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    Stocks - r/Stocks Daily Discussion & Fundamentals Friday Oct 29, 2021

    October 29, 2021

    Stocks - r/Stocks Daily Discussion & Fundamentals Friday Oct 29, 2021

    r/Stocks Daily Discussion & Fundamentals Friday Oct 29, 2021

    Posted: 29 Oct 2021 02:30 AM PDT

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

    Some helpful day to day links, including news:

    Most fundamentals are updated every 3 months due to the fact that corporations release earnings reports every quarter, so traders are always speculating at what those earnings will say, and investors may change the size of their holdings based on those reports. Expect a lot of volatility around earnings, but it usually doesn't matter if you're holding long term, but keep in mind the importance of earnings reports because a trend of declining earnings or a decline in some other fundamental will drive the stock down over the long term as well.

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

    Market Cap - Shares Outstanding - Volume - Dividend - EPS - P/E Ratio - EPS Q/Q - PEG - Sales Q/Q - Return on Assets (ROA) - Return on Equity (ROE) - BETA - SMA - quarterly earnings

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

    Useful links:

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

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    I made $500,000 trading stocks and options in 18 months. These are the 15 things I did that worked best.

    Posted: 29 Oct 2021 02:39 AM PDT

    I failed a lot while trading before, during, and after succeeding. I haven't counted it up, but it's likely I encountered losses in excess of $150,000 from making mistakes that were easily avoided, rash decisions, and not giving myself enough time to test out strategies. Net net, I'm up $500,000, but I was asked to share some of what worked for me over IM quite a bit after my last post and figured I'd lay it for others who may not want to waste money learning the hard way, as I did.

    These are tactics and strategies that worked for me and my situation - someone trying to increase net worth, not increase income - and they may not be suitable for everyone.

    Understand the Trading Environment

    One mistake I made more than a few times was not understanding or paying attention to the trading environment I was in before picking out a strategy. What do I mean? I need to know where things are in the year, in relation to earnings season, and in relation to sector rotations. I need to pay attention to the macroeconomic indicators and I need to watch the VIX.

    Mind the Gap Between Earnings Seasons. I can't stress this enough. When earnings are strong and earnings data is coming in, investors watch those like hawks. Good earnings reports bring confidence to the market which yields a rising market.

    In between earnings seasons, there is less data from companies to review and investors pay closer attention to macroeconomic indicators like inflation, 10-year bond yields, and what the Fed is doing. This makes for a much jumpier market that's more likely to pull back. It's also a time when the large asset managers rebalance their portfolios. They manage billions, so this can cause large movements to stocks and indexes as they shift to be overweight in one asset class (e.g. value stocks, energy) and underweight in other asset classes (e.g. growth stocks, technology).

    I try not to get caught by these patterns. I anticipate they are coming and invest accordingly. Simply put, I buy the pullback after the rotations have occurred and before earnings seasons begin as a general rule. Of course, I don't do this if I expect a terrible earnings season.

    Take Advantage of Sector Rotations

    The sector rotations are pretty predictable if you track the performance of the different sectors over the year. I do this by plotting sector ETFs on a graph and noting when one begins to gain that was flat while others that were up a lot begin to flatten or pull back. Professional investors tend to sell off sectors that have been hot the last quarter or two and replace them with underperforming sectors that represent a better value or opportunity for upside. If I run the P/E ratios for the sector ETFs, I can get a quick sense of the sectors that have had a hot run up over 30 P/E vs other sectors that are more modestly valued. Just keep in mind that certain sectors, like Tech, will always be valued more richly given their growth. So looking at P/E ratios is not apples to apples - it's just a way to note if historically that sector is at the high end of its own typical valuation range.

    Last year's worst performing sector tends to be one of the best performing sectors the following year. This is because investors prefer to buy low and sell high. I don't bet against this trend, it's been around longer than I have and will continue to be around long after I'm dirt.

    Last year you couldn't give away a barrel of oil. Last week, oil reached $80 a barrel.

    One of my favorite options strategies is to buy long dated calls at the money for sector ETFs that underperformed the previous year. I buy calls with expirations in 6-9 months, knowing that I will sell at my exit point which for me is a 100% gain. Sometimes this happens 6 weeks into the year; other times it takes 9 months. So long as I don't overpay for the options, it works. I don't like to pay more than the average price return of the sector. For example, if the sector ETF averages a 10% annual return and the ETF price is $100, I'm not going to buy a call for more than $10. That way, if the sector only moves 5%, I can still make money provided the price increase moves quickly enough.

    Make The VIX Your Friend

    The VIX is an easy way to gauge fear in the marketplace and is a hedge used widely against market pullbacks. If the VIX goes up, the market is worried. If it goes down, the market is getting bullish. If it stays up, everyone is on edge. It's hard to make good trades in an environment where everyone is on edge and ready to hit the sell button. So be careful buying during times when the VIX is high. On the flip side, if the market has pulled back and the VIX starts to retreat away from its highs, that makes for a good entry point.

