• Breaking News

    Wednesday, February 5, 2020

    If you'd bought Microsoft at the Dot Com peak, you'd have been down by 75% by 2009, in the red until 2016, and up 180% as of today, beating the S&P by a country mile. Investing

    If you'd bought Microsoft at the Dot Com peak, you'd have been down by 75% by 2009, in the red until 2016, and up 180% as of today, beating the S&P by a country mile. Investing


    If you'd bought Microsoft at the Dot Com peak, you'd have been down by 75% by 2009, in the red until 2016, and up 180% as of today, beating the S&P by a country mile.

    Posted: 04 Feb 2020 07:02 AM PST

    https://twitter.com/birdyword/status/1220597057414582272?s=21

    Edit: some of you are waaay to angry about this, you to need to chill out. It's just a thought provoking tweet. Take from it what you will...

    submitted by /u/NineteenEighty9
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    Saudi Arabia fund dumped nearly all of its Tesla shares in the fourth quarter, filing shows

    Posted: 04 Feb 2020 10:25 AM PST

    https://www.cnbc.com/2020/02/04/saudi-arabia-fund-dumped-nearly-all-of-its-tesla-shares-in-the-fourth-quarter-filing-shows.html

    Granted this was only 39000 shares in a massive fund but they definitely missed a 100+% run up in the last month

    I misread lol, 8.2 million sold just prior to the run up, only 39k remaining. Brutal. Thanks u/Yeffry1994 for the correction

    submitted by /u/_TerryMcGinnis_
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    Sold my TESLA shares today. What do you guys think?

    Posted: 04 Feb 2020 06:25 PM PST

    I bought Tesla back when it hit around 190 (around 20 shares). I sold my shares today at around 930. I'm so happy with my performance. I know that the stock may go up but honestly it sounds pretty crazy that a stock can gain so much so fast on pure speculation. Let me know what y'all think. I love Tesla as a company and as a stock and plan on getting back to it if (when) it dips a little.

    Let's have a discussion on TESLA and see what everyone thinks about the company

    submitted by /u/californiankoala
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    Ford down 10% in after hours after earnings.

    Posted: 04 Feb 2020 01:31 PM PST

    https://www.bloomberg.com/news/articles/2020-02-04/ford-s-forecast-trails-estimates-after-costs-mount-sales-slump

    — Earnings before interest and taxes will fall to a range of $5.6 billion to $6.6 billion this year, Ford said Tuesday, trailing analysts' average estimate of $7.4 billion.

    — Fourth-quarter adjusted earnings dropped to 12 cents a share, trailing the average estimate of 17 cents. Automotive revenue was $36.7 billion, about $100 million more than the projection.

    — That sweet divvy skyrockets from 6.5% to 7.4%.

    Lol.

    submitted by /u/MasterCookSwag
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    Disney earnings: $1.53 per share, vs $1.44 EPS expected

    Posted: 04 Feb 2020 01:12 PM PST

    TSLA up another 9% pre-market...

    Posted: 04 Feb 2020 04:25 AM PST

    This after being up 20% yesterday, I've always been a bull on their stock but this is just full blown insanity right now. Only thing I can compare this too is Bitcoins bull run to near $20k couple years ago. Bottom has to fall out eventually right? The smart people are going to take their profits and run right?

    submitted by /u/GopherFawkes
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    Why are a lot of rich people heavily illiquid?

    Posted: 04 Feb 2020 09:07 PM PST

    I work in a company that caters to wealthy individuals, usually we have to review some of their finances before working with them. Things that stick out to me are how illiquid they are and how much they have to borrow against assets. I'm surprised that they don't just build wealth using liquid passive investments like VTSAX. What is the reason anyone, especially wealthy people, choose illiquid assets?

    submitted by /u/ronnyYaland
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    What caused TSLA's 10% drop in the last 15 min of today (Tuesday)? Any ideas?

    Posted: 04 Feb 2020 01:53 PM PST

    YouTube spinoff increasingly makes sense for Google

    Posted: 04 Feb 2020 07:45 AM PST

    $GOOGL's Q4 revenue and margin misses were hard to defend, and the EPS beat was driven by a non-recurring 0% tax rate in the quarter. With headcount growth expected to be greater in 2020, this further clouds operating income projections.

