• Breaking News

    Sunday, June 28, 2020

    Pfizer’s current market price of around 32$ is very attractive for long term investment Investing

    Pfizer’s current market price of around 32$ is very attractive for long term investment Investing


    Pfizer’s current market price of around 32$ is very attractive for long term investment

    Posted: 27 Jun 2020 03:04 PM PDT

    Pfizer has agreed with Mylan to separate its generic drug business Upjohn and combine it with MYL to form a new company named Viatris. Viatris will be listed as an independent company going forward. The deal is expected to complete in the immediate next quarter. As part of the deal,

    . Existing MYL shareholders will get 1 for 1 shares of Viatris . 43% of Viatris shares will go to Mylan shareholders and 57% will go to Pfizer shareholders. . Upjohn will raise a debt of $12 billion which will go to the books of Viatris while the cash will go to Pfizer as a foreclosure payment.

    Source seeking alpha author : ramani

    submitted by /u/10meh
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    Using Excel to track your portfolio/finances.

    Posted: 27 Jun 2020 07:56 PM PDT

    Microsoft Excel has a new feature where you can login/securely to your bank/broker/credit card/etc and it will download all your statements, collate the data and present them to you in a nicely formatted fashion.

    Apparently only available for Microsoft 365 Family and Personal right now.

    Description is here: https://support.microsoft.com/en-us/office/what-is-money-in-excel-0fb4710d-169e-45a7-ad60-ca98103d4e6a

    submitted by /u/ron_leflore
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    The Reason Why the Fed is Buying Corporate Bonds

    Posted: 27 Jun 2020 11:10 AM PDT

    I was surprised when the Fed announced it would be purchasing corporate bond markets, especially for non-investment grade issuers. "Why do they need to do this?" is a legitimate question. I believe there is a tactical reason why they did this and it makes sense.

    Most banks provide large commitments often up to 5 years on revolving credit facilities that act as quick sources of cash if needed. A lot of companies never intend to use these but pay the expenses for them in case of a time when they really need the money. In March, a lot of companies drew on these revolving lines of credit to the max so they could get cash while it was still available. Banks have to put money out the door when these are drawn upon and everyone was doing it at the same time. This helps the liquidity of the companies borrowing, but clearly impairs the liquidity for banks as they have to put money out the door to meet the demands. This became a major problem for banks and it attributed to some major dislocations in various high quality fixed income products seen in March.

    In April and May, corporate fixed income markets saw a TON of new bond issuance after the Fed announced it was purchasing. Some companies that issued new bonds were ones that drew their revolving credit facilities to the max in March (funded by banks), and some were companies that may have needed to do so in the future. The Fed supporting the corporate bond market took major pressure off bank liquidity and it effective transferred the funding sources to asset managers and other institutional investors that (1) are not as systemically important as the banks are to the economy and (2) in better position to fund at their discretion, as opposed to contractual funding commitments banks provide.

    This is not meant to be a post supporting Fed's actions, but I have previously questioned the need for a central bank to be purchasing corporate bonds and I believe this is the reason why they did it. It's been successful. The future unintended consequences of the Fed's actions are a separate topic.

    submitted by /u/OhioBaseball
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    I’m all in on tech right now. Foolish or no?

    Posted: 27 Jun 2020 07:37 PM PDT

    I made a decent return by picking up oil drillers when futures went negative in April and closing all those when the second Covid-19 wave started to gain momentum. I've rotated 100% to a Nasdaq Index fund for now. My reasoning being I just don't see any other decent sectors right now. I believe the fed will go bananas rather than allow 2008-2009 style crash to happen again. I think all the historical comparisons are largely irrelevant now because of this. I think holding cash and waiting for a crash will be like waiting for Godot. The only place I can see to park my next egg is tech with its comparatively minimal debt burden and the juice it's gotten from social distancing.

    Tell me how I'm wrong...

    submitted by /u/everydaygreyman
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    AB - AllianceBernstein

    Posted: 28 Jun 2020 01:18 AM PDT

    I am not investing, but very curious about learning fundamental analysis.