    Another interesting phenomenon is when the VIX is higher than normal, there tends to be a selloff the Friday before a long weekend. This happens because investors don't want to sit through a long weekend that might hold worse news out of fear they will start their Tuesday with losses piling up. I've found this is a nice time to get some discounts at the end of the day Friday, or to run some weekly puts on Thursday afternoon before the dips.

    Selecting Trades & Investments

    Have an Allocation Plan

    The first thing I recommend is determining, in advance, the amount of money you want to invest longer term vs the amount you want to invest short term vs the amount of money you might actually need to have available for life emergencies. Anything shorter term is higher risk, higher reward. I break my portfolio in the following buckets:

    • 25% long-term market investment using equity ETFs that largely track the SPX or do a breakdown between bonds and the market. I use Vanguard funds and a small cap value fund called CALF. I will not touch this money for 15+ years.
    • 25% cash. I like to be ready to buy the dips and have enough to spare. This way if a black swan event happens, I not only have money to invest, I have money to live on should things go bad for a while. This philosophy enabled me to buy options when COVID hit in 2020 without worrying if I could continue paying a mortgage for a year without a job. It's also very useful if I have to roll covered calls to offset taxes and buy back expensive positions. I took this from Buffet FWIW.
    • 30% options, mostly in tax advantaged accounts (IRAs). I aim for a 50% annual return overall with this portfolio, though it fluctuates a lot year to year.
    • 10% long term blue chips stocks like Visa, Apple, MSFT, etc. I defend these positions when the stocks get overheated by selling calls on them and/or buying puts out of the money that expire after a typical sector rotation would occur. That can generate some additional income or help lessen the sting if the stock falls.
    • 6% long-term bets in a Roth IRA. These are equities I think all have a chance at a 10X return but that will take 5-10 years. It's a lot of IPOs, small tech companies, and biotechs. I have to stomach pullbacks in this portfolio of 40-50% on the belief that a few of the 30 in here will more than compensate for it. This is a new strategy for me so I'll let you know in 10 years if it works.
    • 3% leveraged hedges.These are puts on my own positions, stocks, or the market at large. Generally I use VIX calls, buy puts, occasionally buy calls on the SPXS, and run strangles on investments (betting both up and down on the same stock using calls and puts).
    • 1% in other things I can't mention due to the bots in here but they rhyme with tiptoe.

    Use Technologies to Find Ideas

    Unless you want to spend 8 hours a day reading news or are OK getting all your ideas from meme stocks and friends, you need to use tools to help you locate investment/trade ideas and be willing to pay for them. I value my time and am willing to pay .5% of my portfolio a year if it saves me time, and more if it generates higher returns.

    I've tried about a dozen or so services, including stock picking services like Fool and Investorsplace. Ultimately I decided the stock picking sites were not working for me because I did not want to wait 5 years to find out if they were the right recommendations and lost a lot of money learning that lesson on their pump and dumps. So I switched to analytics tools and my Fidelity platform.

    My favorite tools to use are Zack's VGM score, Levelfields, and Fidelity. The Zack's VGM measures a stock's value, growth rate, and momentum. It's an easy screen I can run off the basic level subscription to get a list of companies to look at. The caveat is that you need to run this screen often because sometimes the companies on the list get stale and have already moved 99% of the way they are going to move. So you need to keep an eye on what's new to the list to avoid losing money. That part is crucial.

    The list usually represents companies that are well valued and poised to move up over the next 6-9 months. Warning: they can move very slowly so be patient and set your target exit to automatically exit. I use Fidelity to do my own due diligence on the stocks from there, examining their actual growth and earnings rates and ensuring there is no negative news against them which could drive down the price.

    A friend recently turned me on to an AI tool called Levelfields. They have a lot of news alerts but only for the types of events that matter and are organized thematically. It helps me find trades on news events with high returns or get in early on the small to mid-cap companies you don't usually hear about which fall between the cracks in the penny stock discussions and cnbc favorites. They often send alerts on company events before there's any news out, which is really helpful. The interface shows you how stocks perform when these events happen, so it's easy to figure out my entry and exit points and statistical likelihood of success.
    I use it a lot for pinpointing entry/exit points from options trades and have bought stock in a few companies I hadn't ever heard of before that were absolutely crushing it on revenue and earnings. Not sure why, but they never came up in any of my Fidelity stock screens. I suspect it's because there's a lag in the data Fidelity is getting from S&P but haven't confirmed this. They send a lot of high quality alerts and my only wish is that they'd have a better way to rank the stocks in the alerts so I didn't have to look up the stocks on Fidelity.

    I use Fidelity for basic news reading, running stock screens for high growth stocks at decent valuations, looking deeply at the history of earnings results, actually trading options, and for their options scanner which tracks abnormal option activity. I sell puts when I see abnormal call volume and run strangles if the stock is at a mid-point in its 52-week price range in case it shoots up and then down. I always set an automated exit.

    Fidelity also has a cool probability calculator for options I use when selling puts. It tells you the probability of a stock falling below a certain range. I use that number to determine where to sell puts without a lot of risk. I do two standard deviations out and still buy a put with a lower strike price as insurance and sell weekly puts on high vol companies like GME and TSLA. My typical goal is to make 800 a week from these plays which I use to fund new call positions.

