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    Monday, November 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: 25 Nov 2019 04:16 AM PST

    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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    Uber loses licence to operate in London

    Posted: 25 Nov 2019 02:17 AM PST

    Uber will not be granted a new licence to operate in London, Transport for London (TfL) has said.

    The regulator said the taxi app was not "fit and proper" as a licence holder, despite having made a number of positive changes to its operations.

    Uber originally lost its licence in 2017 due to safety concerns, but was granted a 15-month extension.

    Uber now has 21 days to appeal against TfL's decision and can continue to operate during that period.

    It had received an additional two-month extension in September which expired on Sunday.

    https://www.bbc.co.uk/news/business-50544283?ns_source=twitter&ns_linkname=news_central&ns_campaign=bbc_breaking&ns_mchannel=social

    submitted by /u/bennzo1238
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    Why aren't banks or stockmarkets automated to operate 24/7?

    Posted: 24 Nov 2019 11:40 AM PST

    This may not be the right place to ask this question but it's frustrating to have to wait for a trade or bank deposit to clear. So why with the technology we have today are we still relying on human beings?

    submitted by /u/Metrilean
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    Unpopular opinion: there seems to be a lot of “group think” here

    Posted: 24 Nov 2019 01:51 PM PST

    Any post that asks for stock or company recommendations has the same basket of companies recommended: V, DIS, MSFT, WM, MA.

    Most users seem to be parroting what they have already seen here and I'm also guilty of this. I'm certain most users that are recommending these companies don't even know why they are doing it, myself included.

    I just want to mention this to anyone reading so that you do your research before accepting random recommendations on Reddit. And to those who bought these stocks based on these recommendations, you should take a step back and re-evaluate.

    submitted by /u/millamb4
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    Charles Schwab to Acquire TD Ameritrade in $26 Billion, all-stock deal (NY Times)

    Posted: 25 Nov 2019 03:53 AM PST

    Charles Schwab said Monday it would acquire TD Ameritrade in an all-stock transaction valued at $26 billion, a deal that brings together two of the largest online brokerage firms totaling roughly $5 trillion in assets in an industry where intense competition is driving costs down for average investors.

    "This would create a true behemoth in the retail brokerage space," Chris Allen, an analyst at Compass Point Research & Trading, said in a research note.

    The deal, announced on Schwab's website, came just a month after Schwab kicked off a rush to eliminate fees on trades of stock and exchange-traded funds. Schwab's announcement forced other rivals, including TD Ameritrade and E-Trade, to follow suit.

    The brokerage industry has for years been coping with a price war in the fight for retail investors' dollars, who are increasingly leaning away from picking and owning individual stocks and more toward low-cost index funds and services that incorporate investment advice.

    https://www.nytimes.com/2019/11/25/business/dealbook/charles-schwab-td-ameritrade.html

    submitted by /u/erynjt
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    Marijuana stocks now that bubble has burst? Which may survive?

    Posted: 24 Nov 2019 05:36 PM PST

    I don't smoke weed, I don't like weed. But as part of my investment strategy I do allocate funds for riskier investments.

    Now that the pot stock bubble has burst, do any of these companies appear to have staying power? What about Tilray?

    I would love a mutual fund or ETF that bets on the market as a whole so I don't have to pick individual winners and losers. Does that exist?

    submitted by /u/HapticChange
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    Saving portfolio

    Posted: 24 Nov 2019 10:08 PM PST

    I have $1,000 and would like to invest it rather than sitting. What are some high dividend stocks or good performing etf's to look into? Thanks!

    submitted by /u/vZAPP
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    Why would someone choose to invest in a CD rather than Treasury bonds?

    Posted: 24 Nov 2019 10:14 AM PST

    I was looking into it and Treasury bonds have kind of the same time frames as CD's however, Treasury bonds seem to have a higher rate return. I know CD's are FDIC insured but Treasury bonds is the actual Government isn't it? Anyway, sorry if it's a stupid question but any information would be helpful!

    submitted by /u/laminin1
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    Why is everyone so long on Disney?

