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    Friday, July 31, 2020

    Stocks - r/Stocks Daily Discussion & Fundamentals Friday Jul 31, 2020

    Stocks - r/Stocks Daily Discussion & Fundamentals Friday Jul 31, 2020


    r/Stocks Daily Discussion & Fundamentals Friday Jul 31, 2020

    Posted: 31 Jul 2020 01:07 AM PDT

    This is the daily discussion, so anything stocks related is fine, but the theme for today is on fundamentals, but if fundamentals aren't your thing then just ignore the theme and/or post your arguments against fundamentals here and not in the current post.

    Some helpful day to day links, including news:


    Most fundamentals are updated every 3 months due to the fact that corporations release earnings reports every quarter, so traders are always speculating at what those earnings will say, and investors may change the size of their holdings based on those reports. Expect a lot of volatility around earnings, but it usually doesn't matter if you're holding long term, but keep in mind the importance of earnings reports because a trend of declining earnings or a decline in some other fundamental will drive the stock down over the long term as well.

    See the following word cloud and click through for the wiki:

    Market Cap - Shares Outstanding - Volume - Dividend - EPS - P/E Ratio - EPS Q/Q - PEG - Sales Q/Q - Return on Assets (ROA) - Return on Equity (ROE) - BETA - SMA - quarterly earnings

    If you have a basic question, for example "what is EBITDA," then google "investopedia EBITDA" and click the Investopedia article on it; do this for everything until you have a more in depth question or just want to share what you learned.

    Useful links:

    See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.

    submitted by /u/AutoModerator
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    Amazon's stock gets 27 price target increases from analysts, with 6 targets of at least $4,000

    Posted: 31 Jul 2020 06:07 AM PDT

    https://www.marketwatch.com/story/amazons-stock-gets-27-price-target-increases-from-analysts-with-6-targets-of-at-least-4000-2020-07-31?mod=mw_quote_news

    There are now six analysts with stock price targets of at least $4,000; at that price, Amazon's market capitalization would be $2.00 trillion. The average price target is now at $3,464.25, which is 13.5% above Thursday's closing price of $3,051.88.

    submitted by /u/coolcomfort123
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    MSFT in talks to buy TikTok

    Posted: 31 Jul 2020 10:56 AM PDT

    Time to get in before the news becomes more public... not confirmed, however. This could be huge with MSFT getting into social media and an excellent acquisition.

    Edit: The news has been confirmed

    submitted by /u/carsongt
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    Understanding common misconceptions surrounding stock splits

    Posted: 30 Jul 2020 11:33 PM PDT

    Welcome to my latest Ted talk!

    Every other post seems to be about the announcement from Apple ($AAPL) in regards to their 4-1 stock split. There seems to be a lot of misconceptions around stock splits. In an attempt to help out the community I'm going to answer some of the common questions I've been seeing lately.

    First off, what happens when a company splits their stock?

    In the case of $AAPL, the stock is splitting 4-1. On August 31st the shares will begin trading on a split-adjusted basis. If the shares pre-split were trading for $400 a share, post-split they will be trading for $100 a share. The number of shares in circulation as a result will increase by 4x. This means the companies valuation will not change.

    What about my options contract?

    The vast majority of time with a conventional split like what we will see with $AAPL, options contracts will be adjusted similar to conventional stock ownership. If you own 1 400c contract, post-split you'll own 4 100c options. While I don't expect this outcome, it is also possible for a non-standard options contract instead. Non-standard contracts are common with reverse splits, not very common with this sort of split.

    What about dividends?

    The dividend yield is expressed as a percentage. 1% (rounding up) will be same regardless if you own 1 share at $400 or 4 shares at $100.

    Should you buy before the stock split or after?

    While a stock may see increased volatility post-split, investing in a company should be done when you as the investor feel the stock is undervalued. This may be pre-split or post-split based on price action. If you are actively trading you may be able to take a speculative position pre-split with the assumption that post-split there will be increased interest in the stock and thus an increase in share price. There is no guarantee we'll experience a post-split rally though.

    Bottom Line

    Fundamentally nothing changes with a stock pick. When companies execute stock splits they're simply reducing the cost and thus the barrier to entry for small time investors.

