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.
- Retail Giant J.C. Penney Files Bankruptcy After Years of Decline
- Berkshire Sells Majority of Goldman Stake, Trims JPMorgan
- Retail sales plunge a record 16.4% in April, vs 12.3% drop expected
- House Passes $3 Trillion Democratic Stimulus With No Path to Law
- Eventful after hours session this Friday: Berkshire sells entire Goldman position, JC penney files for bankruptcy, FED puts out a paper stating asset prices are elevated
- Dividend Cuts and Suspensions - Week of May 10, 2020
- Why did Warren buffet trim his bank stocks?
- Euronav
- Should I swap my weed stock for airline?
- The most reliable news outlet??
- Index funds in a pandemic
- Precious metals breaking out
- Sundance Energy DD
- Macy’s
- $LUV in the Time of Corona
- "Lose money with friends!"
- Protecting Investment Gains Using Sell Stop-Limit, What Guidance Is There for Setting the Stop and Limit Levels?
- Where do you see SLV price over next few months?
- Why would Buffett expand his cash position even more?
- Combining the Best Stock Selection Factors - Patrick O'Shaughnessy
- Which daily, weekly, monthly or quarterly numbers do you track to help inform your investment decisions?
- Schwab, Fidelity, and RH all rolled out fractional shares. Which have you had the best experience with?
- Are money market funds costing us more than they are earning for us?
- Dividends and Roth IRA
| Daily Advice Thread - All basic help or advice questions must be posted here. Posted: 15 May 2020 05:12 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]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retail Giant J.C. Penney Files Bankruptcy After Years of Decline Posted: 15 May 2020 03:46 PM PDT Department store giant J.C. Penney Co. filed for bankruptcy, punctuating a slow, arduous decline for the once ubiquitous mainstay of America's shopping malls. While the sudden shock of coronavirus-related sales losses ultimately undid the company, J.C. Penney has struggled for years under a multibillion-dollar debt load. Its bankruptcy filing in Houston included $900 million of financing to fund the company through its restructuring, including $450 million of fresh capital. The retailer -- once a favorite of middle-class suburban consumers -- had been seeking solutions to address billions of dollars in obligations after revenue evaporated amid government-imposed lockdowns to help stem the Covid-19 pandemic [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Berkshire Sells Majority of Goldman Stake, Trims JPMorgan Posted: 15 May 2020 02:53 PM PDT | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retail sales plunge a record 16.4% in April, vs 12.3% drop expected Posted: 15 May 2020 05:43 AM PDT | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| House Passes $3 Trillion Democratic Stimulus With No Path to Law Posted: 15 May 2020 06:50 PM PDT The House passed a $3 trillion Democratic economic stimulus bill Friday that Republicans and President Donald Trump have already rejected and isn't likely to trigger bipartisan negotiations any time soon. The measure, passed 208-199, would give cash-strapped states and local governments more than $1 trillion while providing most Americans with a new round of $1,200 checks. House Speaker Nancy Pelosi said it should be the basis of talks with the GOP-controlled Senate and White House, which have called for a "pause" to allow earlier coronavirus recovery spending to work. Pelosi this week has repeatedly invoked Federal Reserve Chairman Jerome Powell, who has said Congress will have to inject more fiscal stimulus into the economy to prevent a prolonged recession. The U.S. has more than 1.4 million coronavirus cases, and more than 86,000 have died. But Republicans also cite the Fed chief, with Senate Majority Leader Mitch McConnell saying Powell hasn't explicitly said how quickly Congress must act. He and other Republicans have dismissed the House Democrats' bill as a liberal wish list and are using it to attack Democrats, whom polls give an increasing chance of holding the House and taking the Senate in November's election. "This is much more about political messaging than effective legislating," Republican Representative Tom Cole of Oklahoma said. Powell Warns of Broad Virus Danger, Bats Down Negative Rates GOP members said some provisions don't belong in a virus bill, such as reductions in immigration enforcement, providing stimulus checks to undocumented immigrants, money for the troubled U.S. Postal Service and a national requirement to hold elections by mail. Trump