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.
- Bed Bath & Beyond to close 200 stores over 2 years as sales fall almost 50% during pandemic
- At the time I'm writing this, Nvidia ($247.93B) is worth more than Intel ($247.90B)
- [NYTimes] Sources describe horror stories of young and inexperienced investors on Robinhood, many engaging in riskier trades at far higher volumes than at other firms
- Grubhub, Uber and Postmates accused of antitrust violations. The class action suit alleges that high commissions charged by the platforms force restaurants to charge higher prices. In turn, the platforms’ strict pricing restrictions essentially lock in those prices across the board.
- Stock valuations compared to the past
- [FT] Rise in margin lending stokes fears of China bubble
- Buffett Indicator at record %150
- Goldman's real-time data indicates 2nd consecutive week of regression in the reopening of America
- United Airlines says it could furlough up to 36,000 workers.
- What are some high risk high return stocks you’re looking at?
- Musk Says Tesla Is ‘Very Close’ to Developing Fully Autonomous Vehicles
- TWO Harbors Investments DD: Trading 30% below book value
- If TSLA reports a profit and gets added to the S&P should they issue new shares?
- I'm familiarizing myself with bonds...
- Focused Investors, Shed Some Light: Investing Housing Down Payment
- Walmart+ growth potential
- $GSPFX
- Vonage Holding - undiscovered potential
- For a know nothing investor; is “buy and hold Index Funds” still the best long term option even today?
- How to invest in tech IPO’s
- Is Innovative Industrial Properties Inc. a good buy?
- Any downside to buy ARKK ETF compared to buying the stocks?
- How risky is a property ETF?
| Daily Advice Thread - All basic help or advice questions must be posted here. Posted: 09 Jul 2020 05:09 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]  |
| Bed Bath & Beyond to close 200 stores over 2 years as sales fall almost 50% during pandemic Posted: 08 Jul 2020 01:34 PM PDT Bed Bath & Beyond said Wednesday its sales tumbled nearly 50% during its latest quarter, even as online sales surged more than 100% during April and May with consumers stocking up on cleaning supplies and home decor. The company said it plans to permanently close roughly 200 of its namesake stores over the next two years, starting later in 2020, as it works toward getting back to profitability against the backdrop of the coronavirus pandemic. As of May 30, it operated a total of 1,478 stores, including 955 Bed Bath & Beyond shops. Bed Bath — which also owns the chains buybuy Baby, Christmas Tree Shops and Harmon Face Values — said these actions should generate annual cost savings of between $250 million and $350 million, excluding related one-time costs. [link] [comments]  |
| At the time I'm writing this, Nvidia ($247.93B) is worth more than Intel ($247.90B) Posted: 08 Jul 2020 07:04 AM PDT I don't really have anything to add to this thread myself. Just wanted to throw it out there and see what people come up with to discuss. It's also very possible that the statement in the title of this thread is no longer true as the post ages. Here's some additional stats: PE ratio: Nvidia: 73 Intel: 11.3 Revenue: Nvidia: 11.78B Intel: 75.7B Gross Profit: Nvidia: 6.77B Intel: 42.14B [link] [comments]  |
| Posted: 08 Jul 2020 01:29 PM PDT https://www.nytimes.com/2020/07/08/technology/robinhood-risky-trading.html
[link] [comments]  |
| Posted: 08 Jul 2020 01:21 PM PDT A lawsuit filed this week by a group of restaurant consumers accuses third-party delivery companies Grubhub, Uber and Postmates of antitrust violations resulting in inflated menu prices. The class action suit alleges that high commissions charged by the platforms force restaurants to charge higher prices. In turn, the platforms' strict pricing restrictions essentially lock in those prices across the board. The result, says the suit: "Any restaurant using any defendant's platform charges all of its customers supracompetitive prices." The three platforms named in the lawsuit made up 54% of third-party delivery sales in May, according to consumer analytics firm Second Measure. DoorDash accounted for most of the rest, with 44% share. Earlier this week, Uber acquired Postmates for $2.65 billion in stock. The lawsuit zeros in on pricing restrictions known as most-favored-nation provisions (MFNs) imposed by the three platforms on the restaurants they work with. The MFNs, to varying degrees, prohibit the restaurants from charging lower prices through other channels, such as competing ordering platforms or the restaurant itself. "Grubhub and Uber's MFNs thus effectively fix the end price that consumers pay when they order through restaurant platforms," the lawsuit says, limiting competition and creating higher menu prices for consumers. DoorDash, which does not use MFNs, is not named in the lawsuit. "DoorDash's ability to compete with defendants without such MFNs is proof that such restrictions are not necessary," the lawsuit says. Uber, Grubhub and Postmates did not yet respond to requests for comment. The suit was filed Monday in the Southern District of New York. The plaintiffs—Philip Eliades, Jonathan Swaby, John Boisi, and Nathan Obey—are residents of New York City who have ordered food via the defendants' platforms. Get today's need-to-know restaurant industry intelligence. Sign up to receive texts from Restaurant Business on news and insights that matter to your brand. [link] [comments]  |
