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    Friday, January 31, 2020

    Stocks - r/Stocks Daily Discussion & Fundamentals Friday Jan 31, 2020

    Stocks - r/Stocks Daily Discussion & Fundamentals Friday Jan 31, 2020


    r/Stocks Daily Discussion & Fundamentals Friday Jan 31, 2020

    Posted: 31 Jan 2020 12:07 AM PST

    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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    Tesla stock is wrapping up its best month since 2013, adding $40 billion in value in January

    Posted: 31 Jan 2020 04:37 AM PST

    https://www.cnbc.com/2020/01/31/tesla-tsla-shares-best-month-since-2013-and-third-best-ever.html

    Tesla's stock soared 53% in January as of Thursday's close, and is poised to close out its third-best month of all time.

    On Wednesday, the electric car maker reported better-than-expected results for the fourth quarter.

    CEO Elon Musk told investors the company has no intention to raise more capital at this time, or possibly ever again.

    submitted by /u/coolcomfort123
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    Why the Coronavirus is a Good Opportunity to Buy Chinese Stocks

    Posted: 31 Jan 2020 12:34 AM PST

    With the outbreak of the coronavirus and Chinese authorities suspending major stock exchanges in China, its likely that Chinese stocks will get hammered in their first trading session next Monday. I believe the short-term impact from the outbreak of the virus is an opportunity for contrarian investors to bet on quality businesses with solid fundamentals. I personally like CIH, CLPS, and QTT, but interested to hear what other companies other contrarians are interested in. -Value Investors Paradise

    submitted by /u/VLUInvestorsParadise
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    Is the stock market addicting or is it just me?

    Posted: 30 Jan 2020 03:03 PM PST

    You see, I'm new to investing and dropped 14k right before the "virus" hit the media. I'm in the red now.... but I grabbed some good growth stocks. At least I hope... Now I can't stop checking and refreshing! I feel like I have a stock virus! Lol

    submitted by /u/Dynomic3
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    Tesla Model 3 Sales drop from 12,000 in December to just 36 in January In The Netherlands

    Posted: 31 Jan 2020 10:40 AM PST

    Dutch article: https://www.ad.nl/auto/verkoop-tesla-3-duikelt-van-12-000-naar-36-stuks-per-maand~addadd59/

    Long story short. December 2019 Tesla sold 12,000 Model 3 (registrations) in the Netherlands, this month just 36. After last month's hype, the sales of electric cars is back their usual position, which is just a mere 1% of all car sales. The top seller is currently the Volkswagen Polo.

    submitted by /u/PlusUltra-san
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    $TMUS is 50% off right now if you buy it as $S!

    Posted: 31 Jan 2020 07:44 AM PST

    Within the next month we're going to get the final decision from a judge about whether or not the merge will happen. There's a ton of doubt about this merger, but I for one can't fathom it not going through. It would make no logical sense for a judge to deny a merger under the grounds that it would create less competition (which is what the states are suing over) for the following reasons:

    • If the deal falls through, some believe Sprint wouldn't survive independently anyway (I'm not one of them)
      • It could potentially be bought out by a number of other companies in this case.
      • It just started raising a billion dollars to help cover its debts for a long time to come.
    • In exchange for the deal, Sprint has a deal to sell off Boost mobile to Dish networks which would maintain a cheaper cellular service alternative
    • T-Mobile has made an agreement not to raise any prices on any of their plans for a number of years after the deal
    • This plan would allow T-Mobile to make custom deals with varying degrees of connection once they combine Sprint's bandwidth with their own

    If and when this merger is accepted in the following weeks, the price is bound to rise past $7.83 which is the value that the merger offer places Sprint stock at. The last time it was believed the merger was going through, $S jumped to over $8.50. It currently sits at $4.37 as I type this.

    The new T-Mobile will immediately become a powerhouse player and start eating away at Verizon and AT&T's market share. It will position them to have the best 5G in existence due to Sprint's investments in the technology over the years.

    Another motive for this merger is to beat Huawei at 5G coverage in the states. It would be a serious injustice for us to stop this kind of technological race from completing over a bunch of district attorneys trying to act virtuous for political points.

    It's unlikely that a failure to merge would really destroy Sprint as a whole. They've just set up a round of a billion dollars in funding to helpcover their debts. I can't imagine $S falling below $3.40 if this fails.

    Let's say there's a 40% chance of this merger going through. In poker, if you have a 40% chance of winning a hand with a promise of 200% return on your investment, and the risk is only a 25% loss if you're wrong, you gamble. No brainer.