    Be Wary of Analyst Opinions

    If you've invested actively for a while, you've likely noticed a peculiar trend: as a stock is cratering, analysts are increasing their target purchase price on it. This is not for your benefit. Brokerages often make investment recommendations based on the research provided by their analysts, so there is inherent bias in the system.

    I've also found that few analysts recommend sell ratings. They are much more likely to issue calls to buy stocks. One study found less than 1% issued sell recommendations. What's more, the track records of these analysts are usually about the same as coin flipping. CNBC has gotten very into pushing analyst views from big name firms (e.g. "Goldman Sachs says these 3 stocks are ready to explode"), but if you look at the actual analyst behind the headline, they are often inexperienced or wrong more than right.

    I am embarrassed to say I lost a lot of money listening to analyst opinions and believing their price targets were rooted in reality. It's easy to get caught up in the excitement of an upgrade and if 4 analysts are all touting the stock at the same time it can create a bit of a ponzi effect, which is tradable. But it boils down to needing to do your own research.

    Good Things Come in Pairs

    Just about every stock has a peer or competitor. Most have several. I stopped trying to pick the winner and now place bets on multiple leaders. I've owned Visa and Mastercard. I own OLO and TOST. I have a handful of, um, herbal medicine providers. I like ETSY and AMZN. If you bet on a small group of competitors, it's likely one will pull ahead and your odds of success will increase substantially.

    Similarly, it enables you to monitor the news of competitors which many investors use as a proxy. What do I mean? If Mastercard reports low cross border transactions, it's highly probable Visa will be experiencing the same thing. So you can use the information from Mastercard to alter your position on Visa.

    Exercise Financial Discipline

    Even when I've been successful picking investments, I've run into problems with how to handle my successes. We've all experienced the thrill of being up huge and wondering how much higher it will go. That's usually the moment I've learned I should be taking some gains. A few rules I try hard to follow but still screw up:

    1. Take Profits Often.
      When an option or stock hits 100% return, I look to take some profit. It may not seem possible if you only bought 1 call, but it is. Just roll the call to a higher strike price and ensure the credit to your account equals your original investment plus substantial return. You can let the new call ride in case the stock gets going up. This ensures you cannot lose money. My rationale here is simple: at a 100% gain, I now have more to lose than I have to gain. You will be surprised how much this adds up when you trade often and how often you can be up 150% then down to -50% on the same positions, which makes me want to break things.
      If you find yourself up huge on an equity investment, switch to options. I did this for my BABA position and it saved me. When it hit 300, I was up 200%. I sold all the stock and bought options for the same number of shares. I had about 60K in stock and switched to something like 6K in options. When BABA crashed down to 150 I really didn't care much. I was only down 4.5K instead of 30K. I had my profit of 40K locked in, so being down 4.5K was no big deal.

    2. Fail Fast.
      If the option price sinks to -50% in value, it's likely time to call it quits unless you have a solid reason not to (praying is not a strategy). The other half of the value left can easily be eaten up by the time decay in the value of the option as I wait for the turnaround and it gets closer to the expiration date. If there's negative news driving this, I'm out. I want to fail quickly. That allows me time to take the remaining 50% and generate gains with it on a better investment. I think this is the hardest rule for me to stick to as I tend to be an optimist.

    3. Profit Both Ways.
      If a stock I hold hits an all-time high in price or valuation, I look for a way to profit from the downside by selling covered calls or buying cheap puts. This enables you to stash some cash while riding the volatility wave. I hold Visa and when it hit 235 headed into earnings, I sold 3 calls and bought 10 puts. This offset a paper loss for me of ~20K yesterday alone by 7.5K in gains, which I secured as real profits. Assuming Visa will recover, that 7K adds 9% to this year's returns for Visa.

    4. Be Patient but Not Greedy.
      I have learned the hard way from selling positions days before they pop that it can take a while before the market catches on to my investment idea, especially if using good tools. Asset managers, wealth managers, and passive investors are usually looking for new investments every 3 months, not daily, so stocks can stay stuck in a channel for some time before the world catches on to its awesomeness. Example, I held Upstart from April to August this year and sold it because it was running flat. A couple weeks later the stock tripled. FML were the only words I could think of at the time. The second thought I had was that I should've bought just one call option to replace the stock I sold.
      On the flip side, once a stock does move a lot higher, don't be greedy. What goes up fast can come down just as fast. I feel a lot worse watching a stock/option go up 200% then come down all the way or more than I do exiting with a 100% gain watching the stock go up more. Don't chase the perfect trade. It's a white whale. Just make money.

