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    Monday, September 28, 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: 27 Sep 2020 05:12 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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    Take advantage of the EV goldrush by completing the EV Trifecta

    Posted: 27 Sep 2020 07:48 AM PDT

    Take advantage of the EV goldrush by completing the EV Trifecta

    As you may already know, we are currently in the midst of an EV goldrush. Early adopters, investors, and gamblers will be rewarded for identifying these opportunities and capitalizing on them.

    One way to ensure that you gain enough exposure to capitalize on this this gold rush is by completing the EV Trifecta, which are:

    1. EV Manufacturers
    2. Raw materials for batteries
    3. EV charging stations

    I will go into a bit more detail on each component of the trifecta:

    1. EV Manufacturers - These are companies that develop and manufacturer EV for the public to new purchase. There is a lot of EV manufacturers that are going public, some of them will be achieve market dominance, while others will dwindle away *cough* NKLA. These are some of the EV manufacturers that are available for the public to invest in: TSLA, NIO, XPEV, KNDI, LI, SHLL, PIC, HCA(C), SPA(Q). Currently, TSLA is the market leader in this industry and also have the first mover advantage, and this is clearly reflected in their stock price. All the other EV manufacturers are up and coming and will have lots of run room as EVs become more prevalent in our day to day lives.

    2. Raw materials for batteries - The logic here is that as demand for EV increase, so will the demand for the raw materials used to create the batteries for the EVs. Simple economics 101 states that as demand increase and supply decreases, price should increase accordingly. These are the current raw materials companies that have a spotlight on them: LA(C), VAL(E), PLL. PLL is the only raw materials company that have a public contract with TSLA and has been halted for weeks because of this news. PLL will definitely be a hot buy once it unhalts.

    3. EV charging stations - In order for EVs to be come more prominent in our day to day lives, there needs to be a proper infrastructure that will enable that. One of the biggest concerns in regards to EV is range anxiety - drivers don't want to be left stranded if they forget to charge their vehicles overnight at home. Having charging stations that are widely available will help combat this risk. The EV charging station market is relatively untapped, and this market will grow along side the EV market. The key players in the EV Charging station are SBE, BLNK, SPl. SPl had an insane run up last week when they announced their EV initiative, their share price increased over 3000% from $1.50 to over $40 (this was short lived though). BLNK is a mixed bag, there are some complaints in regards to the quality of their charging stations, but hopefully they'll improve over time. SBE is a SPA(C) merger to bring Chargepoint public. Similar to TSLA, Chargepoint is the market leader in the charging station space and also have the first mover advantage. Chargepoint currently has hundred of thousands of charging stations across North America (US and Canada) and is expanding into Europe. Their products can be purchased via their home website or Amazon and have great reviews online.

    By completing the EV Trifecta you'll ensure you have proper exposure to the EV goldrush. I'm sure I missed a few companies, so please feel free to mention them and add any additional details that I might have missed.

    submitted by /u/jalapenojacker
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    How are financial firms handling working from home?

    Posted: 27 Sep 2020 07:11 PM PDT

    Not an investor at all just curious.

    An average home computer probably can't handle software and data needs for investing at the level of the Bloomberg terminal. And even if an investor is using a beefed-up PC there are issues with security and internet speeds.

    How are people adapting? What is replacing the Bloomberg terminal?

    submitted by /u/geturegooutofmyface
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    Pay off house early or invest?

    Posted: 28 Sep 2020 03:35 AM PDT

    Recently refinanced our 325k house. 2.875% for 30 years.

    Opinions on paying it off early or paying the minimum and investing the difference?

    If paying it off early, I figured I would just get company 401k match and halt all other investing.

    31 y/o. Total mortgage payment is $1,700. Currently investing ~$4,000/mo. (401k, IRA, taxable, 529, crypto)

    submitted by /u/Charmander360
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    Is there a benefit to staying in mutual funds until they pay distributions in December or is it reflected in the share price anyway?

    Posted: 27 Sep 2020 09:28 PM PDT

    Long story short, my financial advisor has me in mutual funds in my taxable account with 3.1% expense ratio's (converted hedge funds) and 100% of my 401k in MIGCX with a 1.6% expense ratio. I know I need to get out of these ASAP but am wondering if there is any benefit to waiting until December to receive the dividend and capital gains distributions. I have been in these mutual funds longer than 1 year (almost 2 years now). I'm 28 years old so planning on getting out of these and immediately into an index fund or S&P ETF.

    submitted by /u/scratchgolfer17
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    Present Value of a Bond

    Posted: 27 Sep 2020 03:18 PM PDT

    Hello everybody. I have been reading some stuff about trading and bonds (just to gain knowledge in that area) and there is something I dont quite get. From what I understand, the coupon rate is the return we got for the investment, and the discount rate is the return that we demand (but not necessarily get). If so, why do we calculate de present value of the bond by dividing the coupon for (1+discount rate). Doesn't that mean that the discount rate would be included in the coupon rate?

    Thank you.

    submitted by /u/mtmtmtmt123
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    Electric solar powered boat. Advice on how to find investors.

    Posted: 28 Sep 2020 03:20 AM PDT

    Hello!

