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    Friday, October 18, 2019

    Stocks - r/Stocks Daily Discussion & Fundamentals Friday Oct 18, 2019

    Stocks - r/Stocks Daily Discussion & Fundamentals Friday Oct 18, 2019


    r/Stocks Daily Discussion & Fundamentals Friday Oct 18, 2019

    Posted: 18 Oct 2019 01:07 AM PDT

    This is the daily discussion, so anything stocks related is fine, but the theme for today is on fundamentals, but if fundamentals aren't your thing then just ignore the theme and/or post your arguments against fundamentals here and not in the current post.

    Some helpful day to day links, including news:


    Most fundamentals are updated every 3 months due to the fact that corporations release earnings reports every quarter, so traders are always speculating at what those earnings will say, and investors may change the size of their holdings based on those reports. Expect a lot of volatility around earnings, but it usually doesn't matter if you're holding long term, but keep in mind the importance of earnings reports because a trend of declining earnings or a decline in some other fundamental will drive the stock down over the long term as well.

    See the following word cloud and click through for the wiki:

    Market Cap - Shares Outstanding - Volume - Dividend - EPS - P/E Ratio - EPS Q/Q - PEG - Sales Q/Q - Return on Assets (ROA) - Return on Equity (ROE) - BETA - SMA - quarterly earnings

    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.

    Useful links:

    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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    Boeing shares slide after FAA discovered ‘concerning’ messages about 737 Max certification

    Posted: 18 Oct 2019 10:26 AM PDT

    https://www.cnbc.com/2019/10/18/boeing-shares-slide-on-report-faa-is-concerned-it-was-misled-about-737-max.html

    The FAA said Boeing withheld the messages between employees for months.

    The incident ramps up pressure on Boeing and CEO Muilenburg about the planes.

    Boeing and the FAA are facing several investigations about the 737 Max's design and certification.

    submitted by /u/coolcomfort123
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    Investment movies

    Posted: 18 Oct 2019 03:32 AM PDT

    Hey guys, I wanted to ask you if you have any advices for investment movies(beside Wolf of Wallstreet) Greetings :)

    submitted by /u/kirathesherif
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    Is investing that easy?

    Posted: 18 Oct 2019 06:52 AM PDT

    So hopefully you've read the controversial title and entered ;)

    I'm a complete beginner, looking for the first stock to invest in. First thing that came to my mind is, not suprisingly, s&p 500. I've read that it averages 8.9% annual growth. Since I've been saving for quite a while now I've been wondering - hey, why shouldn't I invest 30k usd for 15-20 years and quadruple the amount. I won't even have to think about it. Therefore the question suggested in the title comes to mind. What are the risks? How hard is it really to actually put the money here? Any thought you might have will be amazing. Just trying to spark a conversation for all of us here who are brand noobs.

    Thanks !

    submitted by /u/hadar933
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    Some advice for the new traders and investors

    Posted: 18 Oct 2019 05:49 PM PDT

    I have been seeing a lot of questions that are frankly shocking. When you are investing or trading you are using your money. But you are coming into a group/community and asking strangers what you should be doing with your money. Now I want you to think about that again. You are asking strangers what to do with your money....

    Some of the questions I have read in many communities and sites.

    Should I buy this/that stock Answer: No, you don't know what you are doing.

    I bought xxx stock last week now it is going down! What should I do? Close it, you don't know what you are doing! You don't have an exit strategy or any risk management.

    Is xxx going to go up? I bought it earlier. If you don't know which direction the stock is likely to go in, why did you buy it? Again you really need to think about why you are buying a stock/option etc before you hit that little buy button.

    Is this a good buy right now? What do the fundamentals tell you? What does the technical analysis tell you? If you don't know then no it is not a good buy right now.

    Hi, I have 5k 10k 50k 100k to invest/trade what should I invest in? OMG NO Just no no no, nothing don't invest in anything!

    I learned to drive before I went on the motorway. I learned to swim before I jumped off the diving board into the pool.

    And if you didn't congratulations for being here today. But if you don't learn how to trade/invest then your money won't be here for very long.

    Step one: Read books and watch videos and learn about what you want to trade/invest in.

    Step two: Open a practice account/paper trading account.

    Step three: Be profitable on said practice account for at least two straight months.

