Uber CEO says its service will probably shut down temporarily in California if it’s forced to classify drivers as employees Investing |
- Uber CEO says its service will probably shut down temporarily in California if it’s forced to classify drivers as employees
- Why Stock Splits Matter: Covered Calls
- NYT: Retail Chains Abandon Manhattan: ‘It’s Unsustainable’
- The Next Stock Split Will Probably Be Amazon
- Why are people predicting another stock market crash towards the end of the year?
- Everyone loves Cloudflare (NET) but what are the downsides/Bear Thesis?
- Wirecard is finally getting booted from Germany’s blue-chip DAX index after insolvency - CNBC
- Contrarian take - A reduction to the capital gains tax rate could cause a flash crash
- What do you do when there is a legit vaccine announced?
- Cloudflare $NET . Could get really big or i'm missing something?
- Refinancing now costs an extra 50 basis points....thoughts?
- A Brief Education on Stock Splits
- Buffet indicator over 284%
- Goldman real time data shows signs of improvement for "Back to Normal" categories like transportation, housing and machinery, after recent stagnation
- Pompeo says Trump’s executive orders are ‘broader’ than just TikTok and WeChat, hinting at more action
- New to investing
- How do I open an account for trading daily
- Goldman Sachs: Climbing the Wall of Worry
- Question about pattern day trading and 90 day rule
- Bell Canada $BCE Dividend Discount Model
- Is there a "FinViz" for real estate?
- Is "rolling" an option anything more than an emotional band-aid?
- I came across lmrk or landmark infrastructure partners LP
- My Noobie Investment Strategy
| Posted: 12 Aug 2020 07:51 AM PDT https://www.cnbc.com/2020/08/12/uber-may-shut-down-temporarily-in-california.html
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| Why Stock Splits Matter: Covered Calls Posted: 12 Aug 2020 07:53 PM PDT Covered calls are when you sell call options against the stock you already own and collect the income from the premium. If the underlying stock rallies above the strike price, you will lose on the call you wrote but if you own the underlying stock you obviously benefit from the appreciation. If taxes are managed appropriately, this is a great strategy for retirees that have very few sources of income in this ultra low interest rate environment. I do this often and you can write deep OTM calls against shares you already own and generate some surprisingly nice income yields. These kids on wallstreetbets are practically fighting among themselves to buy these deep OTM short expiry calls from you. I wrote some calls this week expiring in January 2021 and would need a 40% price appreciation to be exercised and I collected a 2.7% premium on them. These are manufactured dividends and I'm still a very pleased investor if I'm up 40% in the next 5 months should the calls be exercised. The problem with covered calls is to write 1 option contract you need to own 100 shares. I own a healthy amount of Alphabet, but I would need $150k in the stock just to write 1 option contract against these shares. This is a great company but covered calls just are not an option for me. A stock split solves this problem. For investors that like to have diversification, some of these higher priced stocks keep you away from participating in this great strategy that I believe is even more attractive in this low rate environment. When you own a stock, I think it is smart to have an exit strategy. If you own AMZN and decide you'll sell at $4,000/share by the end of the year, why not just write a call with a strike at $4,000 and earn the option premium? You're not going to get rich but these premiums add up over time. If Amazon does a 10-for-1 stock split, instead of needing $310,000 to do covered calls, all you will need is $31,000 in it to implement this strategy. I understand the direct impact that a stock split does not matter in terms of creating value, but second and third order impacts will show that they do matter in some respects and covered call writers should applaud them when they occur. [link] [comments]  |
| NYT: Retail Chains Abandon Manhattan: ‘It’s Unsustainable’ Posted: 12 Aug 2020 11:43 AM PDT https://www.nytimes.com/2020/08/11/nyregion/nyc-economy-chain-stores.html For years, Bryant Park Grill & Cafe in Midtown Manhattan has been one of the country's top-grossing restaurants, the star property in Ark Restaurants' portfolio of 20 restaurants across the United States. But what propelled it to the top has vanished. The tourists are gone, the office towers surrounding it are largely empty and the restaurant's 1,000-seat dining room is closed. Instead, dinner is cooked and served on its patio, and the scaled-down restaurant brings in about $12,000 a day — an 85 percent plunge in revenue, its chief executive said. Five months into the pandemic, the drastic turn of events at businesses like Bryant Park Grill & Cafe that are part of national chains shows how the economic damage in New York has in many cases