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    Stocks - r/Stocks Daily Discussion & Fundamentals Friday Feb 28, 2020

    Stocks - r/Stocks Daily Discussion & Fundamentals Friday Feb 28, 2020


    r/Stocks Daily Discussion & Fundamentals Friday Feb 28, 2020

    Posted: 28 Feb 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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    I'm expecting this dip to at least double in the coming weeks

    Posted: 28 Feb 2020 05:19 AM PST

    I'm waiting for a full correction, 25-30% retrace, at least, this week has been shocking to most people, but the signs were pretty obvious that this plane was running on low fuel

    Since early February I was pretty scared of the level of gains the market was returning, completely ignoring corona virus potential, Buffett cash pile and his conviction of a market way too expensive, WSB craze, but I was resisting the idea of timing the market

    I finally did it, the last straw was the NVDA almost vertical climb and ENPH unreal post earnings pop, reminded me of the last Bitcoin climb to almost 20k, the only crash Ive experienced with an investment (ok speculation), I sold last week 70% of my protfolio, now Im waiting for a even bigger dip, 25% at least because:

    -Pandemic is inminent and we are in the early stages

    -We are mostly just at a 10-12% retrace, returning to mid-late 2019 prices

    -Govt incompetence

    -We still havent seen quarantined cities in the US

    -Eventually closed borders in Europe

    -A rate cut could be even more damaging to this economy, IMO it needs a full correction, but Trump will use everything in his power for a short term solution

    I've resisted the impulse to get in medical stocks, or day trading, I'll just wait for the heat to cool off and panic to settle in, try to follow the "buy when there's blood on the street"

    OR everything returns to normal in a couple of weeks

    submitted by /u/zevloo
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    Don't sell ! Market correction history shows us bear market since 1960's only lasted 17 months in total

    Posted: 28 Feb 2020 12:37 AM PST

    I would suggest in holding, especially if you holding on blue chip companies i.e coca cola, msft, tsla

    Here's a nice article:

    https://www.schwab.com/resource-center/insights/content/market-correction-what-does-it-mean

    submitted by /u/UK_spikey
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    My advice for people panicking right now

    Posted: 28 Feb 2020 02:02 AM PST

    I am by no means an expert or a veteran in this sport, but I have seen these sudden drops enough times to have learned something (mostly from personal experience).

    1. Take a breath and think rationally about what is happening right now that is causing the drop. Flu has been around since the dawn of men, and it's a consistent annual killer of about 50000 people around the world. Corona is just a type of flu that was given a name and some media attention. With a death toll of under 3000 so far and symptoms, infection rates and death rates similar to the "regular" flu, there is nothing special about it to warrant any kind of panic behavior. For comparison 500 000 people die of malaria annually. Do markets drop because of malaria?
    2. Figure out if the market is acting irrationally. Best indicator is if all the stocks are dropping at the same rate no matter the industry or the potential impact from the corona virus. is DAL going to be affected by the virus? Well people are going to be traveling less, so it's a safe bet that their revenue will drop. Will MSFT be infected by the virus at the same rate as DAL? A company selling PC software and cloud platforms? Probably not. Then why are they dropping at the same rate? IRRATIONAL MARKET
    3. Don't be a part of the herd. The market is moved by the average of all trading activity. An average investor is just that - average. Be better than average. Look at what the best of the best (buffet, icahn) are doing. Are they panic selling? No
    4. NEVER PANIC SELL! Are you invested in quality companies that you can see being healthy in 10 years? Then why would you sell now?? Take any of those companies and look at their stock price for the past 10 years. Did they go through dips of 20% or more? Most likely yes. Imagine the people that sold back then. Fools, right? If you sell now, you will probably end up reentering the position at a higher price when you figure out "thing are going back to normal"
    5. Don't short stocks. Are you a professional trader looking to squeeze every cent out of the market? No? Then NEVER SHORT STOCKS! It's simple math. Max potential gain of an unleveraged stock short is 100% (if the stock goes to 0 - highly unlikely!). Potential loss is unlimited (because the stock can go up indefinitely). Even the best of the best have lost fortunes on shorting (famous bill ackman herbalife short)
    6. If you have the cash - buy the dips, if not - hold. The virus will fade, markets will rebound. They always do. Worse things have happened. World wars, debt crises... Markets always rebound.
    7. Don't look at your portfolio every 5 minutes and don't try to time the bottom. It's just bad for mental health.
    submitted by /u/draganb12
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    My experience with the last correction

    Posted: 28 Feb 2020 06:13 AM PST

    I have only been investing for a couple years but I've seen a lot of new people (and unfortunately experienced people) panicking. I bought a ton right before the last correction at the end of 2018. While it is frustrating at the time, the losses at the time are small peanuts compared to where the stocks are now. Even with this correction they are still slightly up from a year and a few months ago. Unless you are a day trader or you need immediate money, it's probably very stupid to sell. Market fluctuations do not affect the strength of your positions. The only logical thing you can really do is evaluate whether or not you really believe the Coronavirus will cause irreparable damage to your positions. If not, there's no reason not to hold.

