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    Tuesday, March 9, 2021

    Stocks - r/Stocks Daily Thread on Meme Stocks Tuesday - Mar 09, 2021

    Stocks - r/Stocks Daily Thread on Meme Stocks Tuesday - Mar 09, 2021


    r/Stocks Daily Thread on Meme Stocks Tuesday - Mar 09, 2021

    Posted: 09 Mar 2021 02:20 AM PST

    The familiar "Rate My Portfolio" sticky can be found here.


    Welcome traders who just can't help them selves discuss the same exact stock that's been discussed 100s of times a day. I get it, you want to talk about what's popular, what's hot, and that 1.. single.. stock you like.. well here you go! Some helpful links just for you:

    An important message from our mod u/TCGYT regarding meme stocks.

    Lastly if you need professional help:
    * Problem Gambling: Call/Text: 1-800-522-4700 or chat online now.
    * Crisis Hotline (24/7): 1-800-273-TALK (8255) (Veterans, press 1) or Text "HOME" to 741-741

    submitted by /u/AutoModerator
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    r/Stocks Daily Discussion & Technicals Tuesday - Mar 09, 2021

    Posted: 09 Mar 2021 02:30 AM PST

    This is the daily discussion, so anything stocks related is fine, but the theme for today is on technical analysis (TA), but if TA is not your thing then just ignore the theme and/or post your arguments against TA here and not in the current post.

    Some helpful day to day links, including news:


    Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions.

    The main benefit to TA is that everything shows up in the price (commonly known as "priced in"): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.

    TA can be useful on any timeframe, both short and long term.

    Intro to technical analysis by Stockcharts chartschool and their article on candlesticks

    If you have questions, please see the following word cloud and click through for the wiki:

    Indicator - Trade Signals - Lagging Indicator - Leading Indicator - Oversold - Overbought - Divergence - Whipsaw - Resistance - Support - Breakout/Breakdown - Alerts - Trend line - Market Participants - Moving average - RSI - VWAP - MACD - ATR - Bollinger Bands - Ichimoku clouds - Methods - Trend Following - Fading - Channels - Patterns - Pivots

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

    submitted by /u/AutoModerator
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    A 10 part series that will clearly explain what is going on with Naked Shorting in Stock Market

    Posted: 09 Mar 2021 03:30 AM PST

    Get your tinfoil hat out, its time to see what you think you want to see but don't really want to. This is perfect for any newbie trying to understand what is going on and how the system has ended up the way it has.

    Tl;Dr at end.

    There are many great DD's that clearly explain Naked Shorting in 3-4 sentences that we can all agree are great. However while looking around for DTCC ownership and after having found The Oil Drum (a great archive of oil related information/discussion btw), Cede and co which was brought to my attention a month ago. I dismissed it as a conspiracy theory until I saw the post a couple days ago (credit: u/bEAc0n) bringing them up again and I took it seriously for once, which then led me to try and find a website like The Oil Drum but for Shorting.

    This website is run by a dude called Larry with 40 years of WS experience, ex-Goldman Sachs EVP, Board Member, Director of Equities+Income and so on, he clearly brings up and explains the implications of everything to do with Naked Shorting and how it plays out in the market. You can look around his website but all he really talks about other than the Shorting is Pharmaceuticals/Bio-tech.

    I sent him an email and this was his response

    Thanks for the kind words.

    No problem with your request. Here is the link you should give them.

    https://smithonstocks.com/?s=illegal+naked+shorting (This is Part 10)

    If there is any movement formed to take on illegal naked shorting, I would be happy to contribute. I have been consistently frustrated in trying to get media or politicians interested.

    Read part 8 if you want to hear about CEDE and how once a counterfeit share is created it is forever viewed as a legitimate share unless if the company bring all shares back into itself to verify them (basically once counterfeited it exists forever, as a shareholder meet only verifies the shares owned by the ppl who will vote iirc)

    Part 1, Part 2, Part 3, Part 4, Part 5, Part 6, Part 7, Part 8, Part 9, Part 10

    This is the important part: a quote from Part 8 if you dont want to read the whole series

    While you may think you are buying registered stock, you are actually buying a financial derivative related to that stock. Effectively, you are buying a financial derivative from brokers of a financial derivative they hold from Cede that is just a digital entry in your DTC account.

