Daily General Discussion and spitballin thread - May 28, 2021 Investing |
- Daily General Discussion and spitballin thread - May 28, 2021
- Daily Advice Thread - All basic help or advice questions must be posted here.
- Apple represents 20.13% of Vanguard's Information Technology ETF (VGT); Microsoft represents 16%. Is this ETF really diversified?
- Richard Branson confirms that he is going through training for his upcoming spaceflight with Virgin Galactic SPCE
- Vanguard - US to under perform International equities in the next decade
- Will my broker contact my employer when I'm applying for an account?
- Does anyone have an opinion on MTFCX- to park some cash?
- Portfolio Application Recommendations?
- Wouldn't the rise of electric cars be a boon to natural gas? Natural gas plays?
- Stock sales and purchases
- CMV - gains should be taxed higher, but only when transferring into cash/income, not when directly reinvested
- Replacing bonds with blue chips yielding 2%-4%
- HTZGQ - **UPDATE ON WARRANTS AFTER FURTHER READING**
- One of my big winners this year
- $AQMS is a great long term buy...
- Acorns Investor Presentation
- Virgin Galactic will grow faster than TESLA
| Daily General Discussion and spitballin thread - May 28, 2021 Posted: 28 May 2021 02:01 AM PDT Have a general question? Want to offer some commentary on markets? Maybe you would just like to throw out a neat fact that doesn't warrant a self post? Feel free to post here! This thread is for:
Keep in mind that this subreddit, and this thread, is not an appropriate venue for questions that should be directed towards your broker's customer support or google. If you would like to ask a question about your personal situation or if you are asking for advice please keep these posts in the daily advice thread as that thread is more well suited for those questions. Any posts that should be comments in this thread will likely be removed. [link] [comments]  |
| Daily Advice Thread - All basic help or advice questions must be posted here. Posted: 28 May 2021 02:00 AM PDT If your question is "I have $10,000, what do I do?" or other "advice for my personal situation" questions, you should include relevant information, such as the following:
Please consider consulting our FAQ first - https://www.reddit.com/r/investing/wiki/faq And our side bar also has useful resources. 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]  |
| Posted: 27 May 2021 12:02 PM PDT I was looking at Vanguard Information Technology (VGT) holdings this afternoon, and was shocked to find that although there are 331 companies in this ETF, 36% of the entire fund consists of just two companies: Apple and Microsoft. See here: https://investor.vanguard.com/etf/profile/portfolio/VGT/portfolio-holdings The reason that I invest in ETFs is to diversify my holdings of equity securities. I've been tossing a few dollars into VGT since last year, under the assumption that since it's an ETF, my investments will be broadly diversified across the information technology industry. So here are some questions I now have:
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| Posted: 27 May 2021 09:40 AM PDT Source: interview confirming Branson going through training So a few days ago Virgin Galactic had a successful test flight to the edge of space with is VSS Unity spaceship. Afterwards Richard Branson did a interview in which he confirms he is going through training for his own upcoming spaceflight. No one knows exactly when but he's always talked about hoping to go on his birthday which is July 18th. Successful test flight article: https://www.cnn.com/2021/05/22/tech/virgin-galactic-spaceflight/index.html [link] [comments]  |
| Vanguard - US to under perform International equities in the next decade Posted: 27 May 2021 09:04 AM PDT For the next decade Vanguard is expecting the US to deliver a 4.7% total return, while international equity to deliver a 8.1% return. The methodology they used is to look into the past decade's returns and see how much of the return was attributed to each of the following:
For the past decade, 5.4% of the US over-performance over international equity was attributed to valuation change. They expect that in the next decade the valuations of US equities will contract (P/E multiples to go down). This will be one of the main reasons for the under-performance. Link to white paper (easy to read): https://institutional.vanguard.com/iam/pdf/ISGUSIE.pdf?cbdForceDomain=true [link] [comments]  |
| Will my broker contact my employer when I'm applying for an account? Posted: 28 May 2021 12:23 AM PDT Hi yall I was making a brokerage account and they asked about my employment. There are two options to choose from: retired or not retired (employed). I think I'm certainly not retired, but only work part-time as a junior soccer coach. When I choose "not retired", they ask for my employer's email and such. If I give the broker my employer's email etc. will they contact my employer? I would prefer they don't. [link] [comments]  |
| Does anyone have an opinion on MTFCX- to park some cash? Posted: 28 May 2021 03:55 AM PDT I have a retirement account with Merril and I have a few savings accounts. I have one savings acct which i consider my "nest egg" and it has hit 100k which I was thinking is a lot of money that I don't really need at the moment, to just have sitting in high-interest savings only getting .10% interest. I spoke to my advisor at ML and he suggested this fund as its super safe and a place to park some money. I don't know a lot about this but I was considering going this route or opening an account with ML and splitting the funds up across a few different things. I don't really want much risk as i take on risk in my retirement and i want it to be somewhat liquid as i may need in 5-10 years. Only things with this fund it has an expense ratio of 1.01% which seems high? but maybe its not for this type? [link] [comments]  |
