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    Tuesday, August 25, 2020

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

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


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

    Posted: 24 Aug 2020 05:18 AM PDT

    If your question is "I have $10,000, what do I do?" or other "advice for my personal situation" questions. If you are going to ask how to invest you should include relevant information, such as the following:

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

    Please consider consulting our FAQ first - https://www.reddit.com/r/investing/wiki/faq

    Be aware that these answers are just opinions of Redditors and should be used as a starting point for your research. You should strongly consider seeing a registered financial rep before making any financial decisions!

    submitted by /u/AutoModerator
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    Salesforce, Honeywell, and Amgen added to the DJIA. They are replacing Exxon Mobil, Pfizer, and Raytheon.

    Posted: 24 Aug 2020 02:51 PM PDT

    Major changes are coming to the Dow Jones Industrial Average.

    S&P Dow Jones Indices said Monday that three new companies will be joining the 30-stock benchmark index.

    Salesforce.com will replace Exxon Mobil, Amgen will replace Pfizer and Honeywell International will replace Raytheon Technologies.

    The changes will go into effect before the market opens on Monday, August 31.

    "The index changes were prompted by DJIA constituent Apple Inc.'s decision to split its stock 4:1, which will reduce the index's weight in the Global Industry Classification Standard (GICS) Information Technology sector," a statement read. "The announced changes help offset that reduction. They also help diversify the index by removing overlap between companies of similar scope and adding new types of businesses that better reflect the American economy."

    As a result of Apple's 4-for-1 stock split, its ranking is set to drop from the top all the way down to 16th, and its weighting in the average will fall from 11% to just 3%, according to S&P Dow Jones Indices.

    The 124-year-old blue-chip average is price-weighted, meaning stocks with higher share prices are given greater weight in the gauge

    submitted by /u/MicronDRAM
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    Powell set to deliver ‘profoundly consequential’ speech, changing how the Fed views inflation

    Posted: 24 Aug 2020 01:54 PM PDT

    "Simply, it means that the Fed, which has pegged 2% as a healthy level, will let inflation run higher than that for a while if it has spent a considerable time beneath that level. The Fed's preferred inflation gauge has stayed below that level for all but two years since the Great Recession ended in mid-2009."

    submitted by /u/synester302
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    Corsair's IPO is great timing in the RAM industry

    Posted: 24 Aug 2020 07:56 AM PDT

    Last month, JEDEC published the official standards for DDR5, which are the standards for which all next gen DRAM will follow for PC/Servers (note: laptop/mobile devices use a different standard and I don't think corsair has anything to do with that industry). DDR5 offers double the speed and less power consumption than the current standards, DDR4.

    It currently looks like intel will start offering support for DDR5 in the middle of 2021 and AMD will follow in 2022. At that point, we can expect to see a mass wave of upgrades among high performance PC and server users, and Corsair is a big player in that industry.

    We don't know anything about the IPO details yet, other than they're looking to raise $100M. That said, with a reasonable valuation this could be a good option to jump on if you're looking for a 3-5 year hold.

    submitted by /u/Youre_Government
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    Snowflake IPO

    Posted: 24 Aug 2020 02:50 PM PDT

    https://www.cnbc.com/2020/08/24/snowflake-files-s-1-for-ipo.html

    Looks like the Snowflake IPO S-1 was released today.
    https://www.sec.gov/Archives/edgar/data/1640147/000162828020013010/snowflakes-1.htm#ia73499eb79a34ddeaa563501d30356b0_40

    Snowflake plans to list on the New York Stock Exchange under ticker symbol "SNOW."

    submitted by /u/Meymo
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    Full Amazon DCF model plus DD.

    Posted: 24 Aug 2020 08:22 AM PDT

    Hey guys, this will be my first attempt at a dcf. This is my blog post about Amazon and some things you guys probably already know but hopefully I can bring something that you didn't know about. I stripped the company into three sperate segments and forecasted the company that way. If you have differing assumptions, feel free to use the model and change whatever you think is wrong and let me know what kind of price you get. Hope you guys enjoy and happy investing.

    https://nextgenfinanceca.wordpress.com/2020/08/17/amazon-the-everything-e-commerce/

    submitted by /u/LeMa0
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    Why do amateurs get into forex instead of equity trading/investing?

    Posted: 24 Aug 2020 09:43 PM PDT

    Correct me if I am wrong here but Forex is exactly a zero sum game. Every winner has a loser for that exact amount. When you lose 1/6 of the pie, the guy at the other end gains 1/6 of the pie.

