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    Wednesday, May 6, 2020

    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. Investing


    Daily Advice Thread - All basic help or advice questions must be posted here.

    Posted: 05 May 2020 05:11 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:

    • How old are you?
    • Are you employed/making income? How much?
    • What are your objectives with this money? (buy a house? Retirement savings?)
    • What is your risk tolerance? (Do you mind risking it at blackjack or do you need to know its 100% safe?)
    • What are you current holdings? (Do you already have exposure to specific funds and sectors?)
    • Any other assets? House paid off? Cars? Expensive significant other?
    • What is your time horizon? Do you need this money next month? Next 20yrs?
    • Any big debts?
    • Any other relevant financial information will be useful to give you a proper answer.

    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!

    submitted by /u/AutoModerator
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    Auto sales down 97% last month... Ouch.

    Posted: 05 May 2020 05:34 PM PDT

    Microsoft wins five-year deal with Coca-Cola to supply business software | Article [AMP] | Reuters

    Posted: 05 May 2020 05:40 PM PDT

    Disney suspends dividend

    Posted: 05 May 2020 02:25 PM PDT

    https://seekingalpha.com/news/3569652-disney-will-forgo-1h-dividend-payments-cfo-says

    Stock was up after earnings this afternoon until this was said on the call.

    submitted by /u/dvdmovie1
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    Uber CEO Dara Khosrowshahi told staff on Tuesday company all-hand "to expect a decision about layoffs in the next two weeks. Hope is not a strategy, we’re not going to avoid hard decisions."

    Posted: 05 May 2020 12:48 PM PDT

    https://www.theinformation.com/briefings/925274

    Uber CEO Dara Khosrowshahi told staff on Tuesday to expect a decision about layoffs in the next two weeks as the ride-hailing company struggles with depleted demand for its core business. "Hope is not a strategy," he told employees. "We're not going to avoid hard decisions."

    submitted by /u/ssj4rab
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    Norwegian Cruise Line says there’s ‘substantial doubt’ about its ability to continue as a ‘going concern’

    Posted: 05 May 2020 05:52 AM PDT

    https://www.cnbc.com/2020/05/05/norwegian-cruise-line-says-theres-substantial-doubt-about-its-ability-to-continue-as-a-going-concern.html

    There's a reason perhaps why you shouldn't dumpster dive. Any insight how well NCLH is positioned vs the other cruise liners?

    submitted by /u/POTATO_IN_MY
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    [CNBC] California Attorney General and cities sue Uber and Lyft, alleging they misclassified workers as contractors

    Posted: 05 May 2020 11:24 AM PDT

    https://www.cnbc.com/2020/05/05/california-ag-cities-sue-uber-and-lyft-over-worker-classification.html

    California Attorney General Xavier Becerra is suing Uber and Lyft, alleging the ride sharing companies have misclassified their drivers as contractors. City attorneys from San Francisco, Los Angeles and San Diego have joined Becerra in the lawsuit.

    The lawsuit gets to the heart of a recent debate between gig economy companies and California officials. The lawsuit is based on a California law that went into effect earlier this year, known as Assembly Bill 5 (AB5). Uber, Lyft and other companies opposed the law, which was created as a way to require gig economy companies to classify their drivers as employees, rather than contractors. The companies have said the law strips workers of flexibility in work that they enjoy, while government officials backing the bill say it affords workers key benefits they are otherwise denied as contractors.

    "Uber and Lyft claim that properly classifying drivers as employees is incompatible with flexibility. That is a lie," San Francisco City Attorney Dennis Herrera said in a statement. "There is no legal reason why Uber and Lyft can't have a vast pool of employees who decide for themselves when and where they work – exactly as drivers do now. These companies simply don't want to do it."

    The plaintiffs are seeking and injunction on the alleged misclassification and restitution for workers and civil penalties that could amount to hundreds of millions of dollars, according to the lawsuit.

    submitted by /u/ssj4rab
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    Both EA and Activision Blizzard announce better than expected earnings. Blizzard stock rises while EA stock drops.