    Step four: Open a real money account with a small amount (under 2k) before you use your main money.

    Step five: Be profitable on that small account for at least two straight months.

    Finally if you don't have the patience to do these steps then maybe the markets aren't for you.

    The Earnings Trader

    submitted by /u/TheEarningsTrader
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    American Express profit beats Wall Street estimates on higher consumer spending

    Posted: 18 Oct 2019 07:13 AM PDT

    https://www.reuters.com/article/us-american-express-results/american-express-profit-beats-wall-street-estimates-on-higher-consumer-spending-idUSKBN1WX1F6

    Net income rose to $1.76 billion, or $2.08 per share, in the quarter ended Sept. 30, from $1.65 billion, or $1.88 per share, a year earlier, the company said.

    Total revenue, excluding interest expense, rose 8% to $11 billion, helped by higher customer spending, net interest income and card fees.

    Analysts had expected a profit of $2.03 per share, according to IBES data from Refinitiv.

    submitted by /u/coolcomfort123
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    What’s the worst case scenario for Boeing?

    Posted: 18 Oct 2019 03:02 PM PDT

    I mean, let's say there were warning signs that the Max 8 had issues and multiple engineers and Boeing executives knew. What happens to the company, the aviation industry, and BA's stock price?

    submitted by /u/MGE5
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    Most Anticipated Earnings Releases for the week beginning October 21st, 2019

    Posted: 18 Oct 2019 05:07 AM PDT

    Here are the most notable earnings releases for the trading week beginning October 21st, 2019.


    Below are some of the notable companies coming out with earnings releases this upcoming trading week ahead which includes the date/time of release & consensus estimates courtesy of Earnings Whispers:


    Monday 10.21.19 Before Market Open:

    (CLICK HERE FOR MONDAY'S PRE-MARKET EARNINGS TIME & ESTIMATES!)

    Monday 10.21.19 After Market Close:

    (CLICK HERE FOR MONDAY'S AFTER-MARKET EARNINGS TIME & ESTIMATES!)

    Tuesday 10.22.19 Before Market Open:

    (CLICK HERE FOR TUESDAY'S PRE-MARKET EARNINGS TIME & ESTIMATES!)

    Tuesday 10.22.19 After Market Close:

    (CLICK HERE FOR TUESDAY'S AFTER-MARKET EARNINGS TIME & ESTIMATES!)

    Wednesday 10.23.19 Before Market Open:

    (CLICK HERE FOR WEDNESDAY'S PRE-MARKET EARNINGS TIME & ESTIMATES LINK #1!)
    (CLICK HERE FOR WEDNESDAY'S PRE-MARKET EARNINGS TIME & ESTIMATES LINK #2!)

    Wednesday 10.23.19 After Market Close:

    (CLICK HERE FOR WEDNESDAY'S AFTER-MARKET EARNINGS TIME & ESTIMATES LINK #1!)
    (CLICK HERE FOR WEDNESDAY'S AFTER-MARKET EARNINGS TIME & ESTIMATES LINK #2!)

    Thursday 10.24.19 Before Market Open:

    (CLICK HERE FOR THURSDAY'S PRE-MARKET EARNINGS TIME & ESTIMATES LINK #1!)
    (CLICK HERE FOR THURSDAY'S PRE-MARKET EARNINGS TIME & ESTIMATES LINK #2!)

    Thursday 10.24.19 After Market Close:

    (CLICK HERE FOR THURSDAY'S AFTER-MARKET EARNINGS TIME & ESTIMATES LINK #1!)
    (CLICK HERE FOR THURSDAY'S AFTER-MARKET EARNINGS TIME & ESTIMATES LINK #2!)

    Friday 10.25.19 Before Market Open:

    (CLICK HERE FOR FRIDAY'S PRE-MARKET EARNINGS TIME & ESTIMATES!)

    Friday 10.25.19 After Market Close:

    ([CLICK HERE FOR FRIDAY'S AFTER-MARKET EARNINGS TIME & ESTIMATES!]())

    NONE.