    I´m new in this subreddit, so please, forgive any mistakes.

    My friend has developed a boat solar powered. He has a working prototype and is looking for investors for the next phase.

    The business plan and etc are all set and ready to roll.

    Can you guys please give any advice on how can he get investors?

    Thank you for your time!

    submitted by /u/thiroch
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    Is Stockopedia research used for rankings done all in house?

    Posted: 28 Sep 2020 03:10 AM PDT

    They rank a lot of stocks so I'm wondering how they achieve it. Is it possible they use analysis from brokers outside of their own shop?

    Haven't paid much attention to. them before but just saw a big upgrade on a company I follow but want to know more about how they came about that. The company recently took on a new broker, that often does price targets and really good analysis (No.1 in UK for accuracy), so it looks a little coincidental that Stockopedia upgrades massively the rank just a week and a half after new broker appointed.

    Tin foil hat stuff or possible analysis gets shared in this way? You can subscribe and access the broker's research but only if you're an institution etc. Not for PIs.

    submitted by /u/HealedbyRain
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    Investing for your children’s future, compounding interest and Trusts

    Posted: 28 Sep 2020 02:16 AM PDT

    A friend recently asked for advice regarding his four children, three of whom may become estranged due to his relations with their mothers. Two of these children have been conceived but not born.

    I want to advise my friend to make a trust for each child, putting aside something as low as $5 a month until they're 18.

    Can anyone help me with the math here? Whats a reasonable interest rate to assume for the funds held in the trust? I'm imagining the trust would invest these funds in relatively safe positions. Compounding that interest rate and accounting for the additional inputs ($5/mo) how much would his unborn children have in eighteen years?

    Bonus points for math or other advice for my friend. He's a decent person, just not wise enough to have handled his present situation better. Only one of four mothers are estranged right now.

    Thank you!

    submitted by /u/ChTender
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    Does anyone know how much Goldman clients make by investing with them?

    Posted: 27 Sep 2020 05:21 PM PDT

    Although I dont have that kind of money but being an investor I was trying to see how much money does Goldman Sachs make for their clients that invest 10 million with them. I don't see Goldman stock doing good over the years as it has been mostly flat, however I heard their name as pre ipo investors in some good ipos this year. Does anyone know of any of their $10million portfolio graphs against $SPY ?

    I am just curious as to how much money do they make for the rich percentage wise as opposed to what normal people make by investing in index funds or SP500

    submitted by /u/ankcrimson
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    S&P 500 Speculation

    Posted: 27 Sep 2020 12:32 PM PDT

    Looking to invest £1800, following with a £200 monthly payment into the global s&p 500 fund. With everything going on would you say this is a good time to invest or do you think it may carry on dipping due to a potential recession?

    Would love to hear people's thoughts :)

    New investor so forgive me if some of my terminology is off.

    submitted by /u/JustDontCxre
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    I wish /r/investing existed during the Great Depression.

    Posted: 27 Sep 2020 09:28 PM PDT

    I know, I know the internet didn't exist and neither did reddit but I bet the posts during the 1929-1933 era would have been gold. Am I alone in this or do you folks agree with me? I feel thered be quite a few margin sui notes. What do you folks think it would look like? If we thought the corona virus dip and Great Recession changed the tone of this subreddit I could only imagine the havoc.

    submitted by /u/Lie-Minimum
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    Thoughts on Alibaba (BABA)?

    Posted: 27 Sep 2020 11:56 AM PDT

    I genuinely believe Alibaba has huge potentials to become the next Amazon (if it's isn't already) since they both share extremely similar business models. The company also has huge investments in many different fintech technology and cloud computing businesses with demand on the rise each and everyday.

    However, a lot of people are worried and tell me to stay away from any Chinese company due to the rising tensions between U.S and China. I also believe the U.S is on track to engage in another cold war with China if the Trump administration is to win the election.

    Although, even if the U.S decided to aggressively attack BABA, they would still have a BILLION consumers in China and the entire Asia to fall back on, making the loss of the U.S market only a trivial setback.

    What do you guys think? Right now I'm 50/50 about investing in BABA but also I don't want to miss out if they're to continually grow overtime. Thanks!!!

    submitted by /u/nickle061
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    How to calculate ROIC

    Posted: 27 Sep 2020 08:11 PM PDT

    Hi Reddit,

    I'm not understanding what's wrong with my calculations when trying to identify a businesses' ROIC. I'm trying to get all the data I need from the quarterly reports but am missing something along the way.

    The formula I've found is: ROIC = (NOPAT-Dividend)/(Debt+Equity)

    Where do I find NOPAT?

    And which debt are we talking? Long term? Short term? Total Liabilities?

    submitted by /u/scott_od
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    Looking for a financial economics tutor

    Posted: 27 Sep 2020 11:20 PM PDT

    Hi guys! I'm looking for a tutor for my undergraduate financial economics class, and I was wondering if anyone in this sub felt confident enough in their abilities. Huge plus if you know these topics derivatives, fixed income, Market Instability and the Financial Crisis, Portfolios and the Capital Asset Pricing Model.