    With stocks/equities, it is almost the same concept BUT...over time the pie slowly grows.

    So why do newbs and amateurs get into forex???

    submitted by /u/fccoup02
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    S&P 500 ETF with zero expense ratio

    Posted: 24 Aug 2020 12:04 PM PDT

    It just came to my attention that there is an ETF with a zero expense ratio that has slightly outperformed VOO. The ticker symbol is "SFY" and made by SOFI. It's inception date is April 2019, so it is a relatively new ETF.

    Does anybody know why it hasn't gotten more attention? Especially among long-term buy and hold investors, I would think it would make more headlines.

    submitted by /u/InvestingNerd2020
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    Leveraged ETFs?

    Posted: 24 Aug 2020 06:00 PM PDT

    So I understand volatility decay with leveraged etfs. But if you look at TQQQ or something similar over the past 5-10 years they are up over 1000%. I understand that if there is a prolonged neutral/bear/volatile market it can destroy you but otherwise this seems like a great long term investment no?

    submitted by /u/poopedyscoopwoopy
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    Question about stock split

    Posted: 25 Aug 2020 02:26 AM PDT

    Hi there, so the TSLA stock split is on the 31st, and Tesla also stated that it will be effective for all stockholders as of August 21st. So my question is, what happens to people who have bought TSLA after August 21st but before the 31st?

    Just curious btw, I already have my TSLA for a long time.

    submitted by /u/Max11k
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    Robert Schiller's P/E Discussion

    Posted: 24 Aug 2020 01:15 PM PDT

    Robert Shiller's P/E for the S&P right now is above 30. Given that the overall average is 16, this would normally indicate that the market is currently overvalued. However, there are multiple factors at work. If the earnings increase and the price falls, the Schiller P/E would drop.

    My opinion is that the market is not overvalued. In fact, the market is undervalued. Most of the big tech names are expected to increase their already super-sized earnings, but the majority of the S&P remains undervalued, as their earnings lag while the price gently increases. This causes the P/E to rise. The Schiller P/E will fall when the earnings for the next few years slightly outperform the price.

    What are your opinions on this? Do you agree or disagree? Is the market overvalued, undervalued, or exactly where it should be, and what's your reasoning?

    submitted by /u/WSB_Goof
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    Dummy question: why do index funds rebalance?

    Posted: 25 Aug 2020 12:11 AM PDT

    For a market-cap weighted index, where does the need to rebalance arise? The daily change in stock prices does not induce a need to rebalance, as the new price by definition will dictate the weighting each stock will have in the index. So, the basket of stocks at the end of a trading day is still market-cap weighted. Am I missing something? When does a rebalancing take place then? When stocks 'exit' the index? Due to foreign exchange rates, in case the index contains stocks in different denominations?

    submitted by /u/AnInquisitiveAccount
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    Question, are these freeriding violations?

    Posted: 25 Aug 2020 03:13 AM PDT

    I've read online that freeriding violations is when you sell a stock you've bought using unsettled funds, and funds take two days to settle from a sale (T+2). Would these situations be ok, or are they freeriding? Assume when we buy/sell in below examples, that we are using entire account value, and if we have a stock our entire account is that stock.

    1. Start with settled shares of XYZ stock. T+0: Sell XYZ. T+2: Buy XYZ. T+3: Sell XYZ, then buy XYZ later in the day. T+4: Hold onto XYZ.
    2. Start with settled shares of XYZ stock. T+0: Sell XYZ, then buy XYZ later in the day. T+2: Hold XYZ. T+3: Sell XYZ, then buy XYZ later in day. T+4: Hold XYZ.

    I believe these are not freeriding, right? Thanks.

    submitted by /u/tonytieger
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    Why do earnings differ based on where I look?

    Posted: 24 Aug 2020 01:38 PM PDT

    I've been researching Palo Alto Networks (PANW) but keep finding discrepancies in their EPS. When I look at TD Ameritrade or Yahoo Finance the quarterly and yearly earnings are positive, however, when I look at their financial statements their EPS is always negative. I obviously will trust the financial statements but I'm curious why this is? Thank you!!!

    submitted by /u/wallstreet4life
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    Best way to insure 100 AAPL stocks by buying puts

    Posted: 24 Aug 2020 11:35 AM PDT

    Hi guys, quick question: say i have 100 AAPL stocks. with AAPL being at an all time high, i want to insure them.

    Is there an efficient way to decide which strike/expiry of a put to buy?

    Im thinking that the upcoming stock splits and showcase of their 5G phone is gonna make the stock volatile, and therefore having a good chance for a dip.

