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.
- Krugman: "Investors are buying stocks in part because they have nowhere else to go. In fact, there’s a sense in which stocks are strong precisely because the economy as a whole is so weak."
- Boeing raises monster $25 billion in bond offering, rules out federal aid
- Amazon.com Earnings Miss, Revenue Beats In Q1
- Tesla declines after Einhorn questions Musk"s accounting
- Credit Market Upate: Wells Fargo joins Chase, and will stop issuing HELOCs
- How to Value Stock in a Time of COVID-19 (ELI5 Edition)
- SoftBank to write down WeWork by $6.6 billion, compounding portfolio misery
- If this crisis doesn’t lead to the “Great Dollar Collapse” that certain bears have been predicting for years then I’m not sure that anything will.
- Trump Eyes Order to Block Savings Fund From Chinese Stocks
- Technical investors of Reddit, what is your answer for people saying you're just gambling?
- Apple Beats
- Clorox reported earnings: Q3 sales increase of 15%, posting revenue of $1.78B vs analysts estimates of $1.71B. Posts EPS of $1.89 vs $1.77 expected. Increased FY guidance from $6.10-$6.25 to $6.80-$6.90. Cleaning division posts 32% sales jump.
- Exclusive: Warren Buffett's advice for young investors
- Do you think we could see another crisis similar to the European Debt Crisis due to the massive increase in government debt around the world?
- Bullish Fact: Too much cash on the sidelines.
- Venezuela's PDVSA eyes restructuring that would elevate private partnerships
- Make your own ETF?
- How come mainstream sources like CNBC and reddit do not talk alot about gold royalty stocks?
- Chasing P/E
| Daily Advice Thread - All basic help or advice questions must be posted here. Posted: 01 May 2020 05:16 AM PDT 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:
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! [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Posted: 30 Apr 2020 04:35 PM PDT
https://www.nytimes.com/2020/04/30/opinion/economy-stock-market-coronavirus.html [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Boeing raises monster $25 billion in bond offering, rules out federal aid Posted: 30 Apr 2020 05:26 PM PDT | ||||||||||||||||||||||||||||||||||||
| Amazon.com Earnings Miss, Revenue Beats In Q1 Posted: 30 Apr 2020 01:10 PM PDT https://www.investing.com/news/stock-market-news/amazoncom-earnings-miss-revenue-beats-in-q1-2156836 1Q EPS $5.01 vs estimate. $6.27 https://www.cnbc.com/2020/04/30/amazon-amzn-q1-2020-earnings.html
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| Tesla declines after Einhorn questions Musk"s accounting Posted: 01 May 2020 05:55 AM PDT Einhorn, who five months ago told Musk he was "beginning to wonder whether your accounts receivable exist," said Tesla had claimed in the past that its balance of money owed was elevated by sales being highly concentrated at the end of each quarter. The Greenlight Capital president questioned how that could have been the case at the end of March given the shutdowns that Musk, 48, excoriated on Wednesday. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Credit Market Upate: Wells Fargo joins Chase, and will stop issuing HELOCs Posted: 30 Apr 2020 02:41 PM PDT I hate to say it again: no amount of Fed shenanigans will allow people and/or companies to actually service their debt. Credit contraction is coming, and --I believe--the impact is going to be generational. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| How to Value Stock in a Time of COVID-19 (ELI5 Edition) Posted: 30 Apr 2020 09:46 PM PDT So, there have a raging debate recently between bulls and bear. I would like to offer my explanation in regard to this. Since this is r/investing , i assume most of you guys have basic understanding in regard to FCF Valuation. But in case you don't know, it is pretty popular subject if you want to go deep down into fundamental investing. Some popular resources i would like to recommend is Aswath Damodaran, Valuation by McKinsey. Basically in FCF Valuation, you make an estimation in regard of future cash flow a company can generate in the future and discount it to the present time to arrive at the value of the business right now. Since this is ELI5, i will not go into too much details. This is heavily dumbed down scenario, but i think it is enough to give you understanding. Let's assume a hypothetical company. It is a good business with no debt, it has no risk of bankcruptcy in the near future. Revenue = $1.000.000 Variable cost = 40% (this is the cost that incurred everytime you make a sale. Example : sales commision, product cost, delivery, etc.) Fixed sot = $400.000 (this is the cost that incurred whether you make a sales or not. Example = Rent expense, salary, fixed assets depreciation, etc). Net income = $200.000 The Value of the business is $2.000.000 (you can assume this is the market price, if someone actually want to buy the company). For simplicity sake, we assume the net income is fully on cash-basis, so the net income also represent the free cash flow for the business. Assume that because of COVID-19, the revenue in 2020 will be down by as much as 50% and in 2021 will be down by 25%. It will go back to normal in 2022, so the terminal value or going forward it will go back to pre-covid value of $2.000.000
*I use 10% Cost of capital. It is calculated simply by dividing 1/cost of capitaln . In this case 1/10%. This is pretty high as you might see, a lot of business has lower cost of capital. And lower cost of capital will result in higher present value. If we sum all the present value (Net income/terminal value discounted into the present), it will arrive at $1,453,042, compared to previous value of $2,000,000. A 27% decrease in value, significant but arguably much more modest than many people would imagine. Of course this is just hypothetical. But i would like to believe that my assumption is quite conservative. Like with the 10% cost of capital (even after the fed slash rate), or long U-shaped recovery. But if you try the FCF Valuation (the actual one, not this dumbed down version), you will see that the value will not go down as far as some bears like to believe. What we can take from this. Yes, time is bad and many good business will record very low or in fact negatives income this year. But this is not as doom and gloom as many people wanted to believe. We see company like Adidas, Disney, Yum Brands penalized quite a bit because COVID, around the range of 25%-40%, depending on the timeline you are looking at, which is actually quite fair in regards to their future performances. I knew at this point people have enough with priced-in, but yeah, the