Stocks - r/Stocks Daily Discussion Wednesday - Jun 09, 2021 |
- r/Stocks Daily Discussion Wednesday - Jun 09, 2021
- r/Stocks Daily Thread on Meme Stocks Wednesday - Jun 09, 2021
- GameStop Releases First Quarter 2021 Financial Results
- Shareholders Approve NVIDIA Stock Split
- Apple is encroaching on Facebook’s territory like never before with new social features.
- Investing in psychedelics: a revolution in psychiatric medicine and mental healthcare
- Apples Private Relay feature appears to be using Cloudflare (NET)
- What’s the story on CLOV
- Senate passes $250 billion bipartisan tech and manufacturing bill aimed at countering China
- Algorand: Xfinite and Eros have expanded their partnership for a blockchain-based content engagement program.
- Nvidia Stock Still Rising?
- Company Lawsuits
- Found a bunch of old stock certificates, now what?
- Thoughts on Amazon
- Question about wash sales...
- Do you pay taxes if you put gains from a trade back into a stock but lose it?
- Why have the major U.S. indexes been so flat recently?
- Exxon, Suncor and Devon
- Inflation numbers tomorrow and their effect on prices
- Bought dividend stocks for dividends, but price increased while holding....check my logic for sell/keep decision?
- The Weekly DD - Mountain Pass Materials (MP): The Rare Earth Miner
- Workiva $WK is an overlooked company with little competition in a niche market.
- Can anyone go more in detail about sponsored and unsponsored ADR’s and ADS’s?
- If you thought a stock market crash was eminent what would you do with your 401k
| r/Stocks Daily Discussion Wednesday - Jun 09, 2021 Posted: 09 Jun 2021 02:30 AM PDT These daily discussions run from Monday to Friday including during our themed posts. Some helpful links:
If you have a basic question, for example "what is EPS," then google "investopedia EPS" and click the investopedia article on it; do this for everything until you have a more in depth question or just want to share what you learned. Please discuss your portfolios in the Rate My Portfolio sticky.. See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday. [link] [comments]  |
| r/Stocks Daily Thread on Meme Stocks Wednesday - Jun 09, 2021 Posted: 09 Jun 2021 04:00 AM PDT The meme stock scheduled posts will run Mon to Fri and won't be a sticky; you're probably seeing this because automod sent you here or you woke up early Wall St time; good morning! 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:
[link] [comments]  |
| GameStop Releases First Quarter 2021 Financial Results Posted: 09 Jun 2021 01:14 PM PDT
Transcript from chairman Ryan Cohen from today's shareholder meeting: "We ushered in a whole new era of GameStop. On a personal note, I want you to know I'm humbled to be elected to your board and serve as your Chairman. We have a lot of work in front of us, and it will take time. We're trying to do something that nobody in the retail space has ever done but we believe we're putting the right pieces in place and we have clear goals: delighting customers and driving shareholder value for the longterm. The management team and refreshed board will remain totally focused on these goals at all times. We know some people want us to lay out a whole detailed plan today, but that's not gonna happen. You won't find us talking a big game, making a bunch of lofty promises, or telegraphing our strategy to the competition. That's the philosophy we adopted at Chewy. Here are a few things we've done so far: refresh the board, added technology and retail experience to the leadership team, paid off all our long term debt and strengthened the balance sheet, and begun laying the foundation for long term growth. Moving forward, we want you to judge GameStop based on our actions, not our words. Thank you everyone, and as my dad would say, "buckle up."" [link] [comments]  |
| Shareholders Approve NVIDIA Stock Split Posted: 09 Jun 2021 05:42 AM PDT Shareholders finally approve NVIDIA stock split. The stock split will be payable in the form of a stock dividend. Each shareholder of record as of June 21 will receive an additional three shares of stock for every share held. The shares will be distributed after the market close on July 19, and the newly split shares will begin trading when the market opens on Tuesday, July 20. Existing shareholders won't have to do anything to receive the additional shares, which will be deposited directly into their brokerage accounts once the stock split takes effect. It's important to note that investors shouldn't necessarily expect the new shares to appear in their account immediately after the market close on July 19. As internal processes differ from brokerage to brokerage, it may take as many as several days for the new shares to show up in investor accounts. Finally, investors should remember that a stock split does nothing to change the value of the underlying business, but merely divides it into a great number of ownership portions. As an example, NVIDIA shares have lately been trading for roughly $700. This means instead of having one share worth $700, shareholders would own four shares, each worth $175. [link] [comments]  |