    Can negotiate the price but I'm sure we can work out a fair price. Please send me a message if you are interested. Thanks!

    submitted by /u/cal_bear_
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    Mr. Market Mispricing? Magnachip trades at a 5x EV/ EBITDA For this OLED Semiconductor Co

    Posted: 27 Sep 2020 08:33 PM PDT

    Magnachip Semiconductor (NYSE:MX) has 33% global market share in OLED display drivers (allows OLED screens to function), behind Samsung which is #1 (66% mkt share). Their product is being built into many smart phones and with next generation 5G on the way, the need for efficiency and optimal display is every more necessary.

    From a valuation standpoint:

    Cash on balance sheet $193MM as of Jun 2020, just sold their foundry asset for $345MM of cash (and assumption of pensions) and $306MM of debt -> net cash of $232MM

    Mkt cap of $462MM so EV of 230MM for a remaining business that generated $22MM of adj EBITDA in first half of 2020

    Rationale / Catalyst:

    Global leader in a key component of OLED displays

    Business went bankrupt a few years ago/had financial reporting issues but after the asset sale and focus on OLED display, the company is a pure play story

    5G phones / increase in display resolution and high frame rates (for video games)

    Management said in their analyst calls (all online in IR videos) they are sold out in July from demand

    There will be more competition, in fact some Korean/Chinese firms announced entry into OLED DDIs but MX arguably has the most history and the most experienced personnel. Management even says that there is literally no expertise out there aside from MX and Samsung to even train entry level workers

    They will have an analyst day in November (12) that could be a big reveal on how the >$200MM of cash will be used

    -> Drastically undervalued at ~5x EV/EBITDA

    submitted by /u/t987h
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    The DD on Index Funds...

    Posted: 27 Sep 2020 08:30 PM PDT

    Okay so for Index Funds we all know the SPY. Some of us bet it some of us just long term invest in a Vanguard/IShare/Fidelity S&P Index.

    We have the QQQ for those of us that know that tech is the future and strangely now the gold currency of the market in tough times.

    We have the GLD and SLV for Gold and Silver when those are nice and low in safe times to buy in or play runs when turbulent.

    What other Index Funds are must knows and why?

    And any of you prefer or play the VTSAX versus the standard S&P Index Funds and if so why? I have always been curious on the selling feature of this one.

    Anyway I look forward to hearing more from people more knowledgeable than myself about the different plays in this realm and how you approach it all.

    submitted by /u/Godkingcoconut
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    Please give your opinion on my (First version) DCF Analysis.

    Posted: 27 Sep 2020 12:33 PM PDT

    COMPANY BEING USED: https://finance.yahoo.com/quote/LII/chart?p=LII

    I got all the numbers from other sheets so I added the reference numbers underneath the DCF analysis. If you have any questions let me know!

    I've used a projected method for this one, which might be the reason for the low Intrinsic value. Instead of an analysis prediction method. I will add the analyst later on, those results might be more realistic. But for now I just wanna know if I'm doing the right thing.

    - I added a 1,5% Safety margin because I'd rather have a too low than a too high price.

    - Perpetual growth is 1% less than global economy.

    - Beta and RFR are from yahoo finance.

    - Expected Market Return is average S7P 500 return.

    What stands out the most is that the current stock price is $263 and my intrinsic value is $95. Lennox their financials haven't been to good for the past 3 years (Incl. TTM). But idk... seems a bit unrealistic, i'd need a second opinion on that.

    I really really need feedback on this because no one in my friendgroup knows about this stuff :)

    https://imgur.com/a/246SPdF

    submitted by /u/StonksArthur
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    Anyone tried Zacks Research Wizard?

    Posted: 27 Sep 2020 05:42 PM PDT

    Hi everyone, has anyone ever used the software by Zacks "Research Wizard" seems too good to be true....backtesting shows some really promising returns but the cost of the software is really high considering they only let you use the software for a 2 week trial period.

    Wondering if anyone actually uses it and if its worth it. thanks

    submitted by /u/fullmooncorp
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    scanning for intraday volume?

    Posted: 27 Sep 2020 04:12 PM PDT

    Hello, does anyone have a method/software they use to monitor for intraday volume changes? Most scanners Ive found seem to let you compare the days volume to average volume, but the problem with this it often results in stocks which have a very high opening opening volume and have already made a big move or where the volume has already cooled off. I would like to scan for volume intraday to see major changes in volume excluding the open (say i want to run the scan midday). For instance, can I see average volume over the past 5 minutes compared to the average volume over the previous 30 minutes? Or compared to the 5 or 10 day average? I've been trying a number of products but havent found anything that offers a scan for anything other than the Day's Volume. Seem this would be very useful to see how volume is changing across the market. Thanks for any help

    submitted by /u/artful0dodger
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    Research Method suggestions

    Posted: 27 Sep 2020 11:35 AM PDT

    Hey guys I am very new to this and wanted to know what some good resources would be to do my own research? I want to focus on specific industries so I can have a strong understanding of a few things (like banking, renewables etc) rather than a little of everything. Any suggestions would be greatly appreciated!

    submitted by /u/AdonisBasketball
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