    Posted: 05 May 2020 03:28 PM PDT

    https://www.marketwatch.com/story/electronic-arts-stock-falls-after-topping-sales-expectations-2020-05-05

    https://www.marketwatch.com/story/activision-blizzard-stock-rises-after-earnings-beat-as-player-engagement-rises-amid-coronavirus-2020-05-05

    I can't quite wrap my head around what's going on here. Both are large well established video game companies, both have beaten expectations with strong good earnings, both have done very well stock-wise in the past few weeks. But after earnings, one tanked while the other one mooned (guess which one I bought lol).

    Anyone know why such different stock behavior between the two companies?

    submitted by /u/adayofjoy
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    This guy called it (link in post)

    Posted: 06 May 2020 04:11 AM PDT

    Oil surges 20%, posts fifth straight day of gains for first time since July

    Posted: 05 May 2020 11:56 AM PDT

    Disney reports mixed earnings

    Posted: 05 May 2020 01:13 PM PDT

    https://www.cnbc.com/2020/05/05/disney-dis-q2-2020-earnings.html

    Here's what Disney reported:

    Earnings per share: 60 cents, ex-items vs expectations of 89 cents Revenue: $18.01 billion vs expectations of $17.80 billion

    -Based on Refinitiv consensus estimates

    submitted by /u/WhoIsJohnSnow
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    Is there a tech bubble?

    Posted: 05 May 2020 01:31 PM PDT

    The Nasdaq is trending positive for the year... propelled by Tech stocks cashing in on user engagement during the lock downs.

    I saw an argument being made that the people who are being impacted the most economically right now (service industry etc.) account for an out-sized amount of the purchasing power counting towards user engagement at these big tech companies. If the users these tech companies rely on for user engagement numbers are worth less as a result of a deteriorating economy, how can they sustain value?

    EDIT: here's an example of what I'm talking about https://www.wsj.com/articles/facebook-warns-that-skyrocketing-usage-wont-lead-to-increased-revenue-11585083493

    submitted by /u/Copper2021
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    Schwab fractional shares coming soon

    Posted: 05 May 2020 05:55 AM PDT

    Looks like fractional shares are finally coming to Schwab, called "slices". $5 minimum and up to 10 at once.

    https://www.schwab.com/stock-slices

    submitted by /u/CoastalFire
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    Abbott Labs Eclipses 1.4 Million Rapid Coronavirus Tests Shipped Across U.S.

    Posted: 05 May 2020 08:20 AM PDT

    https://www.forbes.com/sites/brucejapsen/2020/05/05/abbott-labs-eclipses-14-million-rapid-coronavirus-tests-shipped-across-us/#3379ee984f0c

    It's about 10% from ATH. I think with trump's federal mandate for using their products that we could revisit ATHs by EOM. Last week had 1m tests shipped, at a rate of 400k tests/week we're looking at 3m by EOM and 5-6m by June.

    "We have shipped nearly 1.4 million of our rapid ID NOW tests to all 50 states, Washington D.C., Puerto Rico and the Pacific Islands," Abbott said in an update posted on the company's website Monday night. "The majority of these tests have been sent to outbreak hotspots and we've asked that customers prioritize frontline health care workers and first responders. We're currently manufacturing 50,000 tests per day, plan to increase ID NOW manufacturing capacity to 2 million tests a month by June and are working to expand beyond that."

    submitted by /u/Wendysmanager24
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    Match reports record quarter despite pandemic's impact on Tinder

    Posted: 05 May 2020 04:35 PM PDT

    "We are seeing some headwinds to new users signing up and the motivation to pay. In aggregate, the initial impacts were most pronounced among older users and in markets where COVID-19 infection rates were highest. As the lockdowns have dragged on, we have seen some impact on younger male users, while there has been some recovery in the over 30 demographic. New sign ups and subscriptions are faring better among women than men as is the case for engagement.