    Thanks in advance for all your tips.

    submitted by /u/Noddythepilot
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    What are your thoughts on Dropbox? (DBX)

    Posted: 24 Aug 2020 04:58 PM PDT

    recently came across this tech company that many of us use in our daily life for school or work. It currently sitting at $20.25 per share. It went public in March of 2018.

    Not sure if it's been posted on here before, but I'd like to hear some of your opinions on it.

    submitted by /u/__TheDon__
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    $GNUS | Genius Brands Intl.

    Posted: 24 Aug 2020 09:27 PM PDT

    Out of curiosity from its recent spikes from May-August; I spent the last 3 weeks gathering information on this company to see if I can understand its value. I now have reason to believe it will make a turn very soon.

    About the company:

    Genius Brands is a global media company in children's entertainment

    Three pillars of value creation:

    • Growing portfolio of brands
    • Global consumer products and distribution
    • Owned distribution platform
    • Creates shows and licenses them out to networks such as Netflix, Nickelodeon, Amazon Prime and their own distribution platform Kartoon Channel! on Apple iOS. Also recently announced a new toy line available at Walmart & Amazon.

    Andy Heyward, CEO

    On June 26, 2020, CEO Andy Howard bought 11.6M shares of the stock (avg price $2.46)

    Stockholder meeting: Thurs August 27, 2020

    Increasing the number of shares from 233M to 400M

    New entries to management team:

    • Margaret Liosche - Executive Chairman of the Kartoon Channel (Former President of Marvel Ent.)
    • David Newman - Chief content officer of the channel (Former president of Walt Disney television)
    • Others include former members of Disney, Dreamworks, Hasbro, Mattel

    Other recent news:

    • Recent deal with Mattel to turn toys into Wal Mart and Amazon
    • All advertising is free as they are the hosts of their own network
    • Could be bought out by Amazon, or receive exclusive shows

    Key notes from GNUS fundamentals chart:

    • 44% growth per year
    • 6M in revenue in 2019 (compared to 1M/year in previous years)
    • Cleared of debt
    • 45M in cash (5 yrs worth)

    Recent news:

    • 7/23: Genius Inks Deal with Archie Comics, Batman Movie Producer: https://m.benzinga.com/article/16622103
    • 7/27: Kartoon Channel! App breaks single day company record on iOS apps for kids: https://bre.is/YjMNEvvL
    • Kartoon Channel! App Receives Tremendous Response with Top Reviews and 5-Star Ratings, Surpassing Disney+
    • New COPPA-compliant App Follows Debut of Kartoon Channel!, Available in Over 100 Million U.S. Television Households and on Over 200 Million Mobile Devices: https://bre.is/JZ6NGrfY
    • 8/3: Stock surges after releasing toy line: https://bre.is/jzjS7Mcf
    • Arnold Swartzenegger (also an investor) voice actor on their latest show Stan Lee's Superhero Kindergarten; written by Fabian Nicieza, co-creator, Deadpool and Steven Banks, head writer of SpongeBoB Squarepants.
    • 8/4: From fan to creator: Michael Uslan's journey to Genius Brands: https://bre.is/c3XU4Szh

    I believe the recent lawsuit is actually brought on by another network who sees them as a threat, or wants to lower their value to potentially buy them out. While I see it as an entry point for all.

    The stock spiked on every one of these announcements. $1 to $11 on June 3rd, another spike on July 2nd, and again on Aug 3rd. It hasn't stayed, but it seems we are due for another at any moment (End of Aug/beginning of Sept?) I believe this is a great company with massive growth potential. Due to their recent collaboration with Amazon Prime, I believe they will get picked up or bought out by Amazon, (if not Viacom or ATT due to their quickly growing threat to Nickelodeon and Cartoon Network).

    Current positions: 20x 9/18 $1.5c + 10,000 shares

    submitted by /u/jonneye
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    Is it a bad sign, if the Fed starts invessting heavily in something?

    Posted: 24 Aug 2020 07:07 AM PDT

    I don't know anything about investing, so I beg your pardon if it is a stupid question and the terminology isn't correct, but it seems to me, that the Fed usually pumps money into "troubled" markets etc. So I was wondering, if it bodes ill for that market, if the Fed is injecting money into it? And if that means that investing in that type of market is an unwise decision? Thank you and I'm sorry if there are gross mistakes.

    submitted by /u/The_Order_66
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    Is anyone else trying to cash in on the amount of people moving during Covid?