    I'm long on $S and please feel free to set your !RemindMe for a month to check back on this one.

    submitted by /u/ProductCoordinator
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    Why is FB down so much?

    Posted: 31 Jan 2020 07:24 AM PST

    Thought their Q4 numbers were quite as expected. Surprised it dropped so much the last couple of days. Time to buy more?

    submitted by /u/HankMoodyMaddafakaaa
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    Luckie Coffee Stock tanked after independent watch dog caught LK accounting irregularities

    Posted: 31 Jan 2020 09:49 AM PST

    Luckin Coffee was caught by independent investment firm challenging growth values in Q3and early after IPO.

    Through detective work video to audit traffic. It analyzed the company hours of operation and concluded number of items per store was bumped up "69%" in the third quarter and "88%" in the fourth quarter, based on 11,260 hours of store video analysis in a 89 page comprehensive report.

    submitted by /u/Vast_Cricket
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    I'm up 120% on tesla should I sell and take my gains or buy more?

    Posted: 31 Jan 2020 05:52 AM PST

    I believe in the company I think they will keep growing and becoming better but it's hard to see $350 profit for my small account and not take it. I only have one tesla stock.

    Edit: Is there a place where I can get peoples opinions on stocks I hold and whether or not to sell? Tesla is my highest gain and it scares me to not realize that gain.

    submitted by /u/woodenpenny
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    What stock could turn $10k into $100k ten years from now?

    Posted: 31 Jan 2020 06:55 AM PST

    Any particular stock you think could grow that much? Or any etf? I'm big into AAPL but idk if they'll grow that much in ten years.

    submitted by /u/tsf_peso
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    Anyone out there with perspective on the stock market during the SARS/Ebola outbreak?

    Posted: 31 Jan 2020 12:49 PM PST

    Hi everyone,

    I've only been investing for a little over a year now and am starting to get a better understanding of how markets move with current events, what's noise, what's real, etc.

    With the latest pandemic in the news cycle, I'm wondering if there is anyone out there with a good market-centric perspective on the last number of outbreaks.

    Some things I'm wondering are:

    - How long does the market react to the bad news? During SARS was the biggest sell off during the time when people were trying to get a handle on the disease and there was plenty of room for panic/speculation or was it in the quarters afterward that would've shown depressed earnings from lost productivity?

    - How far out did the outbreak affect earnings? China will lose productivity for x months due to the outbreak. Does that show up in the next quarter or the next 3 quarters, for example? Did the market tend to price in those drops in earnings reports before they reported?

    - At what point in the outbreak timeline did you feel like things recovered? A quarter after the outbreak was under control? A year? Maybe during the process of getting things under control?

    submitted by /u/discotaco34
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    What is the hard thing about being successful with stocks?

    Posted: 31 Jan 2020 04:58 AM PST

    Please don't take offense. I am a newbie who just read a book on this topic and never bought a single share in his life.

    Help me understand the theory behind it all:

    From what I understand the goal is to:

    • 1) Research what company is successful in it's market

    • 2) Buy shares of that company

    • 3) Wait at least 10 years for noticeable returns

    • 4) Never sell shares out of anxiety or fear of a bear market

    • 5) Never try to time the market (selling as well as buying)

    When a company increases it's revenue, it increases its value and therefore the value of my shares. Some will also pay Devidends apart from that.

    If that's all it takes why can't I just buy shares in companies who have proven to be successful over the years and become another Warren Buffet? What point am I missing here? What is the hard part of it all?

    Again, I am asking a good question here out of curiosity and am in no way trying to be confrontational. Thanks.

    submitted by /u/lanylover
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    Thoughts on $LK?

    Posted: 31 Jan 2020 06:22 AM PST

    Is it a good time to buy the dip? Do you think it will continue to fall? Happy Friday

    submitted by /u/_superglue_
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    Coincidence or more to it?

    Posted: 31 Jan 2020 10:52 AM PST

    Phase one trade deal gets signed.

    Coronavirus outbreak happens.

    Coincidence or more to it?

    The markets have been piping hot. I'm not much for conspiracy theories but I am wondering if this outbreak is intentional and an attempt to manipulate the markets.

    What are your thoughts? Any other theories?

    submitted by /u/t3chb1zn3ss
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    Is it “risk free” to sell covered calls, in the sense that you can’t lost money?

    Posted: 31 Jan 2020 02:04 PM PST

    There's 2 options of what can happen.

    1) The stock doesn't reach the strike price, and you pocket the premium as pure profit.

    or

    2) The stock reaches the strike price and the option is exercised. You have to sell your shares, but you still made money because you're still selling the shares at a higher price (assuming you bought them for a similar or lower price than they were at the call creation).

