Stock Market - JPMorgan shares surge after Jamie Dimon says bank is "very valuable" at current prices |
- JPMorgan shares surge after Jamie Dimon says bank is "very valuable" at current prices
- U.S.-listed Chinese technology STOCKS are lining up to sell stock in Hong Kong
- Things you wish you knew before investing?
- TikTok Owner ByteDance Valued Over $100 Billion in Private Markets
- ‘Stay at home’ tech stocks fall as some pandemic lockdowns end
- The Chicken or the Egg
- Came across an article from JP Morgan written in Aug 2019 making the case that we are in the early innings of a secular bull market.
- Wells Fargo stock Analysis
- Airlines today.... wowzers
- [$GEO] [5/26/20] "The Geo Group ($GEO) continues to demonstrate significant upside in light of economy reopening"
- The $7,000 question
- Is it a good idea to have two different brokerage accounts?
- My company buying out our shares from another company, what does it mean?
- Watchlist: 5/26 Memorial Day, Bulls, & Parties
- Are banks a buy right now?
- Inverse ETFs?
- Selling your Call on Robinhood
- Are the huge gap ups and gap downs that we are seeing in stocks during this recession common?
- Can an ETF be constructed that would follow a moving average?
- Should I sell my MGM call?
- I think I’m going to start buying at close and selling at open
- How does beta actually work?
- I got a thousand dollars, what should i invest in?
| JPMorgan shares surge after Jamie Dimon says bank is "very valuable" at current prices Posted: 26 May 2020 11:13 AM PDT JPMorgan Chase shares rose Tuesday after CEO Jamie Dimon called the biggest U.S. bank "very valuable" at the current price. "I think JPMorgan is a very valuable company at these prices," Dimon said in response to a question at a virtual financial services conference about the New York-based bank's valuation. Dimon added that was hopeful that his "base case" for the economy would occur, which would include improving unemployment and other metrics in the second half of the year after hitting almost 20% in the second quarter. JPMorgan shares surged 7.9% to $96.58 after Dimon made the remarks. [link] [comments]  |
| U.S.-listed Chinese technology STOCKS are lining up to sell stock in Hong Kong Posted: 26 May 2020 07:38 AM PDT May 26, 2020 at 6:10 a.m. PDT U.S.-listed Chinese technology companies are lining up to sell stock in Hong Kong, seeking refuge from an environment that has become increasingly less hospitable. Nasdaq-traded JD.com Inc. and NetEase Inc. are planning secondary listings in the city next month, following a trail blazed by Alibaba Group Holding Ltd. in November 2019 with $13B sales. Optimism that more companies will join them drove shares of Hong Kong's exchange operator up more than 6% on Monday. There's every reason to expect these stock offerings to do well, and push Hong Kong back up the rankings of the world's largest fundraising centers. [link] [comments]  |
| Things you wish you knew before investing? Posted: 26 May 2020 03:58 PM PDT So for new beginners out there I'm sure this could really help or u know reddit being reddit. Anyway what are some things you wish you knew before you started to buy stocks. Whether it be trading or buying and holding for years. Any possible thing you wish you knew before starting. If you could time travel and tell yourself something that you wish you knew before starting , what would that be? [link] [comments]  |
| TikTok Owner ByteDance Valued Over $100 Billion in Private Markets Posted: 26 May 2020 11:47 AM PDT The owner of TikTok, ByteDance, is now valued at more than $100 billion based on recent private share transactions. Some trades valued the Chinese company between $105 billion and $110 billion on the secondary markets. It has also traded as high as $140 billion. This further cements their position as the world's most valuable startup. In 2018, ByteDance closed a massive $3 billion funding round, with funding from major investors such as SoftBank and KKR, valuing the company at $75 billion. However, the recent private transactions in the secondary market indicate that it's value has increased by more than 33% from two years ago. By the way, a secondary market transaction is when private company stock is sold to another private party. This is in contrast to primary market transactions, where companies sell directly to investors. Stock in the secondary market is usually valued at a discount to primary shares because it is less liquid and there are fewer financial details on company performance available to investors. It was recently announced that TikTok has been