    Posted: 24 Aug 2020 06:59 PM PDT

    Sales on homes are up 25% from June to July. Up 9% from a year ago. Banks are offering mortgages at 2%. I'm not looking at tech as much as I'm already heavy in that sector, and companies like Wayfair are trading crazy high. I'm in small on Uhaul but plan on going in bigger. I'm also looking into brick and mortar furniture stores that are still trading down from February highs. Any other ideas?

    submitted by /u/BillPullman_Trucker
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    Google Spreadsheets "imported content is empty"

    Posted: 24 Aug 2020 12:57 PM PDT

    I use data from Morningstar in my google spreadsheet to track the NAVs of different mutual funds. In order to do this, I used the following function:

    =importxml("https://www.morningstar.be/be/funds/snapshot/snapshot.aspx?id=F0GBR04AR4";"//table[@class='snapshotTextColor snapshotTextFontStyle snapshotTable overviewKeyStatsTable']/tr[2]/td[3]")

    Up until today this worked just fine for weeks. However, now it says #N/A and an error that says "imported content is empty". How can I fix this?

    submitted by /u/ChengSkwatalot
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    Opinion: ESG (Environmental, Social, Governance) is a possible value sector to target for investing in the near future. SOAC warrants (SOAC.WT) is the play.

    Posted: 24 Aug 2020 05:12 PM PDT

    TLDR at the bottom

    As the title states, it is my opinion that SOAC warrants (SOAC.WT) are a great target for investors trying to get into the ESG sector. This is not financial advice. Do your own DD and make your own decisions.

    Objective:

    SOAC is Sustainable Opportunities Acquisition Corporation. It is a $300 million blank check company with a dedicated ESG focus. ESG stands for Environmental, Social, and Governance. As their website states, SOAC is "focused on evaluating suitable targets that have existing environmental sustainability practices."

    Opinion:

    I believe that ESG has a strong impact on the market today. Just think bout some of the examples below and how it can affect the public's perception of a company and also how it can affect a company's stock.

    E for Environmental: climate change, carbon emissions, air and water pollution, energy efficiency

    S for Social: gender and diversity, community relations, human rights, labor standards

    G for Governance: company leadership, shareholder rights, company standards

    SOAC is one of the first (if not the first) blank check company to have an ESG focus (source)

    Opinion:

    Whether you want to believe it or not, ESG will continue to have an impact on investing for years and years to come. This could be due to a number of reasons including the Coronavirus pandemic, the growing threat of climate change, the increasing trend toward investing in socially responsible companies, and the continued fight for social justice, among others. Here are some links for further reading about ESG:

    https://www.morningstar.com/features/esg-investing-history

    https://www.cnbc.com/2020/07/01/coronavirus-major-turning-point-for-responsible-esg-investing-says-jpmorgan.html

    https://www.forbes.com/sites/zachconway/2020/08/05/as-social-issues-own-the-national-conversation-investors-can-use-money-to-talk/#55c751656ca5

    https://www.cnbc.com/2020/07/14/millennials-look-to-make-a-social-impact-with-their-investing-dollar.html

    Objective:

    What type of companies/targets would SOAC look for? It turns out from their website, it can mean a target in a variety of industries such as "manufacturing (including auto, building materials), chemicals, services (including waste, environmental, construction), logistics (including transportation, distribution), technology (hardware, software, devices), agriculture (including biofuels) and energy (with focus on renewable generation, utility services, energy efficiency/management), among others." They also state they could target companies that historically have not been focused on environmental sustainability but are now looking to enhance their environmental sustainability profiles.

    Opinion:

    Think about some of the "hot" investments sectors right now. I'm talking about auto/EV, transportation, technology, energy.....these could be where SOAC's target comes from.

    Many people will say that for blank check companies, the management team or the amount in the trust fund is the most important thing to look at when evaluating them. To me, both are very important but my number one most important thing to consider is the sector the blank check company plans to target.

    Based on my past experiences, I judge a blank check company's chance of success based on the public's excitement of the sector - the more people that are excited about the target and its sector, the more they are likely to invest in them, the more likely they are to spread awareness to other areas of the internet (social media, etc), and the more likely it will snowball into success for the blank check company (what some call its "hype" or its "meme/moon potential"). I can see that happening with SOAC.

    Speaking of the management team...

    Objective:

    CEO - Scott Leonard, previously CEO of GenOn Mid-Atlantic and CFO/CRO of GenOn (an energy company), SVP at Hewlett Packard

    CFO - David Quiram, MS + Ph.D in Chemical Engineering from MIT

    Chairman - Scott Honour, Managing Partner of Northern Pacific Group, previously Senior Managing Director of The Gores Group (which has completed four blank check company mergers in the past), and former candidate for Governor of Minnesota

    Opinion:

    Good mix of personnel in the management team with a wide range of backgrounds. Nothing that jumps out at me but no red flags which is exactly what I want.