    Posted: 24 Nov 2019 06:11 AM PST

    This is a genuine question. I had it, bought at 90 but just sold because I'm not sure that my money sitting in Disney is going to make more than money sitting in say ABB or AMGEN. Sure, they're making exciting things with their old content but I'm not excited about new offerings they'll bring to the table in the same way I am about other content providers. I think a lot of their surge in subscriptions were trial accounts and I imagine a significant percentage will drop away once purple get their fill on nostalgia.

    Do we really think the upside is so great that it's worth keeping your money there instead of something in a more profitable sector?

    submitted by /u/tellmetheworld
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    Lyft up +8% in the past few days. Short squeeze incoming?

    Posted: 24 Nov 2019 04:44 PM PST

    In the past 5 days $LYFt has been +8%, trading at $46 now. It is down nearly 50% since IPO. Is a short squeeze incoming? It has been earnings every time so far and has been continuously cutting costs. It seems possible that a bounce to $60 could be within the books, especially with the rest of the market doing well. One could argue that Lyft is overvalued, but then what about Tesla?

    submitted by /u/HornyAsianBro95
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    Aramco Sets Its Price and Defines Its Limits: Stretched from the beginning, the IPO moves forward but falls short of its original ambitions.

    Posted: 24 Nov 2019 03:03 PM PST

    Call options question

    Posted: 25 Nov 2019 03:20 AM PST

    If i buy a call and sell a call of the same stock with the same expiry date but the sold one has a higher premium than the bought one, whether the stock goes up or down I gain the premium difference.

    It looks life free money, but because of that I feel like I'm missing something, can someone clarify?

    submitted by /u/CIARRAPUNGI
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    How would one get into trading in the UK, step by step.

    Posted: 24 Nov 2019 11:24 PM PST

    To clarify, I am not looking for advice or anything of the sort. I am just curious. How would one go about spending money in shares in the UK? What is the process? Is there a platform that carries out the transactions? Please explain, step by step. My brother wants to get into it and it has piqued my interest, so I just joined this subreddit to find out how it would work. Thanks.

    submitted by /u/ProlificPatchOfLinen
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    Books covered at upper end

    Posted: 25 Nov 2019 02:31 AM PST

    What does this mean? I've come across this several times, normally finished with "and will close at 16:00gmt"

    I'm in the UK

    submitted by /u/LainOne
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    Is Euronav ridiculously undervalued at beginning of bull market in energy transportation?

    Posted: 24 Nov 2019 03:11 PM PST

    Some of you may have seen my posts on IMO2020, the critical environmental legislation that limits sulphur content of marine fuel. Euronav $EURN is a critical piece of the supply chain that makes this happen. They own large ships that transport oil.

    EURN closed Friday at $10.96. By my calculation the liquidation value of the company looks something like this:

    Assets - Cash on hand ~$335M (ended Q3 with $185M but cash flow Q4 will be ~$300M) - Fuel inventories (part of brilliant IMO2020 strategy) $220M - Vessel values $3.2B - Other $200M

    Liabilities - Debt $1.3B - Other liabilities $660M To save on European taxes they have accelerated depreciation schedule of

    Difference: 1.78B (3200+200+335-1300-660=1775) 215 M shares 1775/215=8.25

    Liquidation value: $8.25/share

    Current share price assumes next 13 years of cash flow worth only $2.71/share! FCF unaccounted for above between now and end of Q1 should be ~$2.60/share. Eurn will have according to my calculation on their 60% dividend payout policy change and quarterly dividends due to belgian law update forward yield of 23% in February.

    So what do you think it's worth?

    submitted by /u/calvinfroedge
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    Index funds vs dividend focused mutual fund?

    Posted: 24 Nov 2019 02:27 PM PST

    Which is better and why? I keep both in my portfolio, with a larger amount in a low cost index fund (0.01% expense ratio). I own 3 dividend focused funds, VDIGX, VYMI, & VYM. I also have a target retirement date fund. My total expense ratio across these 5 is 0.80%. Would there be a reason to not invest in these dividend funds and solely focus on an SP500 index fund/target retirement date fund? Thank you in advance.

