Daily General Discussion and spitballin thread - July 06, 2021 Investing |
- Daily General Discussion and spitballin thread - July 06, 2021
- Daily Advice Thread - All basic help or advice questions must be posted here.
- Stock delisted, how do I assert my stockholder rights?
- Motley Fool automatically renews services
- Billionaire Space Race + Trickle-down on relevant industries?
- Etf that tracks Sp5 instead of sp500
- Timing Traditional 401K -> Roth IRA conversion
- Putting my money in gold stocks
- Let's have a Corsair stock discussion
- Deep Value Question: DOYU
- Not sure whether to reinvest dividends or keep them in order to invest in other stocks
- What exactly is “The Bourbon Rule”?
- 18, new to the market, looking for stock advice
- Ethical investing - an oxymoron or an important responsibilty?
- Question about the stocks SMIC and TMSC (semiconductor companies)
- Investing in homes with Airbnb demand
- Is this simply a rite of passage?
- Small/medium cap value stocks are worth a look
- Questions regarding reading the Cash Flow from Financing Activities.
- TD Due Diligence and characteristics
- Emerging Markets VALUE etf recommendations?
- What type of bonds do you buy for a bond tent?
| Daily General Discussion and spitballin thread - July 06, 2021 Posted: 06 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: 06 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]  |
| Stock delisted, how do I assert my stockholder rights? Posted: 05 Jul 2021 02:53 PM PDT So a stock I invested in got delisted last year. They went private on purpose. It is an Irish based (but actually mostly US) company called Mainstay Medical. If all goes well they'll most likely go public again at some point in the future, most likely with a US listing. Now my EU based broker (DeGiro) kept the stock listed in my account for the shares I own (worth a couple of thousand euro's when i bought them), but the worth was set to zero and it was marked non-tradeable. I was told by customer service the line was still in my account because "our custodian still keeps the record of stockholders". Now fast forward 15 months and they removed the line from my account today. So basically I now feel pretty vulnerable and like I need to make sure my ownership of the shares can still be proven and remains intact. Of course I sent my broker an e-mail already and waiting for a response, but I would appreciate some more input. I'm pretty sure my broker can basically tell me to figure it out myself now, because they have nothing to do with this company anymore. So my question is, does anybody have experience in this field and know the proper course of action for me? There is lots of info on Google about stock delistings, but I find nothing about how to assert your rights when you're all of a sudden a private shareholder. Who even keeps the record or knows who owns which shares at this point? I guess I can simply contact the company myself, but I would like to know what I need from them and what to expect from them before I do that. EDIT: To be clear. This company delisted but left all the shareholders intact. The shares were not bought back to then go private and the company didn't go bust. EDIT2: Here is the press release from when the delisting was finalized In accordance with the terms of the Scheme, ordinary shareholders of Mainstay Medical International plc ('Mainstay') at 6.00 p.m. on Thursday, 4 June 2020 will be issued with one Mainstay Holdings Share for every Mainstay plc Share held at such time. Shareholders who held their Mainstay plc Shares in uncertificated form will have their CREST accounts credited with their entitlement to Mainstay Holdings Shares on Monday, 8 June 2020. Shareholders who held their Mainstay plc Shares in certificated form will be issued with share certificates in respect of their Mainstay Holdings Shares in June 2020. Shareholders are advised that all instructions, mandates, elections, communication preferences and group requirements relating to notices and other communications in respect of ordinary shares in effect on 5 June 2020 will, unless and until varied or revoked, be deemed to be valid and effective mandates or instructions to Mainstay Holdings in relation to the corresponding holding of Mainstay Holdings Shares. Cancellation of listing of Mainstay plc Shares The Mainstay plc Shares will be delisted from trading on Euronext Paris and the Euronext Growth market of Euronext Dublin with effect from 7.00 a.m. on 8 June 2020. Mainstay plc Shares in uncertificated form have been disabled in CREST. EDIT3: I guess I'm getting some clues from the press release myself as I posted it. I just found that "CREST is the central securities depository and settlement system for the UK and Ireland." I'm assuming I had uncertified shares, held at CREST on behalf of me (in nominee) in the name of my broker DeGiro. So I guess I need to start there and ask for these shares to be put in my name somehow. [link] [comments]  |