    This is one of the most frustrating times to be an investor, especially if you bought right before the correction. Sometimes you just have to wait it out. The stock market has never not been able to recover from anything

    submitted by /u/Dirty-Dan24
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    APT will come crashing down

    Posted: 27 Feb 2020 07:27 PM PST

    Alpha Pro Tech (APT) makes N95 respirator masks, and has shot up from about $5 to $25.25 ($32.71 after hours) in 5 days. It sits at a market cap of over $328.785 million , and a P/E of 110.75.

    Today they announced they have gotten $14.1 million in orders since January 27th (link below), and expects to ramp up their production by May and only then be able to fill out these orders. Even with those increased orders, it doesn't justify a market cap of over $300 million.

    Looking at the chart, it shoots up every time an epidemic comes along, (biggest spikes are 2009 H1N1, 2014 Ebola, 2003 SARS) and then it shoots back down.

    Lastly, their website looks like it hasn't been updated in 20 years. This will likely come crashing down, could be a good opportunity.

    http://www.alphaprotech.com/userfiles/doccenter/news/2020/2020-02-27_Coronavirus_Update.pdf

    http://www.alphaprotech.com/

    submitted by /u/DrHummus
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    I am old and can't remember a day the market fluctuated as much as today

    Posted: 28 Feb 2020 12:19 PM PST

    It is just crazy how much the market is swinging today. Not just once but over and over gain.

    Can't wait until 4:00 PM is here. We are swinging up into the close but will 4 get here soon enough?

    submitted by /u/bartturner
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    Will DISNEY go under $100?

    Posted: 28 Feb 2020 09:04 AM PST

    I sold all my shares last week - would reinvest all of it back but was waiting till it drops under 100 - wonder if anyone else thinks that's lucky. I am betting if they have to close more parks it will continue to slide! Thoughts ?

    submitted by /u/ToddNewHere
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    Dow set to drop 600 points after Thursday’s massive tumble amid coronavirus fears

    Posted: 27 Feb 2020 11:12 PM PST

    Tokyo Disney closes

    Posted: 28 Feb 2020 06:53 AM PST

    College Freshman With ~3-4k To Invest

    Posted: 28 Feb 2020 12:54 PM PST

    I have a total of around ~8k. I'm attending University with quite little cost because my parents are helping me pay some, along with grants and scholarships. I'm planning on moving off campus next semester with some friends, which would make the bill for University $0 when taking out the dorm and meal plan costs.

    I say 3-4k, because I plan to split the remaining 3-4k for 1) Emergency fund of around 2k. 2) 2k for casual spending and rent for next year. In the summer I'm planning to get a job and earn another 5k, and I'm about to get a job really soon as well in the next 2 weeks, hopefully earn 1-2k before the summer starts. If I need additional financial assistance, my parents who live in Boston will be able to provide for me as well although Im trying my best to not rely on them.

    Anyways I've had that money for a while now and I haven't thrown a single penny into the market, as for the past few months, everything has been rising and I kept having the mindset of buying in low and selling high and wasn't thinking about investing for the long term. Pretty lucky since the coronavirus virus thing happened and now everything is dropping. I finally decided that I'm going to invest for the long term, as in around 10 years, or longer.

    I'm not a big spender and don't really need this 3-4k, so I was thinking about investing this for the long term. I'm planning to spend around 60% of the money on index funds like SPY or VOO, but I'm struggling trying to decide how the rest of my portfolio should be. I know since it's for the long term, I should probably invest in large stable companies that are going to survive this Coronavirus situation and possibly an upcoming recession. However 3-4k really isn't that much, so I'm hoping for some guidance.

    I believe the markets going to continue dropping, so I was thinking of "riding the wave" , investing in 1/3 of my money at a time and then another 1/3 when it drops a bit lower. I've never actually invested and only really got interested in the world of investing the past few months.

    Any help is appreciated! THANK YOU!

    submitted by /u/eggroll251
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    Damn I wish payday was today

    Posted: 28 Feb 2020 07:11 AM PST

    Love to see those 401k contributions go in on a day like today.

    We'll see where we are next week. (Paid every other week)

    submitted by /u/joeyjoejoe314
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    Feel like I’m the only one not making money in this market

    Posted: 27 Feb 2020 06:23 PM PST

    Looking at wsb people are posting huge gains off puts. All my options are just stupid and I feel like I'm the only one losing. Anyone else?

    submitted by /u/sh1t_trader
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    What about AAPL and MSFT

    Posted: 28 Feb 2020 01:11 PM PST

    With AAPL I am at +70% (I was 105% before the drop) so no plan to sell. MSFT jumped back to the price I bought them. What shall I do with them?

    submitted by /u/MarcoGT
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    Corona stocks ��

    Posted: 28 Feb 2020 06:06 AM PST

    I am new to the stockmarket but have 10k € ready to spend.