    However, the biggest bright spot from the quarter was the new disclosures, which now allow investors to track performance by major business line. Specifically, YouTube now has $3B run-rate subscription revenue with 20m subscribers and 2B MAU. Analysts estimate YouTube would be worth $200B standalone, which is about 1/5 of GOOGL's EV. YouTube would be a strong alternative to $NFLX, $ROKU, and $TTD, which are all trading at much higher multiples. A spinoff would also help make Google smaller since big is bad in DC.

    submitted by /u/street-guru
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    Why do automotive stocks typicaly underperform against the market? In other words, why would anyone purchase their stock?

    Posted: 04 Feb 2020 03:21 PM PST

    TSLA is the exception here.

    Why have FCAU, F, GM and Nissan relatively have been flat (or declined) over the past decade? Toyota has done the best, what makes them unique? Is it corporate culture? In addition, this is a capital heavy industry, why bother paying a dividend and use that money internally. I also find it odd that FCA, F, GM headquarters are within an hour of each other, leading me to believe that a culture around them is part of their problem. In other words, decision makers and executives leave to work for one of the other Detroit 3, bringing over bad habits, because they do not know another way to manage.

    What are your thoughts on this?

    submitted by /u/Carochio
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    What formula do you use to find out stock valuation vs what the market is currently telling you ?

    Posted: 04 Feb 2020 07:37 PM PST

    And Do you guys normally care about a stock being overpriced even though it's a good pick

    submitted by /u/badbaddoc
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    Current S&P 500 PE ratio is 24.82 - What do you make of it?

    Posted: 04 Feb 2020 02:33 PM PST

    ETF screening by 1-year and 3-year dividend returns?

    Posted: 04 Feb 2020 05:47 PM PST

    I've been Googling hard to try to find ETF screeners that work like, say, Etrade's stock screener: sort the ETF universe by highest dividend returns over the past year. 3 years would also be great to know. But Etrade's ETF screener does not provided this data slice. I'm pretty tired of reading Motley Fool, Seeking Alpha, and Investopedia articles positively chirpy about supposed "top dividend yield ETFs" when their recommendations are all returning 3%, 4%, MAYBE 5% ... when I KNOW:

    • SDIV: 8.9% dividend yield vs. market price in the past year
    • BIZD: 9.03%
    • YYY: 8.3%
    • GYLD: 8.6%

    ... and all reasonably stable, in that their 3-year dividend yields are comparable. I can calculate 1-year (and 3-year) yields with Nasdaq's dividend history charts, but of course I'm not going to slog through that process for hundreds or thousands of ticker symbols. So how do I find the real dividend-yield leader ETFs?

    submitted by /u/modernangel
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    Stocks are set to rally for a second day with Dow futures up more than 300 points

    Posted: 04 Feb 2020 05:07 AM PST

    https://www.cnbc.com/2020/02/04/us-futures-point-to-wall-street-rally-as-virus-fears-abate.html

    The Bulls are back in town. Glad to see things settling back to normal.

    Onwards, Upwards.

    submitted by /u/FortyYearOldVirgin
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    Thinking about investing between AMD and Microsoft

    Posted: 05 Feb 2020 03:47 AM PST

    I have 2000$ to invest and I found that AMD and Microsoft have the potential, but there are certain concerns. I decided that today is a good time since the price of gold went down.

    My biggest concern is with Tesla's bull run, which could pop and it could lower other tech stocks by a bit.

    I see some short-term potentials (1 year) for Microsoft with it's upcoming release of XBOX. Not only that, but I see Microsoft having more potential than Facebook with their technology innovation, such as their glass storage.

    AMD has recently become mainstream to compete against Intel. They are also contracted to make the CPU for the next gen console.

    What are your thoughts on the matter?

    submitted by /u/MalishMan
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    BUD suffers Coronavirus drop?

    Posted: 04 Feb 2020 03:07 PM PST

    Would the owners of Corona beer be a good stock to buy with the fear of coronavirus impacting their sale?

    submitted by /u/Metrilean
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    DIS forecast after earning?

    Posted: 04 Feb 2020 10:12 AM PST

    Anyone think it could go above $150? The earning would be less than a year ago but a lot of optimism from the streaming subscription number.

    But it has already gone up a lot in the past two days so the optimism might have been already baked in.

    submitted by /u/kenmlin
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    EBay's stock soars after WSJ report that NYSE parent made a takeover offer

    Posted: 04 Feb 2020 12:26 PM PST

    Is the market no longer concerned a out Coronavirus impacts?

    Posted: 04 Feb 2020 09:56 AM PST

    Virus deaths continue to grow exponentially, but the American market appears to have completely shrugged off its impacts. Can anyone help me understand why?