    Obviously option 2 can make you not as much as you would've made by holding the shares, if the stock climbs beyond the premium break-even price. But it seems impossible to lose money.

    If my explanation is confusing then watch this.

    submitted by /u/Fargraven
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    Coronavirus could be a good thing for Chinese internet retail giant Alibaba

    Posted: 31 Jan 2020 01:46 PM PST

    As people are confined to their homes, or fearful of going out on the streets, their time online and internet purchases increase. This has led to rising sales and profits for BABA in the Wuhan metropolitan area. As more Chinese cities are stricken as badly as Wuhan, BABA's sales and profits should increase sharply all across China, and likely all of Southeast Asia.

    submitted by /u/Dems4Prez
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    What do treasury bill prices indicate?

    Posted: 31 Jan 2020 01:32 PM PST

    What do treasury bill prices indicate? What do treasury bill prices indicate? What do treasury bill prices indicate? What do treasury bill prices indicate? What do treasury bill prices indicate?

    submitted by /u/CIARRAPUNGI
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    Cramer claims he is done with fossil fuels.

    Posted: 31 Jan 2020 01:13 PM PST

    Do you think he is over reacting or on the right track? I think he is on the right track but the timeline for moving into renewables is longer than he thinks. I've been adding to ENPH and ACES pretty consistently.

    "Cramer sees oil stocks in the 'death knell phase,' says they are the new tobacco"

    https://www.cnbc.com/2020/01/31/cramer-sees-oil-stocks-in-the-death-knell-phase-says-new-tobacco.html?fbclid=IwAR3HikgnOd3nMKOIV_zMk5dZjCH1_GGPylm21fX8eZjx7Up8tVYb8cZRrQ0

    submitted by /u/GrapeJuicex
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    [Ask]

    Posted: 31 Jan 2020 01:10 PM PST

    Where is the best place or website to research and study stocks weekly moves?

    submitted by /u/jollychomper11
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    Cybersecurity stocks

    Posted: 31 Jan 2020 12:51 PM PST

    I am currently looking into cybersecurity stocks since I think that this has still huge growth potential. Beyond the usual suspects like Cisco and check point software technologies I'm very interested in companies that fly under the radar and do not enjoy such high attention, could be smaller ones or some which are in your opinion undervalued.

    Thanks you for your help and suggestions.

    submitted by /u/-NicolasBolas-
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    Draftkings / DEAC

    Posted: 31 Jan 2020 12:38 PM PST

    Does anyone know when the relationship between DEAC and draftkings is supposed to come to fruition and the stock ticker is supposed to change? I had heard it hyped a few months ago and I bought some shares of DEAC which are doing alright, but I've heard nothing further in a while and there seems to be no commentary about it.

    submitted by /u/Poseidon75281
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    $ROKU - DIP

    Posted: 31 Jan 2020 08:36 AM PST

    So what's your opinion on the Fox App sell-off that's happening? I'[m getting raped today, are there more dips to come? Perfect time to buy? However, I dont get how ROKU has 40% of the market share and still continues to get beaten.

    submitted by /u/emartins732
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    Hold on to my apple shares?

    Posted: 31 Jan 2020 12:18 PM PST

    Got -200$ rn on my apple stocks. Should I just cut my loss or hold on?

    submitted by /u/WhereDidTheStarsGo
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    Trying to build a portfolio strategy, looking for pointers

    Posted: 31 Jan 2020 12:18 PM PST

    So right now my plan is to have 10% spread across 5 BDC's, 10% in stocks outside the US (including a 1% I plan on putting in frontier markets as I increase the amount I invest in the future). I plan on making angel investments using services like Republic and Microventures with a target of 14 solid startups (I understand that only like 1 or 2 of those 14 will likely be successful as long as I am really good at researching and selecting start ups but I like the growth potential) I'm not sure how much of my portfolio will end up being in Angel Investments because it all depends on how I feel about start ups, which only time will tell, but I am sure it won't make up a large amount of my portfolio.

    The rest of my portfolio I hope to have spread across 12 or so stocks, I'm not sure what the ratio will be between dividend and growth stocks but I hope to be diversified and have a dividend rate of 3%.

    When it comes to stocks I like transportation, energy, biomedical, and I am trying to find stocks that have goals to be in space in the next 10 years as I think that industry will be profitable in the long run.

    I would like as much advice as possible, I've been trying to do my homework before I start investing and now I feel ready to get in. I want some people with more experience and more knowledge to help me adjust my percentages and strategy.

    submitted by /u/FellNerd
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