...say $100k or $1 million. Would they send me 4% on my overpay?

    Background - I'm a CPA / MBA and former president of a bank.

    Has anyone tried this?

    submitted by /u/fireb999
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    How do you feel about leveraged ETFs?

    Posted: 24 Oct 2019 06:16 PM PDT

    First off, I want to say I'm a freshman in college and never actually invested and am looking for a further explanation because, on the surface, these look like great investments. I did take the investing classes in high school and am eventually looking to become a business major, so I do know what I'm doing to a certain extent.

    I've done some research, and I'm still a little torn on how these should be used as almost everything denounces the use of leveraged ETFs; some common points I've heard are:

    1. Too volatile since returns are based on 3x daily returns, not 3x annual returns, which can lead to losses (assuming we are using a 3x ETF)
    2. The fees are much higher than regular ETFs
    3. Risk of default by a counterparty
    4. Only for short term growth, not long term

    My thinking for each of these points:

    1. Yes, it volatile in the short-run, but as you can see in the graph (https://yhoo.it/3647ole), if the underlying index is positive, the leveraged index is going to be doing even better.
    2. Yes, the fees are higher, but if you're getting 3x the return of what you would typically be getting (in the case of SPXL vs. S&P 8x normal returns), doesn't this cancel out the high fees?
    3. Theoretically, there's a chance of any company shutting down; this is just the risk of investing.
    4. Since our stock market is consistent in not giving extremely long periods of losses, can't we assume that eventually, it will grow back regaining your losses and much more?

    From the articles I've read, I'm not understanding why everyone is demonizing leveraged ETFs.

    Let me know if I missed anything or if you can better explain this to me because from what I see, they look like pretty good choices, but I'm not the most educated, so I'm sure it's probably the contrary.

    submitted by /u/flyingchimp12
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    Elliott Management thinks that AT&T stock could be worth more than $60 per share by the end of 2021. Thoughts?

    Posted: 24 Oct 2019 01:27 PM PDT

    https://articles2.marketrealist.com/2019/10/att-stock-rally-should-investors-buy/

    "Elliott Management thinks that AT&T stock could be worth more than $60 per share by the end of 2021 if the wireless carrier accepts Elliott's four-step restructuring plan." Something to watch for?

    submitted by /u/fragessi
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    Rare Whiskey Remains World’s Best-Performing Luxury Asset

    Posted: 24 Oct 2019 08:26 PM PDT

    Future Returns: Ignore Politics When Investing

    Posted: 25 Oct 2019 03:53 AM PDT

    A good lesson to keep in mind. From the article:

    "When asked whether economic conditions are good, 79% of Republicans say "yes," compared with only 33% of Democrats," but to keep in mind that, "We're all living in the same 2% (economic) growth, 3.5% unemployment, 3% wage-growth world, and yet we have such a completely different view of it based on our politics."

    https://www.barrons.com/amp/articles/future-returns-ignore-politics-when-investing-01571767063

    submitted by /u/Fearspect
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    Teen getting into value investing

    Posted: 25 Oct 2019 03:22 AM PDT

    Recently turned 17 (11th grade) and have been trading and self educating for around 2 years and have hit a bit of a wall with where to start with value investing, finding the intrinsic value of a company and estimating projected growth. I believe I am through the basics, I know how to read a annual report ect... but still need to learn to implement it am move into more intermediate investing. Just looking for some good resources from the people here with years more experience to pass down

    P.S: I am working casual at McDonald's making $4-500 am month and putting around half into indexes to do some basic dollar cost averaging but I want to work at a investment firm in the future and need to learn theses skills and constantly adapt to keep the lead at my age

    Book recommendations would be nice too: Have read "The Intelligent Investor" and "Random Walk Down Wall Street"

    submitted by /u/MrMilkwastaken
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    Virgin Galactic set to trade on the NYSE on Monday as the first space tourism stock

    Posted: 24 Oct 2019 06:20 AM PDT

    Tips for analyzing portfolio

    Posted: 25 Oct 2019 02:12 AM PDT

    Hello everyone,

    I am not sure this is the right place to ask, but basically, I have an interview with a company, and they asked me "analyze one of two portfolios from the perspective of an Endowment CIO who is looking to add another manager to their stable ".

    They gave me access to their database, and I was wondering if you guys can help me make sure of the most important things to look for + if you have any tips that might impress them.

