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    Thursday, September 9, 2021

    Stocks - r/Stocks Daily Discussion & Options Trading Thursday - Sep 09, 2021

    Stocks - r/Stocks Daily Discussion & Options Trading Thursday - Sep 09, 2021


    r/Stocks Daily Discussion & Options Trading Thursday - Sep 09, 2021

    Posted: 09 Sep 2021 02:30 AM PDT

    This is the daily discussion, so anything stocks related is fine, but the theme for today is on stock options, but if options aren't your thing then just ignore the theme and/or post your arguments against options here and not in the current post.

    Some helpful day to day links, including news:


    Required info to start understanding options:

    • Call option Investopedia video basically a call option allows you to buy 100 shares of a stock at a certain price (strike price), but without the obligation to buy
    • Put option Investopedia video a put option allows you to sell 100 shares of a stock at a certain price (strike price), but without the obligation to sell

    See the following word cloud and click through for the wiki:

    Call option - Put option - Exercising an option - Strike price - ITM - OTM - ATM - Long options - Short options - Combo - Debit - Credit or Premium - Covered call - Naked - Debit call spread - Credit call spread - Strangle - Iron condor - Vertical debit spreads - Iron Fly

    If you have a basic question, for example "what is delta," then google "investopedia delta" 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.

    See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.

    submitted by /u/AutoModerator
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    Mastercard makes a big bet on crypto, buying blockchain analytics start-up CipherTrace

    Posted: 09 Sep 2021 07:56 AM PDT

    https://www.cnbc.com/2021/09/09/mastercard-to-buy-blockchain-analytics-start-up-ciphertrace.html

    Mastercard said Thursday it entered into an agreement to buy CipherTrace for an undisclosed amount.

    CipherTrace develops tools that help businesses and law enforcement root out illicit digital currency transactions.

    The deal is the latest sign of how major corporates are showing increased interest in the crypto market.

    This is definitely a good move for MA. It can strengthen the moat to compete with paypal and square. Big players such as MA and V need to start to prepare to compete with paypal and square for the future market share.

    submitted by /u/coolcomfort123
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    What is your biggest holding for the long term ?

    Posted: 09 Sep 2021 04:08 AM PDT

    Hi guys,

    I'm interested in knowing your biggest holding, what percentage of your total portfolio it is and why you've decided to make it overweight. ETF excluded and it doesn't have to be a blue chip of course.

    Thanks

    submitted by /u/orgabool
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    Weekly jobless claims post sharp drop to 310,000, another new pandemic low

    Posted: 09 Sep 2021 06:17 AM PDT

    First-time filings for unemployment claims in the U.S. dropped to 310,000 last week, easily the lowest of the Covid era and a significant step toward the pre-pandemic normal, the Labor Department reported Thursday.

    Claims had been expected to total 335,000 for the week ended Sept. 4, according to economists surveyed by Dow Jones. The total for the week ended Sept. 4 represented a substantial drop from the previous week's 345,000 and is the lowest since March 14, 2020. Claims may have been still lower except for a substantial bump in Louisiana, which was hammered by Hurricane Ida and still has nearly 250,000 homes and businesses without power.

    https://www.cnbc.com/2021/09/09/weekly-jobless-claims-.html

    submitted by /u/mikeyrocksin2021
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    Psycho Market Recap - Thur Sept 9

    Posted: 09 Sep 2021 01:13 PM PDT

    Summary

    Stocks opened higher in the morning before turning lower as market participants continue to balance a hot jobs market against a dent in economic momentum caused by surging coronavirus Delta variant cases in the US. The three major indexes are having one of the worst-performing streaks this year, while the Russell 2000 (IWM), which tracks the performance of small-caps, fared slightly better.

    According to a report released yesterday by the Bureau of Labor Statistics, the number of job openings in August was 10.9 million, higher than estimates of 9.9 million and the 10.18 million last month. The rate of job openings measured against the total labor force swelled to 6.9% in July, up from 6.5% the previous month and 4.6% a year ago. From an industry standpoint, the rate jumped to 10.7% from 10.2% in the critical leisure and hospitality field, which has suffered the most during the Covid-19 pandemic. Openings rose to 1.82 million, a total gain of 134,000 last month. There are enough job openings to cover the roughly 8.4 million unemployed Americans.