| Apple is encroaching on Facebook’s territory like never before with new social features. Posted: 08 Jun 2021 07:15 PM PDT 'Soon, iPhone users will be able to hold FaceTime video calls with Android and Windows users for the first time. They will also be able to use a new feature called SharePlay, which lets you hold a FaceTime call and watch a streaming movie, listen to music, or share your screen with your contacts. IMessage is getting a boost as well, with new features that make it easier to share web links, photos, Apple Music tracks and Apple News articles with your contacts. In short, Apple is laying the groundwork for a suite of social features designed to let you do a lot of what you would normally do on Instagram and Facebook, only with more emphasis on privacy. Think of it as a watered-down social network without all the bloat and annoying stuff you find in other apps. It's the kind of stuff that will drive Facebook CEO Mark Zuckerberg absolutely crazy.' The new features will launch this fall as part of Apple's iOS 15 update for iPhones. Full article and source: https://www.cnbc.com/2021/06/08/apple-ios-15-new-social-features-will-compete-more-with-facebook.html [link] [comments]  |
| Investing in psychedelics: a revolution in psychiatric medicine and mental healthcare Posted: 09 Jun 2021 12:32 PM PDT I have for you folks today a closer look at an entirely overlooked sector on the verge of breakout. These medicines possess the potential to address a ~$100 billion mental health treatment market, including treatment of previously incurable disorders such as cluster headaches, Post Traumatic Stress Disorder, and Traumatic Brain Injuries. How many people do you know suffer from anxiety, depression, and addiction? How many people do you know who are addicted to opiates, or popping SSRI's and benzos like candy to deal with their problems? There is a better way. Anyone who has used psychedelic substances knows of their potential. Personally, I attribute Psilocybin with helping me to end 5 years of poly drug abuse in 2009 after a single trip. I've been 99.9% sober for the past 12 years. Sitting to my left is my beautiful newborn daughter Aurora, something that I previously would have never thought possible. Meanwhile nearly 20 of my classmates and friends are dead in the wake of the opioid epidemic. Underground medical psychedelic use is exploding in popularity. Look at communities such as r/microdosing which have sustained steady growth (https://subredditstats.com/r/microdosing) and interest in the past few years. More studies need to be completed on microdosing in particular, but the anecdotal results look promising. I see people comparing this industry to Cannabis, which I don't believe is accurate. The majority of the Cannabis industry is focused on recreational use, and Cannabis is a single plant, albeit with many active compounds. Psychedelic medicine encompasses far more molecules, which are objectively more powerful psychoactives, and have far greater potential for medical application. These stocks have been battered like most growth stocks have. But in my opinion they represent the biggest investment opportunity of this entire generation. Not just potential for insane returns, but also the potential to revolutionize psychiatric medicine and how we approach mental health as a society. These molecules have incredible characteristics as empathogens (empathy promoting), promoting neural plasticity (https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6149016/) and even promoting neurogenesis (regrowth of neurons in the brain (https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6082376/)). Not only is the science elucidating innumerable anecdotal reports of their benefits, the sector is looking at upcoming major catalysts as more and more positive mainstream media press rolls in, and decriminalization efforts sweep the nation unbeknownst to many.
