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.
- U.S. labor jobless claims increase to 870,000. Total unemployment 26 million.
- Costco beats estimates as high COVID-19 costs weigh on shares
- Airlines...
- Are there any studies on the consequences & risks of the share of passive investment becoming (much) biggger than active investment in the stock market?
- $GOOGL - Morgan Stanley data shows Google still at the top of the e-Commerce funnel, by far
- Why do people get so delusional about bad stocks (I'm looking at you, NKLA)
- Are these assessments on yahoo finance accurate without a premium account? Are they even worth looking at?
- Johnson and Johnson thoughts and opinions
- Car companies
- Investing in midstream deep value
- The stock market is actually not that crazy (change my mind)
- Invest in Invesco Mortgage capital?
- What happened with VTI / VTSAX today
- Question about margin on TD Ameritrade
- Domino's earnings are on 10/6. Is now a good time to catch a swing?
- Views on Omnicell (OMCL) after recent debt offering
- What would be in your “quit smoking portfolio”?
- VTI or SUSA
- Return on Investment and discounting help
- What’s the overall sentiment around the coming Palantir IPO?
- FMCI -> Tattooed Chef Extension vote, IF YOU OWN SHARES VOTE NOW!
- Upcoming Darktrace IPO
| Daily Advice Thread - All basic help or advice questions must be posted here. Posted: 24 Sep 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]  |
| U.S. labor jobless claims increase to 870,000. Total unemployment 26 million. Posted: 24 Sep 2020 07:54 AM PDT The weekly jobless claims report from the Labor Department on Thursday, the most timely data on the economy's health, also showed 26 million people were on unemployment benefits in early September. The faltering labor market recovery and a recent rise in new coronavirus infections has piled pressure on Congress and the White House to come up with another rescue package. Federal Reserve Chair Jerome Powell told lawmakers on Wednesday that Congress and the U.S. central bank needed to "stay with it" in working to support the economy's recovery. More fiscal stimulus is looking increasingly unlikely before the Nov. 3 presidential election. "The high level of joblessness shows that the country isn't out of the woods yet and it won't be if the pleading of Fed officials for more stimulus isn't heard by government officials down in Washington," said Chris Rupkey, chief economist at MUFG in New York. "The economy is running on empty." Initial claims for state unemployment benefits rose 4,000 to a seasonally adjusted 870,000 for the week ended Sept. 19. Data for the prior week was revised to show 6,000 more applications received than previously reported. Economists polled by Reuters had forecast 840,000 applications in the latest week. [link] [comments]  |
| Costco beats estimates as high COVID-19 costs weigh on shares Posted: 24 Sep 2020 05:10 PM PDT (Reuters) - Costco Wholesale Corp COST.O recorded high coronavirus-related costs for the second straight quarter, overshadowing its better-than-expected results and sending the company's shares down 3% in extended trading on Thursday. The warehouse chain spent about $281 million on employee bonuses and sanitizing its warehouses in the fourth quarter, mirroring a trend of rising costs across U.S. retailers during the health crisis. Costco had estimated in May that COVID-19-realted costs would exceed $100 million, but would be lower than the $283 million incurred in the prior quarter. "$281 million is over $100 million but quite a bit larger," Chief Financial Officer Richard Galanti said on an earnings call. The company cited the $2-an-hour premium paid to employees as a factor for the jump in costs. The bonus costs Costco $14 million a week. "We've committed to doing that at least through, I believe, the first eight weeks of this fiscal quarter," Galanti said. Several U.S. retailers, including Kroger Co KR.N and Amazon.com Inc AMZN.O, have come under fire for stopping hazard pay for their workers. Higher demand for fresh produce, appliances and gardening and sporting goods helped Costco's total revenue climb 12.4% to $53.38 billion in the quarter ended Aug. 30, beating the average estimate of $52.08 billion, according to Refinitiv data. Traffic at the warehouse chain, where customers typically buy items in bulk at lower prices, also ticked up in the quarter, after declining about 20% in April, as COVID-19 restrictions eased and it brought back food samples. Revenue from memberships rose 5.3% to $1.11 billion, while online sales nearly doubled. Excluding items, Costco earned $3.04 per share, beating estimates of $2.84. [link] [comments]  |