    Coinciding with an increase in job openings, in its latest Beige Book, which is basically a report by the Federal Reserve on current economic conditions, members said the economy downshifted slightly due to Delta variant concerns. The report stated, "The deceleration in economic activity was largely attributable to a pullback in dining out, travel, and tourism in most Districts, reflecting safety concerns due to the rise of the Delta variant, and, in many cases, international travel restrictions."

    Members of the Fed have consistently signaled they will be looking especially closely at labor market data to determine when to start tapering the pandemic-era quantitative easing program. Federal Reserve Governor Christopher Waller said the August Jobs Report could be his signal to hit the "substantial further progress mark" the Fed stipulated in December and begin tapering. He said, "I think that one more good job report if it's in the 850,000 to 1 million range will be sufficient to claim substantial further progress in employment for tapering." August was not the report they were looking for.

    Unfortunately, a summer that began with plunging coronavirus cases nationwide and real hope that the worst of the pandemic was behind us as the effective vaccination drive began is instead drawing to a close with the US firmly in throes of the pandemic once again, due to the highly contagious Delta variant.

    This weekend, hospitalizations were roughly 300% higher than Labor Day weekend in 2020, according to data from Johns Hopkins University. The surge in patients comes as the highly contagious Delta variant continues to spread across the US, and coincided with a weekend that saw a spike in travel. According to the Transportation Security Administration, more than 3.5 million people traveled across the country on Friday and Saturday for the Labor Day holiday, despite the Centers for Disease Control and Prevention's recommendation for unvaccinated people to refrain from traveling.

    Highlights

    • The crackdown in China continues… This time, regulators of video game companies execs to focus less on profits and implement controls to prevent video game addiction. Companies were "urged to break from the solitary focus of pursuing profit or attracting players and fans.
    • Russian Cybersecurity firm Yandex (YNDX) said it successfully repelled the biggest distributed denial-of-service (DDoS) attack in history. This comes just after American company Cloudflare (NET) repelled the previously largest DDoS attack on Aug 19. The Yandex attack was 22 million requests per second, while Cloudflare's was 17.2 million requests per second. Cybersecurity is becoming ever more important as attacks become more complex and powerful.
    • Weekly first-time unemployment claims came in at 310,000, a pandemic-era low, well below estimates of 335,000
    • JP Morgan (JPM) announced it was acquiring Infatuation, a company that owns different websites and apps that guide diners to restaurants in cities around the world from Alphabet (GOOG, GOOGL). Could be to make a new dining credit card reward program or something
    • Ray-Ban and Facebook (FB) have teamed up to release new smart glasses that have a camera, mic and speakers, and a voice assistant to let you do things hands-free, similar to Snapchat's (SNAP) glasses. Honestly, I don't know what these would be useful for right now
    • With the NFL kicking off today, sports betting analysis firm PlayUSA says it expects over $20 billion to be wagered, nearly tripling the $7.5 billion wagered in 2020. I'm a huge sports fan and sports betting stock bull. My fav currently is PENN
    • **Please note that current stock price was written during the session and may not reflect closing prices*\*
    • Costco (COST) target raised by Morgan Stanley from $425 to $500 at Overweight. Stock currently around $466
    • Cisco Systems (CSCO) target raised by Wells Fargo from $65 to $70 at Overweight. Stock currently around $58
    • Global Payments (GPN) target raised by BMO Capital Markets from $206 to $217 at Outperform
    • Lululemon (LULU) with a host of target raises after smashing earnings and raising guidance. Average price target of $475 at Buy. Stock currently around $420
    • NetApp (NTAP) target raised by Morgan Stanley from $96 to $102 at Overweight. Stock currently around $92
    • Restoration Hardware (RH) with a host of target raises after smashing earnings and raising guidance. Average price target $775 t Buy. Stock currently around $725
    • Sherwin Williams (SHW) target raised by JP Morgan from $310 to $330 at Overweight. Stock currently around $299

    "The way to get started is quit talking and start doing." - Walt Disney

    submitted by /u/psychotrader00
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    Copy Trading: too good to be true?