    So I started a screener looking for P/E ratios below an arbitrary number. Obv AB was the first one to come

    So I clicked it and began looking at their financials - they are an asset management firm owned by AB -holdings and have significant tax benefits (also a risk cuz if their tax status changes revenue will drop)

    Low price to book value, 10% dividend. balance sheet/income statement looks good.

    However, Blackrock wipes the floor with them on EPS.

    There is not a lot of information online or in the headlines about the company but one thing is for certain they are probably HIGHLY at risk for a devaluation if corona stimulates another crash.

    I am just waiting for reports on future cash flows to do a discount

    - I guess my question is, what do you look for in a fundamental analysis, what makes for a good buy for companies that are already a) low P/E, low P/B and lets say hypothetically trading undervalue

    - can anyone tell me why asset management firms have low P/E in general, Im looking at five companies in the market, and blackrock is at 20 (the highest)

    submitted by /u/Saladin19
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    (KO) The Coca-Cola Company

    Posted: 27 Jun 2020 09:51 AM PDT

    How do you feel about investing in KO? Seems like a good entry point at these prices closed yesterday at $43.57. I'm just wondering If I should start making a position now with the resurgence of Covid cases. Would it be best to dollar cost average my way in starting now? Or wait and see how the stock market reacts over the next few weeks.

    submitted by /u/kylewatts6
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    Where can I find indexes like CPI

    Posted: 28 Jun 2020 12:25 AM PDT

    I have looked at the bureau of labor site for statistics and found some great information but I am looking for sites or apps like investing.com to look at the data myself along with other economy indexes.

    Also, which other major economy indexes could you guys recommend? Like unimployment/jobless claims and statistics. Looking for anything really that can give me directions and ways to invest better and smarter

    submitted by /u/tzufman
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    Land value during Covid (Specially where Chinese investors flock)

    Posted: 27 Jun 2020 05:01 PM PDT

    I would like to ask how covid is affecting land value in your area. Is it going cheaper? Does it continue to rise? Chinese from mainland China are flocking my country and for the last 5 to 8 years, and land value has risen consistently

    I have some spare money and am planning to go buy commercial lot. So this covid crisis might be a big opportunity for me. I'd like to have some insights and advises if this crisis is really a good opportunity.

    submitted by /u/catterpie90
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    The near-term future of trucking

    Posted: 27 Jun 2020 10:57 AM PDT

    SHLL (Hyliion) has a huge potential in the intermediate time frame, even more than NKLA.

    So you know the deal. Another SPAC has been acquired from an electric truck manufacturer (just like NKLA). Their business model and technology seem to be more promising in the short term. Heres why:

    • Hyliion isn't a fuel cell or electric truck maker. In fact, they don't make trucks at all. They only make the power and drive trains that go into already manufactured trucks. What does this mean? It means they can focus totally on perfecting the power trains and simply install these into trucking fleets manufactured by, say, Mack or Kenworth.

    Ok great. So their power trains are automaker agnostic, and can be installed into any compatible truck. Gives them leverage to expand into a large and already available market. But are there power trains actually good? Will fleet owners want this implemented to replace their trucks' Diesel engines? Yes.

    • Hyliion's power trains are hybrid systems. This means that rather than running purely on hydrogen fuel cells or battery packs charged with electricity, it runs on NG to run an engine which in turn charges a battery which in turns discharges to turn the wheels and move the truck. Ok... so is this a good idea? On technical merits, yes it's fine. It sounds inefficient in writing but in terms of thermodynamic/chemical efficiency it's just fine. The real question is is this a marketable idea. This is important and the answer is a resounding yes.
    • Automakers, particularly truck makers, are under huge pressure to electrify their fleets as emissions regulations become more stringent. When your casual plebs think "emissions regulations" they normally think CO2. But the real pressure on automakers and fleet owners around the world (particularly in Europe, China, the EU, and even India) is the criteria emissions regulations. These are emissions regulations levied at things dangerous to health resulting from the combustion process; particularly NOx and particulate matter. Diesel engines are notorious for these emissions and further mitigation of these emissions are extremely fucking hard with the levels CARB and the European Commission are pushing for. The regulations are realistically designed to eliminate the Diesel engine and push electrification (via batteries or fuel cells).