Ultimately, science is proving what underground users already know: psychedelic medicine is safe and effective and more often than not it works with miraculous results. Pitch me a more noble and simultaneously lucrative cause than this. I believe so strongly in the future of psychedelic medicine that I'm pretty much all-in on a diversified basket of these companies. Investing in psychedelics now will get you a front row seat to the festivities as decriminalization efforts sweep the nation and the world, and research results continue to be massively positive. Meanwhile investors are sleeping on this industry. Love you all. Good luck and godspeed. [link] [comments]  |
| Apples Private Relay feature appears to be using Cloudflare (NET) Posted: 09 Jun 2021 11:44 AM PDT Not sure if this is enough news, but I found the implications interesting. If you turn on Private Relay in beta then in ipfind service you get Cloudflare as ISP. So this appears to be using Cloudflare's Warp privacy service and private DNS, but with some sort of second hop. So where other VPN providers may suffer from the 900lb gorilla including this in all paid iCloud tiers, one may benefit. [link] [comments]  |
| Posted: 09 Jun 2021 12:44 PM PDT What's the story on this stock it shows that it's 104.2% held by institutional investors. Evidently the hedges are playing the game on this one with the WSB. Is there a chance to make money on this particular trade? What is today's run up just a fluke [link] [comments]  |
| Senate passes $250 billion bipartisan tech and manufacturing bill aimed at countering China Posted: 09 Jun 2021 02:29 AM PDT The Senate on Tuesday passed one of the largest industrial bills in U.S. history in a bipartisan effort to ensure the U.S. remains competitive with China as one of the globe's technological powerhouses. The bill, which passed the chamber 68-32, commits roughly $250 billion in funding for scientific research, subsidies for chipmakers and robot makers, and an overhaul of the National Science Foundation. The scope of the bill, the final product of at least six Senate committees and almost all members of the chamber, reflects the many fronts in the U.S.-China rivalry. It also likely represents one of the last major bipartisan initiatives of 2021, proof that U.S. lawmakers are broadly in favor of legislation that works to counter Beijing's economic and military expansion. Failure to expand the nation's semiconductor production, or reroute rare earths supply chains, advocates say, could leave the U.S. at a strategic disadvantage in the years ahead. The largest part of the U.S. Innovation and Competition Act is a proposal previously known as "Endless Frontier," written by Senate Majority Leader Chuck Schumer, D-N.Y., and Sen. Todd Young, R-Ind. Endless Frontier overhauls the National Science Foundation, appropriate tens of billions for the NSF between fiscal 2022 and 2026, and establish a Directorate for Technology and Innovation. "Passing this bill— now called the U.S. Innovation and Competition Act—is the moment when the Senate lays the foundation for another century of American leadership," Schumer said from the Senate floor Tuesday evening. "Around the globe, authoritarian governments believe that squabbling democracies like ours can't unite around national priorities," he added. "Well, let me tell you something: I believe that they are wrong. I believe that this legislation will enable the United States to out-innovate, out-produce, and out-compete the world in the industries of the future." The bill would also fund a grant program managed by the Commerce Department that would match financial incentives offered by states and local governments to chipmakers who improve upon or build new factories. Specifically, the bill provides $52 billion to fund the semiconductor research, design, and manufacturing initiatives. The Semiconductor Industry Association, a trade group that represents a swath of the nation's chipmakers, was quick to applaud the Senate's effort. "Senate passage of USICA is a pivotal step toward strengthening U.S. semiconductor production and innovation and an indication of the strong, bipartisan support in Washington for ensuring sustained American leadership in science and technology," said John Neuffer, CEO of the SIA. "Enactment of these investments would help strengthen America's economy, national security, technology leadership, and global competitiveness for years to come." Reflecting the vote count, praise following the bill's passage through the Senate came from both sides of the political aisle. Sen. Ben Sasse, R-Neb., specifically cheered the legislation's clear goals and added that he would have preferred an even more pointed bill. "As a China hawk and a fiscal hawk, I would have liked for this bill to take a more focused and aggressive approach to the China threat – but this is a strong start," he said in a press release. "The Chinese Communist Party is working overtime on cyber, AI, and machine learning so that they can become the world's preeminent super power. We can't let our foot off the gas." The bill's success in the Senate also comes as the White House ramps up its own recommendations on how to secure American supply chains