    Yes I can afford losing the money, but I would of course prefer to make profit.

    How would I go about investing in stocks for respiratory masks, vaccines etc. in a way to make the most profit?

    People keep talking about "puts" and I frankly don't even know what that means or how I would go about that.

    submitted by /u/damondan
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    Buy Disney?

    Posted: 28 Feb 2020 11:54 AM PST

    What are your thought currently on Disney? Should we wait more to see how this virus plays out or should we jump on now an buy.

    submitted by /u/MB4ACES
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    Are we in full panic mode?

    Posted: 27 Feb 2020 09:44 PM PST

    What do you guys think? Are we going to see a 15% day tomorrow or sometime next week? The rush to the exit seems to be pretty crowded right now. Even at these oversold conditions, the S&P still has room to fall given the charts. I've personally made a pretty good buck shorting Apple and Microsoft from last Thursday but refuse to buy anything at this point given that they're still overvalued long term. Apple still has about 30 bucks to reach its 200DMA. But the fear seems to be everywhere not just the top 4, even though they were a big reason for the markets run up the past couple months.

    submitted by /u/Harvey_cushing88
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    How is monday looking?

    Posted: 28 Feb 2020 11:44 AM PST

    So we all know corona is going to spread over the weekend and there is likley a ton of more undiagnosed corona cases. Im currently about 100€ deep in puts on aapl, amzn and amd (about a 800€ portfolio) that im holding untill monday to try and regain my stock. Is this a stupid move, what are you guys thinking? How is monday looking?

    submitted by /u/Stonksnshit
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    Why do people call it a correction?

    Posted: 28 Feb 2020 01:43 PM PST

    I get the market is down. It's a fact. There are reasons behind it .. but why call it a correction?

    submitted by /u/deemes24
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    Stock to watch, Novavax: Nvax

    Posted: 28 Feb 2020 04:16 AM PST

    Company is working on a vaccine for the coronavirus. They seem to be making traction in all the red. Worth a look into.

    submitted by /u/JonnyTro
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    Stocks to buy?

    Posted: 28 Feb 2020 01:39 PM PST

    Should I buy any big stocks like Apple and Tesla etc. right now?

    submitted by /u/whiteboy-111
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    Amazing surge on some companies... worth to invest ?

    Posted: 28 Feb 2020 12:39 PM PST

    For instance APT Alpha Pro Tech. Worth it ?

    submitted by /u/viscosity32
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    Is now the perfect time to buy stocks?

    Posted: 28 Feb 2020 06:57 AM PST

    I'm 18 and want to get a start into the stock market. Now that prices are dropping would it be recommended to invest now?

    submitted by /u/Bru_hmoment
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    Effect of Trump on Corona virus impact

    Posted: 28 Feb 2020 02:03 PM PST

    While I'd been originally thinking of the corona virus impact on the markets in the context of similar past experiences, like bird flu, I'm now beginning to think that the current administration will botch things so badly that this could have long lasting multi year impact on productivity, gdp and stock prices.

    And the fact it's an election year probably means we'll also likely get a lot of bad, short term approaches that will make things worse in the long run, like even lies about the impact.

    Curious to hear others' thoughts (within bounds of avoiding political discussions)

    submitted by /u/mettle
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    My forecast for today, hope it helps

    Posted: 28 Feb 2020 05:41 AM PST

    One of the worst weeks in the stock markets history is coming to a close. Shorter term investors normally sell on Friday since they do not want to be exposed to risk during the weekend. This week especially we have so much uncertainty that holding is very risky. As of 8 30 AM ET, when this article is being written, the global markets are in the red again. Asian markets were down over 3%, with the Shenzhen Composite leading the decline finishing 4.93% down. European markets are down around 3% and have in mind this is the highs of the day. In the first couple of hours of trading they were down more than 4%. This up move was reflected in the US futures as well. The Dow futures are down around 0.7% at this time, also at the highs of the pre-market session. The Dow futures are hovering around 25400, recovering more than 500 points from the low of the night at 4 30 AM ET when the futures hit 24900. From the economic data, Personal Income beat expectations +0.6% vs +0.3% exp, but personal spending missed raising 0.2% vs 0.3% exp. The Coronavirus keeps spreading and during the day we will have reports from different authorities that are monitoring the outbreak. Since the probability of new cases is high, the news will probably have negative impacts on the markets. Volatility is also very high with investors buying the dip are fighting the sellers.

    Since the weekend is coming and there are no good news on the horizon, I will still recommend NOT buying, and if you like to make some money from the decline, buying PUT options is a good idea. If you are day trading, keep smaller stop losses, trade multiple times smaller positions, same as the previous days. Good luck!

    submitted by /u/aleksandarslvk
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