    On Tinder, this led to first-time subscriber declines sequentially from February to March before stabilizing in April, though first-time subscribers were up meaningfully year-over-year in each month."

    Q1 2020 HIGHLIGHTS

    • Total Revenue grew 17% over the prior year quarter to $545 million.

    • Operating income was $135 million, an increase of 13% over the prior year quarter, and Adjusted EBITDA increased 11% over the prior year quarter to $172 million.

    • Net earnings attributable to shareholders increased 30% over the prior year quarter to $160 million and Diluted EPS increased 31% to $0.55.

    • Average Subscribers increased 15% to 9.9 million, up from 8.6 million in the prior year quarter, and ARPU increased 1 cent to $0.59.

    • Tinder Direct Revenue grew 31% year-over-year, driven by 28% Average Subscriber growth and 2% ARPU growth. Tinder Average Subscribers were 6.0 million in Q1 2020.

    • Completed private placement of $500 million aggregate principal amount of 4.125% Senior Notes due 2030 and increased availability under the revolving credit facility by $250 million to $750 million, while reducing interest rates on the revolving credit facility and term loan facility

    submitted by /u/hfutrell
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    Is it dumb to both own SPHD and VYM?

    Posted: 05 May 2020 06:19 PM PDT

    Would it make sense to own both? One is more diverse and has a long track history but only pays dividends quarterly while SPHD pays monthly. Also, would anybody happen to know if the dividends coming from ETFS are taxed at ordinary rates or qualified?

    Thank you

    submitted by /u/pausetab
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    Looking for Vanguard alternative (poor security options)

    Posted: 05 May 2020 06:13 PM PDT

    I've been a long time customer of Vanguard, and i've been trying to find an alternative. I don't feel the security at Vanguard is up to modern standards. They require/fall back to SMS for two factor authentication, which isn't really secure at all. And almost worse, to do a Wire i need to call them (inconvenient) and their only security is an SMS to my account. No password needed even, pretty insane. Was already turning a blind eye to SMS for too long, and then once i realized how poor the security was for wiring large amounts of money, i was pretty rattled.

    I looked at some others like Fidelity and I don't really like their options. They require Symantec VIP for 2FA (much rather use traditional tokens like Authy). Saw reports of various companies that use Symantec VIP that just allow you to call to reset your account in case you lost the device the Symantec VIP app is on.

    Are there any more modern companies that handle this stuff better?

    submitted by /u/SynFisa
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    Which portfolio tracking app?

    Posted: 05 May 2020 04:54 PM PDT

    Is there any free portfolio tracking app for iOS, that's available in Europe and doesn't look like it was designed in the 90s? Ideally I'm looking for a free app that allows me to:

    • record stock transactions (buy/sells)
    • tracks daily performance
    • presents my portfolio indicators in a nice dashboard
    • preferably would present holdings value in $ and €

    Those that I've found so far are either not free, not available in the App Store in Europe, filled with ads (to the point where it disturbs usability) or look like they've been designed some decades ago (large dated fonts, no dashboard, etc):

    App Issue
    Personal Finance Not available in European App store
    SigFig Not available in European App store
    Ticker Not available in European App store
    Stocks Tracker Dated look
    Active Portfolio Lacks functionality, ugly
    Stocks+ app Paid, free version filled with ads, unusable
    Seeking Alpha Paid
    Beanstock Does not work, bugs all over
    Investing.com The only one that works, is decent looking and available, but lacks dashboard/analysis features

    As far as I could tell from installing over 10 apps on my phone, Stock Market simulation games have better functionality and interfaces then all of those from this list that are available on the store.

    Does anyone know a free alternative that meets the criteria?

    submitted by /u/WilliamSomerset
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    [AAL] American Airlines' risk of bankruptcy.