    Thank you for attending my latest Ted Talk.

    submitted by /u/MotownGreek
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    This whole subreddit is a joke (day drinking rant)

    Posted: 31 Jul 2020 12:33 PM PDT

    I swear to God the amount of utterly useless comments is staggering, Goddamn 98% of comments on "popular" threads add utterly nothing NOTHING anyone can't make money off of.

    "Starbucks isn't going to be able provide breakfast (their core business) for at least the next 12 months" or "Macy's is really gonna struggle with e-commerce, Amazon already provides Amazon Essentials"

    FUCK YOU. God almighty what simpleton upvotes this utter drivel?

    Want to post a good company coming up on this subreddit? Well guess what fuck-O! You can waste 30 minutes writing it and shove that idea up your ass!

    Because, unless the utter morons of this sub can either: A) Make the dumbest "water is wet" comment or B) recognize the company's name. It isn't getting upvoted.

    AND O MY GOD THE EXPERTS. If you're new to investing, and want some dumb fucking 20/30 something telling you "how it is" because he made good returns in 2017-now WELL YOU CAME TO THE FUCKING RIGHT SUB. You think it's all going back to normal in 12 months? WELL enjoy Q3 and Q4, when the reality sets in... That "Paycheck Protection"? Well it went to the owners... who didn't hire anyone back in 9 months... because they "didn't have to demand".

    IF YOUR NEW TO INVESTING RUN OR BETTER YET READ A FINANCIAL BOOK.

    PS written in a rant on my day off with 4-5 drinks (KL to mooooon excited to bank), if I misspell well...suck a duck.

    submitted by /u/DrDilkington
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    Long $PINS

    Posted: 31 Jul 2020 05:21 AM PDT

    Was a bit weary of pins but they have smashed earnings. Super long term hold for me. Still really cheap on valuation. Who else loves pins? Stock is up 27% pre market

    submitted by /u/ayy_zed
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    Nvidia in Advanced Talks to Buy SoftBank’s Chip Company ARM

    Posted: 31 Jul 2020 09:09 AM PDT

    Nvidia in Advanced Talks to Buy SoftBank's Chip Company ARM

    Nvidia in Advanced Talks to Buy SoftBank's Chip Company ARM

    Bloomberg reports:

    Nvidia Corp. is in advanced talks to acquire Arm Ltd., the chip designer that SoftBank Group Corp. bought for $32 billion four years ago, according to people familiar with the matter.

    The two parties aim to reach a deal in the next few weeks, the people said, asking not to be identified because the information is private. Nvidia is the only suitor in concrete discussions with SoftBank, according to the people.

    Link: https://finance.yahoo.com/news/nvidia-advanced-talks-buy-softbank-093534709.html

    This is a pretty big deal and would shift the ownership of ARM from a Japanese company to an American one.

    Thoughts?

    submitted by /u/TryaI
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    Bank insider buying

    Posted: 31 Jul 2020 12:15 PM PDT

    Hello friends!

    https://finviz.com/insidertrading.ashx?tc=1

    If you scroll through the last week or so of insider buys, many/most of them are banks.

    Why is that?

    I can see a couple of possible reasons and am curious for your thoughts:

    1. Insiders know their bank stock is trading at a massive discount compared to pre-covid. They are loading up on stock while it's cheap for long-term holds. Perhaps the Buffet BAC position has got them following suit.
    2. They know of something in the works that we don't. I've not really speculated as to what they might know so am curious for your thoughts.

    Am I reading into this insider buying too much? Or is there something here? I watch the unusual options activity pretty closely and am not gleaning anything useful from there.

    Posting this to a few subs for feedback.

    submitted by /u/Your_friend_Satan
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    Does anyone have the google drive with all of those investing books?

    Posted: 30 Jul 2020 09:02 PM PDT

    I saw it here a month or so back, unfortunately didn't save the link. Sorry if this post isn't allowed, I tried searching for it but couldn't find it!

    submitted by /u/Gloomy117
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    AAPL only needs to rise about 8% to reach a $2 Trillion market cap

    Posted: 31 Jul 2020 12:48 PM PDT

    They are currently worth about $1.85 Trillion. They are $250 Billion ahead of the next company. Remember when it was crazy that this company reached a market cap of $1 Trillion? Imagine in like 30 years if AAPL is about to become like a $10 Trillion company. What do you think about this?

    submitted by /u/Michael12390
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    Getting Killed on Currency Fluctuations - UK based investing in U.S Stocks

    Posted: 31 Jul 2020 07:18 AM PDT

    I live in the UK and am depositing in to Trade212 to buy U.S Stocks. Even though most of my stocks are up, my portfolio is down due to weakening dollar against pound.
    Anyone here in the same boat?