    Based on these short interviews of the CEO Scott Leonard, he seems like a competent, knowledgeable guy on the outside. Again, no red flags.

    https://www.youtube.com/watch?v=wx8U1byaark

    https://twitter.com/nyse/status/1261374888406745088

    https://cheddar.com/media/sustainable-opportunities-acquisition-corp-makes-nyse-debut

    Objective:

    SOAC.WT closed at $0.83 today, 8/24/20

    Opinion:

    SOAC.WT is such good value right now. I believe SOAC.WT has the potential to do well when you compare its price to other current blank check company warrants that are > $1.50 and don't even have a letter of intent yet. You are getting a sub- $1 warrant at basically its ground floor that has the ability to run to much higher numbers.

    Objective:

    SOAC is targeting a business combination in late 2020 or early 2021 (source)

    Opinion:

    The timeline target of late 2020 or early 2021 will be here before you know it. That being said, SOAC.WT is not a short term play for me. SOAC.WT is not something I plan to buy now and sell in a week. It is a medium to long term play as SOAC based on its business target combination of late 2020 or early 2021. SOAC.WT only began trading on 6/26/20 so we are honestly still only in the early stages.

    What that said, getting in SOAC.WT now at these prices can lead to even more rewards than if I waited until Q4 2020 or Q1 2021 before buying. My hopes is that by the time Q4 2020 is here, the price of SOAC.WT will be nowhere near where they are now.

    Final thoughts:

    SOAC.WT is everything that I am looking for in a blank check company warrant. Warrants are obviously more risky than commons however I believe in this case, SOAC.WT provides the risk/reward profile that I am happy with.

    Disclaimer:

    I have been steadily accumulating SOAC warrants for the past two weeks. Further, my plan is to take some of my (hopeful) profits from SHLL/GRAF/FMCI/SPAQ to SOAC.WT after their respective runs.

    TLDR: SOAC.WT is a blank check company with an ESG (Environmental, Social, Governance) focus. ESG will only have a bigger and bigger impact on the stock market (and stock success) as time goes on whether it is due to the Coronavirus pandemic, the growing threat of climate change, the increasing trend toward investing in socially responsible companies, and the continued fight for social justice (among others). Based on a number of factors including SOAC.WT's current price (sub-$1 warrants), timeline (business combination target in late 2020 or early 2021), and possible target sector (auto/EV, transportation, technology, energy), I believe SOAC.WT is great value for its risk/reward profile.

    submitted by /u/SPACwhisperer
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    Stash/Robinhood bubble?

    Posted: 24 Aug 2020 11:39 PM PDT

    It's not secret that app based trading is letting more and more people invest in stocks. Obviously, that means more demand- especially for "pop" stocks, (or stocks that job investors would now about consider investing for.)

    Is this causing overvaluation?

    Edit: for example, Bloomberg just reported that much of Nintendo's 3 billion market cap growth came from Robinhood. It's not actually worth that much more, is it?

    submitted by /u/TheRightReverent
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    Advice you would give to a 17 year old who loves finance

    Posted: 24 Aug 2020 11:36 PM PDT

    Hey guys, Just some backstory: I just turned 17, I work making ~600 dollars a month part time I have $5000 dollars invested currently, namely in QQQ, Microsoft, USB, Kellogg, and an S&p500 ETF, these are all long term stocks, I'm holding onto them all for at least a year as then I get that tax deduction, but likely will hold onto them way longer I have another 5000 in the bank right now which I probably will put into a Roth IRA, investing in some growth stocks I guess? Completely tax free :). Haven't totally thought that part through 100% yet so not sure about what investments I will pursue there And then I have another $500 of just money in cash and on my debit card I've always been really into finance, followed stocks and researched them since end of middle school. In the future I want to be a financial manager for a company I think, but still have a very open mind on what I want to do. Starting a. Business seems cool too but very daunting to me.

    I feel like I've been pretty fortunate, I save almost all the money I receive which is part of the reason I have a decent amount saved up Also, any other sort of things I can be investing in besides stocks that are worthwhile and good investments?

    If you could give me any advice what would you say? I'm open to any sort of advice, just looking to learn some stuff from people with lots of experience and hoping to gain some knowledge

    Thx :)

    submitted by /u/Practical-Swordfish1
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