    5. Everyone Has a Plan Until You Get Punched in the Mouth.
      This is as true in boxing (thanks Mike) as it is investing. That's why it's essential to have a plan A and a plan B should plan A not work out as you thought. Waiting through it can work, but it isn't a very effective strategy for navigating a changing environment.
      So if my thesis is that the stock will do well with rising COVID rates and COVID rates stop rising, I try to have plan B ready. I keep a lot of notes. I track every trade. I review what went wrong with trades quarterly. I learn. I avoid the pity party as much as possible and drink vodka for the rest. I try not to fall in love with any stock. And I know that even if I lose 100K, there's more money to be made in the coming years and decades if I stick it out.

    submitted by /u/Swingtrader79
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    Microsoft becomes most valuable company in the world

    Posted: 29 Oct 2021 08:47 AM PDT

    Microsoft has overtaken Apple to become the most valuable company in the world. At the time of posting Microsoft has a market cap of 2.46 trillion whole Apple has a market cap of 2.45 trillion. Not sure how long this will last but with Apple price movement very sluggish and Microsoft roaring this could be the new ranking for a while.

    submitted by /u/CptIskarJarak
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    Is NVIDIA still a buy at this valuation? Why or why not?

    Posted: 29 Oct 2021 12:14 PM PDT

    The more I read about Nvidia the more I want to be invested in the company. But it has already run so much. Is this still a buy at these levels? I know its a great long term company but I dont want to chase after almost a month straight of green days.

    Anyone buying at these levels? And if not. what other plays in the same sector are trading at better valuations?

    submitted by /u/dmillz103
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    Why the focus on the meta verse from Fb? Is this purely marketing focused to get through this crisis?

    Posted: 29 Oct 2021 08:00 AM PDT

    As a person who's followed the latest technology for a while, I have never seen much success from VR. It reminds me a little of 3d TVs, and I get that they aren't the same, and the initial experience with VR can be mindblowing, but do people actually use these tools daily? The original Oculus was awesome, but I can't imagine using it for more than brief periods of time. AR is something different and companies like Magic Leap make it look awesome, but this push into the meta verse makes me think they are truly focusing on VR. This just seems like one of the dumbest rebranding moves I've seen, so it makes me think there is some other rationale behind it.

    submitted by /u/thedelusionalwriter
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    TSLA Market Cap increased more than HMC, F, & GM total market caps combined in 4 days

    Posted: 29 Oct 2021 01:17 PM PDT

    Post says it all. TSLA is now worth $1.1T after the Hertz announcement. The market cap increased from $864B to the $1.1T in 4 days. That's a total of $236B increase in less than a week. The four day increase alone is worth more than Ford, GM, Nissan, and Honda total market caps combined ($67B, $79B, $22B, & $54B respectively). Four days....it increased by the size of some of the largest car producers in the US combined. It's total market cap is nearly 5X those same companies combined (you could own each of them 5X with TSLA market cap).

    All of that for a company that has less than $4b in operational income YTD, which by the way is about 8X less than the combined income generated by the aforementioned car producers. To also put that into perspective, it is now worth more than Facebook by $150B (that's a whole AMD market cap) which has generated 10X the net income YTD.

    I'm not a bear or a bull, I'm just watching this from the sidelines at this point. I just wanted to point out how crazy that is.

    submitted by /u/rageinrageout
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    Here is a Market Recap for today Friday, Oct 29, 2021. Please enjoy!

    Posted: 29 Oct 2021 02:41 PM PDT

    PsychoMarket Recap - Friday, October 29, 2021

    The remarkable rally in equities continued, with stocks jumping despite two of the largest companies, Apple (AAPL) and Amazon (AMZN), posting disappointing earnings results in an otherwise solid earnings season. The S&P 500 (SPY) and tech-heavy Nasdaq (QQQ) both closed the week at record closing levels.

    Coming into Q3 earnings season, market participants were worried the persistent supply-chain disruptions and labor market imbalances would hamper corporate profits, so it is very encouraging to see companies holding up better than expected. Recent economic data has also contributed to the bounce in equities.

    After suffering its first -5% dip in September, the SPY has come back with a vengeance, advancing more than 7% from the October 4 bottom. In this same time period, the tech-heavy Nasdaq jumped a staggering 10% and the Dow Jones (DIA) gained 5%. Not to toot my own horn too much, but I publicly remained bullish during September volatility and consistently encouraged dip-buying via this recap. Happy to say the strategy, as it has all year, worked great and personally resulted in my most profitable month all year. Hope some of y'all took advantage. Never try to fight market trends, much easier to ride them until you can't anymore. As I have said for like six months at this point, I think the trend will change once the Fed begins discussing interest rate hikes. When that happens, I'll reassess my position. Until then I see any and all dips as buying opportunities.

    Amazon (AMZN) shares dropped after the e-commerce juggernaut missed third-quarter expectations and forecasted a jump in expenses in the fourth quarter due to supply chain disruptions and rising costs for labor, materials and freight. These factors are expected to generate "several billion dollars of additional costs" to Amazon in the current quarter, the company said in its earnings statement. Here are the numbers:

    • Earnings: $6.12 vs $8.92 per share expected
    • Revenue: $110.81 billion vs $111.6 billion expected
    • Q4 Guidance: Amazon forecast sales between $130 billion and $140 billion
    • Amazon Web Services (AWS) and Prime Subs: $55.9 billion
    • Net product sales: $54.9 billion