    As a long term investor just ride any currency fluctuations our or hedge in some way? Cheers.

    submitted by /u/MrDopple68
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    What stocks are your long term holds?

    Posted: 31 Jul 2020 09:31 AM PDT

    Hi,

    I have been investing in ETFs mostly and would like to buy some individual stocks as well. I am interested in investing and not trading for short term gains. I made a list of stocks that are potential buys for me: Walt Disney, Mc Donalds, Coca Cola, Slack, HDFC, Volkswagen.

    What stocks do you consider as long-term investment holds? I do not want to get into stocks that are over-valued right now but would be still nice to know the names. My plan is to dollar-cost average on the stocks.

    submitted by /u/git_world
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    Free trade-ideas momentum scanners

    Posted: 31 Jul 2020 04:28 AM PDT

    I came across the following page a while back when I was looking for Unusual Volume spikes, and it showed me a whole list of alerts that seem freely accessible and don't have any delays.

    Take a look here:
    https://www.trade-ideas.com/SingleAlertType/

    Some of the alert types that I find interesting are:

    30-minute Bullish Engulfing:

    https://www.trade-ideas.com/SingleAlertType/NGU30/30_minute_bullish_engulfing.html

    Channel breakout (confirmed):

    https://www.trade-ideas.com/SingleAlertType/CHBOC/Channel_breakout_%28confirmed%29.html

    Crossed above resistance (confirmed):

    https://www.trade-ideas.com/SingleAlertType/CARC/Crossed_above_resistance_%28confirmed%29.html

    StockTwits activity spike:

    https://www.trade-ideas.com/SingleAlertType/STAS/StockTwits_activity_spike.html

    High relative volume:

    https://www.trade-ideas.com/SingleAlertType/HRV/High_relative_volume.html

    1 minute volume spike:

    https://www.trade-ideas.com/SingleAlertType/VS1/1_minute_volume_spike.html

    60 minute 1-2-3 continuation buy signal:

    https://www.trade-ideas.com/SingleAlertType/C1U_60/60_minute_1-2-3_continuation_buy_signal.html

    60 minute stochastic crossed above 20:

    https://www.trade-ideas.com/SingleAlertType/SC20_60/60_minute_stochastic_crossed_above_20.html

    submitted by /u/JimmyNeedles-TS
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    Alphabet earnings - what happened and what to expect

    Posted: 31 Jul 2020 12:58 PM PDT

    Howdy folks,

    Like most of you, I sat on the edge of my seat after the bell yesterday waiting for the FAAG earnings. First came FB with a massive beat, something of a surprise given the boycott. Then another handsome beat by Amazon.

    Next to follow was Alphabet, with a marginal beat on revenue and decent beat on EPS. But with YoY decline, this hit the stock and of the FAAGs it went down after hours and in today's trading.

    Can anyone provide further insight into what happened?

    GOOG's competitor's ad revenue continued to grow at decent rates - is this a factor of their size (FB only ~11B while GOOG in the ~30B)?

    What do you expect going forward?

    While we recover from COVID GOOG's revenue should return to normal but is there a better opportunity for growth elsewhere?

    Is GOOG a one-trick pony?

    I know it's not exactly, with Cloud and other some hardware services but it seems the ad-revenue drives so much of its overall rev.

    As I assess my heavy tech weighted portfolio:

    CRWD: 43% (this seems large but stems from a pre-IPO investment which is ~1300%)

    VOO: 11%

    GOOG: 9%

    AAPL: 7%

    AMZN: 3%

    I wonder if I am better looking elsewhere than GOOG in the future, and interest in hearing your thoughts on the future of GOOG.