and Republican congressional leaders have acknowledged, however, that some sort of further economic stimulus will likely be necessary as the economy continues to shed jobs. The number of people filing for unemployment benefits since March now exceeds 36 million. "Phase four is going to happen but it's going to happen in a much better way for the American people," Trump old reporters Friday. He said he holds leverage over Democrats in any future talks. "We have all the cards because we have the cards of the American people. I know what they want," the president said. House Republican leader Kevin McCarthy said he anticipates another bill eventually. [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 15 May 2020 03:33 PM PDT | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividend Cuts and Suspensions - Week of May 10, 2020 Posted: 15 May 2020 07:15 PM PDT Scroll Right to see more info
see the complete list of dividend cuts and suspensions here https://www.reddit.com/r/dividends/comments/fhfgsf/coronavirus_dividend_cut_list/ [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Why did Warren buffet trim his bank stocks? Posted: 15 May 2020 08:04 PM PDT Why did he specifically trim JP Morgan and Goldman Sachs and leave Wells Fargo and Bank of America untouched? I was looking at the balance sheet and jp and Goldman has better eps, more revenue, low dividend payouts. [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 15 May 2020 04:46 PM PDT So I am writing this post partially to inform people about a potentially great buy and partially for feedback as to whether I'm missing something. The oil tanker (meaning they store and ship oil) Euronav is currently trading for near the price that they were in Q1 of 2019, even thought their profits are about 10 times higher Q1 of 2020. They have announced a dividend for Q1 of 2020 of $1.10, which would make their dividend yield 33%(!!!) if they continued it throughout the year. While they almost undoubtedly won't continue to have the massive increase in earnings once the oil market normalizes, they were profitable before and are very profitable for the time being. They also have very little debt and a relatively new fleet compared to the rest of the industry. They seem committed to giving back capital to shareholders, and although their headquartering in Belgium means that you may have international taxes withheld from dividend payouts they are currently offering an absurdly large yield. I have put some money in already, and plan to invest more, but I'd also be interested to see what the community thought here. Their current position seems almost too good to be true, which makes me worried that it is. [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Should I swap my weed stock for airline? Posted: 16 May 2020 01:42 AM PDT I have Aurora stock that is all but worthless, it's down like +90%. Should I swap it for airline stock or keep it? I only lost about 2500 USD on this play so it was at least a cheapish investing lesson. I have all my other money in SPY and QQQ , V and MA. Thoughts? [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The most reliable news outlet?? Posted: 16 May 2020 03:53 AM PDT So during my time investing I have racked up a substantial amount of financial news apps such as CNBC, IBD, MarketWatch etc. Now the problems with these apps is not only are some of them slightly biased but a lot of them try to exaggerate a story as much as they can to achieve more clicks, more clicks = more adsense etc. These problems along with a lot of these apps now including a subscription based system to unlock their versions of what they deem to be 'Pro' stories leave me finding it ever harder to find reliable news without paying any money to read it, so I was just wondering what you believe to be the best place to get news from?? [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 16 May 2020 03:19 AM PDT Hi all — just curious what index fund investors are doing in the short term to hedge against another dip in the stock market. Is there a "safer" place to park your money? [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 15 May 2020 07:32 PM PDT Just a note today, Silver broke out of a resistance point from March and gold could be moving to pass 1780 mark. These are the futures as an fyi. mining stocks reacting particularly well to this. [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 15 May 2020 11:09 PM PDT Hi all, thought I'd try to put down in some thoughts on why I think Sundance Energy is a great undervalued stock. Caveat, I'm new to this