    Edit: The idea is to have a sizable enough position in dividend funds to live off of dividends while not touching the principal, more specifically the principal in the SP500/Target date retirement fund, and to let the later compound more so.

    Edit 2: 0.15% expense ratio, not 0.80%

    submitted by /u/AdmiralPory
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    Are bond ETFs inherently riskier than individual bonds?

    Posted: 25 Nov 2019 01:43 AM PST

    I keep reading that it is better to hold individual bonds than ETF bonds, as the latter carry inherent risks. Could someone familiar with the topic please explain why?

    submitted by /u/befal92269
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    William Bernstein Says Stop [Taking Portfolio Risk] When You Win the Game

    Posted: 24 Nov 2019 12:04 PM PST

    In options call sellers the only ones exposed to infinite loss risk right?

    Posted: 24 Nov 2019 10:34 PM PST

    I just studied options and I'm trying to get it right and see if what I understood is correct.

    submitted by /u/CIARRAPUNGI
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    Ally no penalty CD

    Posted: 24 Nov 2019 11:37 AM PST

    With savings rates going down, I'm thinking of moving my savings cash into Ally's no penalty CD. Anyone have experience with one? Does the interest just accrue like a savings account each month? Is it really that easy to withdraw if you need to (I know there's a few days you have to wait to get the funds out)?

    submitted by /u/BillNye69
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    $MPX

    Posted: 24 Nov 2019 06:06 PM PST

    hello all, recently found this company (marine products corp) while going through some screens. matched a couple of great criteria, such as

    • large insider ownership (about 30%)
    • high ROE (above 10% if i remember)
    • low leverage/ Debt to equity
    • moderate eps growth
    • high margins (around 22%)
    • high sales growth

    and a few others but i don't want this to become a huge research report.

    this company is essentially a manufacturer of luxury sport boats, manufacturing 3 names under its operations. they sell to dealerships, who do the rest for them.

    management's cash incentives are tied to increasing sales (i like), and net income (also good but want to make sure there's no corner cutting)

    a few good things to note are that due to the nature of the business, many of the components and processes required to make different boats are the same, probably a large contributor to their high margins.

    my biggest problem with this company is competition, while this nature of business is inherently competitive, i am unsure of how much growth there is left in this market, as it is a mature one.

    (also a risk, this is almost a perfect example of a stock which we'll get bent over by rough economic times)

    let me know your thoughts and whether you've heard of this company or are more familiar with the boating industry yourself, i am not a boater so would love some insight on their products (chaparral, robalo, and vortex)

    submitted by /u/whossayn
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    Is there a brokerage which I can setup to buy every month.

    Posted: 24 Nov 2019 05:00 PM PST

    I see few brokerage companies which gives me option to buy ETF, MF every month (Vanguard, TD Ameritrade, etc of the worls). However I want that give me option to buy individual stocks. Is there a brokerage that provides that option?

    submitted by /u/junagadh123
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    EA sports has a pretty low PE ratio and it’s EPS is pretty good. It’s also got solid repeat business with its FIFA and NFL titles - So why is no one buying?

    Posted: 24 Nov 2019 04:23 PM PST

    What NOT to invest in

    Posted: 24 Nov 2019 03:54 PM PST

    A prof just asked me what I would NOT invest in right now and why. Asking the community for some help!

    submitted by /u/saltyinternetzombie_
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    Possible reverse? $RESN

    Posted: 24 Nov 2019 10:49 PM PST

    Kinda new to trading, I'm not an autist yet but I'm sure I will be if I stick around for any real length of time. I'm up a few bucks lately, been reading 50/50 on my trades. I spotted the pattern yesterday and got in at 2.23. Hoping to sell out at 2.40 or better. Anyone have any thoughts about whether it's going to reverse and come back up?

    submitted by /u/Antisocial-Trucker
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