    Is the market no longer expecting a ripple effect from the loss of economic activity in China? It seems certain that this will negatively impact earnings around the world (via supply chain disruptions and reduced consumerism idue to the entirety of China staying home), even if we go back to normal this week. But it seems that it will be months before the virus is either eradicated or we give up out of hopelessness. I can only see either of these outcomes being a huge negative for the market. What am I missing?

    submitted by /u/ixikei
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    How does the market keep doing this???

    Posted: 04 Feb 2020 06:46 AM PST

    It's maddening. I'm not a bear. I'm working to kill debt so I can get deeper into the market. Feels like I'm missing the boat. {Sigh}

    Edit: excuse me while I have a FOMoment.

    submitted by /u/far2canadian
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    Does anyone know any resources to track live short interest?

    Posted: 04 Feb 2020 05:06 PM PST

    Or is it only a semimonthly reported figure? I use thinkorswim if that's relevant at all.

    submitted by /u/SampleTextMaster
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    $AIMT at a great price to buy

    Posted: 04 Feb 2020 09:43 AM PST

    I think there is a chance to make a decent profit with it trading so low. They sill have a medicine for the peanut allergy.

    submitted by /u/Arniescc
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    Worthy Financial

    Posted: 04 Feb 2020 11:19 PM PST

    Does anyone have any experience with this app? It is not FDIC insured- but they claim to not lend money to clients without insurance through liquid assets/products in case the loans are not paid back. They basically market themselves as a higher-interest savings account at 5%. (Bonds?) are $10 and are able to be withdrawn at any time. I'm just starting to research investing and don't have much risk-taking ability at the moment, but I'd rather my money not sit in the bank doing nothing.

    submitted by /u/colterss
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    There has been a ton of discussion about leverage lately. In this post I discuss obtaining leverage via personal loans, buying stock on margin, leveraged ETFs, options and futures.

    Posted: 04 Feb 2020 07:55 AM PST

    The belief that the US stock market always increases in value over the long term is a central tenet of many investing strategies (read about the equity risk premium).

    Exposure to the an index fund beyond 100% can be achieved via leverage:

    Personal leverage such as home equity loans or personal loans are limited by capital available and high interest rates.

    Buying stock on margin also usually has unacceptably high interest rates and a market downturn can lead to a margin call.

    Leveraged ETFs perform well in bull markets, but due to the "implied interest rate" due to borrowing costs and management fees, still lead to significant costs for obtaining leverage. In addition, because many of these are rebalanced as frequently as daily, your returns can be greatly diminished and you effectively buy high and sell low in a sideways market. However, in a market with consistent momentum, either negative or positive, the frequent rebalancing can actually work in your favor. This means you will lose significantly more in down years, but not 2x or 3x or whatever your leverage is. The oldest leveraged ETFs I could find (RYNVX 1.5x, SSO 2x) are compared with the S+P 500 here.

    Options are an effective way of obtaining leverage without the same costs inherent to the strategies above. However, costs such as premiums, theta decay, and not receiving a dividend will limit returns. This 2008 paper advocates buying deep in the money Long-Term Equity Anticipation Securities (LEAPS), which equates to an implied interest rate of LIBOR + less than a percentage point for 200% exposure, although higher amounts of leverage had higher implied interest rates. I won't explore options fully in this post, but they are a reasonable choice and are described in detail in the paper.

    Futures may be the most cost-effective way of obtaining leverage, or are at least comparable to options. With index futures, you enter into a contract to buy or sell the index at a future date (NOT optional), and the notional value contract can be 5x, 50x, or 250x the underlying index (in the commonly traded CME group contracts). Depending on how much capital you commit to the margin (a sort of good faith deposit), leverage can be anywhere from almost 0x up to 25x if your margin requirement was 4%. This position can be rolled forward quarterly, and leverage will increase if the index loses value and decrease if the index gains value. The costs inherent to futures include small trading fees, the lack of dividend reinvestment (although this is priced in to the futures contract), and the cost of financing (usually near the risk-free rate). In addition, interest rates and dividend yields affect the pricing of futures contracts. Large drawdowns can also result in margin calls.

    A future post will describe a detailed analysis of using S+P 500 index futures contracts to obtain leverage.

    TL;DR Leverage results in greater gains and greater loss, but can be expensive to obtain. Options and futures are the most cost-effective way of obtaining leverage. Holding a leveraged long position with options and futures is possible, but can be completely wiped out with severe drawdowns.

    What do you think? Is leverage too risky, or a valuable part of a young person's portfolio?

    submitted by /u/devdevdev51
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