    Apple (AAPL) also disappointed Wall Street in its fiscal first-quarter results, with key iPhone sales missing expectations, with the launch of the iPhone 13 hampered by the global shortage in semiconductors that forced Apple to massively cut down on production, new rules that allow third-party payment systems in the App store, and supply chain issues, which Tim Cook says cost the company more than $6 billion. Key Apple suppliers like Taiwan Semiconductors (TSM), Broadcom (AVGO), and Qualcomm (QCOM) fell on the miss. Here are the numbers:

    • EPS: $1.24 vs. $1.24 estimated
    • Revenue: $83.36 billion vs. $84.85 billion estimated, up 29% year-over-year
    • iPhone revenue: $38.87 billion vs. $41.51 billion estimated, up 47% year-over-year
    • Services revenue: $18.28 billion vs. $17.64 billion estimated, up 25.6% year-over-year
    • Other Products revenue: $8.79 billion vs. $9.33 billion estimated, up 11.5% year-over-year
    • Mac revenue: $9.18 billion vs. $9.23 billion estimated, up 1.6% year-over-year
    • iPad revenue: $8.25 billion vs. $7.23 billion estimated, up 21.4% year-over-year

    Earlier in the week, a report showed US GDP decelerated to expand at the slowest rate in over one year for the July through September quarter, with the Delta variant and supply-side constraints capping economic activity. GDP rose at a 2.0% annualized rate, missing estimates for the 2.6% pace consensus economists anticipated. However, despite this report and other recent tepid economic data, market participants have remained remarkably resilient and kept buying up any dips.

    Highlights

    • Facebook (FB) announced it will be rebranding under new name "Meta" and the ticker will change to MVRS starting December 1. This is to reflect the company's emphasis into investing in the metaverse, a 3D shared virtual space accessible via VR.
    • Following the post-earning surge, Microsoft (MSFT) unseated Apple (AAPL) as the world's most valuable company by market cap.
    • Tesla (TSLA) shares continued their monster run, closing above $1100 for a new all-time high. Congrats bulls, we getting paid!
    • Exxon Mobil (XOM) and Chevron (CVX) disclosed plans to expand drilling in the top US shale basin in West Texas after posting biggest quarterly profits in years amid elevated energy prices.
    • Squid Game Director Hwang Dong-hyuk confirmed there will be a season 2 but said he is "not a priority" right now. Netflix (NFLX) stock was up 2.5% today to reach a new ATH. After lagging other tech companies in the last year or so, Netflix stocks has been on absolute fire following the release of Squid Game, the most popular show ever on the platform. It is reported Netflix made roughly $900 billion from the show.
    • Shares of Starbucks (SBUX) plummeted 6% after reporting earnings miss amid slowing sales in China.
    • The European Commission opened a full-scale investigation into NVIDIA (NVDA) plpanned $54 billion bid for semiconductor designer ARM. Very basically, the problem is that tons of companies, including Apple's new M1 chip are designed using ARM architecture, other chip companies are worried that NVDA's takeover could damage competition. In response NVDA has insisted it would maintain ARM as a "tech neutral" supplier.
    • **Please note that current stock price was written premarket and may not reflect closing prices*\*
    • Apple (AAPL) target raised by Oppenheimer from $165 to $170 at Outperform. Stock currently around $150
    • Amazon (AMZN) with two target raises. Stock currently around $3375.
      • Truist Securities from $3800 to $4000 at Buy
      • JP Morgan from $4100 to $4350 at Overweight
    • Floor and Decor (FND) target raised by Wells Fargo from $140 to $150 at Overweight. Stock currently around $136
    • Fortive (FTV) with two target raises. Stock currently around $76
      • Morgan Stanley from $78 to $82 at Equal Weight
      • Credit Suisse from $84 to $87 at Outperform
    • Hewlett Packard (HPE) target raised by Raymond James from $19 to $20 at Outperform. Stock currently around $14.50
    • The Hershey (HSY) with a host of target raises. Average price target $200 at Overweight. Stock currently around $175
    • Keurig Dr Pepper (KDP) target raised by Royal Bank of Canada from $40 to $41 at Outperform. Stock currently around $36
    • Laboratory Company of America (LH) target raised by Morgan Stanley from $368 to $377 at Overweight. Stock currently around $287
    • Linde (LIN) with two target raises. Stock currently around $320
      • Wells Fargo from $350 to $365 at Overweight
      • Deutsche Bank from $350 to $360 at Buy
    • Lululemon (LULU) target raised by JP Morgan from $500 to $570 at Overweight. Stock currently around $465
    • Plug Power (PLUG) target raised by Piper Sandler from $37 to $46 at Overweight. Stock currently around $38

    "You will face many defeats in life, but never let yourself be defeated." -Maya Angelou

    submitted by /u/psychotrader00
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    Do ex-officers and ex-directors still have to disclose large stock sales, insider trades, after they have resigned?

    Posted: 29 Oct 2021 01:38 PM PDT

    I've searched for an answer to this but can't find anything that addresses it specifically. I did find this article talking about 10b5-1 plans that I didn't know about before. The practice seems a bit shady. But I can't find a straight answer on whether a CEO announces resignation, then the day of or day after the resignation is effective and they are no longer an employee or connected to the company in anyway, can they dump all of their shares with no disclosure? Or are the terms, specifically the timeline of disclosure, different than for an active CEO? Is it technically insider trading at that point? In my mind, I would say yes it is. But how does the SEC look at it?

