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    Saturday, December 7, 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: 06 Dec 2019 04:12 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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    After Raising $2.6 Billion from Investors, Magic Leap Appears to be a Flop with their AR Glasses Product.

    Posted: 06 Dec 2019 10:44 PM PST

    Elon Musk found not liable in ‘pedo guy’ defamation trial

    Posted: 06 Dec 2019 10:52 PM PST

    • Elon Musk was found not liable for defamation in a Los Angeles federal court on Friday.

    • A British cave explorer, Vernon Unsworth, brought the suit against Musk in September 2018, after the Tesla and SpaceX CEO had called him "sus" (suspicious) and a "pedo guy" on Twitter.

    • Musk and his defense team, led by attorney Alex Spiro, argued that "pedo guy" was simply heated rhetoric and not meant as a statement of fact.

    CNBC

    submitted by /u/ChocolateTsar
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    Jobs growth soars in November as payrolls surge by 266,000

    Posted: 06 Dec 2019 05:41 AM PST

    Stock Market 2020: Jefferies calls 2020 'the year of normalization’

    Posted: 06 Dec 2019 05:32 PM PST

    https://finance.yahoo.com/news/wall-street-strategist-forecast-for-sp-500-in-2020-211002824.html

    Jefferies (Target: 3,300; EPS: $176): 'Focused on the traditional drivers for U.S. markets'

    Barclays (Target: 3,300; EPS: $166): 'The recovery from the current slowdown is unlikely to be V-shaped'

    Bank of America Merrill Lynch (Target: 3,300; EPS: $177): 5 key trends will drive stocks next year

    LPL Financial (Target: 3,250-3,300; EPS: $175): Trade progress could help stocks in 2020

    Deutsche Bank (Target: 3,250; EPS: $175): Stretched valuations may lead to limited upside next year

    Goldman Sachs (Target: 3,400; EPS: $174): 2020 election outcome a risk to equities

    BMO Capital Markets (Target: 3,400; EPS $176) – 'Notorious Bull Market' still has staying power

    Stifel (Target: 3,265; EPS: $169.63): Stocks may go down before they go up

    Credit Suisse (Target: 3,425; EPS $173) – 'Cyclical leadership'

    Morgan Stanley (Target: 3,000; EPS $162) – 'U.S. remains our least preferred region'

    UBS (Target: 3,000; EPS: $170) – 'Equities have further to discount'

    Citi (Target: 3,300; EPS: $174.25) – Some upside, some risks

    Canaccord Genuity (Target: 3,350; EPS: $176) – Look for 'continued multiple expansion'

    submitted by /u/coolcomfort123
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    How exactly is it easy to go from 1m$ to 20m$?

    Posted: 07 Dec 2019 02:05 AM PST

    They say it is more difficult to go from 0 to 1m than 1m beyond. In other words, it is easier to grow your money from when you reach the 1m mark. i hope this fits the guideline. i hope this promotes the discussion and clue me in as to why people have this general belief. Yes, i am one of the lucky few to have made it to 1m but I am struggling growing. I have a minimalist lifestyle and have lived in the same old apartment for years so expenditure is not the issue. I have made a lot of investment and have only achieved break even. Im beginning to doubt the general belief. I got to this point thru taking risky but rationale opportunities and the only thing easier is not having to need a day job.

    submitted by /u/Nez_Zai
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    Selling covered calls+ Income seeking equities

    Posted: 06 Dec 2019 07:09 PM PST

    As an investor I consider my self a deep value investor and use this technique to help aggressively grow my portfolio. However, I want to open another portfolio dedicated to helping build income for the future and seeking large dividend items such as REITs, ETFs and dividend aristocrats while selling covered calls. Curious what strategies and equities people in this sub use for income.

    submitted by /u/Litquidity88
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    Safe Amount of Savings Before Investing

    Posted: 07 Dec 2019 02:00 AM PST

    Hi all,

    Probably a noob question but I wanted to get some advice on how much one should have in savings before beginning to invest in the stock market. I currently live at home so my living expenses are very low and I'm working full time hours.

    Cheers.

    submitted by /u/j_richo_
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    BBG Access for DD & Trade Ideas (Biotech Catalysts)

    Posted: 06 Dec 2019 09:25 PM PST

    Looking to be a weekend spent inside, so want to do some research on some catalysts (biotech) coming up in Dec/Early 2020. Will give you all prop research in exchange for access.

    Worked at HF for 2 yrs, newly full time catalyst trader.

    Anyone open, please DM. Have an B-UNIT but unsure if that will matter.

    Thx

    R

    submitted by /u/anonymiteses
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    Cross Post From r/RealEstateInvesting

    Posted: 06 Dec 2019 12:46 PM PST

    Created this and so far it's been appreciated, so I figured I'd share it in cross posts!

    https://reddit.com/r/realestateinvesting/comments/e6n9nb/created_a_rental_property_calc_google_sheet_ran/

    submitted by /u/HDDurham1994
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    many articles this year about shrinking stock market

    Posted: 06 Dec 2019 07:59 PM PST

    I noticed a couple of headlines and radio segments over the past month about the number of companies that are delisting / going private / not bothering with listing at all.