    Cheers!

    submitted by /u/RunningJay
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    PENN or DKNG

    Posted: 31 Jul 2020 09:14 AM PDT

    I mean they're both priced the same right now. But I'm leaning more towards penn considering portnoys and barstools working with them. They plan on releasing a betting app under barstool. Anyone want to give a newb girl some advice ??

    submitted by /u/thatjabronie
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    GOOG & AMD

    Posted: 31 Jul 2020 07:50 AM PDT

    Long term holds, but a bit iffy about them at the moment.

    GOOG seems to be a big target for government - which I doubt is going to let up anytime soon.

    While they are extremely diversified, it seems a lot of their ventures as of late go belly up. Ad revenue also went down as of this recently quarterly earnings report.

    AMD has big time competition, especially now coming from NVIDIA on the cusp of purchasing ARM.

    Thoughts?

    submitted by /u/MajinJuuu
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    Do you see more people buying stocks during this pandemic?

    Posted: 31 Jul 2020 11:46 AM PDT

    I see a bunch of people who never touched stocks before trying to get in on this "dip." Also a bunch of people FOMO buying. Wondering if we got a shoe shine boy scenario right now.

    submitted by /u/Dances28
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    Trading Groupchat

    Posted: 31 Jul 2020 10:14 AM PDT

    whats up everyone im looking to make a stock groupchat with 10-20 people also new to investing to help eachother learn and grow as traders. Primarily looking for others who are trading lower end shares (100$ and under) so everyone is at a similar level. Let me know if interested so I can set the groupchat up!

    submitted by /u/philipnasisi
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    Was the INTC drop justified or an over reaction?

    Posted: 31 Jul 2020 10:29 AM PDT

    I don't follow INTC and don't really know their business all that well. That said, I see they have fallen nearly 20% since earnings and they are > 30% off their ATH. Their financials look good to me but i understand guidance wasn't good due to a technological delay. That said, is their current valuation fair and justified? Or was the drop an over reaction and some recovery likely in the near future?

    As I said, I'm not familiar with the business but am looking for folks' thoughts who follow this part of tech.

    submitted by /u/shorttallgiraffes
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    Interested in buying Ant Group's IPOs

    Posted: 31 Jul 2020 10:10 AM PDT

    As the title suggests, I have been trying to find a platform in order to buy Ant Group's, soon to be announced, IPOs. There's gonna be a dual-listing in Shanghai and Hong Kong which makes it quite tough for foreign investors.

    I'm based in the UK and I'm in search of a platform that can provide me those IPOs. I would like to avoid ETFs or at least have them as my final resort.

    Any ideas? Thanks in advance.

    More info on why I want to buy and what's Ant Group:

    https://www.cnbc.com/2020/07/21/alibaba-ant-group-ipo-hong-kong-shanghai-explained.html

    submitted by /u/Fat-12-yo-Kid
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    Stock Up Pre-market and Plummets at Open Consistently For the Past 2 Weeks

    Posted: 31 Jul 2020 07:56 AM PDT

    A stock i've been following and have a position in has been plummeting at open for the past 2 weeks. The stock is up pre-market (usually a percent or more) then right at open it plummets whipping out any pre-market gain and usually ending negative on the day. This pattern happens daily, its predictable at this point. I see most action happening right at market open. I am aware a hedge fund has a short position on the stock, not sure if this is the cause. This stock has also run up quite a bit this past year so a pull back is due. I am just surprised by how predictable the daily pullback is at open and curious if anyone has any ideas the reason why. The ticker is BLDP.

    submitted by /u/stocky2008
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    Basic question: if there is a limit sell order at $15, and a limit buy order at $20, what price does the trade execute at?

    Posted: 31 Jul 2020 11:37 AM PDT

    I've googled and asked in trading discords, and have not yet been able to get a confident answer. I'd greatly appreciate any clarification on this, thank you!

    submitted by /u/socialistvegan
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    When trying to determine a stocks support and resistance, how far back do you go on a chart?

    Posted: 31 Jul 2020 01:45 PM PDT

    Is three months enough? Would you say MSFT's support is at $200 right now? And the resistance seems to be at $205. Am I right or wrong? So if one would want to get in on MSFT, a good buying point would be at $200 correct or no? I am learning everyday about investing.

    A side question:

    Should I open a separate brokerage account for long term holding? I currently use a cash account and have MSFT as a long term hold but I am also messing around buying and selling other companies.

    submitted by /u/Gothlander
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