    Posted: 09 Sep 2021 02:57 AM PDT

    I've seen copy traders (popular traders that allow you to copy their portfolio) with 4-5 scores for risk assessments but upwards of 50% on annual return. This feature is common in online brokers like Etoro. I have even seen 95% annual return and the trader had like.. a risk assessment of 5 only.. After checking their profiles I have noticed that even those high ROI traders have been trading for 2+ years (which is the general advice people tell you when you choose a trader to copy)

    I mean, is that even real?! How can you have 80% annual average ROI with a low risk assessment! Do you guys suggest that I copy a trader because I am a beginner in trading, and I have made bad investments in the recent past (lost money on GME lol..)

    As the son of somebody who has saved up their entire life to invest in a small property that only nets 8% ROI annually, these ROIs seem insane.

    Please give your experience about copying traders etc

    submitted by /u/roadpecker
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    NFL names Verizon 5G partner in 10-year deal, promising enhanced fan experiences at stadiums

    Posted: 09 Sep 2021 06:13 AM PDT

    https://www.cnbc.com/2021/09/09/nfl-and-verizon-5g-partner-in-10-year-deal-for-enhanced-fan-experiences.html

    "The National Football League and Verizon on Thursday announced a 5G partnership that they say will allow fans to see seven different live camera angles of the season-opening game between the Super Bowl champion Tampa Buccaneers and the Dallas Cowboys.

    The companies the 10-year deal will provide next-generation 5G mobile technology for applications including innovative methods of player training, team scouting, venue operations and health guidelines."

    This comes on the heels of another boost to its already lovely dividend. Is VZ looking like a strong buy, or are there other 5G tickers could be better bets?

    Also, happy NFL kickoff!

    submitted by /u/ecm27
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    RKLB is filling up its dance card, but it can make more dance cards

    Posted: 09 Sep 2021 11:31 AM PDT

    Rocket Labs debuted on the market a few weeks ago as the result of a [redacted] merger (which is why the price history goes back to last October) and after a short post-partum dip has put paid to its name, rocketing 96% in the past 6 days.

    They reported in June that order backlog had increased over 130% yoy.

    Only 2% of the stock is in institutional hands (not entirely confident of this number given an institution had to front the [redacted]).

    The market cap sits at $6.8 billion, and the company expects $4-5M revenue in Q3. That sets P/S near 350, but the revenue curve should steepen as they deliver and prove they can deliver.

    They 3D-print almost the entire rocket, and can easily expand production just by duplicating capacity. If I knew who was making their printers I'd invest in them, too. This production method gives them an edge in precision and weight, as well as turnaround on changes. I can see every other rocket builder drooling over their manufacturing system.

    As yet, they are making fairly small rockets, but have a much larger one in development.

    Disclosure: I've roughly doubled my money on it already and have no plans to sell.

    submitted by /u/merlinsbeers
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    List of popular stocks under-performing and out-performing at the open today

    Posted: 09 Sep 2021 08:28 AM PDT

    I maintain a long watchlist of popular stocks that I am always keeping an eye on. I look at their charts almost daily looking for opportunities in swing plays. Here are some notable stocks and their performance at the open this morning.

    Down Bad Tickers Moon-shot Tickers
    DLTR AAL
    ATVI CLOV
    BABA DUOL
    DE BX
    DISH LULU
    JNJ RH
    SE CCL
    KO ALLY
    HUYA CREE
    GM DAL
    HSY UAA

    If you like to swing-trade here's a list of stocks that under-performed and out-performed this week

    I maintain a long watchlist of popular stocks that I am always keeping an eye on. I look at their charts almost daily looking for opportunities in swing plays.

    Sinkers are usually a possible entry for a Buy The Dip play and the out-performers might be at a good spot to take some profit and lower position sizing. Here are some of the sinkers and out-performers from the last 7 days.

    Sinkers Out-Performers
    COTY DASH
    BABA BX
    GM DDOG
    BK ABNB
    GPS BFLY
    AZN CMG
    ENPH HD
    BB AMZN
    BMY DBX
    CGC AAPL
    ALLY NIO
    CHWY CLDR
    ATVI NET
    PBR FVRR
    GS MRNA
    FCEL COST
    submitted by /u/LegendaryHODLer
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    Amazon reportedly working on POS system to take on PayPal, Shopify and Square

    Posted: 08 Sep 2021 06:58 PM PDT

    Amazon is reportedly developing a point-of-sale system for third-party sellers, entering a competitive landscape currently dominated by PayPal, Square and Shopify

    Business Insider sources say the POS will work for offline and online sales, offer Amazon checkout options and provide business analytics. The system will link to other Amazon services, including Prime, the Flex package delivery service and One payment technology.