    Cede is at the center of the current, paperless electronic trading system that enables lightning fast trading of large blocks of stock by institutional investors and computers. Unfortunately, the intention in designing it was to provide liquidity and reduce settlement risk. There is virtually no transparency in the system. Disturbingly, there are loopholes which allow for the counterfeiting of shares by market makers on a massive scale through illegal naked shorting and other measures. At present, there is no way for an outsider or even the securities industry's regulator, the SEC, to meaningfully detect and track these counterfeit shares. Once created counterfeit shares go on to be treated the same as legitimate street name shares

    TL;DR: until the people at the top (aka CEDE and co) are brought into court/subpoenad we will never ever have a truly free financial system, they control everything and it is up to them to decide how and where the stock market goes. Their company valuation is somewhere in the region of $34T as of 2019 IIRC yet it is a private firm??? This means some very big people and organisations are playing a very big game that we are not a part of.

    Edit: apparently people cant bother to even type "Cede and co" into the internet. https://en.wikipedia.org/wiki/Cede_and_Company

    Edit 2: u/rensole has commented that he will be looking at this!!!!

    Edit 3: I appreciate all of the awards, but go out there and get some GME instead!

    submitted by /u/Tepllhcgftwhdg
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    So the question is... Bull Trap? Or actual reversal? (Tech)

    Posted: 09 Mar 2021 10:55 AM PST

    As the subject says. I'm pretty much gauging whether I'm gonna inverse tech today or sit it out. Any thoughts? Any Treasuries savvy people in here who know about the auctions and potential impact? Gracias.

    submitted by /u/I_Like_Tech_Drawings
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    I love Cathy Woods, but why is she on TV everyday?

    Posted: 09 Mar 2021 10:32 AM PST

    Yesterday she was on CNBC, today Bloomberg. It's been like this for the passed weeks as well. I mean, even the president doesn't address the American people that much. The less Warren Buffet gives interviews, the more we listen to him.
    It just makes me think twice about people who keep selling me things after they've already won my trust....

    submitted by /u/hhh888hhhh
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    Thank you all for helping me go through the bloodbath of February

    Posted: 09 Mar 2021 10:00 AM PST

    I am a young investor, been investing since Summer 2020. I would say this was the first major market correction for my positions. It has been a tough month, but this sub helped me keep my calm. There were numerous occasions, where I was sure I should close my positions, but the excessive amount of posts here on "Sell high, buy low" topic kept me going.

    I know the correction might not be over, I just went up 7% and wanted to share my appreciation to the people of this sub. These days, it is super easy to be baited by the madness on wall street bets. But it is good enough that we have this community, where we can invest safely and wisely instead of gambling.

    Thank y'all and let this spring bring constant and healthy growth to all of our portfolios!

    submitted by /u/kdeeneyzz
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    Warren Buffett's Biggest Winners

    Posted: 09 Mar 2021 12:10 PM PST

    Warren Buffett's Berkshire Hathaway Portfolio has 7 stocks that have increased by over 50% over the past 52 weeks including RH (+152%), GM (+91%), UPS (+76%), STNE (+73%), AAPL (+62%), KHC (+56%), AMZN (+55%).

    What do you all think will be Warren's next addition to Berkshire?

    submitted by /u/mansoortaken
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    Lessons from the last three weeks (young investors)

    Posted: 09 Mar 2021 07:10 AM PST

    For those of us whose began investing in the last 1-2 years, I think 2021 is an opportunity for us to correct the unrealistic expectations and behaviors we gained from the atypical year that was 2020. Here are some investment behaviors/principles that I am trying to develop. I view every market correction as an opportunity to practice these principles.

    1. Practicing patience holding cash. I get excited when I have new cash to add to my investment accounts, and I think I would benefit from holding 10-20 percent of my portfolio in cash for sustained periods of time.
    2. not obsessively looking at stock prices (for those of us who are long term investors rather than active day traders). It felt pretty good ignoring my investment accounts for the last two weeks.
    3. asking whether any sector, stock, or market-wide corrections alter the investment thesis associated with any of my stock/etf purchases. This will help with any reactionary instincts to irrationally sell stocks when you see big red numbers.
    4. Avoid exposure to trashy investment media. Sensationalist and spectator-sports articles are so stupid.
    submitted by /u/Rob190431
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    Here is a Market Recap for today Tuesday, March 9, 2021. Please enjoy!

    Posted: 09 Mar 2021 01:21 PM PST

    After a steep pullback in the last couple of weeks, stocks roared back Tuesday, with the tech-heavy Nasdaq recording its best day since April 2020. The move marked a stark reversal after the index sank into a correction by the close of Monday's session, plunging a total of more than 10% from a recent record closing high. Goes to show how volatile the market can be. The S&P 500 (SPY) closed 1.42% higher and the Dow Jones (DIA) closed 0.10% up.

    The sharp contrast between the performance of the Dow and the Nasdaq in recent weeks underscores market participant's increasing rotation out of high-flying tech stocks that led the markets higher in 2020 into stocks that are poised to directly benefit from the impending economic reopening.

    The Treasury yield pulled back a little but remains at elevated levels, which was pressuring equity markets, particularly tech stocks, in recent weeks. . Rising interest rates hurt high-growth stocks the most because high-growth companies generate most of their cash and earnings years down the road. Future cash decreases in today's dollars as rates increase partly because investors have more opportunity to earn bigger returns from assets paying higher interest and dividends right now.

    Courtney Dominguez, Payne Capital Management Senior Wealth Advisor said, "This is a trend that tends to happen as we get out of a recession: You tend to see stocks move towards cyclical. So things like value companies or small caps, things like energy, tend to do really well when you're coming out of a recession. And what happened last year is, those tech companies were really doing so well that their prices were getting extremely high. I don't think these companies are going away. I think a lot of these are going to be things that we continue to have in our workplaces going forward. But the question is, are these companies so expensive, is all the optimism already priced in?"

    Over the weekend, the Senate approved the $1.9 trillion stimulus package. The bill, which includes $300 per week in enhanced federal unemployment benefits through early September, $350 billion in state and local aid and $1,400 stimulus checks to Americans who qualify is set for a vote in the House of Representatives tomorrow before being sent to President Biden's for signature. The bill is likely to pass before the March 14 deadline where enhanced federal unemployment benefits expire.

    Highlights

    • Shares of Gamestop (GME) performed strongly again today, rising around 25% at the time of writing.
    • Roblox is set to go public tomorrow via direct listing, ticker will be RBLX. Unlike a traditional IPO the company isn't raising new capital via the offering, instead holders are selling stock they already own.
    • Walt Disney Co.'s flagship streaming service, Disney+, has surpassed 100 million subscribers in its first 16 months of operation, the company announced today.
    • After cratering in value in recent weeks, EV stocks like NIO and Tesla (TSLA) came roaring back today! It was Tesla's best day since 2013, up around 19% at the time of writing
    • Twitter (TWTR) and Square (SQ) boss Jack Dorsey said on Tuesday he will convert proceeds from the digital auction of the first-ever tweet on the platform to bitcoin for charity. His first tweet sold as a non-fungible token for $2.5 million
    • Please note current stock price was written premarket and does not reflect intraday changes.
    • Ambarella (AMBA) with a host of target raises. Consensus price target around $135 at Buy. Stock currently around $106
    • Clean Harbors (CLH) target raised by Needham & Co from $104 to $107 at Buy. Stock currently around $89
    • Endava (DAVA) target raised by Morgasn Stanley (MS) from $85 to $93 at Equal-Weight. Stock currently around $80
    • Lemonade (LMND) target raised by JMP Securities from $105 to $130 at Outperform. Stock currently around $87
    • Mastercard (MA) target raised by Mizuho from $400 to $430 at Buy. Stock currently around $371
    • Maravi LifeSciences (MRVI) with two target raises. Stock currently around $35
      • Morgan Stanley (MS) from $35 to $54 at Overweight.
      • Keycorp from $39 to $46 at Overweight
    • Oracle (ORCL) with two target raises. Stock currently around $72
      • KeyCorp from $70 to $82 at Overweight
      • BMO Capital Markets from $64 to $80
    • PagSeguro Digital (PAGS) target raised by JP Morgan (JPM) from $61 to $65 at Overweight. Stock currently around $49
    • Virgin Galactic (SPCE) target raised by Bank of AMerica from $35 to $50 at Buy. Stock currently around $26.50
    • Target (TGT) target raised by BMO Capital Markets from $185 to $205 at Outperform. Stock currently around $177
    • ULTA Beauty (ULTA) target raised by Deutsche Bank from $312 to $376 at Buy. Stock currently around $346

    "In my view, the biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital. Not only is the mere drop in stock prices not risk, but it is an opportunity. Where else do you look for cheap stocks?" - Li Lu (Had to reuse the quote, so valuable considering how stocks rallied today)

    submitted by /u/psychotrader00
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    Low Volume Up Day

    Posted: 09 Mar 2021 12:17 PM PST

    To investors much smarter than me: what does a low volume (massive) up day indicate?

    Most of the stocks that I follow are up between 6-12%, but they are all trading at low volume compared to their average.

    submitted by /u/swim000092
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    Disney+ tops 100 million subscribers as company eyes California theme park reopening next month.

    Posted: 09 Mar 2021 12:10 PM PST

    This is huge for Disney. We knew this was coming, but either way it's good news. The subscribers have come in extreme pace thanks to their good content. Bob Chapek even stated in the article that they'll be providing 100+ new titles per year. Chapek also stated that they are aiming to open their California theme parks by the end of April. Disney will release more info on this in the coming weeks.

    With the parks reopening and Disney+ aiming towards a subscriber target of 230-260 million by the end of FY2024, the company's future hasn't looked brighter than ever before. I like the stock and in my opinion it's a good long term hold.

    submitted by /u/juaggo_
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    What is the worst investment you've ever made?

    Posted: 09 Mar 2021 12:04 PM PST

    Title. I'll start:

    I had a gig from 2018-2020 where the 401k options were abysmal. They were all super risky foreign indexes, an actively managed TD fund, or bonds. Idk why but no basic Vanguard TDs nor US-wide index funds. I went ahead and put my contributions to the TD fund because everything else was meh at best.

    Every year this index fund lost value YoY. Even 2020 where you could have thrown a dart at a board and came out on top. Im not sure wtf that company was doing, but it about gave me a stroke. At least it was "only down .6% in 2020". Luckily late 2019 I switched to one of the Asian EM indexes and saw some returns but man did that TD burn a lot of people...

    submitted by /u/sdpthrowaway3
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    What do we think of GE?

    Posted: 09 Mar 2021 11:13 AM PST

    I have a decently sized position in GE, Currently sitting on 700 Shares. It's numbers have been looking good lately, I like what they have going with Wind turbines, and I know they have a partnership with Boeing. How do we view this as a long term hold? thanks.

    submitted by /u/OwningTheWorld
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    Sony is one of the most undervalued stocks in the entire market. Change my mind.

    Posted: 08 Mar 2021 11:21 PM PST

    I am long Sony. I started buying around $64 a share, kept buying into the high 80s, also own a bunch of ITM and OTM calls for 2022/2023, recently started selling ATM naked puts for those dates as well. It's my 3rd largest position after Apple and Google. My post isn't to pump the stock, I'd love for it to keep going lower so I can keep buying more LEAPS, but I'd love to hear some arguments as to why my thesis is wrong so I can have some differing viewpoints.

    Buying Sony today to me feels like buying Apple in 2013. "No revenue growth, one trick pony, no innovation, etc." This is what they used to say about Apple in 2013. I disagreed and plowed 80% of my net worth into Apple. At the time, Apple was trading between 11-13 PE. That seemed extremely cheap to me for a company that is part of a duopoly on a product that people are addicted to and will stare at for 8+ hours a day.

    Sony is currently trading near a 12-13 PE with close to 45b cash on hand and barely any debt. Ex cash they are trading under a 10 PE. They haven't had much revenue growth the past years, but I expect that to change being at the beginning of a new console cycle. They are killing earnings and you can't even find the PS5 in store. They makes a device that people are addicted to. Like Apple, they get a 30% cut off the software that other people make to run on their device. They are part of a duopoly/triopoly and are the dominant player.

    Sony is much more than just Playstation. Their company is hitting on all cylinders in movies, music, image sensors, etc, but I focus on gaming because that's where I see the real potential. If Playstation was its own entity trading on the Nasdaq, would it not garner at least a $200 billion valuation? 10x sales is not that much for a company growing at the clip that PS network services has been the last few years. And yet here we are, with Sony's total valuation ex cash sitting at 50% of that.

    Gaming is still in its infancy. NES in 1985 was the first time gaming became mainstream. Investing in gaming now is akin to investing in Ford in the 1950s. Sony's biggest mistake was not selling the PS5 for $699 because it's clear that many people will pay that, but I still think they are setup very well for the future. I would pay 127B market cap for Playstation division alone, everything else that Sony produces is just icing on the cake.

    Change my mind. Tell me why I'm wrong on Sony. I don't expect them to be as big as Apple, but I don't think a 300-500b market cap is unreasonable if they continue growing gaming earnings at the current pace.

    submitted by /u/SoCalKingg
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    Is AAPL due for a bounce?

    Posted: 08 Mar 2021 04:49 PM PST

    The monthly chart on AAPL is hideous. It's been pretty much a nonstop decline. They're just coming off an amazing quarter. Leadership hasn't changed. New services, new hardware coming (AirTags, AR, car??) and the selling stays unrelenting. For a growth stock they pay a nice dividend too.

    I'll admit today I bought a bunch of June 18 $125 calls. Already down like 3k on them, which sucks. I just don't see how we can't get a small bounce back to $120s in the near future. What do you guys think?

    submitted by /u/just_lick_my_ass
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    What stocks crashed due to the pandemic but haven’t recovered yet aka meaning they are still a good buy?

    Posted: 08 Mar 2021 05:30 PM PST

    Hi all, I'm looking to buy low and don't mind holding for a while. Does anyone have suggestions for stocks worth investing that haven't yet recovered from the pandemic? For example, if a stock was $20 before the pandemic dropped to $12 and is now sitting at $15. I'm trying to get that $5 discount. Not trying to jump into over hyped stocks.

    Edit: Wow thanks for the award! I'm just a broke kid tryna make a dollar out of fifteen cents.

    Edit x2: Thanks for the awards friends! This is a beautiful community! ❤️

    submitted by /u/LostestSocks
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    Thoughts about NTDOY

    Posted: 09 Mar 2021 06:20 AM PST

    I've always liked video games, especially Nintendo, and have always looked at Nintendo as having something different than the other big players in the industry. They know that it's not necessarily the build of their hardware that sells, but the characters. There are tons of collectors of Nintendo merch -- seriously, people will buy anything with Mario on it. Nintendo was giving out some special edition enamel pins for Mario's 35th birthday and they are being scalped on ebay for crazy amounts. With Super Nintendo World opening soon in Japan then (eventually) in Florida and California, I see them as kind of the Disney of gaming.

    Since the pandemic, their sales have been through the roof. Animal Crossing released at almost the perfect time for an open ended game and became a "console seller" game. The Switch has been an innovation due to its portability, and since they release their next gen consoles on a different schedule than Xbox and Playstation, they don't compete directly with them on hardware releases. Many people who have an Xbox or Playstation also have a Switch which puts Nintendo in a class of its own. I don't think many people have all three.

    Right now, NTDOY has dropped to about $68 a share from an all time high of low 80s. I don't know how to determine if it is accurately priced but I will likely pick up a few during this dip. Wondering what other people think about Nintendo as an investment.

    submitted by /u/yeksim
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    Safe ETFs that cover inflation

    Posted: 09 Mar 2021 09:35 AM PST

    I have some money in my business and I have no plans to use it on anything for 1 year.

    I was thinking about investing it into the stock market. My goal is to have it in a really really safe investment that covers the inflation and doesn't drop much at an eventual market crash.

    Bonds are dropping at the moment so I can't go 100% bonds.

    Investing period: 1 year.

    I was thinking about putting

    I do not want to put it in a bank deposit.

    What do you think? Is this a stupid idea?

    submitted by /u/vovr
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    Can anyone explain how Roblox ($RBLX) going public actually works?

    Posted: 09 Mar 2021 09:19 AM PST

    I am thinking about throwing a good bit of money at it via market order set for tomorrow's open, but I'd be doing that without any real understanding of how it works. I just assume the price will just go up, but I know literally nothing about this.

    Can anyone ELI5?

    Anyone else putting money in it?

    submitted by /u/ProperGentlemanDolan
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    Apple iPhone Will Feature 'Unibody' Design In 2022, 'Periscope Lens' In 2023: Analyst $AAPL

    Posted: 09 Mar 2021 08:35 AM PST

    Shivdeep Dhaliwal , Benzinga Staff Writer

    Apple Inc's AAPL 3.53% smartphones are set to get camera upgrades in 2022 and 2023 that will make them more robust and increase their shooting capability, according to analyst Ming-Chi Kuo, AppleInsider reported Tuesday.

    What Happened: The iPhone will come with a "unibody" design in 2022 which will integrate the voice coil motor of its camera and the lens array, according to Kuo.

    This move could free up internal space in the device and increase the robustness of the smartphone made by the Tim Cook-led company, according to AppleInsider.

    Apple plans to add a telephoto camera on its high-end iPhones from a 6P lens array to a 7P stack in 2022 as well.

    The Cupertino, California-based tech giant is reportedly planning to move all its rear-facing iPhone lenses to the 7P stack in the coming years.

    The analyst said that, in 2023, Apple will introduce a telephoto lens design to the iPhone. This type of design helps to extend the focal length of a compact lens array, as per AppleInsider.

    Why It Matters: Kuo had previously made the prediction regarding the telephoto lens design and given a timeline of 2022.

    According to Kuo, Apple will also fine-tune iPhone's optics this year and make the move from glass to plastic cover materials for Face ID.

    The company also plans to add a new telephoto lens to its high-end models which will come with a 6P lens stack, an improvement from the 5P design found currently, as per Kuo.

    See Also: Apple To Offer 1TB Storage Option In iPhone 13: Report

    Kuo said earlier in the month that Cupertino is likely to launch a foldable iPhone by 2023 which would feature a 7.5-8 inch display, as per MacRumors.

    The next generation of Apple iPhones could be a 'game-changer,' according to Wedbush, and will come with Lidar technology.

    Price Action: Apple shares closed almost 4.2% lower at $116.36 on Monday and gained 0.41% in the after-hours session.

    submitted by /u/folkwoodswest
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    [Discussion] US Senate Hearing: Who Wins on Wall Street? GameStop, Robinhood, and the State of Retail Investing

    Posted: 09 Mar 2021 08:06 AM PST

    For discussion on the US Senate Committee on Banking, Housing, and Urban Affairs' hearing: Who Wins on Wall Street? GameStop, Robinhood, and the State of Retail Investing

    THE COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS will meet REMOTELY to conduct a hearing entitled, "Who Wins on Wall Street? GameStop, Robinhood, and the State of Retail Investing." The witnesses will be: Professor Gina-Gail S. Fletcher, Professor of Law, Duke University School of Law; Ms. Rachel J. Robasciotti, Founder & CEO, Adasina Social Capital; Dr. Teresa Ghilarducci, Bernard L. and Irene Schwartz Professor of Economics, The New School; The Honorable Michael S. Piwowar, Executive Director, Milken Institute Center for Financial Markets; and Mr. Andrew N. Vollmer, Senior Affiliated Scholar, Mercatus Center.

    Pursuant to guidance from the CDC and OAP, Senate office buildings are not open to the public other than official business visitors and credentialed press at this time. Accordingly, in-person visitors cannot be accommodated at this hearing. We encourage the public to utilize the Committee's livestream of the hearing, available on the website at http://www.banking.senate.gov.

    All hearings are webcast live and will not be available until the hearing starts. Individuals with disabilities who require an auxiliary aid or service, including closed captioning service for webcast hearings, should contact the committee clerk at 202-224-7391 at least three business days in advance of the hearing date.

    submitted by /u/iamPause
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    Safe to come out?

