Daily General Discussion and spitballin thread - October 30, 2021 Investing |
- Daily General Discussion and spitballin thread - October 30, 2021
- Daily Advice Thread - All basic help or advice questions must be posted here. October 30, 2021
- Pick your 5 growth stocks for 2022
- Leveraged ETFs - What's been your experience?
- Selling for a loss / Wash sale question
- Position for interest rate hike
- Buying VIX.IN to write weekly calls
- Opinion on Start Engine where you invest in private companies
- SPXL in taxable for long term hold, thoughts?
- How much a business generating over $100K per year should sell for?
- Can presenting a due diligence (DD) be seen as financial advice?
| Daily General Discussion and spitballin thread - October 30, 2021 Posted: 30 Oct 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. October 30, 2021 Posted: 30 Oct 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]  |
| Pick your 5 growth stocks for 2022 Posted: 29 Oct 2021 06:28 PM PDT What would be your 5 growth stock picks for 2022? About 50% of my portfolio will be made up of VOO and VOOG for steadiness and diversification. But I like to add in some single stocks to give a little more growth. We can look back at this post in 1 year and see how our picks played out. My picks are MSFT, ODFL, TSLA, INTU, GOOG. And my wildcard would be ABNB. I think tech is still going to reign supreme, it's just hard to beat the profit margins and scalability. [link] [comments]  |
| Leveraged ETFs - What's been your experience? Posted: 29 Oct 2021 10:26 AM PDT I've been investing seriously for about 5 years now. I've only ever gone LONG and typically am buy and hold either MFs, ETFs, and occasionally the single stock (bought ALK in March 2020 when it tanked, made great returns on that during the recovery). I'm interested in leveraged ETFs (SPXL, etc). I'm at a point now where I have some money I could risk losing and not go broke if I lost it (plus I'm in my 20s still). What's your experiences with leveraged ETFs? Especially if I plan to go balls out and go un-hedged. [link] [comments]  |
| Selling for a loss / Wash sale question Posted: 29 Oct 2021 10:45 AM PDT I am just a small investor who opened a non-IRA account with about $3000 to play with this year so I am learning as I go. Ok so here is the scenario. I have 175 shares of a stock. According to my TDA account my trade price for those shares is $14.35. The stock is currently trading at $7.35 so I am thinking I want to sell 75 shares and take the loss to offset some gains I made this year collecting premiums from selling CC's. I am trying to understand the wash sale rule though. Investopedia says "a wash sale occurs when you sell or trade stock or securities at a loss and within 30 days of the sale (either before or after), you purchase the same—or a "substantially identical"—investment." The "either before of after" part has me a little confused though. If I refrain from re-buying shares of this ticker until December I should avoid a wash sale in the after section. When it comes to the before part, I bought 4 shares @ $10.38 on 10/4, 9 shares @ $9.18 on 10/12, and 1 share @ 10.10 on 10/20. Would those purchases in any way be considered a wash sale or would my selling 75 shares today be enough to record the loss against my gains for the year as long as I don't rebuy shares for 30 days? I hope I've explained this adequately. Thank you in advance for your responses. [link] [comments]  |
| Position for interest rate hike Posted: 29 Oct 2021 08:24 PM PDT Low interest rates and stimulus have been pumping all of our bags for the last year and a half or so. Threats of inflation have been making many nervous, including prominent investors and traders. Earlier today, Bill Ackman tweeted out a presentation he gave to the Fed: https://twitter.com/billackman/status/1454124914554904580?s=21 "The bottom line: we think the Fed should taper immediately and begin raising rates as soon as possible." How would you position for an interest rate hike? [link] [comments]  |
| Buying VIX.IN to write weekly calls Posted: 29 Oct 2021 12:49 PM PDT Thoughts on this? Buying 1000 shares of the VIX.IN at today's limit ($16.39) to write weekly OTM calls. It's not often this low and I fell this could be a decent stream of revenue with limited downside risk. Am I missing something here though? Is the VIX like FAS/FAZ, in the meaning that you do not want to stay in it for an extended period of time because it's leveraged or the shares are diluted or leveraged in some way essentially eroding the value of your position? If not, then I see this as a winning rinse/repeat play Thanks in advance [link] [comments]  |
| Opinion on Start Engine where you invest in private companies Posted: 30 Oct 2021 12:08 AM PDT So I stumbled upon a company called boxabl the one everyone was talking about where elon musk decided to live in a 400sq ft box over his mansion. I went down a rabbit hole and truly fell for this company and wanted my own box and shares. Now the company isn't on the stock exchange and I am currently waiting on my box. They are currently on start engin looking for 5million in investments. Should I invest has any one seen a start engine company ipo? [link] [comments]  |
| SPXL in taxable for long term hold, thoughts? Posted: 29 Oct 2021 02:54 PM PDT Hello, so I've maxed out my roth ira and I know about the risks of leveraged assets like SPXL or TQQQ. I know you're not intended to buy and hold SPXL long , since the compounding leverage could be both good and bad, but since it's just a "do whatever with my money" account at this point in the taxable, I wonder how yall would feel if I bought a few shares of SPXL and held for a while. I'm extremely bullish on SPY, hence SPXL. Again, I know you're not supposed to hold long term, but I felt like I could be more aggressive due to my roth just being 100% VTI. if not SPXL/leveraged ETFs, what are some other ways of being aggressive? [link] [comments]  |