    The project is led by the internal Project Santos task force that Amazon established last year to target Shopify's small-business merchants and convince the sellers to come to Amazon.

    submitted by /u/dhpw2
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    Do companies regularly issue new stock?

    Posted: 09 Sep 2021 12:04 PM PDT

    So we buy and hold shares of a company like Apple. There is a limited quantity of shares in the company. I'm curious what protects us from dilution. I know companies have the option to issue new shares, but do they? Does the whole board have to vote in favor for it to happen?

    Also curious about when an employee joins a company like Apple and they get stock options. Where do those come from?

    submitted by /u/solscend
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    Is/was Humanigen (HGEN) a one trick pony or is it worth it to get in now?

    Posted: 09 Sep 2021 09:07 AM PDT

    The FDA didn't approve HGEN medication L(something or other big long complicated word) for emergency use and the stock lost 50% value. Think they can recover? I'm new at this and still working out how to properly research things.

    Basically...is now a good time to buy?

    Thank you

    submitted by /u/smohk1
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    Sporting Goods sector's future - Nike and Dicks

    Posted: 09 Sep 2021 12:07 PM PDT

    I am looking to sell potentially Nike and Dick's before the end of the year to take profit in both. Lulu just had a tremendous earnings report, but I still wonder how much room the sporting goods sector has to grow and if we're nearing a peak.

    It seems like based on earnings people were surprised how quickly people went to get things for the fall season of youth sports despite COVID, but I expect future earnings to not overexeed expectations as most as the recent earnings did.

    Dick's doesn't seem to have the issue, but of course Nike is dealing with China on an ongoing basis as well. I've been fairly displeased with the retail sector in general this year, and given a look at my portfolio, I'd rather keep some of my TECH names than these long term.

    What are people's thoughts on the sector in general?

    submitted by /u/BurnerBurnerBurns20
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    What are you weaknesses when it comes to stock evaluation? What are your strengths?

    Posted: 09 Sep 2021 09:09 AM PDT

    Realistic reflection is always important when it comes to evaluating one's prospects when it comes to investing, in that spirit I thought it would be interesting to discuss where you think you could improve as a trader/investor, and what areas you think you are already doing well.

    submitted by /u/flobbley
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    Short % of float question

    Posted: 09 Sep 2021 12:55 PM PDT

    From my understanding, float is the amount of public stock there is left to buy on the open market. So if if there is a company that is showing 900%+ on the short % of float, wouldn't this mean that the shares are way way over sold shorted etc? Seems like someone in the regulation dept is asleep at the wheel.

    Is there a way to make money on this?

    submitted by /u/sco-bo
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    First Ever Stock Analysis (NVDA/Nvidia DD) *PLEASE CRITIQUE)

    Posted: 08 Sep 2021 09:17 PM PDT

    tock: Nvidia

    Ticker: $NVDA

    #1: Valuation Multiples (Fundamental Analysis)

    To begin the analysis, Valuation. As a starting point to find the valuation of a company, let's use the valuation multiple: EV/EBITDA. EV/EBITDA allows us to understand what the company is earning relative to what the company is worth. Why does this matter? It allows us to compare the company's average to their industry average and other companies within the industry. Again, why does this matter? It measures what the individual is willing to pay for their earnings. So let's break it down

    EV stands for "Enterprise Value". Enterprise value is made up of the company's equity, plus total debt, minus their cash. This gives us a better understanding of the company's value of operations as it factors in both debt and cash. Comparative to just market cap which only considers the value of the company's shares.

    So we have nvidia's equity: 556687, their total debt: 12791, and their cash: 19782 (measured in billions) so we have the EV: 549.69B (information gathered by Merrill Lynch)

    Now that we have the EV, what is EBITDA? EBITDA or Earnings Before Interest, Taxes, Depreciation, and Amortization is simply putted as the measure of profitability. Like EV, its just a way of understanding a business's profitability better than net income can. Debt to Equity ratio, Free Cash Flow Yield, P/E Ratio are also helpful, but we aren't going there.