    Ok, so why is Hyliion's hybrid system have big potential if the automakers and fleet owners need to go to fuel cells or batteries? The answer is time frame. The next hyper stringent California regulation will likely cause further increased stringency in 2027. Between now and then fleet owners and makers need to slowly transition away from diesels. Moving immediately to fuel cells is impossible. They are currently too expensive both in terms of sticker price and fuel price.

    • In the interim timeframe, a solution like Hyliion's hybrid system will allow owners to potentially comply with these stringent regulations (the ones currently existing, particularly in areas like the port of Los Ángeles and Seattle and Portland) without needing to pay out the ass for still too expensive fuel cells. CNG burns much cleaner than diesel and so the PM and NOx emissions will be much lower. Additionally, the Hyliion hybrid system can go into an "all electric mode" where they only discharge the battery to move. This will allow them to enter zero emission zones which their diesel counter parts will not be allowed to enter and which are becoming increasingly popular, again particularly in California and Europe.

    So, in summary: Hyliion's hybrid technology has a HUGE market in an intermediate timeframe. Out to 2027, the better part of a decade, they have the opportunity take huge portions of the trucking market. NKLA on the other hand, requires an infrastructure to support their technology. Meanwhile, Hyliion seems like a more attainable solution to transition off of existing trucking technology. It appears that SHLL may be pumped, especially with Friday's performance, but I'm waiting for a dip to jump in. Let me know what angles I'm not seeing.

    Extra resources: https://www.sec.gov/Archives/edgar/data/1759631/000121390020015311/ea123187ex99-3_tortoiseacq.htm

    tldr: Hyliion has more attainable technology that's more efficient and affordable to disrupt existing trucking infrastructures.

    submitted by /u/kvw5288
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    How does fixed income arbitrage actually work?

    Posted: 28 Jun 2020 12:23 AM PDT

    I've found two practically identical 1 year bonds that trade at a spread of around 40 bps. I have no reason to believe that they will ever converge. I believe the market will continue to misprice them.

    Can I profit off this? They're both general obligation sovereign bonds backed by the full faith and credit of a major economy. The bonds just have two different names but are otherwise identical.

    submitted by /u/J-JG
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    What are you buying if there’s a second crash?

    Posted: 28 Jun 2020 03:38 AM PDT

    Obviously, if we see anything like the crash from earlier this year, most of them will be a bargain. But what specific stocks would you buy?

    I'm inclined to steer clear of travel stocks and financials. Delinquency a problem for the latter. Already pilled into travel and we may see some sort of change in attitudes to travelling.

    I'm probably going to jump in on consumer staples. Interested to hear what you're all thinking if it does happen.

    submitted by /u/w1ll1amw1ll1am
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    Profit taking question

    Posted: 28 Jun 2020 03:25 AM PDT

    I had been sitting on cash for a long time and decided to jump into the market recently in value plays. I bought WFC and SPG thinking they could recover, my simple reasoning that they are a lot less exposed than airlines and hotels etc that were recovering price. Within 2 weeks I was up 70% on SPG over 30% on WFC. Intending to be a longer term investor, while blown away by the profit, I held on and didn't reduce my position. I accept I was greedy to be honest and should have reduced my position. Now, it has returned to a small profit / almost zero on WFC, only up a small %. Obviously I'm frustrated but I'm not depressed because as I said, I'm not a day trader. But I clearly made an error here. My question is this, what is your strategy for profit taking? Should I have sold X% in case of a crash? Hindsight is 20/20. I don't need the cash from these investments long term. But I did see a short term play and failed to capitalize on it. So, I'm feeling a bit conflicted here. What are your thoughts on this and on profit taking if a position explodes like that? Thanks

    submitted by /u/qquentin5
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    Has anyone here noticed changes in the way they think since starting trading?

    Posted: 28 Jun 2020 02:56 AM PDT

    I started trading a couple of months ago and have noticed that the way I think about life has completely changed. For example, if I'm driving on the freeway I'll think about the fastest and most efficient lane to switch into based on thinking about them as stocks and how I would go further if I chose the right one (aka the most profit). Another example is friendships, sometimes I'll compare my friendships/relationships as individual stocks and how my interactions with people could make them go up or down. I'm not crazy or anything, just wondering if anyone else has noticed changes like this haha. Maybe my mind is becoming more analytical?

    submitted by /u/BrewTrue
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    Any good stock tracking software or perhaps a google doc?