    Edit: Forgot to share the link to the 10b5-1 plans I referenced. https://www.wsj.com/articles/executive-stock-sales-are-under-scrutiny-heres-what-regulators-are-interested-in-11628682985

    submitted by /u/chief248
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    Cathie Wood’s Ark Invest Buys $80 Million Worth Of Robinhood After Earnings Selloff

    Posted: 28 Oct 2021 06:41 PM PDT

    https://www.forbes.com/sites/sergeiklebnikov/2021/10/28/cathie-woods-ark-invest-buys-80-million-worth-of-robinhood-after-earnings-sell-off/?sh=369c0d1166fb

    ​

    Despite Robinhood facing growing skepticism from Wall Street analysts, famed stock picker Cathie Wood of Ark Invest recently doubled down on her investment in the popular stock trading app, shares of which tumbled more than 10% on Wednesday after reporting a huge third-quarter revenue miss.

    Ark Invest's Cathie Wood is still bullish on Robinhood even after the company's disappointing shares of Robinhood, which went public to much fanfare in July, are down 12%—below its IPO price of $38—since reporting lackluster third-quarter earnings late on Tuesday.

    ​

    Cathie Wood, the founder and CEO of $75 billion asset manager Ark Invest, purchased a total of 2.24 million shares of Robinhood in various funds on Wednesday, a position worth roughly $80 million at the time.

    ​

    The innovation investor is still clearly bullish on Robinhood, buying the dip in the stock despite the company's big revenue miss, which was in large part due to a sharp drop in trading on its platform, and a slowdown in user growth.

    ​

    Wood added to her position in Robinhood—she has been buying the majority of shares for her flagship fund, the ARK Innovation ETF—even as Wall Street analysts grew increasingly negative on the company following its troublesome earnings report.

    ​

    Analysts across the board slashed their price targets for Robinhood on Wednesday, including those at JPMorgan, Goldman Sachs, Piper Sandler, Barclays and Deutsche Bank.

    ​

    As experts point out, investors are growing increasingly concerned that without a major market event—such as the GameStop frenzy in the first quarter or coin in the second quarter—Robinhood's trading activity and revenue will likely continue to take a hit.

    submitted by /u/RefinedStrategist
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    I scraped r/stocks for the top ticker mentions in the last 24H. Here are the results (Friday October 29, 2021)

    Posted: 29 Oct 2021 07:46 AM PDT

    ​

    Ticker Company # Mentions (24H) Mentions and Charts
    FB Facebook Inc 68 See Specific Mentions
    AAPL Apple Inc 43 See Specific Mentions
    PLTR Palantir Technologies Inc 40 See Specific Mentions
    TSLA Tesla Inc 39 See Specific Mentions
    AMZN Amazon.com Inc 38 See Specific Mentions
    AMD Advanced Micro Devices Inc 36 See Specific Mentions
    MSFT Microsoft Corporation 29 See Specific Mentions
    VTI Vanguard Index Funds - Vanguard Total Stock Market ETF 22 See Specific Mentions
    IBM International Business Machines Corporation 22 See Specific Mentions
    SPY SPDR S&P 500 ETF Trust 22 See Specific Mentions
    QQQ Invesco QQQ Trust Series 1 19 See Specific Mentions
    VOO Vanguard S&P 500 ETF 16 See Specific Mentions
    NET Cloudflare Inc 15 See Specific Mentions
    NVDA NVIDIA Corporation 14 See Specific Mentions
    INTC Intel Corporation 13 See Specific Mentions
    AI C3.ai Inc 13 See Specific Mentions
    EPS WisdomTree U.S. Earnings 500 Fund 12 See Specific Mentions
    GME GameStop Corp 11 See Specific Mentions
    AR Antero Resources Corporation 9 See Specific Mentions
    TSM Taiwan Semiconductor Manufacturing Company Limited 8 See Specific Mentions
    TQQQ ProShares UltraPro QQQ 7 See Specific Mentions
    submitted by /u/CurrentPangolin
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    How popular do you think the metaverse will be?

    Posted: 28 Oct 2021 10:51 PM PDT

    After watching Zuckerbergs presentation, I started thinking about who will jump on this band wagon most agressively?

    Sounds like "fitness" is code for porn. So there's potential in that.

    Workspace sounds hopeful, but how many companies will jump on this in the near future? Avatar creation looks expensive and I'm not sure people are ready to have serious meetings with cartoon figures.

    Hang out spaces? I don't use Skype or zoom to talk to friends, what will make me use the metaverse?

    The only real near term users of this technology will likely be in porn and gaming.