    Formula: So we'll take the Net Income of Nvidia which is Earnings before Interest, then we'll add interest, taxes, depreciation, and amortization. Based off of a 10-k provided by the SEC, the Net Income: 4,332, Interest: 184, Taxes: 77, D and A: 1,098

    EBITDA: 5.69B (in billions)

    So we have the EV/EBITDA of 96.2

    What do we do with this information? We can now compare it to the industry average. You're looking for them to trade underneath the average. The Software and AI EV/EBITDA average is 106, so Nvidia is trading underneath the industry average.

    Historical Price Target(s) + Business Fundamentals (Fundamental Analysis)

    Before Nvidia's stock split (4:1) Nvidia was trading at a high of $750+. While considering we are in an eight year exponential tech bull run, I still think Nvidia was room to run back to close or even as high as its prior high.

    Tesla stock was trading at around $2,213 before their split of 5:1. Then Tesla ran from $80 to almost $900 in a single year. Of course that was attributed to the bull run/short squeeze, but for Nvidia that could mean something. For Tesla to 10x in a year, isn't hard for nvidia to 2x or even 3x from its current trading price based on their prior movements. Tesla's 5 year gain in percentages is 1,838% while Nvidias 5 year gain is 1.401%. Their historical price movement is very similar so it wouldn't be surprising is nvidia followed Tesla on a smaller, slower scale.

    Besides that, Nvidias business is huge for the retail consumption. Bitcoin miners and Gamers have been on a ramped uptrend for the past years and is ever growing. The main graphics card usage is for gamers and miners. So the disruption of graphics card and the demand will be huge for the foreseeable future.

    #2: Technical Analysis

    Many people disagree with TA. Most say it is all bullshit and that people are wasting their time fooling around drawing lines on their chart. I 100% disagree with that those statements. The market is mainly based on psychology. The main way a stock price moves is when buyers buy up or when sellers sell down. So when more buyers think the stock will go up vs. the amount of sellers who think the stock will go down, the stock moves upwwards. Of course it isn't as black and white, but that's the premise. So some TA evidently becomes a self fulfilling prophecy.

    Daily Chart:

    Sorry, chart is supposed to be here, but stocks doesn't allow.

    I can see Nvidia moving in two different ways within the next few weeks.

    Option A: We see nvidia break the flag and break above the all time high of $230 and make a new high

    Or Option B: We get rejected off the all time high or fail the break out and head down to the $206-207 support.

    But Nvidia isn't a short term play, Tesla took a year to 10x so this is definitely a 1-3 year play at least.

    How I'm playing Nvidia

    Yes, I'm in nvidia. I wanted to make this so I can get criticism on my first Due Diligence and what I can fix or what I can add. I know this is super choppy and all over the place and I'm sure I missed more important things, but this is where I'm starting.

    I have 20% of my portfolio allocated to Nvidia. 12% in shares and 8% in long ATM calls dating in 2023.

    Price Target: $300-$500+ depending on how fast the stock grows.

    Please critique this as I only want to grow as an investor, but please keep the roasting to a minimum :D

    submitted by /u/sin1sback
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    US Stocks overvalued - What are you doing

    Posted: 09 Sep 2021 08:36 AM PDT

    Looking at 2 large ETF by vanguard for this post:

    VTI - US Total Index (3,000 largest public traded US)

    VXUS - Total World Index excluding US (3,500 largest public traded w/o US)

    The VXUS (World Ex-US) has a current p/e of 9.7 and stock / book value of 1.7x compare that to VTI (US) at a P/E ratio of 24 and stock / book of 4.2x. Seems like the entire US stock market is overheated compared to the rest of the World.

    What are you doing with this right now?

    submitted by /u/Slipeeeer
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    Is there a chrome plugin to show info when highlighting a ticker?

    Posted: 09 Sep 2021 08:03 AM PDT

    It would be really helpful to be able to hover over any text posts that contain ticker symbols and then display a quick chart.

    I tried searching but didn't come up with anything. This must exist right?

    submitted by /u/timmytacobean
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    80% in index funds - looking to buy stocks now. Worth it?