| Posted: 25 Sep 2020 02:30 AM PDT Airlines are hammered right now and historically low levels. But I can imagine whoever is selling from here must be selling for a loss, therefore reminds me of a panic seller mindset. All the rich guys already left with the first Covid dump. This second dump must be sellers who believe they will be bankrupt and not bailed out. Think about it. Do you think Germany will dump Lufthansa and suddenly will start to fly with Emirates or Saudi Arabian Airlines? Do you think these airlines are not linked to any national pride? Do you think they will let them die that easy? I believe worst thing that will happen is state will buy them and they will become state owned companies, or they will print money and give to them. World is too big to travel by car or boat, there is no going back to stone age. Therefore I believe these second dump sellers will regret so much when world starts to learn to live with Covid, or a vaccine is found, which is not too far away considering there is already 42 vaccines on trial with humans right now. I am curious if I am the only one thinking this way. What's your perspective on this? FYI, some US airlines still in the green compared to March, but EU is lower right now. [link] [comments]  |
| Posted: 24 Sep 2020 04:58 AM PDT Today, almost half of investments in the US stock market is done via passive investment. You need active investment to guide the stock market with passive investment merely tracking (except perhaps for any influence of day-trading in ETF's). Are there any good studies and literature on this subject? [link] [comments]  |
| $GOOGL - Morgan Stanley data shows Google still at the top of the e-Commerce funnel, by far Posted: 24 Sep 2020 08:32 AM PDT Morgan Stanley: "Is Google Search Still Top of the E-Commerce Funnel? YES. AlphaWise data show 50%/33% of Americans use Google first when researching items/comparing prices and AMZN Prime members are no different. We raise ad ests, our bottom-up EBITDA shows GOOGL can beat ests even w/ heavy spend and we lay out 3 other keys to '21. OW, PT to $1,800 (30% upside)." "50% of Americans Use Google First When Researching Products Online...Our AlphaWise survey showcases how Google remains top of funnel within US e-commerce consumer behavior. Key takeaways include: 1) More Americans visit Google first when researching products online than Amazon and Walmart combined (50% vs 32%); 2) One out of every three Americans visit Google first when comparing prices online; 3) Even when consumers know the exact products they want to purchase, nearly one out of every five will still visit Google first. Notably, this is true even among Prime members as 50%/33% of Prime members will still visit Google first when researching products online/comparing prices." "...We See this Consumer Searching Behavior and Strong E-Commerce As Tailwinds to GOOGL's Recovery Through "Shelter-In Holiday": We estimate retail/e-commerce makes up 25-30% of total GOOGL search revenue. These consumer searching trends combined with the strong e-commerce consumer and ad markets we expect through the "shelter-in holiday" (detailed here) cause us to raise our '21/'22 ad revenue by 1%/1%." "We Sanity Check Our Opex with Bottom-Up Business-Level Modeling, with $2bn of Extra Investment for Margin of Safety...Modeling GOOGL's $55-60bn annual opex base (ex cost of revenue) is difficult given its investment-first focus and the varied margin profile of each business unit. We lean on our bottom-up business-level GOOGL segment model as one guardrail. As shown, we model an implied continued ~$2bn of "other investment" to allow for a margin of safety to our assumptions and/or GOOGL's likelihood to invest. Looking at it another way, we model company-wide opex (ex cost of revenue) to grow by roughly $9bn/$9bn in '21/'22 vs ~$7bn in '19." "...As Scaling Revenue Drives our '21/'22 EBITDA up 3%/3%; PT Moves to $1,800, Remain OW, ~30% Upside: Despite this investment, GOOGL's scaling ~$180bn revenue base drive our '21/'22 EBITDA up by 3%/3%. Our PT (based on blend of EV/EBITDA multiple and DCF) rises to $1,800 (~30% upside). We see upward revisions ahead too, as we are 5%/4% ahead of Street '21/'22 EBITDA." "3 Other Reasons We Remain Bullish GOOGL into '21: Our $1,800 PT implies ~12x '22 EBITDA (for 20%/15% '21/'22 EBITDA growth) which is in-line vs. GOOGL's 3-year median (and vs. ~10x '22 EBITDA currently). We don't think this is a stretch and see three other reasons to remain bullish GOOGL into '21.
