Daily General Discussion and spitballin thread - August 11, 2021 Investing |
- Daily General Discussion and spitballin thread - August 11, 2021
- Daily Advice Thread - All basic help or advice questions must be posted here. August 11, 2021
- Coinbase beats earnings estimates for Q2
- Why would a company operating at a loss issue a special dividend?
- Is it a pragmatic decision to allocate a certain percentage of my portfolio to Cryptocurrencies?
- Investing in art as a retail investor
- Nintendo - hold or sell currently at a loss?
- Any good books on the market/investing/financial system/economics you recommend?
- Pros and Cons of investing in homebuilding ETFs?
- Intellectual Property and Valuation: Thoughts from an FP&A Analyst
- Looking for early stage investors for a tech startup
- How can I see the holdings of well-established investors and firms?
- Options Strategy Feedback
- FGI, Steady Downtrend Since December (Peak 92 to recent low of 18)
- Research to understand the phenomenon of ‘dumb money’ for retail investors in developing markets
- which broadband company do you like over the next couple years
| Daily General Discussion and spitballin thread - August 11, 2021 Posted: 11 Aug 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. August 11, 2021 Posted: 11 Aug 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]  | ||||||||||||||||||||||||||||||
| Coinbase beats earnings estimates for Q2 Posted: 10 Aug 2021 01:07 PM PDT
Shares flat. [link] [comments]  | ||||||||||||||||||||||||||||||
| Why would a company operating at a loss issue a special dividend? Posted: 10 Aug 2021 08:17 AM PDT So I'm looking at this report on Ecovyst which will pay a special dividend of $3.2 later this month. From this report, it looks like they had a net loss last quarter of $7.2M. How can a company which is losing money issue such a large dividend? Shouldn't they use that money to grow, or at least pay off their debts before handing it over to shareholders? [link] [comments]  | ||||||||||||||||||||||||||||||
| Is it a pragmatic decision to allocate a certain percentage of my portfolio to Cryptocurrencies? Posted: 10 Aug 2021 05:28 PM PDT My total net worth across all of my accounts i.e. taxable brokerage accounts, savings accounts, 401k, etc. is hovering around $500k. Almost all of it is in ETFs, Target dated funds, etc. Currently, I don't hold anything that is deemed risky or has a potential for explosive growth, so I was thinking of investing maybe 2%($10k) in Cryptos. $5k in BTC and $5k in ETH. I am 29 years old and I am don't have any goals or targets that I am saving towards. So I had the following questions.
I don't want to create this post in r/BTC or r/CryptoCurrency because I feel the overwhelming response I will get from them is to go ahead and invest in cryptos. [link] [comments]  | ||||||||||||||||||||||||||||||
| Investing in art as a retail investor Posted: 10 Aug 2021 10:46 PM PDT Disclosure: Hedonova invests in works of art. Hedonova conducts business with some of the firms mentioned here. This is not investment advice. We've all read about paintings being bought and sold for tens of millions of dollars and wondered how could something that a 5-year-old could make be worth so much! We've gawked at the magnitude of money changing hands in the highbrow world of fine art and wanted to be part of the game. Just like startups, where only a fraction goes on to become unicorns, a minuscule percentage of artists command million-dollar price tags. They're the Picassos, Basquaits, Warhols, and Monets of the world. Art prices, like startup valuation, can seem mystical. They're driven by popular trends, condition, rarity, popularity in pop culture, quantitative factors like auction history and provenance (who's owned it before you). Here's a look at how art markets work and how retail investors can profit from it. Highlights
Art vs other assets classes - Financial performance
\For the period between 1985 and 2020) Pros of art investing
Average real return during periods when US inflation was higher than 3%.
\For the period between 1985 and 2020) Cons of art investing
How can a retail investor invest in art?