    Thanks!

    submitted by /u/gswacm
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    Amazon’s Investment Mode Extends

    Posted: 24 Oct 2019 07:53 PM PDT

    https://www.wsj.com/articles/amazons-investment-mode-extends-11571956019?cx_testId=29&cx_testVariant=cx_1&cx_artPos=0#cxrecs_s

    Amazon.com's giant flywheel is getting harder to turn—or at least more expensive.

    The tech giant reported a 24% jump in revenue and a 15% drop in operating earnings for the third quarter on Thursday afternoon, essentially in line with what it projected three months ago. Those results reflect a significant jump in spending for both the company's new one-day shipping program as well as its AWS cloud business. Shipping costs alone surged 46% year over year to a record $9.6 billion.

    Investors were bracing for some bad news. Amazon's share price had fallen 10% since its last report—the worst performance among its big tech peers—but it wasn't enough. The company painted an even rougher picture for the fourth quarter, with the midpoint of its forecast calling for revenue of $83.3 billion. That would represent growth of 15% year over year, the slowest pace during the crucial holiday quarter since 2015, with earnings expected to take a hit as well. Operating income is seen sliding 46% to about $2 billion at the midpoint. AWS revenue in the third quarter also fell slightly short of Wall Street's projections, marking continued deceleration in Amazon's most profitable business. Amazon's shares slid another 7% after hours.

    Amazon admittedly has a long history of successfully investing for growth. Indeed, ever since crossing the $100 billion revenue mark in 2015, the company has averaged 27% sales growth annually. But gravity eventually sets in. Amazon's fourth-quarter forecast suggests full-year growth of less than 19% sales growth for 2019, which would be the company's slowest on record.

    And Amazon is spending record sums to get there. In addition to the big shipping bill, capital expenditures hit a record $4.7 billion, with capital leases adding another $3.6 billion. That brings the company's total capital spending bill to a record $8.3 billion for the quarter—up 46% year over year. Strikingly, Amazon also added nearly 97,000 workers to its payrolls in the third quarter alone, bringing its total workforce to an astounding three-quarters of a million.

    That is an awful lot of people to convince that it is still Day One.

    submitted by /u/beck2047
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    DIGITIMES: SK Hynix posts 93% profit fall in 3Q19, revenue declined 40%

    Posted: 24 Oct 2019 02:53 PM PDT

    https://www.digitimes.com/news/a20191024PR200.html

    SK Hynix has reported operating profits fell 93% from a year earlier to KRW473 billion (US$403.7 million) in the third quarter of 2019, while revenues declined 40% on year to KRW6.84 trillion.

    SK Hynix disclosed its DRAM bit shipments increased 23% sequentially in the third quarter, while ASPs fell 16%. As for NAND flash, bit shipments slipped 1% on quarter but ASPs grew 4%.

    SK Hynix credited its sequential revenue increase during the third quarter to a pick-up in demand. However, a reduction in DRAM unit costs was unable to offset the memory price falls, which resulted in a 26% sequential drop in operating profits during the third quarter.

    SK Hynix is converting part of the DRAM production lines at its M10 fab in Icheon to the production of CMOS image sensors (CIS), while reducing its 2D NAND flash output, the company noted. As a result, it said it expects its DRAM and NAND flash output next year to be lower than this year's levels. SK Hynix added its investment in production capacity will also be "considerably" less than that in 2019.

    submitted by /u/COMPUTER1313
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    Ford restructuring discussion

    Posted: 24 Oct 2019 04:23 PM PDT

    Mulally used some of the ~$25 billion loan Ford received to restructure from 2006 to 2014.

    Not sure how much Fields spent on restructuring.

    Now Hackett has already spent $3.3 of the planned $11 billion on it.

    I'd like to discuss the following:

    Shouldn't restructuring come with some offsets? -- Although you close a plant, can't you sell the machinery? Do layoffs really cost that much?

    What other companies have huge restructuring costs? And how often do large companies need restructuring?

    submitted by /u/401c_Trader
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    Snc lavalin

    Posted: 24 Oct 2019 03:01 PM PDT

    As a Canadian I follow this closely. Trudeau, found guilty of ethics commissioner of interfering with autorny general in snc bribery charges. I hate the company. I hate Trudeau, but there is no denying the opportunity here. Trudeau will do everything to avoid getting charged by the RCMP for obstruction of justice, and I believe he is guilty.

    Snc has dropped from 50s to teens, and upon re electing Trudeau it jump 14% the next day! They know he has their back! It's Quebec the chosen province!

    So, against my morals, I will likely dip into snc as I believe there could be an easy double. Can't do options yet, but some calls would be ideal here!

    submitted by /u/Prometheus013
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