Daily General Discussion and spitballin thread - September 10, 2021 Investing |
- Daily General Discussion and spitballin thread - September 10, 2021
- Daily Advice Thread - All basic help or advice questions must be posted here. September 10, 2021
- Tether has over $68bn under their management and just 13 employees. That's a record, the previous record holder was Bernie Madoff's ponzi scheme with $50bn under management and 25 employees. Isn't this concerning given Tethers refusal to be audited?
- The demand for copper against the copper supply
- How to interpret negative ROIC due to excess cash?
- Major crisis were led by property crisis.
- Why is LMT stock coming down so hard?
- Small caps - preparing to launch or stick a fork in it?
- Can someone please explain futures rollovers
- Short selling and it’s relation to ADR’s
| Daily General Discussion and spitballin thread - September 10, 2021 Posted: 10 Sep 2021 02:02 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. September 10, 2021 Posted: 10 Sep 2021 02:01 AM PDT If your question is "I have $10,000, what do I do?" or other "advice for my personal situation" questions, you should include relevant information, such as the following:
Please consider consulting our FAQ first - https://www.reddit.com/r/investing/wiki/faq And our side bar also has useful resources. Be aware that these answers are just opinions of Redditors and should be used as a starting point for your research. You should strongly consider seeing a registered financial rep before making any financial decisions! [link] [comments]  |
| Posted: 09 Sep 2021 05:49 AM PDT Tether only has 13 listed employees on LinkedIn. Source There is just over $68bn Tether in existence, meaning Tether theoretically has $62bn under their control. Source That is over $5bn in assets per employee of Tether If that seems comically low it's because it is. It's a world record for total amount of money managed per employee. The only similarly small number of employees for such a large amount of money under management was Bernie Madoff's ponzi scheme, which had $50bn under management with just 25 employees. Source ----------------------------------------------------------------------------------------------------------------------------------------------------- What benefit is there to having such a low number of employees? Lower costs yes but with the money they control and need to invest surely it would make sense for them to have more than just 13 employees doing this? Or is it because it's easier for them to conceal fraud when there's only a handful of people being exposed to it and most of them have a large interest in keeping the fraud going. Tether has just under $30bn in commercial paper (source) which makes it one of the largest US commercial paper market investors in the entire world, alongside the likes of Vanguard (17,600 employees) and BlackRock (16,500 employees). THIRTEEN EMPLOYEES EVALUATING THE CREDITWORTHINESS OF NEARLY 30BN IN COMMERCIAL PAPER LOANS AND WITHOUT THE OVERSIGHT OF AUDITING. Recently, they have also been blocking everyone on social media who demands for transparency and audits of their coin. Source ----------------------------------------------------------------------------------------------------------------------------------------------------- Does this not absolutely terrify anyone else? [link] [comments]  |
| The demand for copper against the copper supply Posted: 10 Sep 2021 03:48 AM PDT Seeing the current situation, I strongly believe that the demand for copper will just keep on rising, so the prices will also rise unless we find more copper or some other economic alternative. This brings me to the question about the possibility of the supply to meet the demand. Copper is important for the production of electronic devices and of renewable sources of energy. To add to that, it is also important for everything that's electric, manufacturing batteries, and even for solar panels. There is a high demand for it and it is unlikely that it will go down soon. There are a lot of big mining companies that are producing massive amounts of copper such as Codelco. Just last year, Codelco was the largest producer of copper, producing 1.73 million tonnes, which was 1.3% higher than their last year's performance. BHP, which owns the world's largest copper mine, comes in second producing 1.77 million tonnes. A lot of smaller companies are joining as well too, and are in for producing tons of the metal too as shown by their drilling results. I believe that these smaller and new companies will contribute greatly to the copper supply boost, which will also help ease the situation of the rising prices. Among them is Three Valley Copper (TVC.V), a Canadian company producing pure copper cathodes from its mineral reserves. They recently released their second-quarter results, where they announced that they were able to mine 178,105 tonnes of ore from Don Gabriel. The company expects high unit costs throughout the year until next year since they are aiming to operate below capacity. There are also explorations that are showing potential like Wedgemount Resources who recently found new mineralized zones. Both senior and junior mining companies are striving hard to keep up with the demand for the metal. As years go by, I believe copper is going to be really critical and will be a mainstay in a lot of industries. I know that a lot of companies are striving to meet the demand for this metal, but if it does not match the rate of the increase on demand for copper, the supply will likely be short and the prices will continue to increase. [link] [comments]  |
| How to interpret negative ROIC due to excess cash? Posted: 10 Sep 2021 04:10 AM PDT The company that I'm studying (a start-up in the Computer Services subsector) is sitting on a lot of cash. Actually it's so much that it exceeds the total capital and total debt with interest obligations thus bringing it's ROIC below 0, even if its profits are on the positive. I'm interpreting that at this point the suppliers are crediting the company or that the clients payed in advance for the services that are about to be provided. In this case, I think that either the cash and equivalents can be assimilated with a current loan of 0% interest and added to the debt or I should ignore cash entirely. [link] [comments]  |