| Motley Fool automatically renews services Posted: 05 Jul 2021 04:22 PM PDT Just a heads. Anyone who has purchased a subscription of any kind of "The Motley Fool" may want to ensure that auto renewal is turned off. I discovered today while looking at my bank statement that those Fools auto renewed my subscription to "Stock Advisor Canada" to the tune of $222.88 without even sending an email reminding me that my account was about to expire and that I would have my subscription automatically renewed. So now I'm dealing with getting my money back. [link] [comments]  |
| Billionaire Space Race + Trickle-down on relevant industries? Posted: 06 Jul 2021 02:29 AM PDT I had a thought. Not a good thought, but a thought nonetheless. Bezos & Branson are currently having their own little mini-space race right now. Assuming they're successful and return alive, I wonder if this might start a trend of the global 1% all clamoring to get themselves to the great black void? If so, I also wonder if we can expect modest growth for all the various companies and industries that go into bringing a human into space. A wild amount of contractors are involved in engineering and constructing a space vehicle--not to mention their suits, life support, and all the coordinators & logistics that would go into pulling off such an astronomically massive project (pun not intended). Each time somebody insanely rich goes into space, they inject millions of dollars into each industry involved, all the way down to foundries forging their steel and mines pulling aluminum from the ground. I thought NASA contractors might be a good indication of which companies are involved with spaceflight. I referenced a non-comprehensive list and picked a few that I recognized:
Honorable mentions go to Musk's SpaceX & Bezos' Blue Origin, should they go public. I do recognize that most of these corporations are very diversified in their offerings, and may grow due to other reasons anyway. What do y'all think? Bad play or likely growth? [link] [comments]  |
| Etf that tracks Sp5 instead of sp500 Posted: 06 Jul 2021 02:39 AM PDT Ppl alwayd tend to say that the top5 companies in sp500 are not the same now than they were 10 years ago so dont invest in the stocks but invest in the etf that tracks the market and rebalances itself. But anyway it tend to look like the top performing stocks are always (usually) the biggest ones like now msft and apple and amazon makes huge gains and profits So, Why there isnt etf that would track market cap weightedly the five or maybe (25 or so) biggest companies in world and it would automatically balance itself wheather they perform bad or well. [link] [comments]  |
| Timing Traditional 401K -> Roth IRA conversion Posted: 05 Jul 2021 02:43 PM PDT I recently left a high paying job ($200k) where I contributed to a traditional 401K for about 2 years (balance is ~50k). I also have a Roth IRA (balance ~150k). I'm taking a short (voluntary) break between jobs to travel and anticipate my next job will be around 300k total compensation. My question is - should I take advantage of my (comparatively) low income in 2021 to take the tax penalty associated with this conversion? I say low because I'll be not working for around 4 months. By contrast, if I waited until 2022 to convert this sum to my roth IRA my tax bracket will be significantly higher. Lastly, I don't really know if I should even convert this 50k to my roth IRA. My original reasoning was that I expected my 200k income would exceed my retirement income (therefore I'd be taking advantage of the tax rate differential), but I no longer remain confident that my retirement income will be that low. Thanks in advance for your input! [link] [comments]  |
| Putting my money in gold stocks Posted: 05 Jul 2021 06:02 AM PDT I currently don't have gold in my portfolio but I have been looking into two that I want to invest in. I need some insight from the mining bulls out there. What do you think of these two? Yamana Gold (YRI) I have known this company for some time now because I have been seeing a lot of them but I never looked into it. They have five producing mines and are pushing through with more exploration projects. Last year their gold equivalent production is up to 87%, with the remaining 13% as silver. Collective Mining (CNL) This company has shown growth recently and it is really impressive. They rapidly advance their projects through intense geological mapping, sampling programs and a high resolution, airborne geophysical survey. With all these, they recently managed to identify a cluster of mineralized porphyries and associated gold-silver vein systems within their Guayabales Project, which is something to look forward to. Let me know what you think. Do you have other gold stocks to suggest? [link] [comments]  |