| Stock valuations compared to the past Posted: 09 Jul 2020 01:00 AM PDT The valuation of my portfolio is reaching a price to sales ratio of 50. $ZM ist approaching a P/S of 100. For instance if you bought $AMZN back in 2006 and held it till now you would've hit an absolute home run of an investment. The company performance was more than stellar, it executed like you couldn't have expected in your wildest dreams. Do people really believe companies like $SHOP or $ZM will perform vastly better than Amazon did in the last 14 years? [link] [comments]  |
| [FT] Rise in margin lending stokes fears of China bubble Posted: 09 Jul 2020 05:48 AM PDT https://www.ft.com/content/67c1bf41-0b98-41ec-a1a2-7af888c7050b Rise in margin lending stokes fears of China bubbleSharp rally in stock market draws comparisons with 2015 downfall Thomas Hale in Hong Kong and Wang Xueqiao in Shanghai Margin loans to buy equities in China have risen to their highest level in five years, prompting fears that speculation on rising prices could lead to a rerun of a notorious stock market bubble that burst in 2015. Total margin finance in China reached Rmb1.27tn ($184bn) on Tuesday after more than a week of consecutive daily increases, according to Wind, a data service. Separate figures show investors rushing to open new accounts that give them access to loans from brokers. The CSI 300 index, a gauge of the country's biggest stocks listed in Shanghai and Shenzhen, leapt almost 6 per cent on Monday and continued to climb on the following days, after state media extolled the benefits of a "healthy" bull market at a time when the coronavirus pandemic has hit economic activity. But the rally has drawn comparisons with the events of 2015, when state media urged individual investors to pile in to stocks as the economic backdrop weakened. Sustained in part by a crescendo of margin lending, prices doubled over the course of a year before losing more than 40 per cent of their value in a matter of months. "I think people are getting greedy, because liquidity is abundant and there is policy support from the top," said Hao Hong, head of research and chief strategist at Bocom International. "You can sense the speculative atmosphere." Image: https://i.imgur.com/JtdHONC.png Trading on margin can be risky, because if the value of collateral falls the borrower may have to deposit more cash or securities. Pledged assets can also be sold without a customer's consent, perhaps at fire-sale prices. Margin lending is still well below the peak it reached in 2015, when it rose above Rmb2.2tn in June after doubling from its levels in February, according to Wind. But analysts say the momentum resembles the early stages of the previous boom. On Monday turnover in "A shares", which trade on the two main exchanges, was Rmb1.57tn, according to Morgan Stanley. That marked the highest level since the 2015 correction, indicating "high participation from not only institutional but also retail investors", the bank's analysts said. Mr Hong estimates that so far this month about 12 per cent of daily trading volumes are being completed through access to margin finance, compared with 8 per cent in late June. That kind of proportion "tends to raise eyebrows", he said. Data from the China Securities Finance Corporation, a state-owned company which provides the country's brokers with funding, showed that over 85,000 new margin trading accounts were opened in June — more than a one-third increase on the average over the previous year. One user on Weibo, a popular social media site, noted that securities companies "that had not been in contact in a long time" were again advertising services offering margin trading. Late on Wednesday, China's securities regulator published a list of 258 platforms that it said were illegally offering margin finance. Under Chinese law, only approved brokers can provide securities financing. Support for the capital markets has come alongside measures from China's central bank to reduce the cost of credit as the economy grapples with the consequences of the pandemic. "The government has been gradually loosening its monetary policy, so some of this loosening will find its