    Posted: 09 Sep 2021 10:04 AM PDT

    I currently have 85% of my portfolio in VOO and 15% in VXUS. I won't be touching this money at all until I'm old.

    Looking to add some strong individual stocks, but I'm seeing a lot of people saying that stock prices are overvalued at the moment and it's not an ideal time to enter.

    Any advice?

    EDIT: I'm not looking for recommendations on stocks to buy - I'm asking if I should wait for lower entry points.

    submitted by /u/moneymitch11
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    Help with how fintel calculates institutional ownership?

    Posted: 09 Sep 2021 06:15 AM PDT

    Fintel shows URBN to have ~90% institutional ownership.

    Docoh (and every other website) shows ~70%. In fact, I cannot find another website that corroborates fintel's 90%.

    Anyone have insight on how/why they are off, or if they are including some other factors that other websites do not?

    submitted by /u/Junkbot
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    CNBC Signs Jim Cramer to New Multiplatform Deal

    Posted: 09 Sep 2021 11:43 AM PDT

    CNBC is locking in one of its star hosts to a new deal.

    The business news channel has signed a new deal with Jim Cramer, the host of Mad Money and Squawk on the Street regular.

    One key new aspect: The deal also includes a multiplatform element, with Cramer set to write articles and create web videos for CNBC's website. The company will also launch a new subscription product, the CNBC Investor Club with Jim Cramer, and will work with Cramer to create and launch new live events and conferences.

    Cramer had previously founded TheStreet.com, which he sold to TheMaven in 2019. TheStreet had been the exclusive home for Cramer's digital commentary and subscription stock tips. Now, Cramer will bring those products to CNBC through Cramer Digital. Margaret de Luna, who was previously president and COO of TheStreet, recently joined CNBC as GM and senior vp of its direct-to-consumer businesses.

    The company is betting that Cramer's infectious personality and established digital and TV bona fides will help it turbocharge its direct-to-consumer offerings.

    "Jim Cramer is truly one of a kind. He has the unique ability to masterfully break down complex topics and make them digestible for everyday investors," said CNBC chairman Mark Hoffman in a statement. "And now, for the first time, CNBC will be the home for all of Jim's media creating a virtuous cycle for his devoted viewers and loyal members to easily engage with exclusive content across all platforms and serve as a one-stop shop for sponsors and advertisers looking to interact with Jim's comprehensive suite of products on a deeper level."

    https://www.hollywoodreporter.com/tv/tv-news/cnbc-jim-cramer-new-deal-1235010604/#recipient_hashed=4c4261429d0b9dd09afa314e5a8c16a34b433a3f1a34214cdd002de90dd3f4e7

    submitted by /u/backup2thebackup2
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    Can someone help me with this DKS option? "Cancelled Order Due to Corporate Action"

    Posted: 09 Sep 2021 07:56 AM PDT

    This might be a little long so please bear with me.

    I am just learning how to do options. In late August I bought 3 put options (bought 3 @ 1.50) for DKS after I saw the price climb when they announced a $5.50 special dividend on September 9th. I just got an email from Vanguard yesterday that reads: "Your open order for DKS Option will be canceled on 9/8/2021 due to a corporate action. A corporate action is a change to a company or its underlying stock that may affect its stockholders. Examples include (but are not limited to) splits, dividends, delisting, mergers, acquisitions, and spinoffs."

    Ok so I assume the order is cancelled as described above. When I check the option in my account, it is still there, and is giving me the option to Sell to Close, with following underneath "Each contract represents 100 shares of DKS and $550.00". I understand how the $550 came about (special dividend of $5.50 x 100 shares), but I am confused how to price this to close the option. Can someone explain the best way for me to price the contracts when I sell them?

    submitted by /u/gcjeter2
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    DD on Liquidity Services, INC. (LQDT) (First DD please critique on anything you think needs work)

    Posted: 09 Sep 2021 08:26 AM PDT

    DD on Liquidity Services, Inc. (NASDAQ: LQDT)

    1.) I am not a financial, accounting, tax, or legal advisor.

    2.) This Due Diligence is made solely for fun/private usage and should be considered as such. This "DD" is not meant to be considered as anything more than an opinion and should not be treated as definitive proof of any future events.