downloaded more than 2 billion times globally and, in the first quarter of 2020, it generated the most downloads for any app ever in a quarter, with 315 million installs across the App Store and Google Play. TikTok's record breaking surge in downloads comes amid the lock-down, as the population looks for it's next dopamine hit. The $100 billion valuation reflects expectations by investors that ByteDance will keep pulling in advertisers. Tiger Global, rumoured to be one of the buyers in the secondary market, estimates that ByteDance will grab 19% of China's online advertising market this year, compared to the 4% of the market it captured in 2017. Total digital ad spending in China is expected to reach $81 billion this year. In the past decade, only two companies have traded at a higher premium than ByteDance in the secondary markets. According to Andrea Walne, a partner at Manhattan Venture Partners who follows the secondary markets: "The trading of ByteDance is reflective of the global wave of consumers who agree that ByteDance can displace Facebook as the leading social network." What are your thoughts on this? In 2019, Facebook fell out of the top 10 in Interbrand's annual Best Global Brands report, dropping to 14th place from ninth, as the estimated value of its brand declined 12% to $39.9 billion. At the end of 2019, 30% of the tech insiders who read The Information chose Facebook as the most disappointing service of the decade. However, in terms of TikTok, it hasn't always been plain sailing... It has faced criticism regarding the censoring of videos that do not please China, and has faced accusations that it is advancing Chinese foreign policy aims. In 2019, lawmakers raised concerns about TikTok's growing influence in the United States, and two senior members of Congress asked US intelligence to determine whether it poses "national security risks." Last week, it was announced that Kevin Mayer, Disney's former Head of Streaming, will be TikTok's new CEO, and will serve as COO at ByteDance. Mayer's top priority will be to prove to American lawmakers, regulators and consumers that they can trust the Chinese-owned app with their data. And that is going to be one uphill battle... [link] [comments]  |
| ‘Stay at home’ tech stocks fall as some pandemic lockdowns end Posted: 26 May 2020 04:18 PM PDT Stocks that seemed resilient to the Covid-19 pandemic faced pressure Tuesday, as investors rallied around a potential coronavirus vaccine and reopening of the economy. Shares of Netflix, Shopify, Peloton and Zoom, all companies that once benefited from consumers sheltering in place across the country, closed lower Tuesday. The moves come despite a strong day for the broader markets, which have seen steep lows due to the pandemic. Netflix stock, which hit a 52-week high last week, closed down 3.4%. E-commerce platform Shopify, which supplies businesses with means to sell products online, dropped nearly 7% after reaching a 52-week high Tuesday. Shares of Peloton, a digital fitness company, dropped nearly 9%. Zoom, the videoconferencing software company that drew massive users, dropped more than 4%. The idea that society may be reopening sooner rather than later could mean that consumers will return to some of their old habits, spending less time at home. "The virus appears to be coming under control," Bruce Bittles, chief investment strategist at Baird, wrote in a note to clients. "Lockdowns have been relaxed and we have not seen a resurgence in the virus." https://www.cnbc.com/2020/05/26/stay-at-home-tech-stocks-fall-as-some-pandemic-lockdowns-end.html [link] [comments]  |
| Posted: 26 May 2020 01:01 PM PDT So I was just watching the S&P take a small plunge so I went looking for the stock that caused it. I started at the top of course. The top 5 holdings are MSFT, AAPL, GOOG, GOOGl, and FB. So looking at them I realized that they were all plunging pretty much the same way. So here's my question, do changes in individual businesses cause changes in SPY and all its analogs? Or does action in the index tracking ETFs which hold stocks in all of these companies cause them to all move together up and down? I realize that the answer is probably both, but how much are these company stocks beholden to people's overall views on the economy rather than on the company's own expected performance? [link] [comments]  |