way into the stock market," said Nicholas Yeo, head of China equities at Aberdeen Standard Investments in Hong Kong. Despite apparent cheerleading for the market across state media outlets, some suggest the government, wary of the events of 2015, will exercise caution when it comes to allowing investors to bet with borrowed money. Ken Cheung, chief Asian foreign exchange strategist at Mizuho, expects leverage will remain the main driver of the market in the "medium term", but expects the government to keep it at a "more controllable rate". He noted that state media "refrained from adding fuel to the fire" after Monday's rapid move upwards. Morgan Stanley analysts say that margin finance appears moderate for now, equivalent to about 4 per cent of the total capitalisation of the stock market, compared to about 10 per cent at the peak in 2015. New investor registrations, meanwhile, despite rising sharply month-on-month, are a long way from the 700,000 of December 2014. That could indicate that the rally has further to run. Michael Every, global strategist at Rabobank, says China's market is just one example of a wider trend, also present in the US, where governments seek to boost sentiment while their economies are under heavy pressure. "If you have a strategy of just pumping up asset prices, it's going to end in tears," he said. "We would all sleep much better if this was all fundamentals-driven, everywhere." [link] [comments]  |
| Buffett Indicator at record %150 Posted: 08 Jul 2020 02:58 PM PDT https://finance.yahoo.com/news/warren-buffetts-market-indicator-nears-230236828.html Watching this stock market swell is a complete joke at this point. I am thinking about taking my profits and sit on the sidelines until the end of earning period or quite possibly till elections to see how the market reacts. Another crash or a massive correction is inevitable. [link] [comments]  |
| Goldman's real-time data indicates 2nd consecutive week of regression in the reopening of America Posted: 08 Jul 2020 09:08 AM PDT In week 10 of Goldman's "Measuring the Reopening of America" report series, the analysts see continued reversal in the rate of progress towards normalization as COVID-19 cases remain elevated, and the gap in performance from state to state is widening. While a large number of cities and states are moving further into their reopening, some states continued to pull back reopening plans. Not surprisingly, the states seeing the greatest regression are Georgia, Florida, Arizona, and Texas. Goldman highlighted the following: 1) Retailers sound more cautious on reopening progress as the virus resurges in several states and sales recovery stalls; 2) United backtracked on August flight additions it had announced last week due to declining demand to destinations with rising cases of COVID-19 and to destinations with recently implemented two-week quarantine requirements; 3) Shake Shack's 2Q business update shows divergent trends across geographies, with deceleration in NYC and Midwest; 4) Machinery capacity utilization has recovered to prior year levels in June across industrial end markets. Y/Y % change for week ending July 5:
[link] [comments]  |
| United Airlines says it could furlough up to 36,000 workers. Posted: 08 Jul 2020 10:15 AM PDT Just the other day I saw a post where someone was investing in the airlines because they are cheap and long term they will be fine. I believe that until there is a vaccine or at least a antiviral that can be taken at the onset of the disease the airlines, if not uninvestable, are not going to make you any money. There is just not enough demand for the airlines to make any money. There are better places for your money until people feel comfortable to fly. Waiting means you probably won't catch the bottom but you will still have a chance to make good money. [link] [comments]  |
| What are some high risk high return stocks you’re looking at? Posted: 08 Jul 2020 11:19 AM PDT With such a currently unknown and volatile market, it seems like there's some great opportunities. I know many people are looking at cruise stocks and other travel companies. Are there other stocks with solid pre-covid financials worth investing in now as a speculation? [link] [comments]  |
| Musk Says Tesla Is ‘Very Close’ to Developing Fully Autonomous Vehicles Posted: 09 Jul 2020 06:12 AM PDT
From the article :'"I remain confident that we will have the basic functionality for level five autonomy complete this year," Musk said. "I think there are no fundamental challenges remaining for level five autonomy. There are many small problems, and then there's the challenge of solving all those small problems and then putting the whole system together, and just keep addressing the long tail of problems." Musk's view contrasts with Alphabet Inc.'s Waymo, which recently acknowledged it will be relying on human safety drivers to back up its robotaxis for many years to come. General Motors Co.'s Cruise last year backed off plans to make autonomous vehicles available for hailing rides and hasn't set a new timetable for when such a service will be ready.' [link] [comments]  |