    Posted: 27 Jun 2020 02:43 PM PDT

    Specifically, I'm interested in all of the individual stocks in the S&P 500 where you can see current price along with 52 week high and lows.

    With the most recent pullback continuing perhaps another week or so (or even longer), I think the market is getting to the point where there are some cheap long term buys and as I took some profits last Friday, I'm looking to put that money to work.

    Cheers.

    submitted by /u/oleosmirf
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    Trading212 etf fees

    Posted: 28 Jun 2020 01:09 AM PDT

    Hello, im quite new to trading and i was trying to figure out what are fees on trading212 while investing to etf-s such as sqqq and tqqq, i tried to buy one but ended up losing 1€ in 3 seconds. I have tried to find out what are the fees on their website but i guess im too new to understand also english is not my main language. Thanks

    submitted by /u/KngNts
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    Is a 4% return in a bond a good return?

    Posted: 27 Jun 2020 02:51 PM PDT

    Hello everyone, I am 37 years old with an annual income of 140k , I currently contributing 10% of my income to a Roth 401k , max my Roth IRA every year. All my money in the 401k and Roth is in equities which makes it very aggressive, I know that having a mix of stocks and bonds in your porfolio is always recommend . Let's say that I have the opportunity to purchase a AAA rated tax free bond that will net an average annual return of 4% by the end 15 years. Is this considered a good return ?

    thank you.

    submitted by /u/Peanut293
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    What does it mean for the government to default on its bonds?

    Posted: 27 Jun 2020 08:21 PM PDT

    Hello,

    I'm thinking of investing some savings in the safest possible investment, that is government bonds. I'm from India, so this may be a bit different for many of you.

    My government defaulted on its bond obligations in 1972. What does that mean? Did it mean that the government stops the interest payment and returns the money? Or does it mean that the government keeps the initial money? Or does it mean that the government will resume paying from the next fiscal year?

    *Edit: And also, is investing in Indian government bonds safe right now? I'm not looking for too much growth out of this money, just safety.

    submitted by /u/sumitviii
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    Knightscope security

    Posted: 27 Jun 2020 11:42 PM PDT

    I've seen quite a few ads for them over years, saw their suicide robot a few years ago. They have a $1000 minimum investment, I'm looking to invest probably double that. I know this has been posted a few times but according to their website the investment window closes july 20, so I didn't know if anyone here has since changed their opinion. I'm new to investing with some funds in reits but I want to diversify a bit and maybe take a gamble. I'm thinking it has potential with all the uncertainty around the future of law enforcement right now. I just wanted to see if anyone here had any insight or experience with this company.

    I'm new here, please don't hurt me.

    info here

    submitted by /u/mister-saigon
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    Investing in raw land

    Posted: 27 Jun 2020 06:48 AM PDT

    Hi all,

    I have the opportunity to get a land for a cheap amount from a relative. The lands around that one will become residential and we are thinking to do the same with our (in case we buy it).

    The investment looks good and the lands in the region are growing.

    Any considerations or experiences on the matter?

    Thank you!

    submitted by /u/quikko
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    Best Platforms for accredited Investors

    Posted: 27 Jun 2020 11:34 PM PDT

    I discovered recently qualified to be an accredited investor, and looking to dip my toes in. Any recommendations out there for good platforms?

    I signed up for yield street (alternate investments) , and equity zen (startups) but haven't actually used either yet. Anything to be wary of? Platforms to avoid etc?

    submitted by /u/thecroce
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    Can't you contribute more to a Roth 401k than a traditional 401k?

    Posted: 27 Jun 2020 11:33 PM PDT

    I understand that the max limit is $19,500. But for a Roth 401k, I guess the max is $19,500 after tax dollars, while for a traditional 401k, the max is $19,500 pre tax dollars.

    So if you're maxing the Roth 401k and (for example) you have a 22% tax rate, doesn't that mean you are investing $25,000 of pre tax dollars? Meaning that the Roth 401k lets you invest much more (especially if you're in a higher tax bracket) than a traditional 401k.

    Am I correct? Or am I missing something?

    submitted by /u/iamthebunnyboy
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