game, so this is almost to convince myself that the shares I bought at 3 dollars are still worth it. They are, IMHO. Sundance is an Oil and Natural gas company. Obviously if you think Oil is going to Contango again, this is a bad pick. However if you are thinking it's not and it continues to rally, then this might be a bad time to get in on the action. https://oilprice.com/Energy/Energy-General/The-Relentless-Oil-Price-Rally.html OK so if Oil, then why Sundance? What caught my attention to them was a rally around March, they went from 1 dollar to 3 and have hung right at 2.50 through 3 dollars a share for the past month with a small spike to a bit above 4 dollars. So I figured that based upon what everyone else was doing with this stock, this is probably close to the bottom, pending they don't go out of business. It's at this point that I thought it deserved a closer look. I've read their latest financial reporting, and have seen the last few have very clearly stated, The current outbreak of COVID-19 has adversely impacted our business, financial condition and results of operations and is likely to have a continuing adverse impact for a significant period of time. Umm no shit. That's the enitre enterprise. OK so they are little and vulnerable. Will they go under?They do state this; As a result of the decline in commodity prices since December 31, 2019, we expect our 2020 capital program to be in the range of $40 - $45 million. However, we plan to respond flexibly to market conditions to protect our balance sheet and retain liquidity. We believe that our cash flow generated from operating activities (which includes proceeds from settlements of hedging contracts) and cash on hand at December 31, 2019 will be sufficient to execute this plan. Also worth noting their debt doesn't mature until 2022. Reading above, What hedging contracts do you ask? For the balance of 2020 from April through December, Sundance has hedges in place covering a total of 7,931 barrels of crude oil per day (or 2,181,000 barrels total) at a weighted average floor price of $54.08 per barrel. For the calendar year 2021, Sundance has hedges in place covering a total of 7,430 barrels of crude oil per day (or 2,712,000 barrels total) at a weighted average floor price of $48.92 per barrel. In total, Sundance has 5,581,000 barrels of crude oil hedged through 2023. In 2020 Sundance has 225,000 barrels subject to an initial $50.00 floor price and a $35.00 reparticipating floor price and 18,000 barrels subject to an initial $55.00 floor price and a $30.00 reparticipating floor price. In 2021 Sundance has 300,000 barrels subject to an initial $50.00 floor price and a $35.00 reparticipating floor price. For the full report on hedges because it's important... https://sundance.irpass.com/profiles/investor/PDFview.aspx?b=2370&ID=92249&m=rl&g=1186 Also worth noting their whole thing is low oil costs they can still break even on wells. Low break even costs on wells is another asset for this company. Pulled the below from their Feb presentation. Deep inventory of wells with full-cycle break even costs of ~$30.00 per boe allows Sundance to deliver production and EBITDA growth under various oil price scenarios. Given all this, I expect a bumpy ride over the next year, but a pretty big payoff once we get out of this mess. And hey, who knows, maybe because everyone expects Oil to fall it will continue to rally. It is 2020 after all. Who thought we would be here a year ago? Is 70 dollar oil out of the question? [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 16 May 2020 02:41 AM PDT Can I get your guy's thought on Macy's. I know it has suspended it dividends until further notice, I am a young investor at the age of 21 and would like to invest solely on income stocks. Would you guys recommend buying shares right now and wait for it to go back up in price and continue its dividends( higher yield rate). [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 15 May 2020 11:18 AM PDT After catching up on Buffett dropping all airline stocks last week, I decided to do a deeper dive into the airline industry. After all, whether with or without a crystal ball, one thing is for certain: In a normal world, we need airlines in order to function properly, not only as an economy, but as a civilization. Which means sooner or later, airlines will be running again (or flying I suppose). Given that airline stocks have had such a huge beat down, I decided to analyze the ones that Buffett dumped. For one reason or another, they were once investable in his eyes, but now not anymore.