| TWO Harbors Investments DD: Trading 30% below book value Posted: 08 Jul 2020 04:42 PM PDT Investors: I've been watching this stock since April. It's your typical REIT that took a bad beating back in March like everyone else. Company: TWO makes money by purchasing, servicing, and selling Residential Mortgage Back Securities, which we know in the short term is going to depress their share price. However, these are residential securities, not commercial - which because of WFH measures and city shutdowns, commercial prices are going to be depressed for A LOT longer - I'm guessing approximately 3+ years. Now, let's assume that you are looking for a place to park your IRA, savings, investment money in a long term hold position. You may be cautious and resist buying anything related to and correlating with unemployment/wages - i.e. mortgages. Totally fair. Unemployment is around 10%+ with not a so bright outlooks for the next 1-2 years. Totally logical, right? But let's look at things without fear and without emotions. TWO's business model relies on buying and selling of RMBS's. What are the variables that affect an increase in a number of RMBS's to trade, service, and hold? - Unemployment rates (Currently Negative influence) The economic shock from covid is a large one. But the damage has been done, the uncertainty of it is contained (more or less). Unemployment isn't going higher - it's going to go lower in the long run. I was immediately laid off back in early March at the beginning of all of this, and I was just hired on with a bigger and better employer starting early August, for more money. People want to work, people want to prosper. Like JPow said, don't bet against the American Economy. - Interest Rates (Positive Influence) Interest rates are historically low. It's a fact that the lower the interest rates for mortgages, the greater demand will be for them. In fact, demand is +33% YoY https://www.cnbc.com/2020/07/08/homebuyer-mortgage-demand-spikes-33percent-as-rates-set-another-record-low.html?__source=iosappshare%7Ccom.apple.UIKit.activity.CopyToPasteboard In addition, much of the demand for new mortgage applications is in refi-loans from previous good-standing borrowers. - Strong/Healthy Economy (Currently Negative Influence) Don't confuse the market for the economy. The markets are up, up, up. But the actual economy isn't and doesn't reflect this same short term pattern. This ties with unemployment, trade wars with China, etc. This puts downward pressure on consumer confidence and overall willingness to take out a large mortgage on a home. However, like JPow said, don't bet against the American Economy. The Fed is going to do whatever it takes to get the economy back to target unemployment and target inflation. Covid isn't an internal systemic weakness - it's an exogenous variable that we had to react to which has caused economic volatility. Not only that, once a viable vaccine drops, the markets are going to go crazy again. It's a waiting game. - Home Prices (Positive Influence) The lower the price of a home, the more demand there is for it. Prices are going to continue to drop, thus having a positive effect on demand for new mortgages. https://wolfstreet.com/2020/07/07/us-house-prices-to-drop-6-6-by-may-2021-first-annual-decline-since-jan-2012-corelogic-owner-of-the-case-shiller-index/ But wait... prices decline because of a lack in demand, right? Yes, but that's not the only variable. Prices also decline with increased supply. Increased supply will come when those newly unemployed and financially over-extended will sell to lower their payments. From the article - "The forecasted decline in home prices will largely be due to elevated unemployment rates," CoreLogic said. "This prediction is exacerbated by the recent spike in COVID-19 cases across the country." Back to the stock - Per their last earnings calls, TWO's book value is $7, (Book value refers to the total amount a company would be worth if it liquidated its assets and paid back all its liabilities) with a price target of $6. That means that right now they are trading 30% below their book value (5/7) = 71%. I imagine this is because there hasn't been any positive news lately. IMF downgraded their world GDP growth forecast, covid cases are rising, states are stalling their re-openings. It seems like doom and gloom. But ultimately, it's not. It's a short term shock that everyone wants to move past as soon as possible. Overall, I'm expecting a 20-25%+ increase in price in the next 4-8 weeks once we see some good news about vaccines and the record rates of covid decline. I also expect a price target of about $10 within the next 1-2 years. Disclaimer: I own 7700 shares of TWO. This isn't financial advice, do your own due-diligence, don't yolo your money, etc. TLDR: It's a long play, but stocks only go up. [link] [comments]  |