    I think Liquidity Services has a lot of potential and just entered a dip.

    Some background:

    Liquidity Services operates a network of e-commerce marketplaces. Its online auction marketplaces include: Liquidation.com, GovDeals.com, Network International, GoIndustry DoveBid, IronDirect, Machinio, and Secondipity.com. According to its website, LQDT operates the world's largest B2B e-commerce marketplace platform for surplus assets with over $8.5 Billion of completed transactions, more than 3.8 million registered buyers and 15,000 corporate and government sellers. The closest competitors that I could find are all government-owned online auction marketplaces for government surplus.

    Fundamental Analysis

    Current total revenue in LTM is $243.1 M with YoY growth of 16.40 %.

    Cost of Revenues for LTM is $100.2 M with gross profit coming to $142.9 M with 35.04% YoY growth.

    Operating expenses for LTM is at $110 M and Depriciation & Amortization at $6.8 M with operating income for LTM at $26.0 M. Full disclosure, last year's quarters operating income were in the negative (1Q 2020 at (13.8) M, 2Q 2020 was the worst quarter at (15,2) M).

    Total assets LTM are at $238.4 M with total current assets LTM at $139.5 M. Total liabilities for LTM is at $121.8 M with most of it in Accounts Payable and Accrued Expenses (No long-term debt and only total debt of 13.31 M. Total equity at $116.6 M.

    Net Income at $23.6 M LTM.

    Cash from operation LTM is $61.5 M with Cap Ex at $(4.1) M with Free Cash Flow at $57.5 M.

    Enterprise Value at $770 M and Market Cap at $869.35 M. P/E LTM at 36.0 (2020 was a bad year and stock took off around Jul 2020.)

    EV/Sales LTM at 3.1 and P/S LTM at 3.5.

    EV/EBITDA LTM is 21.1.

    Price/Book LTM at 7.0.

    According to the latest (Q3 2021) Investors Presentation, management is optimistic on e-commerce growth:

    "FY21 is benefitting from:

    · Retailers increasingly seeking B2B marketplace platforms to conduct resale of surplus inventory

    · Hyper-growth of e-commerce

    Our expanded service offerings address full-spectrum of seller needs and create higher margin revenue streams:

    · Managed Services for end-to-end solutions

    · Self-directed solutions

    These services have positioned us well to respond to recent macro trends:

    · Strong e-commerce growth drives increased volume of consumer returns

    · Increasing buyer demand for discounted, refurbished, and secondary market assets drives growth

    Fiscal Q2 is the seasonally high quarter for reverse supply chain activity in the retail sector "

    ROA is at 7.43% LTM and ROE is at 20.85% LTM.

    Current ratio is at 1.3 LTM.

    Total Debt/Equity is at 11.4%.

    Technical Analysis:

    Previous Support Level was around $18.00-19.00 which was last met when the Earnings report came out. Since then, it's found new support at $22.00 and, at time of writing, has found a new potential support level at $23.00. Currently trading at $24.60. Please do your own research on any technical analysis including Stops/Take Profits, Entrances, etc. considering your own trading strategies.

    Related Positions: Bought 40 shares last week.

    Again, this should not be taken as legitimate financial advice. Any trades that you initiate should be backed up by your own research.

    submitted by /u/juangomez053
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    Help with understanding funds valuation and future prospect?

    Posted: 09 Sep 2021 02:04 PM PDT

    I'm having trouble understanding how to wrap my head around funds, and was hoping for some tips and advice.

    Currently, I do more of stock investments and longer term holding. It's a lot easier to understand if I think they'll continue going up in price by seeing their earnings, forecasts, eps, misses/beats, looking through the charts, and following news articles on the stocks I'm interested in. But I'm really lost with how to understand all of this sort of stuff about funds.. Not sure if this is typical of all funds, but most of the ones I'm following - I can't seem to find any of that information on or even articles talking about what they're doing... Not to mention they're made up of a collection of different stocks from all types of industries, and mixed amounts of each stock. They have information on their website about what their holdings are, sector breakdown, their strategy.. there's honestly a lot of information on there actually. But I'm just not even sure where to start and how to wrap my head around it all, or what to look for even? TIA.

    submitted by /u/Deize_Knuhtt
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