    Have a great weekend ahead r/stocks.

    submitted by /u/bigbear0083
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    I currently own 3 stocks

    Posted: 18 Oct 2019 06:59 AM PDT

    I currently own shares in Visa, Microsoft, & Waste Managment . I looking go buy two more different stocks but I'm stuck. I would prefer stocks I can hold for a long time. What are some companies you guys like?

    submitted by /u/TheItalianGambetti
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    Stocks up but Trading 212 says I’m in the red

    Posted: 18 Oct 2019 09:03 AM PDT

    I have a couple of stocks that are now worth more than when I bought them. (E.g bought FB at 178 and now at 185) but yet Trading 212 says I have lost money on the stock? Is this just a bug or is there a reason it says this?

    submitted by /u/Just-Chillin-Wbu
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    Need a little help for a rookie

    Posted: 18 Oct 2019 02:36 PM PDT

    Greetings, fellows! I'm kind of new in stocks, so, would you suggest me which apps are you using to buy shares. Or explain more detailed the whole process of purchase (I know the physical transaction, but I don't how it goes in "net"). I Would really appreciate that!

    submitted by /u/nukpi
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    What are the biggest mistakes new investors make?

    Posted: 18 Oct 2019 06:11 PM PDT

    I'm doing a project for college, so I'm posting this kind of question anywhere I think I can get an answer.

    submitted by /u/WanderCommentsShit
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    Finding stocks

    Posted: 18 Oct 2019 12:06 PM PDT

    Just wanted to know if anyone knew anyother stocks like coke, waste management, Honeywell, aep, awk, awr. Stocks that have had consistent growth over the last couple years. Higher lows and higher highs or just have been on a uptrend for a couple years.

    submitted by /u/zero-kaneki
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    Can Coca-Cola shares hit new highs on earnings?

    Posted: 18 Oct 2019 09:01 AM PDT

    https://www.thestreet.com/investing/earnings/coca-cola-shares-can-hit-new-highs-on-earnings-15131663

    Shares of Coca-Cola were up 2% after the company reported its third-quarter earnings.

    Revenue of $9.5 billion grew 8% year over year and beat estimates by $80 million. Further, organic sales jumped 5% vs. expectations of just 4.1%.

    The stock is already up to $55.22. It jumped 6% when it reported 2nd quarter earnings July 23rd ( https://www.reddit.com/r/stocks/comments/cgrr5l/cocacola_raises_revenue_forecast_after_earnings/ )

    Where do we think Coca-Cola (KO) goes from here?

    submitted by /u/dconnorp
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    Help understanding the use of margin

    Posted: 18 Oct 2019 01:26 PM PDT

    So I've recently been learning to day trade. And starting to feel comfortable using my whole account to make trades.(5k) I was doing 1-2k trades on a cash account but didnt realize I had to wait for my cash to settle. If I day trade 5k positions and close on the same day I'd be put under the PDT rule but would not have to wait for my cash to settle correct? So if I don't take positions larger than what my cash value is at I wouldn't be borrowing margin right? Is there any thing else I should consider when switching to margin? I would consider trading on margin once I more comfortable trading just trying to work my way up there. I trade with Td Ameritrade.

    submitted by /u/redzero36
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    Advice

    Posted: 18 Oct 2019 05:10 PM PDT

    I have about $2000 to play around with in the market, never invested before, was thinking about purchasing around $500 worth of shares (around 10 shares), would this be worth it? If not, any suggestions on other stocks? I'd like to have a diverse portfolio without having to spend too much $ on just one stock to see decent returns.

    submitted by /u/Dak7870
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    Novice with 100k to invest...

    Posted: 17 Oct 2019 07:30 PM PDT

    Im a high school student participating in a stock market simulation which is exactly the same as the current values. I am a novice trader and we are only allowed to buy mutual funds, bonds, stocks, and etfs. You may only buy from the US stock market, and you start off with 100k to invest in whatever. I have till Dec. 13 to get about an ROI of 22% Do you guys have any suggestions as to what I should be investing in? Or any investing strategies?

    edit: yes you can short stocks, and there is no aftermarket. Also, you can only spend greater than 3 dollars per stock...so no penny stocks.

    submitted by /u/TheK0987
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    Thoughts on Invesco Dynamic Pharmaceuticals ETF (PJP)? Looking to get into a Pharma ETF

    Posted: 18 Oct 2019 12:28 PM PDT

    The other ones have done pretty well except this one and PILL.

    Do the managers of the ETF have incentives to bring it up. Are their bonuses and commissions based on the performance?

    I see PJP has some quality dividend stocks in there but wanted to get some more insights before pulling the trigger.