| If TSLA reports a profit and gets added to the S&P should they issue new shares? Posted: 08 Jul 2020 12:27 PM PDT If Tesla somehow reports a Q2 profit and they meet the criteria to be added to the S&P 500, wouldn't it be wise for them to issue as many shares as the index funds would have to purchase to replicate the underlying index to raise capital? There would be demand for those shares anyways so they dont really run the risk of over-saturating the market with a large sale of shares. Wondering if companies have done this in the past since these funds have no choice but to follow the index and will be buying no matter what. Whether you're a bull or bear, this seems like it would make sense for them to do to further strengthen their balance sheet. [link] [comments]  |
| I'm familiarizing myself with bonds... Posted: 09 Jul 2020 04:46 AM PDT I began my research into the world of bonds by reading the well known book "The Intelligent Investor" by Benjamin Graham. I find the philosophies and recommendations to be incredibly beneficial but one thing I can't grasp is the multiple different words used to describe specific types of bonds. My question is, when someone says "first grade bond" are they are referring to the security of the bond and this security increases the chance of getting a return but the interest rate is lower? I just need a confirmation. Thanks [link] [comments]  |
| Focused Investors, Shed Some Light: Investing Housing Down Payment Posted: 08 Jul 2020 03:52 PM PDT Bear with me: I am saving up for a down payment on a house. Ideally I'd have around 70-80k and use 50-60k of it for the purchase. I know the old saying about never investing these types of funds, but my HYSA is around 1%. I should add that I also have my emergency fund, fully funded and not in equities but in the HYSA. I am considering putting my housing money into conservative funds at vanguard. Right now I am thinking a 65:35 split of bond and stock ETFs. Likely a mix of short and long term bonds, and something like VOO or MGK for the equities portion. I may even make this a 70:30 split. I am shooting for 5-6% conservative growth. I have approx 10k to start the fund sitting in their money market and add around 1500 each month. Am I crazy for wanting to invest these funds? Any suggestions? I should also add that I plan on buying in the next 2-4 years Edit: want to add that the chances of me losing my investment are essentially zero. I think, based on pst performance, should we see more sharp drops Id be looking around a 10-15% drop. And of course I'd be DCA-info throughout it [link] [comments]  |
| Posted: 08 Jul 2020 07:21 PM PDT I don't anticipate Walmarts recently announced "Walmart+" will ever get on par with Amazon, however they do seem well positioned to take on a chunk of eCommerce business they're missing out on today. With a $98 subscription, and same day delivery, their network of stores throughout the US seem like a decent recipe to help them succeed with greater logistical ease than AMZ. Their stocks valuation also seems reasonable given the upside potential... what's everyone think? [link] [comments]  |
| Posted: 08 Jul 2020 08:05 PM PDT The Gotham Enhanced S&P 500 Index Fund (GSPFX) is a mutual fund that buys all 500 stocks in the S&P 500 Index but reweights them, buying more of the ones we think are cheaper and less of the ones we believe are more expensive. Has anyone invest with GSPFX? Whats your thoughts on it? [link] [comments]  |
| Vonage Holding - undiscovered potential Posted: 09 Jul 2020 03:31 AM PDT One company with great potential in the SaaS segment, which apparently went under the radar among investors is Vonage (VG), or ex Nexmo. Very similar to Twilio, Vonage provides its API platform services to main telehealth players like Teladoc Health (TDOC), Cinga Corp (CI), Doxy, Babylon health, Doctolib, and Pelaton interactive (PTON) as a leader in the fitness segment. In the 1Q API Platform revenues grew 44%, driven by high-value APIs. Before entering SaaS segment Vonage was VoiP provider and it seems it stayed as such in peoples mind. But Vonage has almost completely transformed its business making few key acquisitions: Nexmo which is present globally and its application is supported by one million developers; New Voice Media which drives Salesforce (CRM); tokbox which is the leader in the programmable video. At the moment Vonage is being traded at P/S ratio 2 and the reason for that is that it still makes smaller part of the revenue from the VoiP so the market still doesn't valuate Vonage as a SaaS company. They have announced complete sell off of the VoIP segment in the near future. That will enable full transformation into cloud communication company and will reduce debt. While Twilio reports $385 million revenue in the 1Q, its market capitalization reached 33B, and Vonage with its $210 million of revenue stayed with not much changed market capitalization of 2.6B. Vonage's Nexmo application and programmable video by themselves are probably worth 6B which is 2.5 times more than Vonage's current valuation. The question is whether Twilio is highly overvalued or Vonage (ex Nexmo) is significantly undervalued? [link] [comments]  |