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| Why do people get so delusional about bad stocks (I'm looking at you, NKLA) Posted: 24 Sep 2020 05:59 AM PDT Despite being in a downturn at the moment, the fact is there are plenty of strong stocks with solid fundamentals and lots of runway for growth (my favorite happens to be MA). So why on earth are there folks burying their head in the sand and saying "everything is fine" while a stock like NKLA tumbles 50% and more in mere days? [link] [comments]  |
| Posted: 25 Sep 2020 03:18 AM PDT The majority of the time, I see the value, chart analysis, and performance outlooks contradicting each other. Here's the current one for costco. I mean, I get that the outlook takes other factors into consideration, but at the very least, the short term seems to be at odds with the value and chart assessments. Am I totally off base here? [link] [comments]  |
| Johnson and Johnson thoughts and opinions Posted: 24 Sep 2020 05:19 PM PDT It would seem they have a wide spread of products and services. Perhaps a vaccine distribution candidate. I remember a lawsuit a few years back about "talcum powder" I wondered if anyone had any previous experience with them as far as investing. I am new to investing (6 months), I am holding 4 shares of Apple after the split, i bought around $112. I have 1 share of Zoom I bought around $452. I was thinking of buying 2-3 shares of Johnson and Johnson. It seems like a low risk buy for short term ( a year or so) I thought I would ask for feedback opinions from people who have been investing longer than myself. [link] [comments]  |
| Posted: 25 Sep 2020 02:07 AM PDT What do you think of investing in car companies like BMW or Daimler? imo it's a good idea but I'm not good at this. Of course I know 'it might go up, it might go down' 'if we knew we'd be millionaires' etc. but I'm asking for a opinion/prediction/guess of people that know more than me [link] [comments]  |
| Investing in midstream deep value Posted: 24 Sep 2020 07:57 PM PDT Do you guys see any deep value in midstream companies. I think enlink, and dcp and enable midstream and possibly geneis energy are probably the best asset midstream plays right now. I already bought 4600 shares of enlink at 2.97 a share. I will keep buying but just wondering if anyone else is looking at these companies. They seem like awesome deep value to me right now but genesis is sort of highly leveraged tho it's oil transport assets in the gulf are very compelling. It seems weird that they pay such a. High dividend. Let me know what you guys think of about ngl future and I think that since right now they r still producing dcf it will be determined. To see if e and p companies decrease production. https://www.fool.com/investing/2020/09/24/3-top-mlps-to-buy-right-now/ [link] [comments]  |
| The stock market is actually not that crazy (change my mind) Posted: 24 Sep 2020 01:53 PM PDT If you only look at TSLA, AAPL, AMD, yes that would give you an impression of how crazy the market is. But if you look at most other stocks, like MSFT, GOOG, FB, DIS, their movements are pretty humble. Even S&P is lower than what it was pre-covid. AMZN jumped so much because it's actually expanding its business through their own delivery system (like you might've seen some prime-labelled vehicles parked on your street), and people increased their online buying habits while not going out, so its price grew a lot during this few months, which I believe is justified. TL;DR stock market in general is not crazy, just a few crazy stocks there. [link] [comments]  |
| Invest in Invesco Mortgage capital? Posted: 24 Sep 2020 11:58 PM PDT So I've been thinking about whether or not to invest in IVR. I have been trying to find videos or information on whether or not it's a good idea. Right now the stock is sitting at 2.72 (after hours). What do you guys think? Would it be a good idea to buy now ? Would the company be able to bounce back..? Your responses will be greatly appreciated [link] [comments]  |
| What happened with VTI / VTSAX today Posted: 24 Sep 2020 11:02 PM PDT So I realize that these two funds both carry the same holdings and in turn should yield the same results. However, something weird happened today and VTI finished green while VTSAX finished red. Thought it was bizarre and one of you here might have the answer? What am I missing? [link] [comments]  |