    Posted: 09 Mar 2021 10:38 AM PST

    Today bond yield were relatively down and have been creeping up slowly. Nasdaq has continued to run. A lot of stocks are up 10-20% making it seem daunting to jump in now. Are you guys going to wait for tomorrow? I wouldn't be surprised at all if there is a pullback. Don't have much cash left to spend so trying to be careful. Mainly looking to get into ARKK and ARKF

    submitted by /u/theepicone111
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    Some DD on Avangrid, Inc. (AVG) and the Good News On its Offshore Wind Farm

    Posted: 09 Mar 2021 01:08 PM PST

    Hi all. I have seen some great posts here and I wanted to share some due diligence I have done over the last 24 hours on Avangrid, Inc. (AVG), which I think is poised for a move upward. This is just my personal musing and should not be interpreted, taken, or inferred as financial advice. Full disclosure: I own two March 19, 2021 50 calls and I am considering purchasing shares and more calls.

    TL;DR - AGR is one of the larger energy companies in the US, recently received a long awaited environmental impact statement from the Bureau of Ocean Energy Management ("BOEM") as to its massive offshore wind farm, and appears to have support of the Biden administration. The company and its stock could be poised for growth and upward movement.

    ------------------------------------------------------------------------------------------------------------------

    I first learned of this company yesterday while researching the Biden administration's timeline for green energy projects. While doing said research, I came across press releases and news on AGR. The BOEM has finally released the environmental impact statements as to the Vineyard Wind 1 project. It seems that it was being held up by the Trump administration for political reasons. Here is some information from Business Wire:

    "AVANGRID, Inc. (NYSE: AGR) confirmed today that the U.S. Bureau of Ocean Energy Management (BOEM) has issued the Final Environmental Impact Statement (FEIS) for Vineyard Wind 1. The issuance of the FEIS is the final step before a Record of Decision (ROD) from BOEM, the last approval required for construction on the project to begin. The project is under development by Vineyard Wind, a joint venture between Avangrid Renewables, a subsidiary of AVANGRID, Inc., and Copenhagen Infrastructure Partners (CIP)."

    "With the issuance of the FEIS, Vineyard Wind confirmed that the project remains on track to reach financial close in the second half of 2021 and begin delivering clean energy to Massachusetts in 2023."

    "Located 15 miles off the coast of Martha's Vineyard, Vineyard Wind 1 is slated to become the first large-scale offshore wind farm in the United States. With a generating capacity of 800 megawatts (MW), the project will provide enough electricity to power more than 400,000 homes and businesses in the Commonwealth of Massachusetts..."

    It seems like AGR has plans to build other offshore wind farms:

    "In addition to Vineyard Wind 1, Avangrid Renewables is a partner on Park City Wind, an 800 MW project to serve the state of Connecticut, as well as on additional lease areas off the coast of Massachusetts and Rhode Island to deliver up to 3,500 MW. Avangrid Renewables also is developing Kitty Hawk Offshore Wind that has the potential to deliver 2,500 MW of clean energy into Virginia and North Carolina."

    There is also AGR's acquisition of PNM. AGR has recently been moving to purchase a large energy producer in New Mexico. I will not hazard a guess as to how this will affects the share price, but according to the above article:

    "AVANGRID announced the strategic PNM Resources merger combination in October 2020 in an all cash offer for PNM Resources' shares at $50.30 per share, an $8.3 billion enterprise value transaction. The resulting entity would be one of the major clean energy companies in the US with ten regulated utilities in six states and the third largest renewables company with operations in 24 states.

    'Approval by PNM's shareholders is an important step toward realizing this strategic transaction. Our two companies share the same values and we are passionate about our customers, employees, and the communities we serve,' said Dennis V. Arriola, CEO of AVANGRID."

    Some of the financial data I pulled from Nasdaq today:

    **P/E Ratio**25.7

    **Forward P/E 1 Yr.**21.33

    **Earnings Per Share(EPS)**$1.88

    **Annualized Dividend**$1.76

    Thus, unlike a lot of typical green energy growth stock, AGR is already profitable and pays a dividend.

    According the head of the National Ocean Industries Association President quoted in this Washington Post article, it seems like offshore wind could end up being a huge area, with the potential for $160 billion worth of investments over the next fifteen years:

    "Monday's announcement drew praise from industry. National Ocean Industries Association President Erik Milito said it was "critical for the project developers and for the offshore wind industry as a whole."

    Milito called on the administration to move even faster, noting that it has been two years since the last federal offshore wind lease sale. He noted that a recent analysis suggested near-term lease opportunities could generate more than $160 billion in new investment over the next 15 years, but that Interior's Bureau of Ocean and Energy Management "must first open the door to new leasing."