| Posted: 09 Jul 2020 02:42 AM PDT An index fund (also index tracker) is a mutual fund or exchange-traded fund (ETF) designed to follow certain preset rules so that the fund can track a specified basket of underlying investments.[1] Those rules may include tracking prominent indexes like the S&P 500 or the Dow Jones Industrial Average or implementation rules, such as tax-management, tracking error minimization, large block trading or patient/flexible trading strategies that allows for greater tracking error, but lower market impact costs. Index funds may also have rules that screen for social and sustainable criteria. An index fund's rules of construction clearly identify the type of companies suitable for the fund. The most commonly known index fund in the United States, the S&P 500 Index Fund, is based on the rules established by S&P Dow Jones Indices for their S&P 500 Index. Equity index funds would include groups of stocks with similar characteristics such as the size, value, profitability and/or the geographic location of the companies. A group of stocks may include companies from the United States, Non-US Developed, emerging markets or Frontier Market countries. Additional index funds within these geographic markets may include indexes of companies that include rules based on company characteristics or factors, such as companies that are small, mid-sized, large, small value, large value, small growth, large growth, the level of gross profitability or investment capital, real estate, or indexes based on commodities and fixed-income. Companies are purchased and held within the index fund when they meet the specific index rules or parameters and are sold when they move outside of those rules or parameters. Think of an index fund as an investment utilizing rules-based investing. Some index providers announce changes of the companies in their index before the change date and other index providers do not make such announcements. [link] [comments]  |
| Posted: 08 Jul 2020 11:10 AM PDT I've participated in a few IPO's in the past through E*TRADE however I'm looking to put money in a few upcoming tech IPO's, namely JAMF, Snowflake, and possibly Palantir. I see through the NYSE the bookrunners (GS, JPM, etc) however I just wrote my bank (JPM) and they said they do not participate. I'm guessing they mean individual investors cannot... Any ideas? None are listed on the E*TRADE IPO center. Thanks [link] [comments]  |
| Is Innovative Industrial Properties Inc. a good buy? Posted: 08 Jul 2020 10:17 PM PDT Been looking into more REITs to diversify my portfolio. I'm 25 & new to investing. Looking for growth stocks as my outlook is more long term. Most of my stock is in NKE since I work there. With some in AAPL & MSFT. They've gone from ~$17 in December, 2016 to ~$95 today. The medical cannabis industry is going to see continued growth & IIPR seems to be in a good position to capitalize. They make a bulk of their money from "lease-backs" where smaller grow companies are selling their property to IIPR & leasing it back right away. The only major risk I see is if the Federal government allows cannabis companies to obtain credit & financing to fund their operations. Otherwise, they'll continue to look to companies like IIPR to raise immediate funding. I was thinking of putting $1,000 in. What do you think? [link] [comments]  |
| Any downside to buy ARKK ETF compared to buying the stocks? Posted: 08 Jul 2020 10:54 AM PDT I've been checking out plenty of podcasts, interviews etc with Cathie Wood and like their portofolio. Thoughts on this ETF and owning ETF's in general? [link] [comments]  |
| Posted: 09 Jul 2020 01:56 AM PDT The obvious risk is people not being able to pay their mortgages. Will unemployment be an issue for years to come? However I know a few real estate agents who tell me that today people are still eager to buy property and they haven't seen prices drop, at least not yet. It's possible that people expect high inflation in years to come and view property as a safe investment. [link] [comments]  |
| You are subscribed to email updates from Lose money with friends!. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment