Daily General Discussion and spitballin thread - June 05, 2021 Investing |
- Daily General Discussion and spitballin thread - June 05, 2021
- Daily Advice Thread - All basic help or advice questions must be posted here.
- Virgin Galactic SPCE has successful test flight now known hedge fund posting negative commentary on company. WHY?
- Miner Collusion and the Bitcoin Protocol
- REGENERON received FDA clearancefor reduced dosage for COVID-19 treatment
- Implications of corporate owners of ETFs (e.g. Blackrock and Vanguard) advocating activist investing
- U.S. Added 559,000 Jobs in May, Just Short of Estimates
- What's the difference between transaction equity value and pro-forma equity value?
- When you short a stock, does it add to that stock's volume?
- $WKHS: what just happened? Anyone care to take a look?
- 3D printing. The next big thing. NNDM
- Why does the SSO outperform the SPY?
- Latest possible time to execute option on expiry date?
- Limit order actually filled?
- It is not worthy to invest based on impulse.
| Daily General Discussion and spitballin thread - June 05, 2021 Posted: 05 Jun 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: 05 Jun 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: 04 Jun 2021 04:18 PM PDT Recently Virgin Galactic had a successful test flight of its spaceship to the edge of space. This test flight will likely result in FAA approval for passenger flights and precursor to the Richard Branson spaceflight that is likely on his birthday on July 18th. https://www.cnn.com/2021/05/22/tech/virgin-galactic-spaceflight/index.html Since then a hedge fund who is short on Virgin Galactic starting taking shots at Virgin Galactic, link below https://seekingalpha.com/article/4433159-virgin-galactic-holdings-inc-putting-the-zero-in-zero-g Why do you think they would do that? Is this common in the investment industry? What do you make of it? [link] [comments]  |
| Miner Collusion and the Bitcoin Protocol Posted: 04 Jun 2021 06:22 PM PDT April 27th, 2021 Abstract: Bitcoin users can offer fees to the miners who record transactions on the Blockchain. We document high variation of Bitcoin fees, not only over time, but also within blocks. Further, the blockchain rarely runs at capacity, even though there appears to be excess demand. We argue that this is inconsistent with competitive mining, but is consistent with strategic capacity management. If agents believe that only high fee transactions are executed in a timely fashion then strategic capacity management can be used to increase fee revenue. We note that mining pools facilitate collusion, and estimate that they have extracted least 200 million USD a year in excess fees by making processing artificially capacity scarce. [link] [comments]  |
| REGENERON received FDA clearancefor reduced dosage for COVID-19 treatment Posted: 05 Jun 2021 03:14 AM PDT Hello all, I am long Regeneron, gave 10 shares @ 497$. Not financial advise. I saw this yesterday and didn't see it discussed, yet. TLDR: REGENERON received on June 4th the FDA clearance to use 1200 mg instead of 2400 mg. it seems this news might boost income by 13% (assuming that there are little extra cost to implement) based on the guaranteed US deal until June 30 alone. I think the timing of this (early June) will impact the stock very positively according to this article:
Considering that one former dose is now effectively 2 doses, they will earn double for basically no extra cost (except packaging and shipping, or maybe just relabeling the vials, I guess) for doses to be delivered in June. Depending on how fast this is possible to implement, of course... For the potential doses until September, I would expect them to have half the production cost accordingly. According to this barron's article,
More specifically
So, from past delivery estimates of 750 k doses to 1 M doses by June 30 would be additional revenue of 250 k * 2,100 $ = 525 M $ at presumably little production cost for Regeneron. According to finviz, past sales of 9.2 B $ and income of 4 B $ that would be 5.7% increased sales or 13.1% additional income. That is not taking the potential 250 k additional doses that the US might accept between until and Sept 30. And not taking the European deal for 55 k doses (if EMA approved) or the Swiss extra 3 k doses into account. Cheers [link] [comments]  |