| Major crisis were led by property crisis. Posted: 10 Sep 2021 03:53 AM PDT Urban construction, modernisation and so, is the main investment done by governments to boost the economy, because urbanisation attracts investments and cities created big consume demands. But these investments are the major forces leasing to the main crises at least since 1870. When France economy was starting getting weak in the middle of XIX century they invested in modernising Paris is a huge scale. It workerd to attract investment and to create demand for business but eventually it lead to the late 1860s crises resulting the the famous Paris Commune. The war against Bismark's Prussia was an other way to attempt to invest the eccess of capital. The very same strategy was the urban development in NY and other major cities in America leading and the property crisis in the midle of 1920s preciding the big economic crash. The american suburb development in the 1940s excluding minorities, especially the black community, and the bored suburb middle class kids, lead the 68 protests. After changes in the economy for a more Neoliberal strategy, giving much more power to capitalists acumulation investments in urban development became more frequent and so the cycle of crisis. The crisis of 1973 originated in a global property market crash; it wasn't really the oil prices as mainstream economics like to suggest. The property crash happen 6 months before the oil price hike and recession was well under way by the fall. Commercial property lead the Savings and Loan crisis of the late 1980s in the US. The end of Japan boom in 1990 corresponded to a collapse of land prices. Nationalisation of Swedish banking system in 1992 because of eccess in property markets. One of the teiggers for the collapse in East and South East Asia in 1997-98 was the eccessive urban development in Thailand. Since urbain development have been intensified in the past 20 years I assume that keeping an eye on the property market is a good idea as a sinal for major crisis approaching. The greater the share of property markets in GDP, the more significant the connection between financing and investment in the built environment becomes a major source of macro crisis. In the US where housing mortgage was equivalent of 40% of GDP it mostly certainly generated a crisis in 2007-09. Source: Rebel Cities: From the right to the city to the urban revolution by David Harvey [link] [comments]  |
| Why is LMT stock coming down so hard? Posted: 09 Sep 2021 11:30 AM PDT Bought a couple $360 call options that expire December 21 for a few thousands ($20,000+ Total) when LMT was at $354ish. I was thinking the company was undervalued… after careful analysis. I've seen some investors and analysts saying it's bound to hit $400 - $420 to be considered in value range. They have a good dividend rate and with the diversity of their product, except for the Afghan war withdrawal I really can't see anything that would cause this. Maybe the general decline in the market? I've been investing since 2017 and I really can't find anything that would cause this. I'd like some education if anyone can provide me with insight. I'm always open to criticism. Now it's at 348ish and I'm getting completely obliterated… Any insight? Will it recover? What are your guys thoughts? [link] [comments]  |
| Small caps - preparing to launch or stick a fork in it? Posted: 09 Sep 2021 08:07 AM PDT My retirement account made a pretty nice return on small caps (mostly fssnx) since the covid crash. My financial advisor (a good friend, but I don't pay him for advice) suggests I move about half of what I have in that asset class into several large cap funds to lock in some gain and provide some stability against interest rate increase and inflation fears. I have plenty of faith in the guy, he would never intentionally lead me wrong (since he doesn't get any money for this advice), but it got me thinking about whether his advice is based on sound reasoning. Would moving from small caps to large caps be a hedge against interest rate increases and inflation? If so, it seems like a no brainer. Also, if true, is that why small cap indexes have mostly traded sideways in the last 6 months? [link] [comments]  |
| Can someone please explain futures rollovers Posted: 09 Sep 2021 07:50 AM PDT Hello, Like the title says, I am curious about how the futures rollovers work particularly in the context of ES and NQ. I see it appears that contracts for the next quarter begin trading today (9/9/21) for Dec expiry contracts. But that doesn't mean the contracts expiring next week have stopped trading. So the "rollover" begins today? When does the "rollover" for trading normally complete for Sept contracts? A week before expiry (ie tomorrow, Friday), or Wednesday before expiry..? Were contracts for Dec and further forward expiry already trading prior to today or no? Is the typical effect on the price as the contract expiration nears convergence to spot? Is it not the case that everyone who does not intend to actually take delivery will effectively begin to evaporate from the market as the expiration date nears? What's the last day for which those who do not intend to take delivery actively trade?(assuming T-1 to expiry but not sure) Sorry if these are overly simplistic questions I don't have experience with futures contracts and any answers would be helpful and appreciated. Thank you. [link] [comments]  |
| Short selling and it’s relation to ADR’s Posted: 09 Sep 2021 08:25 AM PDT With all the talk of naked short selling, fail to delivers, etc, it got me wondering about how short selling works with adr's. I came across this paper, I'm not even close to being done reading it yet, but it got me thinking so here I am. How do you reconcile that short selling isn't legal in the country where the company operates, except in the country where their adrs are listed, selling them short is legal? Short Selling ADRs and Foreign Market Short-Sale Constraints [link] [comments]  |
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