been far worse than elsewhere in the country. In the heart of Manhattan, national chains including J.C. Penney, Kate Spade, Subway and Le Pain Quotidien have shuttered branches for good. Many other large brands, like Victoria's Secret and the Gap, have kept their high-profile locations closed in Manhattan, while reopening in other states. Michael Weinstein, the chief executive of Ark Restaurants, who owns Bryant Park Grill & Cafe and 19 other restaurants, said he will never open another restaurant in New York. Of Ark Restaurants' five Manhattan restaurants, only two have reopened, while its properties in Florida — where the virus is far worse — have expanded outdoor seating with tents and tables into their parking lots, serving almost as many guests as they had indoors. "There's no reason to do business in New York," Mr. Weinstein said. "I can do the same volume in Florida in the same square feet as I would have in New York, with my expenses being much less. The idea was that branding and locations were important, but the expense of being in this city has overtaken the marketing group that says you have to be there." Even as the city has contained the virus and slowly reopens, there are ominous signs that some national brands are starting to abandon New York. The city is home to many flagship stores, chains and high-profile restaurants that tolerated astronomical rents and other costs because of New York's global cachet and the reliable onslaught of tourists and commuters. But New York today looks nothing like it did just a few months ago. In Manhattan's major retail corridors, from SoHo to Fifth Avenue to Madison Avenue, once packed sidewalks are now nearly empty. A fraction of the usual army of office workers goes into work every day, and many wealthy residents have left the city for second homes. Many stores are still closed, some permanently, while those that are open have very little foot traffic. For four months, the Victoria's Secret flagship store at Herald Square in Manhattan has been closed and not paying its $937,000 monthly rent. "It will be years before retail has even a chance of returning to New York City in its pre-Covid form," the retailer's parent company recently told its landlord in a legal document. "In the prime real estate areas, all the stores rely on having half international tourists and half local tourists or those from the local neighborhoods," said Thiago Hueb, a founder of a jewelry company who had decided to close his flagship store on Madison Avenue before the pandemic struck because of high rents. Now brokers are calling him trying to lure him back to the block, but Mr. Hueb, whose jewelry is sold in 80 department stores nationwide, is not interested. "The avenue is no longer what it used to be," he said. [link] [comments]  |
| The Next Stock Split Will Probably Be Amazon Posted: 12 Aug 2020 08:22 PM PDT It's been a while since e-commerce and cloud-computing giant Amazon.com (NASDAQ:AMZN) split its stock. We're talking about the late 1990s when Amazon was a relatively small company with huge dreams. Things are different now. A single Amazon share costs more than $3,150 today, and the market cap stands at an enormous $1.58 trillion. Other high-priced market darlings have been announcing stock splits recently. Apple (NASDAQ:AAPL) has scheduled a 4-for-1 split at the end of August. That move will drop Apple's share price from roughly $450 to approximately $113 per stub, assuming that the stock doesn't make any sudden moves over the next three weeks. Tesla (NASDAQ:TSLA) will run a 5-for-1 split of its own on August 31, dropping the single-stock price tag from $1,550 to approximately $310. I wouldn't be surprised to see a stock split from Amazon, too. Here's Why [link] [comments]  |
| Why are people predicting another stock market crash towards the end of the year? Posted: 12 Aug 2020 06:36 PM PDT Sorry if it's a dumb question, but I'm still pretty new to investing so I'm not entirely familiar with what can make the market go up and down. Over the past couple months I've seen lots of people say that the march crash was just the beginning, and that we will see another downturn towards the end of the year and going into next year. What is the reasoning behind these predictions? [link] [comments]  |
| Everyone loves Cloudflare (NET) but what are the downsides/Bear Thesis? Posted: 12 Aug 2020 11:25 AM PDT What could be an existential threat to their platform over the next 12-24 months? I've seen all the Bull theses', so what do the bears have to say? Is this too hot right now? Blah blah blah this is for the mods of this sub so I meet the 250 character limit thank you for coming to my ted talk. [link] [comments]  |
| Wirecard is finally getting booted from Germany’s blue-chip DAX index after insolvency - CNBC Posted: 13 Aug 2020 03:43 AM PDT