current price did in fact have priced in the COVID issue in their prices. Just because a lot of unemployment and low revenue this year doesn't mean the value of the business will go down by as much as 50% or even lower. That's not how it works in regards to Value of a Business. Imagine if you have a good family business. This year will be rough, but you and your family have enough to keep everything a float. Some random investor comes in and said "whew, bad times eh? Can i buy your business for 40% of its market price?" If i were him, i will show them the exit door right away. Why would i sell it if i expect the business will recover in 2 years. But actually there is a lot of stock right now facing this condition. Their stock are heavily penalized, and it is your job to find them and if you right, reaping the capital gain from them. In regards to myself, two weeks ago I'm at 25% stock, 75% cash. But last weeks i decide to shift gear and move to 75% stock and 25% cash (I have to thanks Howard Marks for this). I left 25% just in case that I am wrong and market will drive even lower than this. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| SoftBank to write down WeWork by $6.6 billion, compounding portfolio misery Posted: 30 Apr 2020 11:56 AM PDT The highly leveraged conglomerate has been forced into selling major assets to raise funds, but could receive a big boost from the Bank of Japan's plan to expand corporate bond buying, which would support its predilection for borrowing. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Posted: 30 Apr 2020 09:25 PM PDT I don't see how the economy rushes back to normal once people start going back to work. However, all forecasts and indications point to Q3-Q4 recovery. Even though this thing popped the largest credit bubble in history and the solution has just been more debt. Millions unemployed, incredible government debt and spending beyond levels of comprehension, possible food shortages, lives lost, second wave in the fall, possible Cold War with Iran in Middle East and China in the South China Sea, and so on. To the bears who think this is gonna get worse, please explain. To the bulls who think this is gonna get better from here, please explain. Nothing makes sense and I genuinely want input. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Trump Eyes Order to Block Savings Fund From Chinese Stocks Posted: 01 May 2020 02:05 AM PDT | ||||||||||||||||||||||||||||||||||||
| Technical investors of Reddit, what is your answer for people saying you're just gambling? Posted: 01 May 2020 05:18 AM PDT
If everything is in the charts, and say one company is being sued for accounting malpractice. How could you have predicted this situation? I mean, don't you think company's stocks fluctuate depending on they making money rather than they following a historical price pattern. Hope this makes sense, I just never understood this kind of investing, I would love to make sense of it. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Posted: 30 Apr 2020 01:32 PM PDT Apple Q2 EPS $2.55 vs. $2.26 Est.; Q2 Revs. $58.3B vs. $54.54B [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Posted: 01 May 2020 06:12 AM PDT | ||||||||||||||||||||||||||||||||||||
| Exclusive: Warren Buffett's advice for young investors Posted: 30 Apr 2020 11:18 AM PDT Warren Buffett, Chairman and CEO of Berkshire Hathaway, sat down with Yahoo Finance Editor-In-Chief Andy Serwer to give his advice for those interested in joining the world of investing. https://finance.yahoo.com/video/exclusive-warren-buffetts-advice-young-120000160.html [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Posted: 30 Apr 2020 04:03 PM PDT Almost all countries around the world have massively borrowed to fund fiscal spending to prop up their economies and fight Covid19. It seems most of these countries will also face economic hardship in the immediate future resulting in decreased tax receipts. It also seems to be a time when a lot of countries wont be quick to help one another deal with issues like soveriegn debt like what happened in the European debt crisis. Do you see the massive increase in government borrowing causing issues similar to what was seen in the European Debt Crisis like governments being unable to repay or refinance their debt? [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Bullish Fact: Too much cash on the sidelines. Posted: 30 Apr 2020 05:47 PM PDT Hmm... According to the internet, everyone's all in stocks and it's a bubble about to collapse, but we have record cash on the sidelines According to BofA, equity allocation was at it's lowest level since 2009. Could the bears care to explain how a market can be a bubble with that level of allocation? [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Venezuela's PDVSA eyes restructuring that would elevate private partnerships Posted: 01 May 2020 06:24 AM PDT | ||||||||||||||||||||||||||||||||||||
| Posted: 01 May 2020 05:07 AM PDT Is there a way to make my own etf? I don't really wanna trade it or anything I just want to have a diversified portfolio (like an etf) that I can put money into that will automatically invest evenly or a specified percentage into each company within. So like a portfolio of about 20 stocks that every month if I put 1000$ into, it'll automatically buy fractional or full shares in those 20 stocks. I know motif let's you do this but is there a free option or a way to do it within Schwab or Td or any of the brokers? Thanks in advance! I will cross post later on if necessary. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| How come mainstream sources like CNBC and reddit do not talk alot about gold royalty stocks? Posted: 30 Apr 2020 05:18 PM PDT I would first like to say that I do not like miners or their index as a whole. They have under performed gold long term. The mainstream investing media does not talk about how gold royalty stock since 2008 have beaten VGT, SPY and gold. WHY HAS NO ORGANIZATION CREATED A MARKET CAP WEIGHTED ETF OF THESE? They have great returns plus they are more uncorrelated to the us stock when compared to sliver or a utilities index. {I left out SAND and MTA because I wanted a longer time frame.} [If said index was created with international exposure you could probability get roughly 12 stocks.] [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Posted: 30 Apr 2020 10:37 PM PDT Should I be chasing high P/E companies when looking to invest in stocks? Is that the end all, be all indicator of a decent stock? Is there a cap on what is considered too high of a P/E, or is the sky the limit? [link] [comments]  |
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