    I did some searching and noticed over the past year or so there have been a lot of articles on this topic.

    I don't remember the exact numbers, but I believe in the late 1990's there were something like 7500 listed stocks on NYSE, now (2019) there are like 3500.

    Does anyone have any addition, definitive(that they can substantiate) reasons why this is happening, if it is going to continue to happen, if there are exchanges in other countries where the opposite(growth) is happening[and if they are fairly regulated / worth trying to trade in]?

    I worked for a large company, that was headquartered outside of the US and they decided to delist - I believe their main reason was: the [low] volume they were seeing didn't make all the financial record filing/compliance worth it.

    submitted by /u/nerraw888
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    ROE Help

    Posted: 06 Dec 2019 07:33 PM PST

    I was wondering if anyone could help me with my ROE calculations? I got varied information, one of which says that simply subtracting liabilities from assets on the balance sheet would give us the business' equity, but another said that it is under stockholders equity? And after doing the calculation (in this case for apple) both produced wildly different results, both of which rather implausible.
    1) Net Income / Stockholders equity = 0.61 or 61% --> which from my understanding means that for each dollar a stockholder invests, it returns 61 cents??
    2) Net income / ( assets - Liabilities ) = 0.237 or ~24%
    I understand this is quite a newbie question and probably incredibly simple, but the wild variations in other ROE calculations has left me quite unsure both of my calculation and my understanding.
    Any help is genuinely appreciated, and thank you for your time 📷

    submitted by /u/TurtleNipz9
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    Question about a type of investment

    Posted: 06 Dec 2019 04:27 PM PST

    Hello everyone, I am very new to investing and have a question...

    Are there firms that invest collected money entirely into operations without public offerings such as Sustainable Bioproducts or Carbon Engineering and issue a security containing a composite of these investments (kind of like an ETF)? If so, what would these be called?

    I am aware that if such a firm exists, I would be at the mercy of their investment decisions and how that might affect the value of their issued security at hand.

    Thanks everyone.

    submitted by /u/mdh111
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    Investing in gun stocks ahead of 2020 election

    Posted: 06 Dec 2019 07:31 PM PST

    Any thoughts on buying firearm companies such as AOMC ahead if the 2020 election? Bloomberg is a very, very strong opponent to gun rights - if he puts up anything of a fight against Trump in 2020, I can imagine AOMC realizing short term (1 year) gains as people buy guns ahead of regulation to have their purchased firearms be grandfathered in.

    Thoughts?

    submitted by /u/LamarHusky
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    As a retail investor, do i need to know how to do DCF? Otherwise, what kind of valuation should i learn. Do i need to learn valuation models at all?

    Posted: 06 Dec 2019 07:18 PM PST

    CFAGX mid cap mutual fund down 5.35%

    Posted: 06 Dec 2019 03:05 PM PST

    Trying to understand why a mutual fund was down so much when the market was doing so well?

    submitted by /u/scudfucc
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    Selective Insurance Group: Buy And Hold U.S. Stock Pick (fundamental, technical and value analysis)

    Posted: 06 Dec 2019 05:26 PM PST

    Fundamental Analysis

    Summary:

    *Performance: 6/10

    *Security: 7/10

    *Price: 4/10

    (Note: If the performance and security ranking is higher than price ranking the company is supposed to be undervalued and possibly suitable for buying.)

    • Share Price: $ 66.95 (week end 15.11.2019)

    • [S&P 500: $ 3120.46 (week end 15.11.2019)]

    Selective Insurance Group (NASDAQ:SIGI) is a financial insurance company and therefore, many financial ratios would come up significantly distorted because of the character of the business and relevant accounting policies. This is the main reason why we haven't included some of the fundamental ratios, nevertheless we have performed all data cross-analysis and reported what we found revealing.

    We looked closely at the company data over the last decade.

    The company has two fundamental sources of profits, which are insurance ca 1/3 and security investing ca 2/3. The proportion has been pretty consistent over the last five years.

    The company is investing primarily in available for sale fixed income securities (90.1%) where it keeps most of its assets (68.0%) (based on the last reported quarter).

    We rank the investment portfolio of the company as very secure.

    The sales have been growing 7.4% annually on average since 2012. This growth was pretty steady as it fluctuated between 4.7% – 9.8%.

    The profits (EBIT) were growing faster than revenue from the beginning of the last decade till 2014 when the EBIT margin stabilized around 10%.

    We haven't found any more significant risk coming from financial gearing (high debt), operational gearing (high fixed cost), cyclical nature of the business, cash issues (although remaining cash is reported often negative) or any other risk.

    The company has long term debt around 26% of equity (ca 6% of assets) which is not high.