| Let's have a Corsair stock discussion Posted: 05 Jul 2021 12:43 PM PDT New investor here. Started DCA'ing into VOO a few months ago and just bought a few corsair shares. Read articles on Yahoo finance. P/E seems good (20). Hopefully this stock can rise once Eagle tree has stopped selling their shares. Motley also posted an interesting article a few days ago mentioning Corsair. Any opinions on this one from you guys? [link] [comments]  |
| Posted: 05 Jul 2021 10:52 PM PDT All the signs of a deep value stock seems to apply to DOYU. It seems that everyone is giving the stink eye to Chinese stocks in general. But isn't that the perfect time to jump in? DOYU is basically at the 52 week high. Balance sheet is strong, solid growth, cheep price, and bearish sentiment in Chinese stocks. If one where to apply the principles of contrarianism and deep value investing isnt this a solid value play? Honest thoughts??? [link] [comments]  |
| Not sure whether to reinvest dividends or keep them in order to invest in other stocks Posted: 05 Jul 2021 02:18 PM PDT Like millions of others, I'm still fairly new to the whole stockmarket thing. I've always felt like you had to be rich and have at a minimum of 10,000 that you can afford to spend at a whim in order to invest. So I'm still learning how to do the whole stockmarket thing. I'm planning on buying some EFT'S with dividend payouts, but I'm not sure what's the best course of action with that. What I WANT to do is take those dividends and use them to buy more stock in other stocks. I'm not close to retirement, so I definitely won't be using them to try and live off of. But I'm kinda worried about the taxes and how I will be effected by that if I take out the dividends, instead of reinvesting them into the same EFT'S. [link] [comments]  |
| What exactly is “The Bourbon Rule”? Posted: 05 Jul 2021 08:51 AM PDT Is there anybody here that could potentially explain "The Bourbon Rule" in stock analysis & investing? I've Googled & YouTubed throughout the internet & all i keep finding is rules to making better bourbon, or the difference between bourbon & whiskey, etc. From time to time I'll read a person's post, on whatever forum it may be, and they'll mention the bourbon rule. But i can never get a clear judgement or meaning of what it is or how you could potentially use it to develop an analysis in investing or price target on a stock. From my own personal judgement, it seems to be more of a "old-school" rule of thumb that may not be used much anymore, but still might be good to be aware of. Any insight on "The Bourbon Rule" would be greatly appreciated from anyone that may have some. TIA! [link] [comments]  |
| 18, new to the market, looking for stock advice Posted: 06 Jul 2021 03:23 AM PDT 18, recetly started investing. Learned a lot, probably not enough. Was looking for some good stock recommendation, and some new "up and comming" companies to invest in, currently not so good at researching because im still not sure what to look for when resesrching a company besides the basics. Would appreciate the recommendations even more if you elaborate, ill read up on the stocks afterwards and see what i think. [link] [comments]  |
| Ethical investing - an oxymoron or an important responsibilty? Posted: 06 Jul 2021 03:12 AM PDT I came across many articles that praise businesses that did extremely well over the last century and usually strongly recommend investing in them. Many times the common denominator of all such businesses are questionable ethical practices at best and plain murder at worst. Altria and CocaCola are two companies often mentioned im such context. Both have a stellar historical performance and unmatched dividend payout history. That being said, Altria earns all of its income through tobacco products that are very well known to be extremely harmful and very addicting. Cocacola started off with selling literal cocaine. See where I am getting at? Not really a problem having "solid fundamentals" when you are pushing addictive drugs, is it? That being said, both above mentioned corporations have some very unethical practices on record including but not limited to massive funding of research solely intended to cover up the harmful effects of their products and inciting violence in the developing world throigh politics. Same goes with some pharmaceutical companies like J&J that did great but spent millions if not billions on covering up known and dangerous side effects of its patented drugs (hyperprolactinemia from risperidone for example). A similar problem is also very prominently present in other sectors like energy where companies destroy indigenous communities for midstream piplines and so on... And we as shareholders are (at least partly) responsible for (at least some of the) harmful practices that are carried out mostly to ensure future revenue So my question is, do you guys ever consider the ethical implications of owning a share of a certain company? And if you do, where do you draw the line? [link] [comments]  |