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| Contrarian take - A reduction to the capital gains tax rate could cause a flash crash Posted: 12 Aug 2020 02:10 PM PDT DISCLAIMER - This is backed by zero due diligence or research on my part whatsoever. I'm just a dude with a decent amount of investing experience and a job in a related field but take this for what it's worth (nothing). I personally have been sitting on a mountain of unrealized gains for several years now. This shrunk a bit in Feb - March but is back now to all time highs. I've wanted out of the market for years. I'm approaching retirement age but I am dreading the tax hit in my brokerage accounts when I start to liquidate long term positions. If Trump reduces the capital gains rate I'm out instantly. It will be a no brainer. I can't be the only person in this position. I imagine there are tons of funds out there with unrealized gains that they are delaying for tax purposes. As soon as the switch is flipped on capital gains they might all dump at once like me. Just a thought... [link] [comments]  |
| What do you do when there is a legit vaccine announced? Posted: 12 Aug 2020 10:55 PM PDT Let's say you are invested heavy in tech stocks that got a boost from Covid. Hypothetically speaking, what are you going to do when there is a legit vaccine announced? Do you keep big tech stocks or are you going to sell them (or portions of it) to shift money into travel/leisure/.. stocks? Will there be significant nasdaq dips again and good re-entries later on? Right now I am not that heavy into tech, but still some money that could ride other waves as soon as there is a vaccine. Thank you [link] [comments]  |
| Cloudflare $NET . Could get really big or i'm missing something? Posted: 12 Aug 2020 08:39 AM PDT I think cloudflare could get bigger than Shopify. Some people see Cloudflare as a security company, that's true. But It's pretty limited. Cloudflare biggest active are their engineers and their SERVERLESS platform. Serverless tech can save huge cost in web platforms and make then to run smooth and cheaper than Containers or Virtual Machines. I'm kinda hobbyist developer and I chose to run a website on Cloudflare Serverless because was pretty cheap and easy to set up with 0 latency issues, other low cost platforms give me trouble with that. So in resume I think If they manage to get dev into serverless this could be a pretty big company in a few years. What do you think? [link] [comments]  |
| Refinancing now costs an extra 50 basis points....thoughts? Posted: 12 Aug 2020 10:20 PM PDT http://www.mortgagenewsdaily.com/consumer_rates/951943.aspx Here's the announcement straight from Freddie Mac: https://guide.freddiemac.com/app/guide/bulletin/2020-32 Is this signaling that Freddie sees problems in the mortgage market ahead? lenders will pass this fee straight thru to the borrowers for sure... [link] [comments]  |
| A Brief Education on Stock Splits Posted: 12 Aug 2020 02:40 PM PDT Stock Splits Of all the things to worry about regarding one's investment, stock splits are not one of them. Stock splits are entirely harmless to one's ownership in stock and have no impact on your position from a fundamental standpoint. However, it is still valuable to understand what a stock split is and why businesses undertake these activities. Stock splits are an increasingly less common occurrence in financial markets. However, stock splits still occur and may be confusing as new investors see changes to the number of shares they own and the price of a stock that announces a split. Stock splits are done for several reasons that involve psychology and exchange requirements. What New Investors Get Wrong About Stock Splits The most important aspect to understand regarding stock splits is that they cause no economic change to the company. Stock splits are purely to lower a company's stock price to allow more individuals to purchase stock. A stock split is when a company increases the number of shares outstanding and, as a result, decreases the share price. Stock splits are usually announced in ratio terms such as "3-for-1," signifying how many shares an investor will receive for each of their already owned shares. For example, Apple announced a "4-for-1" stock split in July of 2020 when the stock was trading at approximately $400 per share. If you owned one share of Apple stock, you would have received four shares in exchange for the one share you already owned, and the price of each share would change to approximately $100 (4 x less) per share. The value of your investment in this example does not change, as the total value was $400 before the split and remains at $400. Why Do Companies Split Stocks? Companies usually announce stock splits to make their shares more accessible to retail investors interested in investing by lowering the cost of each share. By reducing the cost of shares, retail investors can gain access to shares they may not have been able to afford. In theory, you may be thinking that this would drive a company's stock up and maybe a good sign for a company. However, the minuscule amount of capital provided by these retail investors interested in a company does not really impact the stock price