that run through China and counteract Beijing's geopolitical ambitions. President Joe Biden applauded the bill's passage Tuesday evening, saying he was encouraged by the bipartisan effort. "It is long past time that we invest in American workers and American innovation," Biden said in a statement. "We are in a competition to win the 21st century, and the starting gun has gone off. As other countries continue to invest in their own research and development, we cannot risk falling behind." The White House announced on Friday that it will expand restrictions on American investments in certain Chinese companies with alleged ties to the country's military and surveillance efforts, adding more firms to a growing U.S. blacklist. Then, on Tuesday, the White House said that it will look into dramatically expanding U.S. production of lithium batteries, rare earth minerals and semiconductors. "The USICA affirms a willingness to maintain a sustained focus on the U.S.-China strategic competition through a bipartisan and whole-of-government approach, leading into the upcoming G7 and NATO summits where it is anticipated the U.S. will be looking to work with allies to present a united front towards China," wrote Mario Mancuso, head of the international trade and national security division of law firm Kirkland & Ellis. While debate over several amendments prevented the Senate from passing the legislation before the Memorial Day recess, the bipartisan passion for ensuring the U.S. remains competitive is expected to support its case in the House. The chamber is expected to consider the legislation in the coming weeks, though perhaps at a slower pace as representatives hash out various sections. [link] [comments]  |
| Posted: 09 Jun 2021 11:52 AM PDT Xfinite and Eros Now, a leading over-the-top (OTT) South Asian entertainment platform owned by global entertainment company Eros STX Global Corporation (NYSE: ESGC), have announced that their partnership with Xfinite's Mzaalo platform, a gamified video streaming service on track to reach 10 million [link] [comments]  |
| Posted: 09 Jun 2021 03:02 PM PDT Due to the stock split, I'd expect it to continue to rise like Tesla and Apple did last year. How come the stock seemed to hover around 700 this week? Do you think it will continue to rise significantly? [link] [comments]  |
| Posted: 09 Jun 2021 09:15 AM PDT Is anyone else sick of lawyers outright stealing money invested? Everyday I get an alert of this law firm is suing x company I own shares in for stockholder benefit. This may be way off topic as I am not talking about any specific stock or position but feel it is very relevant and the most related reddit location. I feel like we as retail investors are getting fleeced not only by large institutional shareholders but by large law firms that always seem to sue 'on behalf of shareholders' and I know nothing i can do about it. In the thousands of letters ive received either electronically or via actual mail I dont think Ive received one stamps worth of actual money back although I have seen the millions in legal expenses companies I own stock in pay out to defend,pay or settle. I wish there was a law firm out there that would start suing the other law firms for their litigious nature and theft without any return of monetary compensation to the shareholders they are suing on behalf. [link] [comments]  |
| Found a bunch of old stock certificates, now what? Posted: 09 Jun 2021 11:23 AM PDT As a millennial, I've only ever read about physical stock certificates. Then my father-in-law passed away and we found a bunch of them… mostly issued in the 1970s. What the hell do I do with these? Most originated in Canada adding another layer of complexity to this. We live in the US now. I look up their CUSIP numbers everywhere and came away with zero hits. Any ideas? Suggestions? [link] [comments]  |
| Posted: 09 Jun 2021 08:18 AM PDT The stock price is like flat ytd, I am wondering if anyone else is still adding more. What do you guys think? Is there any major concerns that people are worried about so the stock price is still consolidating since sep 2020? I still think the stock price will hit $3800 before the end of the year. [link] [comments]  |
| Posted: 09 Jun 2021 01:44 PM PDT If I close part of my position at a loss, and another part of my position at a gain, resulting in a net gain over all, then buy the same security within 30 days is the first sell still considered a wash sale? [link] [comments]  |
| Do you pay taxes if you put gains from a trade back into a stock but lose it? Posted: 09 Jun 2021 10:25 AM PDT I'm sorry if the title is a bit confusing. Do I get taxed on on my total gains on the end of the year, or each one individually? Like if I buy a stock, sell at the peak and then use that money to buy more stocks, but lose it all. Do I still owe taxes on that original gain? [link] [comments]  |
| Why have the major U.S. indexes been so flat recently? Posted: 09 Jun 2021 02:55 PM PDT I can't remember the last time I saw the Nasdaq, the S&P, or the Dow increase or decrease by more than 1 percentage point per trading day, with the exception of the Nasdaq a week or so ago when the jobs report indicated a slow economy reopening. We've gotten a ton of days with even 1/10 of that; something like a .1-.2% change per day. Why is everything so stable all of a sudden? [link] [comments]  |