| Question about the stocks SMIC and TMSC (semiconductor companies) Posted: 05 Jul 2021 01:09 PM PDT The Chinese semiconductor company SMIC was hit by sanctions preventing trading to the US on September 2020 yet it's shares didn't change much in price from September 2020 onwards. I read they supplied 80% of Qualcomm which is a massive customer so the sanction should have had a massive hit to their demand. Compared to Taiwanese company TSMC which faced a surge in demand from the ban and has a noticeable increase in stock price from September 2020 onwards. What is the reason for this behaviour? Why does the stock SMIC not drop in value when it loses a lot of demand? Is it simply because people aren't selling their shares and are holding out? [link] [comments]  |
| Investing in homes with Airbnb demand Posted: 05 Jul 2021 02:03 PM PDT One of the downsides of (owner-occupied) home ownership is obviously that you're tied to the property insofar as you do not have the flexibility to migrate or travel as easily as you can on a year-long or month to month lease, other liabilities of home ownership i.e. risks of not paying mortgage, going underwater, etc. notwithstanding. Additionally, many HOAs prohibit short-term rentals a la Airbnb. One of the investment notions that occurred to me was looking at something like AirDNA to determine where the demand is (or isn't) for short-term rentals and then using that as (part or most of) your purchasing criteria, so that if you want to, say, fuck off to travel for a few months you are not having to finance two living arrangements, as you normally would. What are the down-side risks to taking this approach beyond the ones I'm listing below? So far I can think of:
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| Is this simply a rite of passage? Posted: 06 Jul 2021 02:20 AM PDT Recently started earning, and, even more recently, started investing. Got attracted to investing by the usual narrative: "power of compounding". However, as I try to get a deeper understanding about stuff like: why a fund makes money, inflation, debt cycles of a country, different types of assets, credit propping up economies etc along with the expectation of water scarcity, disrupted agricultural patterns due to extreme climates and the resulting social unrest coming up in the future, I am getting less and less optimistic about the future and the possibility of slightly early retirement because I'm now adjusting expectations for a lower return and possibly 0 return accounting for inflation. The "buy and hold" idea seems simple but doesn't convince me. Right now I've mostly invested in debt funds and a small amount weekly in index funds. Looking for some perspective. [link] [comments]  |
| Small/medium cap value stocks are worth a look Posted: 05 Jul 2021 03:28 PM PDT I'm a relatively new and young investor, but I've been migrating a large portion of my IRA into small/medium cap value in the form of VBR (considering viov or avuv). I have looked at many of the holdings in VBR, not necessarily the numbers/stats but the companies themselves and what they do. They're not the companies that many would expect to be at the forefront of changing the world right now (more involvement with basic household products, components, chemicals, and infrastructure) and not so much information technology. I honestly don't see this as a bad thing, and I feel like these fields still have so much to gain from advances in automation and technology in general over the long-term, perhaps even more so than IT companies. After all, creating a website/app is less complex than chemical engineering, or even running a bank efficiently. It will take time for these companies to show their true potential. Yes VBR, VIOV and similar etfs have done much worse than the sexier tech filled etfs over the last decade, but that has resulted in them being relatively cheap considering how crowded the stock market is as a whole right now. [link] [comments]  |
| Questions regarding reading the Cash Flow from Financing Activities. Posted: 05 Jul 2021 12:47 PM PDT I am slowly but surely learning more about how to read the SEC and get meaningful information from them. Mostly thanks to reddit for answering questions regarding the particulars. I am stumped on something else and was wondering if i can get some confirmation. This is regards to looking at corsairs 10k and 10q. I am trying to find concrete information on exactly how much Corsair paid to buy out Elgato, Origin, and SCUF. and it seems like i have to do some digging because the buy out value is never on any of the articles. I am assuming its because CRSR was a private company when these were purchased? so digging through the CFF on their 10Q for Q3 of 2020. it states
if so, in their 10K, it states
again how can i find this information better in the SEC filings without digging through multiple overall statements to do the math myself? i would assume it would state somewhere "corsair bought X for $Y and A for $B" but i cant seem to find that.