Individual artwork historical performance
***\* Further reading
Reports critical of art investing [link] [comments]  | ||||||||||||||||||||||||||||||
| Nintendo - hold or sell currently at a loss? Posted: 10 Aug 2021 03:46 PM PDT I am currently heavily invested in NTDOY and down 22% and am debating whether to sell or hold. In general, my video game stocks have been mediocre for the year in comparison to other stocks (EA = meh, Take Two pretty decent). I am most anticipating the new Switch that comes out in the fall with higher quality screens may bring back customers, the issue seems to be that they aren't releasing enough games and a game like Animal Crossing that came out during the pandemic just isn't coming around again, and most other games are not close to their sales. A big reason I bought Nintendo was bc of it's prospects with Nintendo World (currently in Japan) as well, that are eventually coming to the US in 2023-2024, but now I'm hearing that apparently Universal or something owns/gets profits in the locations not even Nintendo? WT?? What do people suggest or recommend? Or the outlook they see for Nintendo? [link] [comments]  | ||||||||||||||||||||||||||||||
| Any good books on the market/investing/financial system/economics you recommend? Posted: 10 Aug 2021 09:46 PM PDT Looking at getting into reading physical books again and was wondering if anyone has any suggestions? I am looking for books a little more in depth about the market/investing, something a little challenging and interesting. Something that maybe dives into the financial system, economics or maybe behavioral finance as well. I've hears a lot of Michael Lewis books but haven't read any yet. I was algo looking at the book "too big too fail" Basically I am looking for something that is not basic investing or something for beginners. I would appreciate any advice or recommendations from anyone. Thank you! [link] [comments]  | ||||||||||||||||||||||||||||||
| Pros and Cons of investing in homebuilding ETFs? Posted: 10 Aug 2021 09:22 AM PDT Overall I'm very bullish in the long term prospects of investing in homebuilder ETFs because:
In the long term I expect homebuilding ETFs to do great in the next 5 years (which is my general investment horizon). But I'm curious
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| Intellectual Property and Valuation: Thoughts from an FP&A Analyst Posted: 10 Aug 2021 07:40 PM PDT PREFACE: This is information not advice. I have no stake in how you choose to implement this information. It is simply to dive a little further into a topic that comes up now and then around which there seems to be some misunderstanding. Also note, that this is a discussion of valuation from a fundamentals perspective. That is, any mention of valuation herein solely concerns the key metrics and methods related to the current, fair value of expected, forecasted performance, not what will be the company's value based on the possible outcomes of developments yet to be. SECOND PREFACE (with apologies to Tolkien): Reposted because half of the original post was somehow missing. Recently I was responding to a question about valuation and someone raised the notion that tech companies are massively undervalued because of their dependence on intellectual property. On reflection I thought of a more complete answer to that question, the short version of which is: Business valuation is a triangulation of many different metrics, and most if not all of what we are looking for is in the Consolidated Statements of Financial Position. And most of the "gotchas" to that are found in the Notes to Consolidated Statements of Financial Position. The argument went something like this: Fundamental valuation doesn't capture the contributions of intellectual property and therefore significantly undervalues tech companies [in particular]. While it's true that intellectual property itself at the conceptual stage is not to be found on the balance sheets, it's not true that its monetary impact is absent or unknowable from the financial statements. First, note that every industry has intellectual property. Tech is not unique or new in this regard. But every company's intellectual property is moot if it cannot be transformed into products and/or services that make money. That is, after all, the goal of every business. The tech companies that supposedly have "huge" IP value don't actually make that claim in their financial statements, first because internally generated IP is not a recordable asset, and second because even acquired intangibles don't account for much. Consider this: Out of $323 billion in total assets, AAPL, who patents hundreds of things they never even bring to market, has not listed a dime of intangible assets on their balance sheet since 2017. Facebook's gross intangibles are $5 billion out of $159 billion in assets... insignificant. Amazon's gross intangibles (MRQ) are $6.4 billion out of $321 billion in assets. You can't value internally developed IP, particularly not at some arbitrary potential future sales you think might materialize. It's valued only once there are costs associated with patents, trademarks, copyrights, etc. In the case of Amazon, even among the acquisitions recorded in the 2020 10-K, occurring since 2018, merely $28 million of that $5.2 billion is actually associated with the IP & R&D costs...most of that is likely R&D. And guess what method is used to amortize it? That's right... Discounted Cash Flow method. It's certainly important to understand the role IP plays in these companies but we don't just throw out Tangible Book Value in our longer analysis of companies (or the market). That's simply a starting benchmark, like a decision point, where you decide whether it's worth your time to do further analysis or simply out of the bounds you have set for whatever your investment criteria may be. So how are we to think about this? Well, the reason we ultimately care about intellectual property is only because of a company's ability to convert it into operating cash flow. So when we think about companies that have been around for more than a few minutes and change—Facebook, Amazon, Apple, Netflix, Google (FAANG) all qualify—they must have some kind of paper trail, right? At the end of the lifecycle of every intellectual property is a pot of money. That's the goal. Disney turns comic book characters into movies. Apple turns round rectangles into iPhones. Amazon turns one-click purchasing into endless shifts with no piss breaks... These are all measurable events recorded in the financial statements in some form or another. In this sense, when we go through a complete valuation exercise, soup-to-nuts, from Book Value to Fair Value, we are taking into account the company's history of turning IP into operating cash. Tech companies like Apple, Netflix, Amazon, etc., all have products and services that went through this lifecycle. You can see years of history of these companies converting intellectual property into cash flow. You can see into the mouth of that funnel. You see it in the relationship between SG&A and Revenue, between PPE, Leases, headcount, inventory, and the like, and in the flow of money into and out of Retained Earnings. The companies that are good at developing IP into profitable business segments grow, and thus grows the footprint of their Consolidated Financial Statements. Every company exists to turn ideas into money. [link] [comments]  | ||||||||||||||||||||||||||||||