| Posted: 09 Jun 2021 09:22 AM PDT WTI crude has hit $70 a barrel today and Brent has been holding above the $70-71 range for a bit over a week now. I think that this is the beginning of a new leg up in oil stocks and oil prices. I have been skeptical of Exxon in the past and I almost sold out of my position entirely in may after it reaches its 52 week high. I have since averaged back in because although I do not agree with the board shakeups, I do believe market sentiment will be better with the new members. My first thesis on exxon was that I respected it for NOT being a green energy play when all the hype was going towards green energy. I do not expect this to change with the new members, I think they will remain heavily invested in oil and carbon capture opportunities for the foreseeable future, making it a great play for higher oil prices. Suncor is just a great company, they are one of the only companies to produce jet fuel for Canada and I think as covid bears an end this company will see many, many tailwinds. Just from basic understanding of the company you can tell that Suncor doesn't really rely on high oil prices to be profitable as well, this is just a smart play all around as they also have pledged to become net zero on emissions and people enjoy the green commitments. Devon I enjoy because of their dividend structure and sound balance sheet. I hold Devon mainly because of market sentiment and I like their synergies across the company. I think the run to $30 is sustainable, although the past week it has seen consolidation and even underperformance although oil prices continue to climb. I think it's currently a good time to average up, but I would be weary of starting an entirely new position if you do not have a good cost average already. I do believe it has room to run overall, though. I am playing this in a bit of a strange way compared to my usual swing trading strategies. I'm top of shares, I am buying exxon calls for mid July at $60 and $65 strikes. Devon and Suncor have low OI and volume on most calls I would consider attractive, which makes me stick with only shares on these companies. I am heavily invested in this thesis and I believe it can peak this year, and potentially go into next year. Higher oil prices will also allow these companies to pay off debt at a faster rate than previously which also can make a compelling long thesis for some of these companies. This is a swing trade for me, but I plan on holding for 6 months to a year, and I will take my profits at a set price and reevaluate the position to see if anything has fundamentally changed to make me keep a portion of my position for the long. Right now, I plan on exiting my position once my price target is reached, or selling for a loss if the thesis is wrong. I'm not into ETFs, but I've seen good ways to play this is the OIH and XLE. Purchasing calls and shares will probably do well, I simply prefer these companies and only want exposure to them. [link] [comments]  |
| Inflation numbers tomorrow and their effect on prices Posted: 09 Jun 2021 08:55 AM PDT After inflation came out high last month it looks like major indexes experienced a jump in price after trending down in the weeks before. This time around prices are sky high, with numbers being released tomorrow what effect will it have on the market if it's higher still? [link] [comments]  |
| Posted: 09 Jun 2021 11:14 AM PDT I've come to a (good) dilemma at this point of my investing...in doing a portfolio review I'm finding that a few stocks I originally bought for dividend income have increased in value 33-50% since I bought them. I've been running numbers and trying to figure out at what point I should sell and take the profit. Once example is IP. I bought in at 43.26, and it's now 63.61. At 63, it has a dividend yield of 3.2% and it's running at $2.05 a year. If I'm doing the math right, selling the stock is basically taking 10 years of dividends in one swoop. So it seems that any of my dividend stocks that went up that high should be sold for profit? I'm in the market for the long term (hence dividend stocks) but am thinking that a dividend isn't guaranteed but a profit taken is. Thoughts? [link] [comments]  |
| The Weekly DD - Mountain Pass Materials (MP): The Rare Earth Miner Posted: 09 Jun 2021 04:05 PM PDT To understand the history of MP Materials (Mountain Pass), you need to study its past history. Most casual observers never quite made the correlation, but if you live in Southern California and have driven to Las Vegas you've driven over Mountain Pass. It's the last mountain range in the Mojave Desert that you drive over on highway 15 just before you reach the state line of Nevada. Mountain Pass is the current only rare earth mining and processing site in the western hemisphere. About rare earth metals What are rare earth metals? They are a group of 17 elements: lanthanum, cerium, praseodymium, neodymium, promethium, samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, lutetium, scandium, yttrium all found in rare deposits. The thing about these "rare" metals is that they are actually quite common in the earth's crust. However, the difficulties in the extraction process of these metals is what gives them their name. These metals are used in just about anything electronic, rechargeable batteries, magnets, computers, lasers, fiber optics, superconductors and vehicles. Not only are they used in electric vehicles in batteries and motors, but they are also used in catalytic converters. Over the last 5-6 years prices of rare earth metals have risen because they are "rare", but they are also very costly to refine in environmentally friendly ways. This has also spurred the growth of catalytic converter theft which has become a growing nuisance. Recyclers have been paying up to $250 per unit to almost anyone that's willing to supply them. Nearly 60% of rare earths metals that were imported in 2018 were used for catalytic converters. The majority of the global "rare metal" supply is owned by China, thus they control most of the supply chain. Due to China's dominance in this sector the United States, along with the rest of the world, is very susceptible to China's pricing or supply disruption (tariffs/export ban/pricing pressure). According to this Reuters article, "The United States imported $160 million of rare earth compounds and metals in 2018, up nearly 17% from 2017. Around 60% of it was used in catalysts for oil refining and in vehicle engines." The SP@C merger On November 17, of 2020 Fortress Value Acquisition Corp (FVAC) closed a SP@C merger deal with $345 Million in cash in trust and a $200 Million PIPE led by the SP@C King himself Chamath Palihapitiya. The combined company was set at a valuation of $1.5 Billion with over $500 million in cash to fund the growth strategy and was labeled MP Materials. Government's acceptance of clean energy and strengthening supply chains Over the term of the Trump presidency the trade war with China had intensified leaving companies with tariffs and questionable supply chains. This economic race had set the stage for MP Materials. With tariffs on imports and unfavorable pricing from China on rare earth materials it leaves a very volatile question mark for US manufacturers and other related companies. Flash forward to 2021 with the Biden administration, not only is the government trying to turn the table on strengthening its own supply chains, it's also trying to eliminate its vulnerabilities. The pandemic has shown us the necessities of medicine, essential goods and things like semiconductors should be made in the United States and this was reinforced by the executive order signed by President Biden in February. On the list of critical goods to be evaluated within the first 100 days was specifically rare earth metals. This clearly demonstrates how MP Materials being the only miner and refiner of these materials in the United States could profit. The other larger mention on the executive order was large capacity batteries such as those used in electric cars. I would highly recommend reviewing the order as there are so many industries that were mentioned that all use rare earth metals related to MP Materials. A long term investor may see the importance of rare earth metals in terms of being a critical factor to the US economy. After the 100 day review is completed somewhere around the beginning of June there is no doubt MP Materials will be listed as a critical company and will have an overwhelming support of the US Government. Not only will this secure MP Materials as a local monopoly, but it will solidify local business supply chains for years to come. Also, with a critical infrastructure bill in the works the company could be on the list to receive subsidies to level the playing field with China. MP Materials' rare earth concentrate product represents 15% of the world's supply. Expected increase in demand of rare metals With the rise of electric vehicles starting to enter the manufacturing plants of US automakers the demand of rare earth metals will be growing exponentially. If you take a moment to look at the slide deck of the investor presentation from MP Materials, the business is currently in early days of stage 2. MP Materials is mining NdPr materials (mainly Neodymium and Praseodymium), which power the strongest types of rare earth magnets. These magnets are used to power EVs (electric vehicles) and many industrial processes. This is why the mining of these rare earth metals play a vital role in the EV market. After mining these materials, MP Materials then ships them to China (they rely on plants in China to actually process the mined materials) while incurring a VAT tax and tariffs to be refined and is still turning a profit. MP Materials is set to open the largest NdPr separation facility in the world in 2022 and are putting stage II into motion. NdPr is an essential piece used in magnets especially in EV motors. Stage III shows they are looking to actually produce NdPr magnets onsite sometime past 2025 which would make them even more vertically integrated. Demand from electric vehicles, wind turbines, and other technologies is hitting an inflection point. The shift in clean energy and electrification of transport, globally, will be an important theme over