reason why i ask question 3 is because it seems like every year, corsair also had something called a "payment of deferred consideration". from investopedia it says its simply payment part of the buyout thats paid later. which means a company's real buyout price is "Acquisions of business, net of cash acquired" line + every year's listed Payment of deferred consideration? and once again, that is very tedious and annoying. And again, is there a way i can simply find "CRSR bought Elgato for $$$x" ?? [link] [comments]  |
| TD Due Diligence and characteristics Posted: 05 Jul 2021 01:19 PM PDT TD: TD is the sixth largest bank in north america. They have over 26 million customers. Their main operations are:
They have 14m online customers and 1.7t in assets. They implemented a deferral program which worked quite well in 2020. 25% of canadian lending accounts took part in this program in april, and by late october, there were only 2.2 percent of accounts still participating. This likely artificially depressed some financial values such as cash flows, interest payments and accounts receivable which could have been reflected by a lower price, justified if one is speculating but truely an artificial value as loans return to normal. This program accounted for 45.7b in loans. Similar results were seen in America, with 11.9b in loans, representing 21% of accounts in April later transitioning to 5.2% of accounts. This is not as attractive as canadian accounts, but is only 25% of the size, and a tiny fraction of balance sheet items, as well as having a shorter deferral period. The bank recently carried out what they call the Schwab transaction, where they acquired 13.5% of the Schwab corporation. This transaction is healthy, and Schwab has about 80% of its market cap covered in cash alone, as well as 6b in FCF for a 120b cap. TD has managed to increase revenue and net income in 2020. They allocated more capital for credit losses, but managed to pay less taxes likely in light of the current economic and societal situation. Business segment overview: They have 16m customers in Canada. This is almost half of the population, which likely will have a monopolizing effect. They have credit cards, auto finance services, business banking, merchant solutions, asset management services, and an insurance business in canada. In the United States they have personal/business banking, and TD ameritrade. They operate a wholesale banking segment which operates like any investment bank. This segment operates under the TD securities brand. There is a vast segment called the corporate segment which does a number of different operations. These operations include technology solutions, shared services, treasury and balance sheet management (asset management?), marketing, human resources, finance risk management, compliance [management], legal, anti-money laundering, and ?other? Operations. It seems quite difficult to find information on this segment, other than it has a margin of about -20%, making it even more curious. Segment analysis: All segments other than corporate are profitable, and have similar margins around 25%. Canadian retail has seen slight increases every year since 2018. Net income in this segment has been declining. A decrease in personal banking revenue by 750m was countered by a 200m increase in business banking, a 400m increase in wealth banking, and a 250m increase in insurance, resulting in increased revenue from 2019 to 2020. There is quite a high ROE for this segment. US retail has seen stable, cyclical revenues with a macro up trend. Net income significantly dropped in 2020. Deposits grew in personal and business banking and in sweep. The ROE in this segment is significantly lower than in the canadian retail segment. In wholesale banking, there was a sharp increase in revenue and in net income. This segment has a ROE of 16.9. They were a part of a number of large name broker actions, acting as an intermediary. They carry out some trading, research, underwriting, securitization, trade finance, cash management, brokerage, and trade execution services in their global markets segment. In the corporate/investment banking sector they do corporate lending, debt/equity underwriting and advisory services. The corporate segment is a number of