| Looking for early stage investors for a tech startup Posted: 11 Aug 2021 04:19 AM PDT Hi everyone, Our startup (Scribesbay) currently runs a freelance platform for writers in Africa. We currently have a little over 1,200 writers, generated five-figure revenue over the last ten months and we're profitable. We have bootstrapped with no external investment. We are four young founders seasoned in the freelance and technology space. We plan to scale our platform as we see opportunities for exponential growth. We are operating in a $60 billion per year market and we have an opportunity to quickly harness that. In this light, we are looking for early stage investors to help put us on track to achieve this goal. This is a very virgin market in Africa with opportunities for high returns on investment and we've seen the likes of Andela prove this. Please kindly reach out if you're remotely interested in investing in Africa's tech space. Open to answering questions and speaking with you all. Thank you! EDIT: Very open to answering relevant questions about investing in Africa's tech space and in our startup. [link] [comments]  | ||||||||||||||||||||||||||||||
| How can I see the holdings of well-established investors and firms? Posted: 10 Aug 2021 08:34 AM PDT What resources are available to copy the investment strategies of well-established financial gurus? More specifically, is there a way to see a live feed of the holdings of certain investment firms? Are there any skilled social media personalities that publish their holdings? I understand this question sounds shallow, but aside from hacky websites like "Motley Fool" and "Zacks"...what's out there? Or maybe these websites are legitimate and actually work....can anyone attest? Bottom line, I love investing but I understand I'm an amateur. If I found someone I believed in, I would happily dedicate a portion of my portfolio to copying their investments to a T and seeing how it holds up to what I'm doing. I'm sure there would be a fee associated with this and I would be happy to pay a fee as long as it wasn't a scam. A lot of the crap I see on Youtube ads feel like a scam. Motley fool feels like a scam. I've been at this for a few years and I feel like I need an anchor to keep me from drifting off to a sea of poor investment decisions. [link] [comments]  | ||||||||||||||||||||||||||||||
| Posted: 10 Aug 2021 08:43 PM PDT Hi All, I've been trading on the stock market for around four months now. Most of that has been trading shares, but I've gotten into options during the past month. I've developed a strategy that has largely served me well, but I would love some advice/cautions/feedback. The whole idea is to play off of rebounds of early morning drops. I've compiled a list of around 50 companies, mostly well established (TGT, MA, MSFT, etc.), that I watch closely each morning. I watch to see which ones drop during the first ~2 hours of the day, especially drops that seem to happen for no reason. I wait for it to rebound slightly (compared to the drop), then I load up on ITM calls, which hopefully pick me up some cash. The following morning, if the stock is up sometime within 30 min of market open, I try to close the options, rinse, and repeat. For example, look at MasterCard $MA from today (6/10). I waited for the morning drop to start to slow, before putting in a bunch of calls. I ended up buying slightly too early, but still managed to score towards the end of the day. I also watch for companies that do very well in earnings (ones that beat their estimations) but show sudden drops anyways. Lastly, before dumping my money, I look at the chart over the past month. If it has been steadily increasing, or if it seems to be at a trough despite it being an established company, I feel more reassured. This strategy has done me well so far, but I acknowledge that by putting all of my cash into calls I am taking some serious risk, which is largely why I make them ITM calls. Let me know any thoughts, or if y'all have any feedback or questions, as I'm still very new to this and hoping to improve! [link] [comments]  | ||||||||||||||||||||||||||||||
| FGI, Steady Downtrend Since December (Peak 92 to recent low of 18) Posted: 10 Aug 2021 04:34 PM PDT Not making any statements, assumptions or predictions about what (if anything) this means. I have observed the steady decline in the FGI readings since late last year. Lower highs followed by lower lows; pretty steady. I found it to be interesting and figured people might find it interesting in light of the fact that CNN Money doesn't share their data. If anyone wants to see the chart: https://imgur.com/a/Q2uKw0d [link] [comments]  | ||||||||||||||||||||||||||||||
| Research to understand the phenomenon of ‘dumb money’ for retail investors in developing markets Posted: 10 Aug 2021 05:21 AM PDT Hi so I'm looking for resources to understand the phenomenon of unintelligent, uninformed investment decision making in the financial markets of developing countries. In the market that I primarily invest in, it is very common for retail investors to act like traders in that they are mainly driven by FUD, greed and panic. Online forums are very limited and the ones that exist are usually ridden by investors asking for trading 'tips'. We also have a lot of stock market whales that do rampant front running and insider trading. This is partly a cause of weak regulations as well. I'm trying to understand the reasons behind unintelligent investing among retail investors that have no concern about fundamental realities. Potential solutions? The market is also undergoing a digital revolution across sectors so ways in which this could make investing styles for intelligent and research driven? Thanks, the question is purposefully open ended. Trying to get a wide range of perspectives here. [link] [comments]  | ||||||||||||||||||||||||||||||
| which broadband company do you like over the next couple years Posted: 10 Aug 2021 12:26 PM PDT As far as residential broadband is concerned, consumers have many options depending on where you live. you can either go with cable which consists of docsis 3 and soon docsis 4, verizon fios or 5G options from Vz, t or tmus. Verizon seems to have almost given up on fios as they go all in on 5g while att and tmus are also pushing 5g really hard. At the end of the day, I think companies like cmcsa and charter are best positioned to win this battle. In terms of cost, I don't think there is much they need to do to move from docsis 3 to 4. With docis 4, you could see speeds of up to 10gbps and pretty decent upload speeds. 5g also offers some promise as well, but I think it might take some time for these companies to catch up to cable companies. just curious to hear your thoughts [link] [comments]  |
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