| Posted: 26 May 2020 07:34 PM PDT He shows a logarithmic chart of the S&P 500 dating from 1927 to 2019, and you can clearly see the bull markets and bear markets. Of course past performance is not indicative of future performance, but it does look like we started a bull market in 2013 (the author says 2016), and the last two secular bull markets lasted around 17 years. Anyone have any thoughts on whether we could we be in a secular bull market that could last roughly the same 17 year period, or until 2027-2030? https://am.jpmorgan.com/blobcontent/1383636191833/83456/PI-EQT-SECULAR_r5.pdf [link] [comments]  |
| Posted: 26 May 2020 06:38 PM PDT Source: Bireme Report Wells Fargo We added two positions in the quarter. One of them was megabank Wells Fargo. The COVID-19 crisis caused a lot of pain for bank investors during the first quarter, and Wells Fargo was no exception. In fact, the stock was dropping even before the virus reached NYC, down about 13% in January while the broader market was flat. WFC then proceeded to fall 47% to its lows on the year around $25. We invested towards the end of the quarter, with an average price of ~$27.50. What we saw in Wells Fargo was a bank with a long history of solid, growing earnings that is facing a number of short- to medium-term problems: Business-practice issues of its own making. Potential COVID-19 related loan losses. Falling interest rates. We could fill many pages with discussion of the firm's client relations and HR scandals -- opening accounts for clients without their permission, putting wealth management clients in unsuitable investment products, failing to respond to HR complaints, gender bias in hiring and promotion, illegally repossessing borrower motor vehicles, etc. The market has punished the stock since these The market has punished the stock since these issues came to light, with WFC underperforming peers by 50% since 2015. Wells Fargo today reminds us of Facebook in Q4 2018 (which we wrote about here). In both cases, investors unduly shunned a fundamentally sound company that made mistakes involving breaches of customer trust. While admittedly reprehensible, the scandals at both FB and WFC are more impactful to social media sentiment than to long-term free cash flows. Availability bias causes human beings to place disproportionate weight on this type of story. Breaches of customer trust rightfully disgust the public, and investors find it distasteful to be long a company whose CEO is chastised by Congress. Our investment strategy is predicated on identifying and exploiting these investor biases; we thrive on situations where short-term issues obfuscate the underlying health and long-term earnings power of a business. The vast majority of revenue for Wells Fargo is generated by interest on loans, and we don't see much evidence that the long-term volume or credit quality of these loans have been a!ected by the scandals of the past three years. In fact, Wells Fargo's relationship with consumers and businesses appears to be healthy. All of the following key metrics are flat-to-up since 2016: loans (flat), deposits (flat), customer checking accounts (+3%), debit card purchase volume (+21%), consumer card purchase volume (+17%), commercial card purchase volume (+28%), and branch visit satisfaction score (+3%). But even these figures understate the health of WFC's business: the lack of growth in the loan book is due entirely to an asset cap put in place by regulators to punish the company for its transgressions. If not for that cap, loans and deposits would almost certainly have grown. For this 168-year-old franchise, we paid less than 7 times trailing earnings. We do expect those earnings to fall in the short term as COVID-19-related loan loss provisions hit the income statement. However, WFC's balance sheet and core profitability provides plenty of margin to absorb these losses. Wells Fargo's net charge-o!s peaked at 2.2% of average loans outstanding during the financial crisis. While this level of net charge-o!s would've been enough to wipe out last year's earnings, it would not have impaired the firm's book equity (assuming that dividends and buybacks were suspended temporarily). Our base case is that the current crisis will be extremely sharp in the short term, but not worse than the financial crisis in the long term unemployment, home prices, and loan defaults. For one, consumers are in a better position. In 2008, debt service payments (mostly due to high mortgage payments) were over 13% of disposable income. Today, that number is below 10%. US households' equity in their homes has doubled since year-end 2008, to almost $20 trillion today. Second, the banking sector -- whose meltdown exacerbated if not caused the 2008 crisis -- is much better capitalized, with Tier 1 common equity ratios up from about 8% in 