Daily General Discussion and spitballin thread - July 10, 2021 Investing |
- Daily General Discussion and spitballin thread - July 10, 2021
- Daily Advice Thread - All basic help or advice questions must be posted here.
- Stamps.com to be bought by Thoma Bravo in $6.6 billion deal - STMP
- In a market that is meant to be so overvalued, why do some companies still have such low P/E’s?
- A need for more staff could benefit companies that connect employee and employer
- What just happened between the DOJ and the National Association of Realtors?
- Benjamin Graham's followers often state that a market always converges on the intrinsic value of a business long-term. Is it always true though? Looking to discuss conceptually.
- Open a 401k with or without company?
- Why should I just put all my money in a S&P500 ETF?
- Are investors more emotional in stocks nowadays?
- Why should I do my own DD and not follow hedge funds?
- Could someone englighten me on S-3 form?
- Is there such thing as an "After hours" ETF?
- Looking for Broker suggestions in NL
- Hedging an income portfolio with growth stocks
- Small Social Media Website is selling stock certificates. Securities fraud?
- S&P 500P/E ratio DD, advice needed
| Daily General Discussion and spitballin thread - July 10, 2021 Posted: 10 Jul 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: 10 Jul 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! {{date %B %d, %Y}} [link] [comments]  |
| Stamps.com to be bought by Thoma Bravo in $6.6 billion deal - STMP Posted: 09 Jul 2021 08:27 AM PDT Stamps.com said on Friday private equity firm Thoma Bravo would take the e-commerce shipping solutions provider private for about $6 billion in cash. Stamps.com shareholders will receive $330 per share, according to the agreement, representing about 67% premium to the stock's close on Thursday. The deal, expected to close in the third quarter of this year, is valued at about $6.6 billion including debt. Thoma Bravo is one the largest software-focused private equity firms with over $78 billion in assets under management. Its portfolio companies include information technology services provider SolarWinds and cybersecurity firm McAfee. It has announced deals to take security software vendor Proofpoint and data solutions provider Talend private earlier this year. Stamps.com targets its services at small businesses and home offices and helps them print U.S. Postal Service-approved postage right from their workplace. The company, which has nearly 732,000 monthly subscribers, has also partnered with Microsoft. The deal also includes a 40-day "go-shop" period, which will allow the company to consider alternative offers, Stamps.com said. [link] [comments]  |
| In a market that is meant to be so overvalued, why do some companies still have such low P/E’s? Posted: 09 Jul 2021 07:47 PM PDT Everyone keeps saying this market is extremely overvalued, which many companies definitely are. If everything is so overvalued, why are some companies still so undervalued? For example, ArcellorMittal has a dividend yield of %1, which has increased from the previous year, and a P/E of only 4, while it's revenue has also grown over the past year. I'm not trying to pump this, just simply wondering why there are some companies like this that are so undervalued? [link] [comments]  |
| A need for more staff could benefit companies that connect employee and employer Posted: 10 Jul 2021 01:06 AM PDT The U.S. and the rest the world are in dire need of a bigger workforce, but there are difficulties in hiring. Could this mean big growth in the valuation of companies that simplify the hiring proces and manage to connect workers with employers? I don't know a lot of companies myself that offer a solution. The only thing that comes to my mind are Indeed (private), small outsourcing bureaus (private) and Upwork (overvalued as far as I've heard) What are your thoughts on the potential of these companies that connect employee with employer? Who is currently dominant in this space and who could become dominant in the future? [link] [comments]  |
| What just happened between the DOJ and the National Association of Realtors? Posted: 09 Jul 2021 08:37 AM PDT In case you missed it, the DOJ just pulled out of a settlement agreement they had entered with the NAR. The settlement agreement basically said NAR had to make some adjustments to their current practices around disclosures of buyer agent commissions. With the DOJ withdrawing their settlement agreement, it looks lie they're going back after NAR. A couple questions thoughts:
What other impacts could this have on markets? [link] [comments]  |
| Posted: 09 Jul 2021 07:22 AM PDT It is also said that if you are right in the long run but it takes too long, it is indistinguishable from being wrong. To add to this, there are always exceptions to the rule. If the rule is that the market is indeed a finely tuned weighing machine in the long run, there will always be exceptions to the rule. Moreover, there is no time scale provided. Some consider 5 years long term, some a decade. So from a conceptual perspective, while it is clear that the market doesn't always converge on intrinsic value due to logically there always being exceptions to the rule, what principles do investors have to distinguish what is an exception to the rule and what isn't? This is difficult as something might appear to be an exception but may not be, or vice-versa. Thoughts/comments? [link] [comments]  |