| Portfolio Application Recommendations? Posted: 28 May 2021 02:43 AM PDT Can anyone recommend a portfolio application that can track both stocks and crypto transactions? I am currently using https://www.portfolio-performance.info/en/ which is great, but it is missing a few features. I need something that can do the following:
Nice to haves:
Currently, this is all still being tracked using the same application. However, every crypto transaction has to be split into multiple transactions to be tracked. Hope to find another application that can help ease managing my portfolio without sacrificing analytics. Thanks in advance. [link] [comments]  |
| Wouldn't the rise of electric cars be a boon to natural gas? Natural gas plays? Posted: 27 May 2021 09:28 PM PDT I don't think renewables would be sufficient power to charge up all those electric cars if it gets mass adopted. I think there will be more of a need for enhanced electrical infrastructure. I think natural gas would do very well actually, probably underpriced right now. It also has the optionality of taking market share of coal. I think the fracking lead to oversupply in the natural gas market but most of those companies rely on cheap debt. If interest rates rise, then frackers wouldn't pump too much oil and gas. Leading to further increases in price. Right now, I have positions in EPD (pipelines), Southwestern, and Range Resources. I wonder what others think? Disagree? Positions? [link] [comments]  |
| Posted: 28 May 2021 04:35 AM PDT What are your recent stock sales & purchases & what theme(s) are you following? I fear that impending inflation may be higher & may linger longer than the central banks seem to be suggesting. So, I think equities may be in for a tough, rest of the year, at least. Having done a fair bit of reading, I have sold a significant proportion of my equities for now & have bought the following:- BlackRock World Mining Trust plc Invesco Bloomberg Commodity UCITS ETF Invesco Consumer Staples S&P US Select Sector UCITS ETF L&G Battery Value-Chain UCITS ETF I have gone in pretty hard on this theme. I am also holding a fair proportion of retail bonds & cash. I was fortunate to buy the retail bonds at a time that decent yield were available. [link] [comments]  |
| Posted: 28 May 2021 04:32 AM PDT (I know this is not CMV but figured the format worked and really more interested in this sub's take on it) I understand that taxation on investments is advantageous to incentivize investing. However, a big part of that requires people to adjust their investment strategy over time. But in effect, a lot of investments are more rigid because people avoid realizing gains when they would like to pivot their positions. Meanwhile, realizing losses is one of the oldest tricks in the books to diminish one's tax liability. So here's my view: kind of like a 401k account, there should be a system that allows people to sell without tax implications as long as those proceeds are used to reinvest in another stock, and as long as those stocks have been held for over a year (does not apply to day trading, so that it stays in the spirit of investing). Taxation would kick in only when a sale is used to convert into actual income. In exchange, the tax rate on this income would be taxed higher (say as a regular income, for the sake of argument). One question is what base to use? In this case, I'd say we could simply use the overall performance of the portfolio to estimate those gains. Ultimately this is the performance everyone is looking at. Basically, think of it as a 401k type account without penalty for early withdrawal, where only money coming out of that account is taxed. I feel like it could solve a few problems: 1/ It would enable people to consider investing in whatever is more worthy to them. People change their minds, companies change their strategies… it would bring more fluidity to the system and promote the idea of genuinely investing in companies worth investing in. 2/ it would counterbalance loss realization tactics. 3/ it would incentivize more people to invest and, like a 401k, make them think longer term about when to use that money. 4/ by promoting chances to pivot, it might even lead to greater revenues overall as people's portfolio could grow higher. Personally I've avoided a few times to liquidate positions to avoid taxation, but my portfolio's performance would with hindsight often be better because I'd have reinvested in higher performing stocks. 5/ it would bring an end (or at least reduce the gap) to the issue of work being taxed more than wealth, which imo remains one of the most unfair drivers of inequality(I know I may lose a few folks on that point, so maybe we don't need to enter that debate too heavily today) [link] [comments]  |