the next decade. The demand for rare earths will rapidly outpace the current levels of production and supply. Take a look at the forecasted price of NdPr over the next several years. From the MP Materials investor presentations, we've pulled some of the charts where they forecast demand for electric vehicle magnets due to the high demand of EV sales compared to regular vehicle. It is clear that this is not just a "rare earth metal" play, but they will be particularly focused on NdPr which will be driven by clean energy industries, and more specifically electric vehicles. Potential Risks A company that entails rare earth mining, such as MP Materials, will be subject to typical risks that surround commodities. Right now we are in a "super-cycle", but how long will that last? Since China also supplies up to 80% of the world's rare earth materials there is also the potential of risks associated with the pricing pressure. Lastly, there are some advancements in synthetically creating materials that replace these rare metals, but not enough conclusions have been drawn in the validity of this topic. Valuation Now like any SP@C it's hard to give accurate projections more than 3 years out, but the rare earth metal market has had prices nearly double this year which has led to a pretty sharp increase in the stock price already. Not to mention, unlike some SP@Cs this is a company that is already generating products and profits. The most recent analyst coverage has near term price targets between $37 and $57. In the last 3 weeks there has been a rise in the 10 Year yield and that has made the technology sector and SP@Cs become unfavorable. Like several other stocks, it appears MP Materials is the baby being thrown out with the bathwater, the stock has retraced from its $51.77 52-week high significantly. Now the company did report an excellent 4th quarter surpassing expectations on March 18th. More recently the company announced it wanted to raise 600 million in a senior debt offering that would not come due until 2026. There was some concern that this could dilute the stock when it comes due, but this is over 5 years from now. This free cash will allow MP Materials to speed up its timeline and reduce costs by operating its own NdPr separation facility. With the speculation of a commodity super cycle and rising inflation coming the price of rare earth metals will continue to strengthen. This appears to be a potentially great value investment, and the upcoming 100 day review in June from the Biden administration will only further strengthen the importance of MP Materials in the US Economy. Having said that, the company's original valuation in the merger was set to 1 billion dollars (1.5 billion minus 500 million to fund expansions). At the moment of writing, the company's market cap is sitting at roughly 6 billion. We want to determine if the current valuation is pricing the company at fair value, given the potential the company has. This is not an easy task given the complexities of the rare earth metal industry and also the lack of "competitors". This is not a "growth stock", nor is it strictly a commodity play. In my opinion we can look at it as a play on Neodymium and Praseodymium (NdPr) which is where the pricing outlook and largest growth expected over the next 10 years is very strong. It is my opinion that MP Material's growth will be somewhat reflected by the demand of the EV market as well as the progression of other clean energy industries where the use of these metals is critical. If the EV market were to increase tenfold, I think MP Materials would also benefit greatly by proxy. Final Thoughts
Positions: Long MP in common stock [link] [comments]  |
| Workiva $WK is an overlooked company with little competition in a niche market. Posted: 09 Jun 2021 12:09 PM PDT Hi everyone - long time lurker but first time posting here cause I want to share with you my take on Workiva ($WK) both from an investor standpoint and someone who currently uses the software for my company's reporting needs. I'll split this post up into 2 parts with Part 1 being the information about the company, recent earnings, etc. (i.e. a regular DD post) and Part 2 being my experience using this software. TL;DR at the bottom. Part 1 - Stock price as of typing this is $97.34 Workiva is the end-to-end platform that allows you to integrate financial data, nonfinancial data, and XBRL® tagging. Collect, assemble, and report with the same technology used by more than 3,700 organizations across 180+ countries. Workiva is essentially specializes in handling companies different reporting, filing, audit, and/or general accounting needs (private, public, regulatory/environmental etc.). They have a cloud based platform called WDesk that is used to centralize all of the companies financial data and funnel it into their financial statements, reports, footnotes, and other schedules automatically. A lot of the use case for their platform comes from a companies reporting needs (10-Q/10-K) but other organizations use their platform (including my own) for internal management reporting, budget tracking, financial data analysis, automatic schedule reconciliations etc. Here is a snapshot from their Q1 2021 10-Q.