| Open a 401k with or without company? Posted: 09 Jul 2021 07:35 PM PDT Should I open a 401k with like schwab or open a 401k with my company? I already have a Roth IRA with over 10k in it and have a really healthy savings account, I want to have a second retirement account so that way I can have 2 accounts that are growing money for retirement. I am only 22 I know I still have a ways away to go till I retire but I wanna make sure I have enough time for the 401k and Roth IRA to grow exponentially over time by the time I retire. Has anyone else decided to make a 401k not with there employer and the benifits it can include and what disadvantages it could have, because after I get my Roth IRA to a certain amount I wanna start throwing money into a 401k more and throw some into the Roth IRA and then just let them grow! I plan on starting a 401k I just am not sure if it'd be the best move to have one with my employer or not because if I would move jobs I'd have to switch it over and all that [link] [comments]  |
| Why should I just put all my money in a S&P500 ETF? Posted: 10 Jul 2021 03:05 AM PDT Everybody knows that most investors don't beat the market in the long run, and I don't consider myself a genius in investing, right now I have a lot of money in US stocks, some money in emerging markets, and some in commodities and precious metals. My portfolio will probably not beat the market in the long run, but it should balance itself in case of crashes and periods of inflation. The thing is, I'm not planning on living off my portfolio in the next 10 years, market crashes won't mean anything to me right now, like when the market crashed during the first wave of COVID I didn't care all that much, and now we're at an ATH, so why shouldn't I just put everything on the S&P and forget about it for the next 10 years? [link] [comments]  |
| Are investors more emotional in stocks nowadays? Posted: 09 Jul 2021 09:09 PM PDT Since technology came, we're being quoted by Mr. Market with our stock prices for every second, when the market opens, and can easily manipulate our emotions and decisions. I heard one of Warren Buffett sayings that investors will have a better investment decision if they're only being quoted with their stock price once a month or a year. I remember back in the days when my father watches his stock prices in a newspaper once a week. Imagine only looking at your stock price on a piece of paper, your emotions cannot easily be manipulated, compared to a phone or computer and see the stock price moves up and down every few seconds. However, people are more educated nowadays due to access to free information about investing in stocks and they know what to do when their stock prices go down, while the value stays the same, buy the dip. Although I know IQ is different from EQ, especially in investing. My question is, do you think investors are more emotional nowadays as compared to before the technology came? [link] [comments]  |
| Why should I do my own DD and not follow hedge funds? Posted: 09 Jul 2021 04:29 PM PDT Hi stocks, I've been thinking lately about developing my own portfolio of stocks, looking into potential growth areas and selecting certain stocks. However, I can't do it myself. I don't have the knowledge, brains, resources. So why don't I just copy. I've realised I don't need to be creative or inventive to be profitable investor I can just copy people who are better than me. So firstly, how do I find, say, the top 10 most profitable hedge funds or single investors over the last decade and identify the common stocks held by each and their portfolio allocations and just copy them. Is there a website I can use for this? Secondly, why wouldn't I want to do this? What are the down sides? E.g. if the best 10 hedge funds invest in Microsoft with decent allocations, I'll just put money in Microsoft and leave it. Thoughts? [link] [comments]  |
| Could someone englighten me on S-3 form? Posted: 10 Jul 2021 02:35 AM PDT I'm having difficulties understanding shelf offerings and SEC rules. It's quite complicated and english is not my first language. If a company gets its S-3 filing approved and gets an effectivenes order from SEC, does it mean the company from that moment on can sell aditional newly-issued shares for market price at any time, up to a sum written in their S-3 form? For example, up to $1bln, WITHOUT having to make an announcement or filing a supplement to S-3 indicating that the company plans to issue and sell X amount of shares at X price beforehand ? They can just dilute, sell, and then report sales post-factum? Please, if you reply, kindly provide source. [link] [comments]  |