| Implications of corporate owners of ETFs (e.g. Blackrock and Vanguard) advocating activist investing Posted: 04 Jun 2021 11:05 PM PDT Recently, corporate owners of ETFs like Blackrock and Vanguard voted to effect change in Exxon, by voting in board members proposed by a small activist investing firm. What are the long-term implications of this? Lets assume 50% of the owners of the underlying Blackrock funds owning Exxon actually disagreed with what Blackrock was doing - would this not be unfair? Is this not a form of "tyranny of the majority"? What if I, as an investor in a Blackrock-managed fund, actually want the exposure to a pure-play O&G company? Have there been other cases where the corporate fund managers have made such a profound change to the Board of a large public listed company? It is also scary how the Blackrock/Vanguard ownership % in public companies year after year. They own presumably 20-30% of most companies on the S&P500. And this includes competing companies. I believe no individual investor, bar fund managers, are allowed to own large stakes in competing companies. Thanks! [link] [comments]  |
| U.S. Added 559,000 Jobs in May, Just Short of Estimates Posted: 04 Jun 2021 05:51 AM PDT Not a great report, but not terrible either. Some key highlights: • Jobs added 559k vs. 675k estimate • Unemployment fell to 5.8% • Strong hourly earnings • Labor participation rate edged lower In my opinion, the biggest concern here is the drop in the labor participation rate. People are clearly not motivated to come back to work. Been hearing countless stories of small business struggling to hire - ultimately people need to be incentivized to come back. I would expect wages to continue climbing (earnings were up +0.5% MoM) until this gap closes. Powell is less likely to taper now near-term until further progress is made with closing the labor-market gap. Tech will like this today. Thoughts? [link] [comments]  |
| What's the difference between transaction equity value and pro-forma equity value? Posted: 04 Jun 2021 03:34 PM PDT The pictured article (picture below) says that Lucid has a transaction equity value of $11.75b and a pro-forma equity value of $24b at the PIPE price of $15/share. So does that mean that Lucid currently has an implied market cap of $38.4B (CCIV is at $24/share now)? Or is this incorrect. What does the transaction equity value refer to and how is different from the pro-forma equity value? Thanks [link] [comments]  |
| When you short a stock, does it add to that stock's volume? Posted: 04 Jun 2021 03:27 PM PDT Yes, you are borrowing shares in order to sell to someone else but, for the transaction to go through, someone has to buy the shares from you. So, in essence, shorting a stock should add to the volume of that stock, correct? Or, since it's a market maker buying the shares from you (correct?), would it not add to the volume of said stock? If the latter is true, I don't really understand the concept of days to cover. It's not like the daily volume of a stock gives a general gauge of how long it'd take to unload all of the short shares of that stock because those shares could just be bought be a market maker. Thanks [link] [comments]  |
| $WKHS: what just happened? Anyone care to take a look? Posted: 04 Jun 2021 01:41 PM PDT All, Context: I'm looking for a much smarter person than I that can explain what the hell just happened with $WKHS. This could be manipulation or a typical market approach by a bigger player but I just don't know. I am hoping someone here can provide some context. I had pictures but those are not allowed here. $WKHS had a great run-up from June 2020 to early February 2021. A variety of factors here, but EV/possible USPS contract/new delivery methods all played a role. Since then, it has been smashed down (peak at $40 down to $7ish): https://www.tradingview.com/chart/3QJLgzZ7/ There is some news here that led to the sell-off: Workhorse Sinks 52% in Two Days After Losing USPS Award Anyway, after being crushed down and watching the chart for the last 6 months, WKHS had a massive spike on June 3rd, yesterday, on seemingly 0 news: (had pic but refer to chart: https://www.tradingview.com/chart/3QJLgzZ7/) Media would tell you that spike was due to meme stock status (I had not seen WKHS on much of Reddit at all): (had pic but can see the results here): https://www.google.com/search?q=wkhs+stock&client=firefox-b-1-d&source=lnms&tbm=nws&sa=X&ved=2ahUKEwiLjbnx5_7wAhUbHc0KHVAbASwQ_AUoAnoECAEQBA&biw=2208&bih=1079 There are other articles about meme $WKHS from Bloomberg, Motley, and The Street as well if you want to check for yourself. That made me suspicious. I'd been watching this ticker for a while and there was no movement around $WKHS – unless I really did miss that? Now, today, June 4th, we are already seeing the media change their narrative as $WKHS begins what I assume will be a hard drop: (had pic but can see the results here): https://www.google.com/search?client=firefox-b-1-d&q=wkhs+stock That seems to be quite the rug pull, no? I kept digging and this is where I was hoping to get some clarification. I can view limited details on holdings through whalewisdom. I wanted to check $WKHS and found two rather large call/put bets placed by Susquehanna and Citadel: https://whalewisdom.com/stock/ampd Can someone give more context to the details of this play? I assume these huge bets had to play a role in this latest spike and now possible heavy reversal. Thanks for taking the time to read and cheers. I do not have a position in $WKHS. [link] [comments]  |
| 3D printing. The next big thing. NNDM Posted: 04 Jun 2021 09:21 AM PDT 3D printing. The next big thing Just acquired 2 companies and Set to acquire 4 to 5 more companies. Nanodimension heavily invested by Ark 3D PCB printer the next big thing. Smallest item printed by 3D printer. Unispectral on Nanofabrica Unispectral a Samsung backed company on the product Tera 250 [link] [comments]  |
| Why does the SSO outperform the SPY? Posted: 04 Jun 2021 06:46 PM PDT So I know this has been asked before and I somewhat understand the concept of decay and that losses will compound when the market is going down with SSO but when I look at a simple chart the SSO seems to greatly outperform the SPY regardless? Can someone help me understand what I'm missing. For example: SSO peaked at $82.53 pre covid, it bottomed at $35.74 so you'd be down about 57% SPY peaked at $337.60 pre covid, it bottomed at $228.80 so you'd be down about 32% This part makes sense to me, the losses are nearly double with the leveraged ETF however the next part is what I don't understand, it seems to recover just as quickly. If you bought SSO at the pre covid peak of $82.53, with the current price of $115.73 you're up about 40% If you bought SPY at the pre covid peak of $337.60 with the current price of $422.60 you're up about 31% So despite the far larger drawdown during the covid crash, the SSO has recovered just as fast and is outperforming the SPY. How is this possible? This is one of the reasons I've read for not buying a leveraged SSO, that if you sit through a drawdown it will take much longer to recover the losses but that doesn't seem to be the case here unless I'm missing something! Also please note, I understand that the market isn't guaranteed to continue going up and 10 year depressions are possible etc but I'm using a real world example of a drawdown above where despite the far greater initial loss, the leveraged ETF still recovers and outperforms very quickly even if you bought the pre drawdown peak. Thanks! [link] [comments]  |
| Latest possible time to execute option on expiry date? Posted: 04 Jun 2021 03:00 PM PDT What's the latest possible time to execute an option on the friday of expiration? Can it happen over the weekend? I'm seeing conflicting information online about this, but 4:30 PM CT friday seems to pop up. It seems broker specific but there is a CBOE deadline that I'm trying to figure out. So if you held an OTM option but it went ITM after hours on Friday at say, 4:25 PM by 1 cent, it might be advantageous to execute and can still happen until CBOE shuts expiring friday options at 4:30 PM CT? Is this right? Essentially I'm wondering when (to the minute) are short OTM options guaranteed profit on the day of expiration? [link] [comments]  |
| Posted: 04 Jun 2021 04:28 PM PDT Using TD Ameritrade I placed a limit buy order today higher than the stock price ever reached. It was set to expire EoD but has yet to go away and my "positions" shoes they are mine and what I have lost so far today. Little bit confused as to if they are mine or not because the "cash buying power" has not changed what so ever. Limit order says "filled" next to it but don't actually know if they are mine. Little confused on what's actually going on and when it'll actually drop the Limit order from fulfilling/trying to since it was only supposed to execute today. Thanks everyone. [link] [comments]  |
| It is not worthy to invest based on impulse. Posted: 04 Jun 2021 02:45 PM PDT Today, I came across HARP (>-24%) and was just curious why the stock was so slumped. Apparently they presented about the Onc drugs in clinical trial and the investors weren't 'impressed.' I was so curious that I scooped some shares after a lil research of my own. I decided to listen to their 4pm webcast about the pipelines and was impressed with how clueless and impulse driven people are to sale such a stock based upon perhaps hearsay. WTF! [link] [comments]  |
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