Let me begin by saying that I've always had a bias towards Southwest Airlines. I was even invested in them ever since $18 and stuck them in my dividend growth portfolio. Their company has a great, economy-class flights, that's very reasonable and affordable. Every flight I've been on is almost always full (note: anecdotal bias). Below are some numbers I pulled and calculated from Yahoo! Finance: https://imgur.com/gallery/001C5rb With that said, as you can see from the numbers above, Southwest Airlines is positioned better in terms of liquidity and solvency in relation to its other three peers. They have the highest liquidity ratios indicating that they have sufficient cash set aside to cover their outstanding debt and interest payments in the near term. Additionally, their interest coverage ratio is 28.22, which far exceeds the other 3 airlines, indicating that they could cover the next 28 interest loan payments at their current state. As such, they're the only company that does not need a bail out. Their debt-to-assets and debt-to-equity ratios are also lower indicating a lower use of leverage and borrowings. Dividends Of the four airline companies, only three has historically paid dividends: American Airlines, Delta Airlines, Southwest Airlines. However, amidst this pandemic, Delta has decided to suspend dividend payments. AAL has a history of paying a dividend of $0.10 per share, with the last payment back in February. LUV has been paying $0.18 per share recently, with the last payment back in March. Dividend payments can be a good signal of cash flow strength (or weakness). Given that AAL and LUV are still paying dividends, they're probably in a better liquidity situation. Southwest Still Has Huge Risks Given these numbers, it's clear that Southwest is in a better position than the other airlines on paper. We're still unsure whether there'll be a full bailout of these airlines. However, I would be very cautious with Southwest for the time being. They have a huge risk right now, and that Southwest operates using ONLY the Boeing 737 planes. As you may have heard in the news, there's been a lot of problems with the aircraft in regards to its computer problems. Southwest's success depends on either Boeing fixing this issue or switching to a new airliner altogether. Switching airplanes would hit them with a hard number in capital expenditures. Given that the majority of their airplanes are owned and only a few are leased. Burning Through Cash Additionally, Southwest is burning through $30 million in cash per day. According to their CEO, they may have to drastically restructure if they're not in a better position by September 30. In my eyes, this may involve its 737 planes I mentioned earlier. Oil Prices As we saw earlier this month, WTI hit a phenomenon and went negative for the first time in history. Lower oil prices due to a supply shock is good for the airline industry as approximately 40% of their operating expenses come from oil prices. Unfortunately all that means nothing when states are locked down and travel restrictions are imposed. Conclusion While Southwest looks better on paper than any of the other airlines, we don't know whether or not now is the right time to invest. Could the stock go down another 5 points? 10 points? It's very possible. Or maybe we've seen a bottom for airlines. Who knows. What we do know is that Southwest is cheaper now than before and perhaps worth picking up some shares for the long term (2-3 years). [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 15 May 2020 06:19 AM PDT So I think the sub's tagline of "Lose money with friends!" gives the sub a wallstreetbets kind of feel. I was wondering if others thought the same and if it would be possible to consider a replacement. I feel that even something as trite as "Getting rich slowly" would fit the sub a bit better. Thoughts? [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 15 May 2020 08:15 PM PDT From the title, when trying to protect gains or against losses in an investment with a sell stop-limit, is there any particular guidance or rule-of-thumb on where to set the stop and limit levels, particularly if you intend to let the investment grow? Certainly to protect against loss one could set the limit to the purchase price and the stop something above that, but how much higher should the stop be? If you're trying to protect the gains in a rising investment, how "tight" should the stop and limit levels be? [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Where do you see SLV price over next few months? Posted: 16 May 2020 01:59 AM PDT Looking to buy some calls on SLV expiring in October or December. Looking at a $16 strike. Do you see SLV etf hitting $16 by then? [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Why would Buffett expand his cash position even more? Posted: 15 May 2020 09:40 PM PDT BRK is already at record cash levels. With Buffett selling GS, he has even more cash now. Is there any way to interpret this besides that he is VERY confident the market will drop even more? [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Combining the Best Stock Selection Factors - Patrick O'Shaughnessy Posted: 15 May 2020 09:12 PM PDT Really useful for anyone looking for value stocks instead of growth stocks. [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 15 May 2020 05:17 PM PDT Title says it all. I'm interested to see an aggregated list of all the economic indicators r/investing deems important. I'll even upvote you if you provide a link. [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 16 May 2020 12:40 AM PDT Title says it all. I noticed all three companies launched this service with zero commissions. All seem tempting but I thought I'd do some research and hear some of your personal experiences. [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Are money market funds costing us more than they are earning for us? Posted: 15 May 2020 12:36 PM PDT I was just checking the money market fund I use which is SPAXX. The expense ratio is .42% and the 7-day yield is .01% the YTD return is .25%. Historically the yield has been higher but given where rates are right now, where are sophisticated investors keeping short term funds? [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 16 May 2020 04:07 AM PDT I am relatively new to the market and I have setup a Roth IRA through a brokerage firm, not going to say which but there are commercials for it on TV. I put in a few hundred dollars to get started and invested into about 6-7 different funds that pay dividends in April and December. Will the dividends be reinvested into my Roth since it is a retirement account, be sent back to me in a check/ direct deposit or how will it be invested going forward. Also will I be taxed on any dividends since it is technically in a tax shelter. All the best and thank you for reading. [link] [comments]  |
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