at all. In the modern age of computer trading, most brokerages offer fractional shares of stock, which means that a person could buy 0.5 shares of a stock trading at $100 per share for $50. This fractional trading has made stock splits much less common than they were in the 1980s and 90s. However, large companies, such as Apple, may choose to do this merely as a psychological marketing tactic to appeal to those who want to own entire shares but can't do so. Also, stock splits can sometimes be seen as a sign of confidence in a particular stock. It could be argued that a company that is willing to split its stock from $100 per share to $20 per-share is confident about the future growth of its stock price. While stock splits have no direct connection to the financial health or future performance of a company, some believe that they signify future strength to come for business. As a result, stocks can often rise after a stock split is announced, as Apple did because it is believed that company executives are confident in the future of the business. Different Types of Splits Another type of stock split is known as a reverse stock split. A reverse stock split is the exact opposite of a regular stock split. While a regular stock split seeks to reduce the price of shares by issuing more shares, a reverse stock split aims to raise the price of individual shares by merging existing shares. A reverse stock split essentially lowers the number of shares outstanding, which results in a higher stock price. Reverse stock splits are also announced in ratio terms such as "1-for-3". In a "1-for-3," reverse stock split example, an individual who owns three shares of stock X trading at $1 per-share would receive one share that costs $3 per share. The value of your investment in this example does not change just as with regular stock splits, as the total amount was $3 before the split and remains at $3. Reverse stock splits are typically a terrible sign compared to the generally positively received regular stock splits. Companies perform reverse stock splits when the stock price has usually reached record lows. Companies will perform reverse stock splits to raise the share price to above the minimum level required by some exchanges. Both the NASDAQ and NYSE require that stock prices remain above $1 per-share to stay listed on the exchanges. If a company's stock has fallen close to $1, they may consider a reverse stock split to raise its share price to remain listed on the exchange. The NYSE requires that at least 1.1M shares be traded for a company, and the NASDAQ requires that at least 1.25M shares be listed. This means that a company cannot reverse stock split forever to maintain its stock price; eventually, the stock will be delisted from the exchange and become a "penny stock" that trades on the OTC. Reverse stock splits are not a good sign. Don't be fooled by the rising stock price, as reverse stock splits do not alter the value of your investment and signal company struggles. Conclusion Next time you see a sudden change in the number of shares you own in stock due to a stock split, don't be alarmed. These corporate actions do not alter the value of your investment but could potentially signal confidence around the future of the stock price. If a reverse stock split is announced, don't get excited that the share price has risen because it has no impact on your investment value as the number of shares you owned was proportionally decreased. If a reverse stock split was announced, consider looking for new investments as the company may be indirectly signaling tougher times ahead. [link] [comments]  |
| Posted: 13 Aug 2020 01:05 AM PDT Hello investors Good day I'v just calculated the buffet indicator in Saudi stock market (TASI) and it was 284%. According to warren buffet if it exceeds 100% it means that the market is over valued. 284% is insane if that method applies in saudi Any thoughts? [link] [comments]  |
| Posted: 12 Aug 2020 10:14 AM PDT Goldman: "In week 15 of the Measuring the Reopening of America series, stay-at-home categories remain largely flat on average, while some back-to-normal categories including dining and retail see further modest improvement. As state policies around reopening increasingly vary and consumer behavior becomes a bigger factor in the pace of things, we expect divergent behavior across states and verticals to continue." "Our read of these data sources still largely describes a landscape we're all very familiar with: lots of eCommerce deliveries, streaming media, and video chats taking the place of concerts, travel, and time at the office. While that picture remains mostly one sided in the data (Exhibit 4), with a larger number of cities and states moving further into their reopening, though at staggering paces as some states are forced to reimpose restrictions, more red is slipping onto the "Stay at Home" heatmap as "Back to Normal" struggles out of its recent stagnation. Measures of Business Activity, which tend to be available on a more delayed basis, are beginning to show more mixed trends as categories like transportation, housing and machinery show signs of improvement." "Convenience-store trips decline as COVID-19 cases rise" "2Q sales numbers from retailers' earnings this week have continued to exceed expectations" but "sales in travel retail and in major tourist destinations as tourist spend remains weak." "Royal Caribbean Cruises reported this week, indicating that bookings are trending meaningfully lower at reduced prices in 2020, though 2021 is trending within historical ranges. 