| How much a business generating over $100K per year should sell for? Posted: 28 Oct 2021 07:34 PM PDT I would really appreciate any insights on how to properly evaluate the cost of a small web-hosting business that has been generating over $100,000 each year since 2010. I switched to Stripe in 2014 where the following table of gross volume is taken from, unfortunately data for previous years are not available. 2014 - $128,100.00 That's gross volume generated, so how about expenses? Expenses After Stripe takes its share, the business pays the total of $653 monthly to US and EU based data-centers to host all customer projects, about $45 do a CDN company, about $200 per month for the domain name renewals. And literally nothing else: no license fees, no any paid software (custom billing and customer support system build on Drupal), no any money spent on advertisement (there is a potential to grow, but didn't need any additional workload as the existing level of more or less passively generated income was satisfactory), no any contractors hired (a single experienced Drupal expert and system administrator can carry all the occasional support requests as the whole system is stable enough to run all by itself). Only need to pay his share to uncle Sam. Sounds ideal, so why sell? Reasons For last several years I have been involved in activities which exist far from Drupal and technologies and which are gradually taking more and more of my time. And while I will always be attached to everything Drupal with strings of love, the other activities I'm involved are too important to me (for that matter not only to myself, but lot's of other people, so I have to set my priorities right). To say frankly, I'm not desperate to sell, but find a reliable partner who could equate what I'm putting on the table either by bringing in their own business with similar income or to buy out the half of already established and successfully running business. However, in this case such a hypothetical partner will need to take over all the current and future operations as my participation will be minimal. How much? I understand that in order to sell the company or partnership share in the company, we need to know what is the total value of the company, but I never did real evaluation. I know there are several methods to calculate the price for a business, but not sure which one of them fits best to this case: - Return on Investment method: It took many years and lot's of efforts for my business to become an almost passive-income generating source, but it's difficult to measure the cost of time and labor spent. - Sales of Comparable Businesses Method: There are not many comparable businesses as it is not Drupal shop per se, but rather a hosing company with small loyal customer base. As I mentioned above unlike Acquia or Pantheon my business is not advertising at all to grow, it's not seeking to aggressively expand (maybe it should, because potential is huge, however that was never a goal). And it's a small niche, so not everyday companies like mine are sold. - The industry formula approach: The the rule of thumb of this method assumes any profitable business with a stable income worth several times its annual profits depending on the industry and the workload. Which means that if we take average of last 8 years given on the table above (2021 is not over yet, so November and December should bring around $20K, so this year's gross should be around $120,000, but let's take the current revenue of $103,700) - $139,416.8 - and multiple to 2 years to get $278,833.6 Nobody sane would sell a stable business like mine for this price. Would I sell my business for what it generates in 3 years - $418,250.4? I would say no, because no another almost passive business would bring me the same kind of revenue in the next 3 years, so better to keep the business and start hiring and paying salaries. Would I consider selling for 4 year generated revenue equivalent of $557,667.2? Maybe, if the new owner accepts transfer of the current subscriptions (yep, all customers are on recurring paid subscriptions) and customer base without acquiring the name, trademark and equipment. - Asset Value Approach: Among assets besides mentioned earlier custom-built billing and ticketing system, the business has a recognizable name, domain name, registered trademark and owns around $150,000.00 worth of server hardware. And while the cost of hardware is easy to calculate, it's not obvious how to evaluate the developed software, know-how, domain name, trademark. If this was done, then the final price of the business would be more or less clear. To conclude, there are lot's of different ways of evaluating a business, however taking into account my business operates in unique type of small niche, I'm not sure what is the fair price to sell it completely or to invite someone to buy out their share as a partner. If you have some nice ideas, please DM me. [link] [comments]  |
| Can presenting a due diligence (DD) be seen as financial advice? Posted: 29 Oct 2021 04:20 PM PDT In my eyes, a due diligence is nothing more than a review/summary/retrospective of a company's current/past financial data that involves the market capital, average volume and many more information, like recent positive/negative events, etc... But does anyone who presents such DD on any public platform on the internet, may it be here on reddit or anywhere else, have to mention that it is not financial advice (i. e. "Not a financial advisor! No financial advice! Do your own DD!")? I have seen posts on stocktwits that didn't have it mentioned, for instance. [link] [comments]  |
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