    Thanks

    submitted by /u/learningman33
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    JNJ?

    Posted: 18 Oct 2019 12:22 PM PDT

    Is JNJ a good buy since it went down so low today? Or would it be wiser to wait since the recalls could have even worse consequences

    submitted by /u/ilikefood00
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    The hottest growth stock is ... CROX!

    Posted: 18 Oct 2019 03:36 PM PDT

    +400% gain in past 30 months.

    That is all.

    submitted by /u/vol_trader
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    Struggling to understand some businesses' prospects (IBM)

    Posted: 18 Oct 2019 09:23 AM PDT

    I've been reading heaps books and news about stocks over the past 1.5 year or so. I'm not invested yet (been saving and wanted to learn first). The current approach I've got to analyze a stock is basically:

    1. Categorize the stock to know what to look for (dividends play; high growth opportunity, turnaround...) and get some basic metrics (Momentum, PE, ROIC, Margins, financial ratios...).
    2. Analyze the industry and the firm's evolution searching for moats and the company position. I really like Greenwald's explanation of moats.
    3. Dig into financial reports to check what's the dividends history, hidden assets it may have, check if earnings have been overstated, etc.
    4. Valuation: following Damodaran's models.

    However, I find this to be such a long, confusing and draining process. I enjoy it but I become frustrated at times. I know when things are not easy you are more likely to get rewarded if you do your due diligence, but I'm wondering if there's something I'm doing wrong or if I'm wasting my time with some steps. These are the 2 main problems I encounter:

    - Business Analysis: It takes me so much time to get a good grasp of some businesses and, after all the research, sometimes I feel like I don't know enough about it. Take IBM for example: I know they offer cloud solutions, sell mainframes and provide AI services via its Watson platform. I know their focus is on hybrid cloud (hence the Red Hat acquisition), but I do not know how hybrid cloud will fare against Amazon and Microsoft's public clouds. I know the theorical benefits of private vs public clouds but I can't forecast how the business will unfold and how many businesses will choose one type or the other.

    I read the cloud is supposed to use economies of scale, but I also know that when markets grow rapidly economies of scale start to lose steam. I read the cloud is supposed to have switching costs but IBM's compatible containers seem to reduce these costs. Is Amazon and Microsoft profitability sustainable then? It's even harder for the AI segment because it's a very complex technology and it's a bet in the medium/long term, where everything could change. Do I just follow Warren Buffet's advice and do not invest in companies I can't understand?

    - Financial reports: How much do you dig into it? Do you take the financial reports at face value or do you research about inventory changes, revenue recognition, etc.? How much time does it take you? Also, how do I check whether some metrics are favorable? I know that, as a general rule, a Current Ratio > 1 is a good liquidity liquidity, but what about, say, interest coverage? I haven't found a "magical" number. Do I have to compare it to the industry? What if the industry as a whole is overleveraged and then comparisons don't make sense?

    Thanks in advance for your time.

    submitted by /u/Alanno
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    Opinions on Alteryx (AYX)

    Posted: 18 Oct 2019 07:19 AM PDT

    Alteryx is down to $95 per share from a 3 month high of $147. Anyone have opinions on if investing now is a good idea?

    submitted by /u/KazumaKuwabara
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    Pool Corporation jumped another 6% yesterday after strong results and it is beginning to look like one of the most outrageously overvalued stocks available

    Posted: 17 Oct 2019 10:41 PM PDT

    Sales were up 11% and EPS was up 17%. Likewise the stock was up 6% on the day, 50% on the year and 250% over the past 5 years.

    However operating in (swimming pool equipment) one of the most cyclical industries, as we approach the peak of the cycle, Pool is trading on an outrageous trailing PE of 35. Debt has doubled since 2015 and, while cash flow has also doubled, I see red flags all over the stock.

    Please feel free to "FOLLOW" me if you would like to see my regular updates during the week.

    This is not a recommendation to buy or sell. Stocks are risky and not suitable for everybody. Please do your own research.

    submitted by /u/InterestingNews1
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    AAPL not testing support?

    Posted: 18 Oct 2019 10:08 AM PDT

    Would have thought AAPL would test support today, is the Fed flirting with cuts enough to drive it up in the face of all else today?

    submitted by /u/vaene2
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