| Question about margin on TD Ameritrade Posted: 24 Sep 2020 10:31 PM PDT Hello, how are you guys doing? Hope you guys are well and about. Great to be a part of such a great community, so thank you everyone! I have a question regarding of margin. So let me go ahead and get to the point, currently I have put $21,000 into my stock portfolio, and used margin to buy all in apple at the price of 115. I am planning to hold apple for at least 2-3 years, and predicting that it will go up to at least 150 by the end of next year, if not more. I am planning to hold that amount and not selling it at all. Actually planning on to add more if it goes down. Currently I hold 360 apple shares. So with that being said, If I am optimistic of apple. and if I hold on to it what will happen? Here is what I am working with right now. margin balance -$25,000, because I used all of it on apple, and I want to lower the debit, so can I deposit more money to clear, or lower the marginal balance? I want to deposit more money to make my margin goes lower, if I do that would that still affect me for my margin interest? if I reduced to -$10,000, or less. Maintenance requirement $13,183.90 it increased by $107, I am curious if this will keep increasing overtime? Or not, if anyone can explain to me that would be splendid. Total marginable value $42,633.50 - everything on my portfolio including margin I am curious, so I am asking you guys. Vibe it, Thank you for all your future responses, I appreciate all of you guys! [link] [comments]  |
| Domino's earnings are on 10/6. Is now a good time to catch a swing? Posted: 24 Sep 2020 06:29 PM PDT DPZ had 7-10% bubbles that popped the day of earnings the last two quarters. I have a feeling this is one of the last good Covid-19 Earnings plays to hit before the election. I dunno. I'm probably wrong, but I can't help thinking this is worth a shot. [link] [comments]  |
| Views on Omnicell (OMCL) after recent debt offering Posted: 24 Sep 2020 05:28 AM PDT Some backstory on the company first: Omnicell (OMCL) is a medical tech company that manufactures and distributes automated pharmacy and medication systems for acute and ambulatory medical facilities. They also provide a seamless cloud software product that allows systems to monitor medication levels and compliance across all Omnicell installs they own, and have connectivity to the two main medical IT systems (Epic and Cerner). Omnicell operates in a veritable duopoly with Becton Dickinson (BDX), creator of the Pyxis system, and looks poised to be at the forefront of the potentially decades long transformation of hospital and provider medication management from manual to automatic. There are millions of dollars in cost savings at stake with this transformation, as well as thousands of lives that will be saved from reduced (human) error in dispensing medication. Medical systems are notorious for being slow to adopt new technology, which is why automation in this sector is just now starting to take off. Recently Omnicell announced that it is taking out $500 MM in convertible notes (press release linked below) at a 0.25% rate, conversion at a price 37.5% above today's market price, and a 2025 maturity date. This roughly equates to a 7% annual return rate until 2025 to reach that price. There's also a hedge in place for warrants at a strike price 100% above current market price, which roughly equates to a 15% annual return. The company plans to use the funds to buy-back some shares, pay down existing debt (total debt below $150 MM), and cover cash-flow concerns due to the COVID related slow down. The numbers here, although small for many companies discussed on this sub, are non-negligible for a $3 BB market cap company. The $500 MM represents roughly 1/6th of it's market cap, and could result in dilution of about 17% to existing holders (if all note holders elect for shares). Additionally, if I am reading this correctly, the additional hedge has the ability to dilute shareholders an additional 17%, should the price reach the $141 level by 2025. I personally like the company's prospects quite a bit, and feel sustained revenue growth of around 14%-15% annually is feasible---with earnings at, or above, that level. I may be agreeable