2021 bookings have trended 60% new bookings, 40% future cruise credits from canceled itineraries this year." "Match Group continues to experience increased engagement relative to pre-pandemic levels." [link] [comments]  |
| Posted: 13 Aug 2020 04:03 AM PDT U.S. Secretary of State Mike Pompeo said President Donald Trump's executive orders against TikTok and WeChat could be "broader" than just those two apps. Pompeo did not elaborate, but his comments could be hinting at action against other Chinese apps or even TikTok's parent company ByteDance, or WeChat owner Tencent. "So when President Trump made his announcement about not only TikTok, but about WeChat – and if you read it, it's broader even still than that – is that we're going to make sure that American data not end up in the hands of an adversary like the Chinese Communist Party, for whom we have seen data uses in Western China that rival the greatest human rights violations in the history of mankind," Pompeo said in a speech in Prague, Czech Republic. The orders name both Tencent and ByteDance. One of the executive orders prohibits "any transaction by any person, or with respect to any property, subject to the jurisdiction of the United States, with ByteDance Ltd. ... Beijing, China, or its subsidiaries, in which any such company has any interest" as identified by the U.S. Secretary of Commerce. Another executive order prohibits "any transaction that is related to WeChat by any person, or with respect to any property, subject to the jurisdiction of the United States, with Tencent Holdings Ltd. ... Shenzhen, China, or any subsidiary of that entity." The executive orders are vague and do not specify what a "transaction" means. But Pompeo's comments, in which he mentioned these two specific orders, may be a suggestion the action could extend beyond the two apps named. Both ByteDance and Tencent were not immediately available for comment when contacted by CNBC. Pompeo's remarks come after Tencent executives played down the impact of Washington's moves. "WeChat and Weixin are two separate products, with WeChat serving our International users," John Lo, chief financial officer of Tencent, said on the company's earnings call on Wednesday. Weixin is the version of WeChat for mainland Chinese users. "Based on our initial reading and subsequent press reports the executive order is focused on WeChat in the United States and not our other businesses in the U.S," he said. "We are in the process of seeking further clarification from relevant parties in the U.S." The U.S. represents less than 2% of Tencent's global revenue and less than 1% of total advertising revenue, according to the company. James Mitchell, chief strategy officer at Tencent, said he doesn't believe that U.S. companies advertising on Tencent platforms in China will be impacted as the executive order covers only the U.S. jurisdiction. [link] [comments]  |
| Posted: 12 Aug 2020 09:57 PM PDT Hello everyone I'm 18 and I'm starting to get into investing. I'm going to college and working. I was wondering is their any good stocks that are steady that would be good to start off with or should I just invest a little bit everywhere and see what's happenes. [link] [comments]  |
| How do I open an account for trading daily Posted: 12 Aug 2020 11:38 PM PDT I am located in Serbia, so Robinhood etc. are not available to me. For example Interactive Brokers works for me. I would be thankful if someone with experience commented what do I need beside money (do I need a passport, TIN etc.) to start buying. I know that trading is not investing, question is not really for this sub, I just posted on multiple subs because I am looking for an answer as soon as possible. [link] [comments]  |
| Goldman Sachs: Climbing the Wall of Worry Posted: 12 Aug 2020 07:30 PM PDT The US equity market is up 45 percent since its trough in March, but rising COVID-19 infections, slowing economic growth and election uncertainties have prompted many investors to question the sustainability of the rally. Goldman released a comprehensive market update report and makes the case for investing in equities given the near-negligible returns offered by bonds and cash. [link] [comments]  |