2007 to 12% today.2 Interest rates have fallen substantially -- mortgage rates, for example, have fallen by about half a percent in the last year -- and thus Wells Fargo will generate less net interest income. Current Street estimates are for $43.9b in net interest income, a decline of $3.3b versus 2019. Given that lower interest rates are prevalent across the yield curve, we expect this to continue for the foreseeable future. However, we believe Wells Fargo has a significant opportunity to o!set much of that lost income by cutting costs. The firm's efficiency ratio," the ratio of non-interest expenses to revenue, has become one of the worst in the industry in recent years. Partly this is due to the firm's regulatory problems, which we estimate have cost $5b per year in legal fees, settlements, and compliance costs. As they put these issues behind them, we think they should be able to achieve an efficiency ratio similar to their peers at JP Morgan and Bank of America. This implies they may be able to shed $8-10b of total costs, which would more than o!set the lost interest income from lower rates. Management has stated that they are focused on this task. Over time, we estimate that WFC will be able to generate about $15-18b of profits per year, only slightly lower than the $18-20b they generated between 2017 and 2019. The stock trades at 6-7.5x the new earnings level, which we find quite cheap given the long-term stability of the business and the stickiness of client accounts. [link] [comments]  |
| Posted: 26 May 2020 11:44 AM PDT Just a few weeks ago I was getting slammed on here for arguing my point to keep bag holding my airlines collection. How is everyone feeling now regarding them? Obviously still no one in flying but does that fact really hold any value in this nonsensical market today? [link] [comments]  |
| Posted: 26 May 2020 08:13 PM PDT |
| Posted: 26 May 2020 08:01 PM PDT Subject says it all lol. I think I'm done with short term and trying to make a few bucks. With an increasingly volatile market but somehow shaping up - can someone help with guidance on my list ? Maybe 1-2 years at the shortest But here's what I'm considering putting 500-1000 each into Luv ERI Royal Caribbean Carnival Marriot MGM And maybe some in bitcoin Anyone have any advice or others to consider? I tbh have a strong feeling about these stocks and it is my opinion they will not have too many issues bouncing back if and when things shape up. Obv cruise / vaca May take longer ThAnks friends [link] [comments]  |
| Is it a good idea to have two different brokerage accounts? Posted: 26 May 2020 02:44 PM PDT Is it a good idea to have two different brokerage accounts? I have Vanguard and a TD Ameritrade account. I was planning o just using the Vanguard account to invest in VFIAx...However I am starting to wonder whether it is a good idea to have two different brokerage accounts. So my question is, is it better to have two different brokerage accounts and invest in VFIAX with Vanguard. Or should I just have one brokerage account and invest in SPY etf. [link] [comments]  |
| My company buying out our shares from another company, what does it mean? Posted: 26 May 2020 06:05 AM PDT Hi all, My company has announced it will be buying a significant number of shares from a minority stake holder. They own a large percentage (still under 50% though). I have retirement stock and options. What does this mean for my company and myself? [link] [comments]  |
| Watchlist: 5/26 Memorial Day, Bulls, & Parties Posted: 26 May 2020 04:26 AM PDT Market Notes: American's went out and partied it up over the Memorial Day weekend. Plenty of videos emerged of packed beaches and pools where social distancing appears to be part of the distant past. People want to return to normal and appear unwilling to wait any longer. News of another vaccine is now conducting human trials. This one is in Australia. Bulls are out in force this morning, futures are up more than 2% across the board. Watchlist: DCAR is a low float, resistance at $3.25 RENN is a low float, resistance at $4.50 ALT is a low float with support at $7 CLSN is a lowish float, watching for a setup above $3.20 GRWG has resistance at $6.78 VUZI has resistance at $3 OVID has resistance at $6 CELH has resistance at $9 DFFN watching for a setup above $1.50 MARK is on watch, has been moving pre-market CRBP has support at $8 [link] [comments]  |
| Posted: 26 May 2020 02:02 PM PDT What is your guys opinions on bank stocks and will they return back to there ath once covid is not such a big worry or are they in bigger danger, some banks havent hardly recovered at all from the feb crash [link] [comments]  |