| Replacing bonds with blue chips yielding 2%-4% Posted: 27 May 2021 07:29 AM PDT Hi all, Have been pondering this some time since rates were dropped down to zero last year. With rates close to zero and future increases being negative for bond prices, why wouldn't it make sense to take some money out of bonds and place it into financially healthy blue chips with reasonable (but not too high) dividends? By "financially healthy" I would typically include dividend yield between 2%-4%, payout ratio below 50% or 60%, debt to equity below 1 or preferably below 0.75, free cash flow margin above 10%, and a solid cash balance (can't get very specific since it varies heavily by industry). These attributes typically apply to large/megacap stocks so that wouldn't be a requirement but it'd usually fit the bill. My thinking is that rates being at 0% negatively affect bonds in two ways: lower yield (10 year treasury is about 1.6% right now) and less upside as prices will get dinged when rates inevitably rise. Another point is that bonds underperform during bouts of inflation although that's another conversation entirely. I know that equities are obviously more volatile during recessionary periods but with so much of the upside of bonds stripped away I don't see why this wouldn't be a decent strategy as long as rates are low. What would some downsides be to this strategy? From a portfolio management standpoint Would love to hear additional opinions, particularly risks that I haven't mentioned here. [link] [comments]  |
| HTZGQ - **UPDATE ON WARRANTS AFTER FURTHER READING** Posted: 27 May 2021 01:23 PM PDT I was trying to answer another question when I stumbled unto another valuable nugget. Again I am not a financial advisor. Just a guy with Google. Consult your advisor before investing. See page 131 of the attached BK filing. https://restructuring.primeclerk.com/hertz/Home-DownloadPDF?id1=MTIxNTc1NQ==&id2=-1 "The New Warrants may be exercised by the holders on a cashless basis." I didn't know what this meant, so I looked it up. It means you don't have to have the$10 per share to exercise the warrant. They will take it out of the proceeds from converting all the warrants. Ask your broker if they participate. Example: You have 1000 shares at $6 a share. Your investment is $6000. You first receive $2.531 per share. So cash payout of $2530. Then, you receive 10402 warrants for the shares with a strike price of $102. The new stock is trading at $15 a share. (Estimate from the plan) Your brokerage exercises the warrants in full with zero cash from you. You now have 1040 shares of new stock at $15 a share for a total value of $15,600. But, you owe the strike money that the brokerage put up for you of $10 a share. You owe $10400. $10400 divided by 15 is 694. They sell and take 694 shares to repay your strike money. Leaving you with 346 shares worth $5200. $5200 in stock + $2530 in cash = $7730. A profit of $1730 or 28% ROI. Link to cashless warrants:
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| One of my big winners this year Posted: 28 May 2021 03:41 AM PDT I wanted to share with everyone one of my big winners for you to consider. The Ticker is CRMT, America's Car Mart. They sell and provide financing for used cars in the south and midwest. They are a growth company and have been growing fast. They just smashed earnings and doubled what was expected. Much of that is going to be from generous stimulus checks but with growing suburbanization there is a secular trend as well. Currently they trade at an 11 PE and usually they trade between 12 and 14 PE. Check them out. I bought in January at 117 and am up 40% year to date and looking backwards they have been up 600% in the last 5 years. [link] [comments]  |
| $AQMS is a great long term buy... Posted: 27 May 2021 07:25 PM PDT This to me is a great long term investment. $AQMS is in the business of recycling lead while doing so in an eco-friendly way. It produces high quality lead and plastics by this patented technology of AquaRefining. Currently, the company is focusing on licensing this tech rather than owning and operating facilities. There is a huge demand for the tech especially for the rise of big batteries in EVs. I'm thinking Tesla here, along with other major players in the industry. it's very cost efficient for car manufactures to get this in their facilities. Everything is going green and the demand of the lead-acid battery market is growing at a compound annual growth rate of 3 to 4 percent. Metals recently filed a provisional patent for a new methodology for producing battery-manufacturing-ready active material, or oxide, directly from its AquaRefining process that it expects will provide added economic and environmental benefits for AquaRefining licensees. https://batteryindustry.tech/aqua-metals-submits-provisional-patent-for-new-capability-streamlining-link-from-aquarefining-to-battery-manufacturing/ At $3 a share price, this is a great entry. Thank you for reading. [link] [comments]  |
| Posted: 27 May 2021 10:55 AM PDT Lots of good insights on the business; vision, revenue, growth, etc. "Acorns is building a financial wellness system so that individuals and families will responsibly manage and grow their money over the long-term. Acorns has the largest subscription base in consumer financial services and is scaling rapidly with more products and tiers that allow people to grow more money." More here: https://sqy7rm.media.zestyio.com/Acorns-Investors-Webcast.pdf [link] [comments]  |
| Virgin Galactic will grow faster than TESLA Posted: 28 May 2021 12:00 AM PDT I know SPCE is very meme-esque right now, but I've held SPCE since late 2019, not too long after the IPO. I've bought larger and larger positions over time and am really seeing good returns now. I see the technical crew flight and Branson flight coming up as the gateways to true viability. Once they happen, real paying people will start going and I can't wait to see my returns multiply! I believe that the novelty of space tourism will propel the stock for many years to come. Blue Origin is the only real competitor with a viable vehicle and they're technology is far less mature. I'm betting on the people in Mojave to pull it off! [link] [comments]  |
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