    Posted: 05 May 2020 10:25 AM PDT

    So I bought a handful of AAL stocks in this recent low because it's pretty close to all time low. Also it's less than fifth of the price of all time high. All relevant news headlines are negative which I assume is making this stock tank even more making this a potentially really profitable investment in the long term when things ease down.

    Obviously the risk is bankruptcy. Compared to Southwest or Delta their fundamentals are pretty shit. High debt burden, low profit margins. They're burning over 50 million in cash a day.

    They got the biggest loan and a grant from the government in the recent aid. And they're the biggest airline with over 100k employees (also with America in their name lol) which makes me think the fed will help them if shits hits the fan and they become really close to bankruptcy. I know they declared bankruptcy before but I believe this time government intervention is more likely due to the damage being caused by the corona.

    I've also been considering selling my current stakes in them and just buying Southwest or Delta which seem to have much better financials and fundamentals to survive this crisis, but potentially less % gains post recovery.

    What do you guys think?

    submitted by /u/roydez
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    FINVIZ portfolio maps

    Posted: 05 May 2020 06:33 PM PDT

    anyone know if there's a way to get FinViz to create maps like their canned ones for portfolios? or does the premium version do that?

    submitted by /u/alecubudulecu
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    QQQ still outperforming SPY in Bear Market

    Posted: 05 May 2020 01:04 PM PDT

    I always thought SPY would outperform QQQ in a bear market. What is everyone's thoughts on this?

    submitted by /u/Dismal-Body
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    Cloud Computing

    Posted: 05 May 2020 06:24 PM PDT

    Does anyone have a recommendation for a cloud computing firm that most people don't know about? Don't care too much for the top 250 in the S&P. What are some firms that fly under the radar? I bought NOW on Reddit recommendation for $275. What are some others? I'm looking for a higher risk investment (again, avoid the obvious like AMZN, MSFT, etc)

    submitted by /u/Bigchungus1025
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    Should I buy now ?

    Posted: 06 May 2020 04:29 AM PDT

    Hi,

    I have some money $ to invest (26 k) but I am wondering if these are good times to invest ...

    I know 26k is not that much but it's a lot for me and I would hate to risk it in case something unprecedented happens in the future regarding the pandemic/economy Times are so uncertain..

    I've been reading that there will be a new low coming but later so I don't want to miss this one but at the same time if that is not true, I don't want to miss out on cheaper prices..

    I want to buy at the very bottom.. is it going to be impossible this time to time the market ? What are your views?

    The money is just sitting in the TFSA and I'm just waiting!!

    Thank you to all!

    submitted by /u/red_Mercedez
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    Buying an ETF that uses options to protect against downside risk: $NUSI

    Posted: 05 May 2020 03:55 PM PDT

    I'm currently planning to enter the market and I'm concerned about volatility, since I would like access to the funds on a 7-10 year horizon.

    I came across an interesting ETF that uses an option collar strategy to protect against downside risk That is, it sells calls against the underlying securities and then uses the revenue to buy protective puts.

    It's called NUSI, or Nationwide Risk-Managed Income ETF.

    It's appealing to me for a few reasons:

    • I looked at its performance during the recent crash and it outperformed everything else (SPY, QQQ, etc.): https://i.imgur.com/y8p6uFb.jpg
    • It pays out a generous dividend from the sale of call options, at an amount that is competitive with bond funds: 7.71%
    • Although it has a higher expense ratio, it would be easier to buy this than try to build my own downside protection (e.g., buying protective puts), which can be a full time job.

    My goals would be to avoid inflation risk and have reasonable returns without a large drawdown.

    I had two questions:

    1. What might be the risks with buying this ETF?
    2. What would the tax treatment be when the stocks they trade have protective puts on them? I believe it resets the clock on capital gains. Are those taxes deducted by the fund manager from the overall returns or does it get paid by the holder when the 1099 is distributed?

    For reference: NUSI Fact Sheet

    submitted by /u/PrizeFox
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