| Is there such thing as an "After hours" ETF? Posted: 10 Jul 2021 01:48 AM PDT Forgive me for the possibly ignorant question.. I find the possibility of making money while markets are closed very interesting. I would like a thing similar to crypto where it's 24/7, but because I really don't want to dabble in crypto, I wonder if there's such a thing as an after hours ETF which consists of stocks/ETFs that are, on average, traded a lot more during after hours or pre market. For example, let's say on average, AAPL, MSFT, and SPCE are traded a lot more during after hours/pre market. Let's say there's also a lot of stocks in this ETF just like AAPL, MSFT, and SPCE, that are also traded a lot more during those times on average, compared to other stocks which don't get much trading during these times. I suppose you could, then, add an ETF in there too, which might be the one case where adding multiple ETF's in an ETF would make sense too, if that's even possible, which I've never heard of before. On top of that, would it make sense for that, to just instead buy the entire world stock market then? Something like VT? Since if you can't do that, then simply holding literally everything will guarantee some movement? Wouldn't that mean, then, you could mimic the effects of crypto being 24/7 with traditional stocks with an after hours ETF? Sure it won't be 24/7 and still as volatile, but it would be a lot better than just having my portfolio go up and down a few cents every 17 hours after the market closes. [link] [comments]  |
| Looking for Broker suggestions in NL Posted: 10 Jul 2021 01:03 AM PDT Looking for suggestions on NL brokers. So it looks like I might need to change my broker from my previous Swedish one. I emigrated to the Netherlands which means that my Swedish broker Will be forced to liquidate my US positions in October. In Sweden I used/use a so called "ISK" account which has ridiculously low tax. Each year you pay a flat-rate tax on your entire portfolio / Capital that is based off of our Governments borrowing rate, for 2020 this would mean a tax of 0,375% The reason I have to move broker is because the "W-8BEN-agreement" (which allows me to trade US stocks) I signed is about to expire and as Ive moved out of Sweden I cannot re-sign it. So, can anyone from NL give me some suggestions of brokers and does NL have an equivalent of the ISK account with its flat-rate tax? [link] [comments]  |
| Hedging an income portfolio with growth stocks Posted: 09 Jul 2021 07:07 AM PDT My portfolio has taken a bit of a burn lately. I'm primarily an income investor, focusing on stable companies that either pay dividend or have stable profits and free cash flow. I use options to either enhance this income or hedge my positions, depending on the situation. As of late, income stocks have taken a bit of a hit from what is supposed to be prolonged periods of low interest rates and quantitative easing, so I think companies sitting on cash are underperforming and those with higher growth potential are outperforming. But I could be wrong (check me on this one). I'm looking to diversify my holdings to growth areas in the S&P 500, so my options are either QQQ, XLK, or one of the ARK funds like ARKK or AWKW. Which one do you suggest, or do you have any other choices am not seeing? [link] [comments]  |
| Small Social Media Website is selling stock certificates. Securities fraud? Posted: 09 Jul 2021 08:25 AM PDT This is a crosspost. I don't know if this is allowed here. I know little about stocks. But I think people are getting scammed. What can I do to figure out if this guy is scamming people. A small social media site I belong to is selling LLC certificates. They claim to be one of the biggest social media sites in existence, but their user count is probably less than 15k. Active users range from 150-300 daily. Here is their post. https://i.imgur.com/RTixVQx.png They're claiming to be worth $10,000,000. Selling 10% of their shares at $1 each. Based on the comments of the post - there are definitely some people putting down BIG cash; $1000+ dollars easily. I don't know shit about stock. I've looked up the businesses name on the SEC Business lookup ("censored name LLC") and couldn't find anything. Is the owner committing fraud? If so, is there any way to report this? I'm not sure what hoops need to be jumped through to issue stock certificates as an LLC. But surely you can't valuate your own company at TEN MILLION dollars and start selling stock to vulnerable people with the claim of it 10x-ing. It seems so screwed up. This guys name is all over the website. Could he be reported to the SEC? [link] [comments]  |
| S&P 500P/E ratio DD, advice needed Posted: 09 Jul 2021 12:45 PM PDT So historically, the average P/E ratio for the S&P 500 has been 16 It's currently sitting at a whopping high of 46, pointing to the market being highly overvalued. P/E basically means how many years you're willing to wait to make your money back if earnings were to stay the same. 46 years in this case, if earnings were not grow, but such high of a p/e ratio would still require a lot of growth which I think is not really sustainable at these levels. I haven't had the chance to experience a bear market before, but I'd like to hear from some of the more experienced investors for what the best way one can hedge themselves for a correction without putting money into bonds? TLDR; Growth companies have enjoyed their run over the last 10+ years, but will they be able to justify it through earnings and maintain their pricing? [link] [comments]  |
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