    There are neither preferred shares (or bonds, convertible act.) or any other form of hidden debt (such as operational leases act.)The company has been paying regular dividends over the last decade which was steady 0.13/quarter between 11/2009 – 7/2014; since 11/2014 dividends always increased in November every year to the current level of 0.23/quarter (= 1.36% annual yield; 20.37% payout ratio).

    The P/E (price/earning) ratio is currently 17.04 which is quite a bargain for practically stable, reasonable performing and growing (despite of paying regular dividends) and pretty secure company.

    The price to (tangible) book is only 1.87 which makes the investment even more secure also down to the fact most of the assets of the company could be converted into cash very quickly.

    Technical Analysis

    Summary:

    *Time to Buy: 7/10

    The price of the (common) stock is close to the bottom of the price channel on the monthly chart, the bottom line of the Bollinger Bands is broken on the weekly chart and it was recently broken on the daily chart.

    From point of view of technical indicators and moving averages the security is slightly bullish (indicating slightly rising trend) on monthly chart and strongly bearish (indicating sinking trend) on weekly and daily charts (nevertheless this could be also interpreted as oversold security and therefore suitable condition for placing trade with higher risk/reward ratio such as 1:2 or even 1:3 if someone is willing to wait for profit longer).

    From Elliot Wave point of view the security is close to the bottom of the wave C of the zigzag corrective pattern. The price could go as low as ca $64 (ca 5% lower than it is now) nevertheless it would not be advisable to rely on it as the zigzag pattern could be already completed.

    Technical Analysis Chart 1

    Technical Analysis Chart 2

    Performance

    The better the performance, the higher the ranking. Performance ranking includes both current performance and potential of the company to grow.

    Security

    The more secure the company, the higher the ranking. Security ranking answers how likely the company is to experience problems and how well it is supposed to deal with them.

    Price

    The higher the price the higher the ranking. Price ranking doesn't take into account the performance or security of the company. Note: If the performance and security ranking is higher than price ranking the company is supposed to be undervalued and possibly suitable for buying.

    Time to Buy

    The better the time to buy, the higher the ranking.

    submitted by /u/Invexplo_com
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    Is there a recourse that has the best Dividend Stock predictions?

    Posted: 06 Dec 2019 05:24 PM PST

    Just a 26 year old chick new to investing. I want to know the best dividend stock. Any recommendations?

    submitted by /u/OverJackfruit
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    How likely is a December selloff? Should I purchase shares of SQQQ?

    Posted: 06 Dec 2019 05:12 PM PST

    Is it true that December tends to be bad for equities since people are selling off for tax purposes? The ongoing trade war (tariffs on Dec. 15) also doesn't help. Also, if I believe the market will go down in Dec., should I purchase shares of SQQQ (3x short Nasdaq 100)?

    submitted by /u/LiveNeedleworker8
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    Is there a stock chart I can see to find records of capital allocation decisions of a company? Eg. when dividends were issued

    Posted: 06 Dec 2019 12:52 PM PST

    I'm writing my first-ever report on a company on Intelligent Systems [ NYSEAMERICAN: INS ]. I am trying to determine if the management of the company has historically made smart capital allocation decisions by looking at things such as timings of dividends and buy backs.

    Does anyone know of any online resources that would make this faster? I remember once I saw a stock chart on Bloomberg that could at least show when dividends were issued but I can't track it down.

    I'd really appreciate any advice, or any additional resources, as this is my first time really analyzing a stock.

    Edit: Globe and Mail graphs show dividends, still nothing for buy backs though

    submitted by /u/thepixelatedcat
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    What investment vehicles are useful in rarer situations.

    Posted: 06 Dec 2019 12:44 PM PST

    Basically title. For most people, low cost ETFs or mutual funds are the way to go. But I want to get a feel for what else is out there that could be useful for people in less common situations.

    submitted by /u/heuristic_al
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    eToro confirms leaked plans for debit card

    Posted: 06 Dec 2019 03:42 PM PST

    Insider leaks memo detailing secret plans for a card, labelling it 'blatant profiteering', but trading platform dismisses it by saying it is proud of profit...

    https://coinrivet.com/etoro-confirms-leaked-plans-for-debit-card/

    submitted by /u/AgentKI100
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    Curious what you think about [CRSP] after it doubled in value in the last 2 months

    Posted: 06 Dec 2019 03:32 PM PST

    It's been one of my long term gamble stocks, I'm going to hold this one until it either explodes or dies down. I've noticed that after a big drop in a little over a year ago, the stock doubled in value in the last 2 months and is now at an all-time high (I'm not even sure why). Also just read some really interesting developments with the fact the CRISPR tech might be on the verge of a breakthrough to fix "almost all disease-causing DNA glitches". I've not seen this stock debated a lot around here, so I'm curious what others think of it and what attracted/blocked you from investing in it?

    submitted by /u/shannister
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