| Posted: 26 May 2020 02:55 AM PDT Noob here I heard about inverse ETFs...are they way for someone without a margin account to short the market in general? Say someone thinks there will be another dip back into mid march numbers... Would investing into these inverse etfs be a good idea? Do they generally mirror the market.....but in reverse? [link] [comments]  |
| Selling your Call on Robinhood Posted: 26 May 2020 12:18 PM PDT This is going to be a stupid question I'm sure, but when I'm ready to sell a call on Robinhood I have two options - the 'sell' or 'view all options'. Which do I use? And when I sell am I making the return and the sale price? Sorry, I'm new and got lucky with an MGM call.. I just don't want to do something stupid.. [link] [comments]  |
| Are the huge gap ups and gap downs that we are seeing in stocks during this recession common? Posted: 26 May 2020 11:33 AM PDT As the title says. Question to investors and traders with many years of experience. Are these large gap ups and gap downs common? Or is this just an affect of the uncertainty there currently is in the market? It seems like most of the gains that stocks make is during the AH-PM timeframe. Asking this because I started investing and trading a little before this pandemic started. So I'm not sure how things were Pre-corona. [link] [comments]  |
| Can an ETF be constructed that would follow a moving average? Posted: 26 May 2020 09:50 AM PDT Imagine a SPY 50 day moving average ETF. Since the moving average changes much slower than the underlying, you would suffer less short-term risk and could better respond to big changes in the market. So my question is, is this possible? Can an ETF be constructed so that it follows a moving average? [link] [comments]  |
| Posted: 26 May 2020 09:38 AM PDT I bought a MGM call last week - expires this Friday, $16.5 strike, $17.06 break even. The stock is currently above the break even, should I ride it out a bit longer or hold out a bit longer? [link] [comments]  |
| I think I’m going to start buying at close and selling at open Posted: 26 May 2020 09:05 AM PDT I saw an interesting reddit post where someone showed that over the past few months it would've netted better returns than buy and hold. And I saw a news article that said that essentially from 1993 on, if you bought SPY at close and sold at open you'd be up more than SPY average. And if you bought at open and sold at close you'd be down ~4%. I don't believe that counts toward day trades either because you're actually selling your stock from the day before. Then buying it back in the afternoon. Edit: A couple people have rightly brought up the tax penalties associated with this strategy which I hadn't considered. So would it be possible for an institution to create an Overnight SPY ETF which would avoid that? Or would the ETF simply incur the same penalties and pass it down as administrative cost? [link] [comments]  |
| Posted: 26 May 2020 12:11 AM PDT This might seem to be kind of a silly question, but I've heard various descriptions or uses of beta that seem to not make sense together. I'm hoping someone can clear it up for me. The common thing I've read/heard about beta is that a beta of 1 means an asset moves with the market (S&P 500 index typically), while a beta of less than 1 means it's "less volatile" and a beta higher than 1 means it's "more volatile." However, over on r/algotrading, they talk about how beta near 0 for a profitable algorithm generally means that you've discovered a source of alpha, meaning you're profiting not because of market movements but irrespective of them - you've found an edge over the market essentially. But those two descriptions don't make sense together. If your strategy has a beta of near zero, one description says that means it's much less volatile than the market, while the other description implies that it doesn't move in the same direction or manner as the market. These sound similar but they aren't the same thing. What does beta actually refer to? [link] [comments]  |
| I got a thousand dollars, what should i invest in? Posted: 26 May 2020 12:03 PM PDT Hey guys, I got a thousand dollars right now and want to invest it into the market. Im looking for stocks that can give dividends and I am trying to get dividends almost every month no matter how small. Any ideas? Also I am a beginner so what would be some tips and stuff I should do to educate myself about the market? Thanks guys. [link] [comments]  |
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