to the initial 17% dilution if the funds generated from this offering are able to produce returns (R&D, SGA, CE, etc.) that may be able to off set it. With that said, the additional hedge---at a price that I think is actually within reach for the company and business sector they're in---does give me pause. I was hoping to gauge what this sub thought about the note offering listed, and to check to see if my understanding of the notes and the additional hedge are correct. Essentially looking to see if the investment case for the company is permanently altered due to potential dilution. TL/DR: Company in good business sector and decent financial shape is pursuing large portion of market cap in convertible notes. Want to see if you all feel the investment case is botched because of it. [link] [comments]  |
| What would be in your “quit smoking portfolio”? Posted: 24 Sep 2020 10:42 PM PDT Imagine if you quit smoking and the amount you spent on cigarettes you'd invest in stocks. Would you invest daily(fractional shares)or weekly? How much you'd save a day from quitting ? What stocks you'd put into that portfolio ? Keep in mind you'd treat it as money you've already wasted and not care if the stock you buy increases or decreases in value so you might buy anything. [link] [comments]  |
| Posted: 24 Sep 2020 04:18 PM PDT I am looking at long term passive investing. VTI being conventional and SUSA being socially responsible. Which of these is likely to yield more gain in a 5-10 year time frame. I tried to check analyst reviews between the two, couldn't find any. P. S. My current robo advisor says I should not split between the two and keep all my funds in either conventional or SRI - to lower the fees. [link] [comments]  |
| Return on Investment and discounting help Posted: 24 Sep 2020 03:56 PM PDT I am currently reading "Seeking Wisdom: From Darwin to Munger" by Peter Bevelin I read the following passages in the book: "It makes a huge difference if we get $150 back in 2 years or 10 years. The difference in yearly return is 22% versus 4%." The initial investment was $100. I am wondering how he got 22% and 4%. ROI = (150-100)/100 = 0.50 for 2 years 0.50/2 = 0.25 and for 10 years 0.50/10 = 0.05. Is my math incorrect? Another section of the book reads: How does he come to $42? Any help would be appreciated. [link] [comments]  |
| What’s the overall sentiment around the coming Palantir IPO? Posted: 24 Sep 2020 11:11 AM PDT Palantir is going to IPO with a $20 billion market cap and there seems to be a lot of controversy around what they do. They have a high revenue but apparently they've made little to no profit for the past couple years so I'm curious as to what you guys think about this companies IPO and whether anyone sees any potential opportunities here [link] [comments]  |
| FMCI -> Tattooed Chef Extension vote, IF YOU OWN SHARES VOTE NOW! Posted: 24 Sep 2020 08:36 AM PDT FMCI -> Tattooed Chef had their extension vote this morning and although votes were 99% in favor of the extension, they did not reach the 65% voting shares threshold to confirm the extension. If you own/owned shares as of 8/24 and have not yet voted call 1-877-787-9239 and vote FOR and FOR. Even if you've sold them since, please help us out! We were only 4% short to get approval and with all the weak hands shorted out this morning it's to the moon! Hold your calls and vote if you own shares! TLDR: IF YOU OWN/OWNED SHARES AS OF 8/24 CALL 1-877-787-9239 AND VOTE FOR/FOR! EDIT: Even if you voted by e-mail link or online people are reporting they called in to make sure and their votes were not counted. Make sure you call! [link] [comments]  |
| Posted: 24 Sep 2020 02:31 PM PDT Darktrace is a $2 billion UK cybersecurity company that's been prepping to roll out their IPO in the near future. I read that they would have already launched it if not for Covid. I don't know if an actual date has been set yet, but based on the company's fundamentals and market position, it seems like a good one to buy in on. I'm still a novice when it comes to trading, and prefer to do long swings (2-4 weeks). This would also be my first time buying an IPO of any kind. Any thoughts/opinions on the state of Darktrace are welcome, I am here to learn. [link] [comments]  |
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