    What else you guys this thing is useful for?

    submitted by /u/Neat_Ad_4544
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    IONQ Warrant Redemption Clause

    Posted: 29 Oct 2021 10:39 AM PDT

    So I was re-reading the IONQ S-1 because the share price has been doing better than I anticipated when I noticed that IONQ their redemption features:

    differs from the typical warrant redemption features used in other blank check offerings, which typically only provide for a redemption of warrants for cash (other than the Private Warrants) when the trading price for the common stock exceeds $18.00 per share for a specified period of time

    The two conditions are:

    Redemption of warrants when the price per share of the common stock equals or exceeds $18.00
    Redemption of warrants when the price per share of the common stock equals or exceeds $10.00

    Which, since IONQ is currently trading at $15.58, means at any time they could call all warrants for redemption (with a notice period of 30 days).

    Does this mean that as soon as they give investors notice of a redemption, there will be a massive warrant selloff and the price of warrants will drop if you don't have the cash to exercise them yourself? Or, since they have intrinsic value, will the prices of warrants stay largely the same? This was my first time investing in a company pre-merger and I've been trying to learn and do my due diligence. Thanks all.

    Edit: link to the S-1

    submitted by /u/SwolyMammoth
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    Just getting started and I want to know how other people started in the stock market.

    Posted: 29 Oct 2021 10:17 AM PDT

    Hello everyone as the title says im just starting to get i to the stock market and wanted to hear some people on what they use for buying their stocks and how they mange to find stocks that profit and strategies that people have thought that worked well. Im sorry if this is alot to ask for and if people think this a low effort post. But I would apreciate Any kind of replies (sorry for spelling mistakes english is not ny main language)

    submitted by /u/markus09873
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    What to do w/company stock in 401k after leaving

    Posted: 29 Oct 2021 01:50 PM PDT

    Hi. I recently quit my job for another opportunity and I have about 5K of my former company's stock in my 401k with my former employer. I will roll the non-stock $ into my new employer's 401k, but I'm not sure what to do with the shares from the company stock.

    I'm considering opening a Fidelity brokerage account and moving it there, or possibly just selling it from my 401k.

    I've been reading about NUA. I want to do what makes the most sense. For reference I'm 40, so not retirement age.

    Suggestions?

    submitted by /u/Remarkable_Power_808
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    RKT is worth a look this week.

    Posted: 29 Oct 2021 02:43 PM PDT

    Yes, RKT. And disclaimer, I'm also a bag holder. Here me out though…

    Today they announced an intriguing Salesforce partnership, which is their first positive catalyst in quite sometime. They had a pretty optimistic CNBC interview as well taking about it today. Their earnings are this Thursday and as expected they're obviously gonna smash those expectations with the continued refi boom and housing market in general. Their P/E is 5 with growth upside amongst their broker partners and their emerging auto/solar divisions. They've been advertising like crazy and I believe RKT at this point a household name. I also believe this stock has been beaten to death all year since it meme'd in March and all the negative sentiment about losing profit in the future as interest rates go up / the housing market cools off is all priced in at a floor of $15-$16. It's a good time to load up anywhere below $18.

    All this being said I bought 300 more shares today, my average is $19 now with 2500 shares total. My price target is a modest $25 which could happen quick with a slew of positive news this week.

    submitted by /u/Sarge6
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    Optimizing fees, growth and risk for these ETFs?

    Posted: 29 Oct 2021 01:54 PM PDT

    Hi,

    I currently own:

    • iShares Automation & Robotics UCITS ETF
    • iShares Elctrc Vehcls andDrivngTch UCITS ETF
    • SPDR S&P US Technology Select Sector UCITS ETF
    • Vanguard FTSE All-World UCITS ETF
    • SPDR Refinitiv Gl Cnvtb Bd EUR Hgd (bonds) UCITS ETF

    I bought them about 4 months ago, when I was moving from Revolut to Degiro - and so far they've been kind to me.

    .. but I was wondering, are these the best ETFs to get?
    I find the convertible bonds ETF to be veryyy slow to pickup - I barelly see it move above 2%, and more often than not it stays around 0.5% or -0.5% - which is weird, because it's not my "safest" ETF according to the risk ratings.

    What do you guys fill your portfolio with? I'm not asking for a financial advice, I'll decide on my own whether or not I want to relocate my funds, so feel free to suggest anything.

    ​

    Thank you!

    submitted by /u/EngineeringTinker
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    $DOMA - title company using AI

    Posted: 29 Oct 2021 10:41 AM PDT

    DOMA is a title insurance company that uses AI to underwrite policies. The legacy way of writing policies is time consuming and expensive. This company could really disrupt title insurance and other real estate services.

    Its market is about $2 billion and is at about half of its peak. I can see this becoming a 5 bagger in 3 years. High risk but also very high return possibility. Reminds me of $UPST

    submitted by /u/Shoddy_Ad7511
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    BLZE Direct Share Offering

    Posted: 29 Oct 2021 01:18 PM PDT

    I assume the email to participate went to all users of the product, not sure, I'm just a home Backblaze user.

    Anyone considering and done DD on the S1?

    Requires opening a Fidelity account to participate. No details yet on price or number of share limits.

    submitted by /u/teslamodel3fan
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    Is there a website that shows that top performing stocks over a time interval?

    Posted: 29 Oct 2021 12:49 PM PDT

    Is there a site where I can see a rank of top performing stocks over a certain time period?

    For example, top performing stocks from the past 2 years to now.