service and control groups. It seems to manage tax items, treasury and balance sheet activities, and some other shady sounding operations. It seems like this segment manages some accounting, as well as some issuance of equities/debt equities. The balance sheet is very large. There was a $300 billion increase from 2019-20. This was mostly related to a large increase in deposits. The bank has 718b in loans. Of these, only about 2b were stage three. Factoring in allowance for credit loss, there is a possible delinquency rate just below 2 percent at around 12b which is covered 15 times over by cash alone. With most liabilities in deposits, there is no immediate concern in the balance sheet. There are almost 200b in securities sold under repurchase agreements, which will be evaluated over at least 5 years, presenting again little threat. The loans can be broken down into regional and segmental sections. Canadian residential mortgages account for 213billion of the loans. Mortgage delinquency rates in canada are 0.23% as of Jan 31, 2021. This equates to about 212.5b in real value from the mortgage loans, although TD has allocated about 100 million less than I recommend. HELOCs account for another adjusted 95 billion. All together, personal loans account for 369.256b on the balance sheet. Conservatively taking delinquencies at 1b, this figure is adjusted to 268.256b for analytical purposes. Real estate represents about 40 billion in canadian loans, and assorted business and government is another 115.2b, predominantly in the financial and consumer staples industries. All of these loans look healthy at first glance. United states loans are similar. There are 100b in personal loans, 35.4b in real estate, and 148.3 in business and government with a similar allocation as the corresponding canadian section under the same name. There is 9b in other international loans. The total is about 734.9b. There is about a 5.3 percent average increase YOY in pure volume of loans. TD decisively estimates that 1.3b of loans are in stage 3, which may be a little conservative for most analysts. Preparing for up to one percent delinquency is in order because of the recent volatility in the market right now as well as in the canadian economy as an expected third wave of Covid-19 expands its grasp. In table 33 of the 2020 annual report, they allocate 7 billion to credit losses which is much more reasonable because they account for stage 1 and 2 as well. In this time of great uncertainty, it is not unreasonable to change this estimate to 20b. The bank has apparent backing from the canadian government so there is no immediate threat to allocate a tenth of capital reserves to delinquencies. [link] [comments]  |
| Emerging Markets VALUE etf recommendations? Posted: 05 Jul 2021 12:03 PM PDT Hi, I've been following Jeremy Grantham's interviews and posts lately, and I like his recommendation to invest to emerging markets and value. Regardless of your thoughts about his predictions, are there any recommendations for ETFs that cover these two themes (value and emerging markets), for both CAD or USD etfs? I've found so far:
Any other suggestions? Thanks! [link] [comments]  |
| What type of bonds do you buy for a bond tent? Posted: 05 Jul 2021 06:49 AM PDT One of the Sequence of Returns Risks mitigation strategies is to be heavy on equities going into retirement and then to build up a bond tent for the first few years of retirement before transitioning back to a larger equity position, to maintain capital through a longer retirement. I suppose to an extent it depends on how long this bond tent is supposed to last, since you're supposed to buy bonds that match the duration you plan to hold them, but if so, doesn't this mean that you'd actually have to set up a sort of 'bond ladder tent' of ultra-short, short, and intermediate bonds, primarily treasuries, to keep you safe through the transition period? Or do you just buy intermediate treasuries and accept a potential loss selling a portion of them earlier than their duration match if something weird happens with interest rates during the first few years of your retirement? What types of bonds do bond tent strategies specifically call for? [link] [comments]  |
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