Workiva also touts an impressive 95% revenue retention rate amongst existing subscribers and a roughly 6% YoY increase in subscribers in 2020. With the low subscriber churn, subscriber growth, and low operating cost of the WDesk platform this generates great earnings growth each quarter. Workiva also provides on-demand customer support for all subscribers for any and all questions (used it myself, they're actually great people). Workiva generates consistent operating cash flow each quarter and is reinvesting it into growing their subscriber base, expanding the WDesk platform, and breaking into new markets. This is a company with a clear vision and goal in mind and they have been consistently delivering. Part 2 My Background - I'm a former Big 4 auditor that moved into a startup Natural Gas company exactly 1 year ago to transition into a Senior Accountant of Financial Reporting job title. I have about 4 years experience in auditing both public and private companies and now 1 year with a speciality in FRP. When I transitioned to my new company the first day they introduced me to this platform that I never heard of called "WDesk" that they used for their Quarterly and Annual financial statements. I thought learning this new software would be tricky but it is honestly one of the most user friendly platforms I have ever used in my short career. It is basically an excel file online that can link numbers&text straight to a document for reporting. So if you alter a number in the excel file on WDesk - the financial statements are automatically updated via the link. When I started we essentially would download our financial data from our GL and key in the financial data manually to the excel file and then boom your report is populated. Pretty nifty eh? Well a lot has changed over the year that i've been here. With the help of the Workiva team on customer support I have basically automated our entire reporting process (still room to go) so that all you need to do is download a BS or IS from the GL and import it into WDesk and all of the fields automatically populate with the correct financial information. We started only using this for our quarterly and annual reports but now we take it a step further and use it for monthly budget vs. actual reports, monthly/quarterly management reports, monthly account reconciliations you name it. Everything is quick and easy with this WDesk platform and it actually cut down our reporting process by a full 4 days (Which doesn't seem like a lot but that is a massive time/money save). We are continuing to expand our WDesk capabilities everyday and as i'm speaking to you now I am currently working on building out new monthly reports. Anytime I have a question, we have a dedicated Workiva rep that is familiar with our portfolio that assists us with any need. Furthermore, Workiva has a function built into SAP called "WData" that allows companies to skip a step in downloading the financial data from the GL. Instead, you just sync your GL with WDesk and all of the financial information you need for any specific period will automatically be populated into your spreadsheets and financial statements. We don't use this yet since we actually just transferred to SAP from Netsuite but this will be coming down the pipeline for us. Additionally, since we are a LNG company we also are beginning to report to the Federal Environmental Regulatory Agency (FERC) which is a whole new ball game in terms of what financial data needs to be reported, when, what format, document structure etc. Well fuck me gentleman WDesk built out a specific platform for reporting to this specific regulatory agency and we're expanding our subscription to meet that need. I can truely see first hand how Workiva is investing in their product and expanding the capabilities and its only been a year. As an investor, the growth potential and management vision seems extremely promising. They have partnered with 3/4 of the Big 4 and work with something like 70% of the top fortune 500 companies. The Company continues to invest in their product and expand their reach in this niche market in an attempt to grab a large market share of this industry. As a user, I absolutely love this platform. It makes my job so easy, makes me look good, and gives me time during work to write this lmao. My major client in my auditing days would key in everything manually every time the books were closed or their was an update which would take days. With WDesk this takes minutes. The platform is extremely user friendly allowing for companies to easily adopt this platform with little disruption in the day to day. TL;DR - Workiva is a fast growing business in a niche industry of financial reporting/accounting. They have consistent increases in their EPS, CF, subscribers, and revenue each quarter and reinvest profits into their business model which, as a user myself, I see first hand and it makes my job so much easier. Positions - I own 30 shares as of this morning when I executed my purchase. I wish I knew this company was public sooner but I will be a long term investor in this one. [link] [comments]  |
| Can anyone go more in detail about sponsored and unsponsored ADR’s and ADS’s? Posted: 09 Jun 2021 06:09 AM PDT So, I understand that ADR's are is a group of that same stock and ADS is the individual shares of that company but what is this unsponsored and sponsored stuff? And any more in depth information on this topic is highly welcome. Thank you [link] [comments]  |
| If you thought a stock market crash was eminent what would you do with your 401k Posted: 09 Jun 2021 01:04 PM PDT I've been feeling like a market correction is going to happen, and soon. The news on inflation isn't good the reverse repo data is crazy the list of things that are not right is immense if you ask me, and too long to go through here because that's not really the point of my post. If you had 401k, that you had been contributing to since your 20's, what would you do to protect your assets as best you could in the event of a large market selloff? [link] [comments]  |
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