    I like the dividend, the potential for growth, and the alignment with the current political climate. I am mulling whether to buy shares in addition to trading the options. The one concern for me as a long-term investment, however, is that the P/E ratio is still a little high for my taste. I generally avoid "growth stocks" in my investment portfolio. I am on the fence.

    Anyways, hope this is helpful!

    submitted by /u/EchoFreeMedia
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    Common Wash Sale Confusions

    Posted: 09 Mar 2021 11:11 AM PST

    I've been seeing conflicting descriptions of what happens with wash sales recently and thought it would be good for this community to clarify what happens in different situations.

    It seems like everyone understands that if you buy a stock 30 days after selling for a loss, that loss isn't deductible. However, there seems to be confusion over the tax implications of subsequent actions.

    Let's say you originally buy 100 shares of a stock at $100. You then sell those shares at $80, for a $2000 loss. If you rebuy within 30 days, I think most people understand that the $2000 loss is not deductible and instead gets added to your cost basis.

    Let's say you rebuy 100 shares within 30 days at a price of $70. Your cost basis should now be $7000 + $2000 = $9000.

    Now, let's say the stock drops again and you sell at $60. This is where there seems to be confusion about what is deductible.

    My understanding is that the new loss would be $6000 - $9000 = $3000, due to the increased cost basis.

    QUESTION 1: Is this $3000 loss is deductible, despite the original wash sale?

    I've been assuming yes, but I see a lot of people that suggest it isn't deductible. Is it correct that deductible losses are always determined from the cost basis at the most recent sale (ignoring long-term vs short-term issues)? I keep seeing people say that the deduction cannot include losses from previous wash sales, but if that is true, why would the wash sale increase the cost basis? I thought that was the point of the increased cost basis.

    There are horror stories of people making $200k in taxable gains that they lost entirely through wash sales, making them owe taxes on the $200k despite losing it all. Couldn't that only occur if a wash sale occurred within 30 days of a new year, or if they never closed their position after a wash sale? As long as you sold before the new year and didn't rebuy, this couldn't happen, could it?

    QUESTION 2: Is a wash sale a reason to never rebuy a stock within 30 days?

    I've frequently see people say "I sold at a loss, so I have to wait 30 days to buy back in otherwise I can't deduct the loss." Isn't this true only if they don't resell that same year, or if they create another wash sale in January? Basically, I'm seeing people wait to get back in on a rising stock simply because it is within 30 days. If you want to be be able to deduct the current loss within this tax year, then sure, that makes sense to wait. However, if you don't mind risking pushing that deduction to a later time, doesn't it make much more sense to buy back in if you think the stock will continue rising? I'm basically seeing people deciding to not rebuy a stock because they are afraid they won't ever be able to deduct a loss.

    QUESTION 3: Ignoring long-term vs short-term gains/losses, can't you always eventually deduct an equivalent amount regardless of wash sales?

    Basically, because the cost basis gets adjusted with wash sales, aren't those losses always included when you close your position, either resulting in decreased profits, or increased losses. If so, is there anything critical missing in the suggestion: "don't rebuy within 30 days if you want to deduct the loss within the current year." I understand that tax-loss harvesting strategies can be complex, but many of the explanations I've seen for wash sales seem inaccurate.

    submitted by /u/qwerty5151
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    What do you guys think about Disney?

    Posted: 09 Mar 2021 08:01 AM PST

    After reaching all time highs above $200 yesterday, it's down a little bit today around $196. Do you guys think this would be a good price point to buy? I figure people will be swarming the parks very soon and Disney+ will most likely become the #1 streaming service in a few years. Thoughts?

    submitted by /u/BuddieReddit
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    Do you guys sell when your stock has made a certain percentage gain?

    Posted: 09 Mar 2021 10:08 AM PST

    I've seen people comment here and there that it's good practice to sell shares of a stock when it hits a 40% gain to lock in some gains.

    Haven't seen anything for the opposite but I am trying to never sell at a lost unless the company is going bankrupt or something.

    Is this a good practice? It's tough (or impossible) to know when the right time to sell is but locking in some gains makes sense to me.

    submitted by /u/HeavyFuckingMetalx
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