| Question about pattern day trading and 90 day rule Posted: 12 Aug 2020 03:37 PM PDT I've recently been flagged as a pattern day trading. It says for 90 days I won't be able to buy normally. But also if you have $25k that doesn't apply and you can continue as normal. Now I do have $25k invested but I'm just wondering if I were to drop below that will the 90 day rule initiate? Or has the 90 day rule already started but it just doesn't effect me because I have the required amount invested? Like let's say over 90 days have passed by and one day my accounts drop below $25k, will the 90 day rule be over by then or will the countdown have just started? [link] [comments]  |
| Bell Canada $BCE Dividend Discount Model Posted: 12 Aug 2020 06:03 PM PDT Share price: $43.13 Annual dividend: $2.51 Current discount rate: 0.25% Payout ratio: I believe the simplest calculation gives 97% but doesn't factor in the benefits telcos have in strong free cash flow and Bell's strong cash position. If you use owner's earnings you get a lower number I believe. https://www.nasdaq.com/market-activity/stocks/bce/dividend-history BCE's earnings are essentially flat in the last few years, but they pay a 5.76% dividend. If I simulate 20 years of dividends, with the discount rate at 0.25% and 0% dividend growth, I get a NPV of $48.91. If I simulate 20 years of dividends, with the discount rate at 1% and 0% dividend growth, I get a NPV of $45.29. Obviously a lot of assumptions there so here are my questions:
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| Is there a "FinViz" for real estate? Posted: 12 Aug 2020 05:59 PM PDT I'd like to start looking into leveraging an investment property, I just wish there was a site that made it easier. I want a tool where I can easily see areas where the value of the properties have dropped to a low enough price that it be worth making the investment. Any of you guys who look for properties to leverage have any tips for making the search easier? [link] [comments]  |
| Is "rolling" an option anything more than an emotional band-aid? Posted: 12 Aug 2020 09:55 AM PDT I've been reading about option contracts lately, and something that often comes up in conversation is "rolling" an option. This technique, as best I understand it, is selling your current contract while simultaneously buying a new contract at the same strike with a later expiration date. This is seen as giving the investor more time to be correct in their expectation of the underlying stock moving in a favorable direction. To me, this sounds like emotional baggage. Once an investor exits a position, entering again at the same stock & strike sounds like paying a premium to keep on hoping. It could be explained that the investor is confident in the stock direction but missed the timeframe. (In options you have to be right four times: which direction, how much by when, when to enter, when to exit.) Once a strategy is proved errant by realities, I find it unlikely that the same strategy repeated should prove successful. The only case I can see "rolling" to be a non-emotional play is when holding a deep ITM contract and wanting to extend it. This would be paying a premium to hold a leveraged synthetic stock position. (Instead of buying 100 shares outright, I pay half the price for a 1 year contract that is 50% of stock value ITM. So paying $5.5k for a 1 year contract on $100 stock at $50 strike.) The premium on this position is so low compared to the value that one renting the shares plus a deposit, in effect. "Adjustments" are a little different a breed, I think. Selling a contract while entering a new contract at a different strike makes a large, fundamental shift in the portfolio risk exposure, even while the expiration date remains the same. I still see them as inferior to a complete exit and strategy re-think, but the immediate change to the risk profile makes them somewhat useful. TLDR: is rolling an option position ever anything more than hoping more time will lead to a profit? [link] [comments]  |
| I came across lmrk or landmark infrastructure partners LP Posted: 12 Aug 2020 08:44 PM PDT So they are a pure asset play, with no real employees and their business is revolved around owning the real estate/ roof tops of cell towers billboards for ads and solar energy generation. They pretty much own the land, cci or amt owns the tower and the cell companies are leasing the tower. Does anyone else look into them? They seem like with 5g rolling out, a green energy future imminent and obviously advertisers advertising that it will be a more profitable company thus generating growth. Any thoughts? [link] [comments]  |
| Posted: 12 Aug 2020 01:59 PM PDT Here is my investment strategy - I want to make sure that this is not absolutely stupid approach. I have three brackets: Bucket: ETFs
Bucket: Personal (Companies that I can understand)
Bucket: Growth (usually picked from reddit, 4chan AND mining companies )
Every-time stock makes money from Growth bucket (>50% return), I sell 50% of that stock and buy something from ETF category. Whole transaction (sell + buy costs me $14) but I do it anyways. Is this conservative approach? Any recommendations to further diversify my holdings? [link] [comments]  |
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