    I want to learn more about momentum investing and I think have a site like this would help. But I can't seem to find any good websites for stock ranks.

    Thanks in advance!

    submitted by /u/thelonelystockfish
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    Is QQQ the best performing index fund YTD?

    Posted: 29 Oct 2021 06:06 AM PDT

    And if it is, is there any information on the likelihood such index funds are just as successful the following year or are they likely to level off. I know no one can see the future but just curious on anecdotal experience

    submitted by /u/brownedout17
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    Selling (taking profits) strategy

    Posted: 29 Oct 2021 09:08 AM PDT

    Hello

    I have a simple question that I'd love some help on.

    I have purchased greyscale etherium trust (ETHE) since the crash a couple of months ago. I have shares from 16 dollars a share to 35 dollars a share (it's currently at 42 a share)

    I'd like to figure out the correct way to take profits from this investment.

    Should I sell from the lowest price up (so starting from the 16 dollars a share purchase) or from the highest price down (starting at the 35 dollar share)

    The reason why I am asking is because when ETHE crashes again, I'll be in the red with the 35 dollar shares, but more than likely not with the 16 dollar shares. Does it make more sense to sell the higher priced shares, or the lower priced shares?

    Thanks so much

    submitted by /u/MarshallCS
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    My Story: Gained Big, Lost Big

    Posted: 29 Oct 2021 11:21 AM PDT

    I've wanted to learn to trade, and invest in stocks since I was a teenager. Without a mentor it took me a while to make the leap. I began to trade in 2018, and got by until I learned about options.

    There should not be a need to say that I blew up my entire account. $4,000 was a lot of money to me back then. Those losses hurt so bad that I barely traded until the COVID recovery rally in 2020.

    I had a nice thick 20K bonus from work, and put the entire amount in my Webull account. I began to calmly trade shares here and there for a few weeks before the pandemic. I was happy making about $500 a month in gains. I had an amateurish goal of 2% porfolio gains a week. And then I felt like I was catching traction -- that perhaps I was getting good at this -- so I traded larger positions, and eventually back to options.

    To be fair I took a lot of time to research and understand options, stocks, and the market. Although, there was still so much I did not know, and this would later cost me a lot of losses.

    During the bull run I quickly resorted to exclusively trading calls. I grew my 20K to 26K by 2020 year end, and then to 88K by September 2021.

    Here are my top 5 winners: 28K GME 15K CRSR 8K SKLZ 4K PLTR 4K ZS

    Trading became an obsession. I no longer cherished $500 month gains, I wanted much more. I spent $12,000 in vacations, I promised to help my mother buy a house, and I became a bigger consumer. I thought this type of growth would last.

    I was caught with my pants down when the Evergrande news broke out. I was holding $8,000 in STLD and another $7,000 in WMT calls, which both expired worthless. I lack good risk management, and did not pay any attention to the macroeconomics, the fed, or world news.

    That stung. I don't see losses that big, and it was unpleasant to be set back while on my journey to reaching 6 digit numbers. No one in my family has ever had that kind of money. I grew up poor after all. I needed this money back quickly, and so I gambled into the bearish momentum, and got my account back to $72,0000 (excluding the $12,000 I've already taken out and spent). It's this easy? I thought.

    In September life had bogged me down, and I was feeling a little depressed. I had a lot of responsibilities, stress, and not much time for myself. This was also the busiest time of the year at work.

    I was obsessed with making big gains, and this was the beginning to my empire crumbling. I stuck to trying to scalp weekly QQQ puts, and one day it wasn't working out. I mentally checked out, and kept averaging down on my puts until I had $30,000 in puts with a 20% loss. These puts had 6 days or so to expiring, including a weekend.

    One fine Monday morning, before market open, and 2 days before my puts expire, I planned out my exit on this position. Luckily, during the weekend there was bearish sentiment in the market and I had an opportunity to profit. I guessed the movement nearly perfectly, but I did not close out my position for big gains.

    I was busy at work, and my window for profit was short lived. I could have prioritized this huge risky position I had, but instead I didn't. I should have had my eyes glued to that sell button and sold when I saw $20,000 in gains. But instead I assisted some people at work, and 10 minutes later I'm back to 20% losses. A few hours later I'm at 40%, and it only goes down hill from there.

    I beat myself up a lot over this loss. I should have known better I thought. I felt like I betrayed my family, myself, and my 1 year old son -- whom I want a better upbringing for than the one I had. But the losses didn't stop there, I continued to gamble until my account reach $25,000 (excluding the $12,000 spent.

    So during 2021 my account has only gone from $26,000 to $37,000. Not bad right? But I am forever disappointed. The hopes and dreams of not being poor, of a better future for my family, and having financial freedom seem so far away again. It's actually quite depressing. All of my remaining money is invested in VOO, and I will still need to pay taxes on the money I took out. I can't take out the money invested, because it's the only safety net for my family.

    Now I am trading with measly amounts. The confidence is gone. The hopes and dreams diminished. But I still need to achieve success, and I need to get back up this hill. Does anyone have any advice, or kind words that'd make me feel better? Asking for a friend.

    submitted by /u/EdinsonC
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