OT: Stock trading | Page 5 | The Boneyard

OT: Stock trading

JohnFSilver said:
Unemployment rate is going north of 20, just saw that labor participation lowest since 1973.

Stocks are still high on the stimulus measures. I just don’t see the fundamentals in a macro economic numbers dictating upward movement.

If you can pick a single stock that is doing better due to this situation (tech, consumer staples) I get it. But less jobs, less money for people mean less earnings. The economy is retracting. People spending less.

The only thing that seems to be driving these prices to the expectation of further government stimulus.

just wondering if we are in the dead cat bounce part of the crash.

Bloomberg TV seems pretty sour on the environment.

What do I know though. The more I got into the stock market after my journalism career, the less I was sure I knew about where things are going .
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Maybe a lot of companies and industries are discovering that they can get by with a lot fewer employees and costs with a more remote and automated workforce, and they are also able to grab a lot of stimulus cash, enjoy more regulation rollbacks and greater immunity from lawsuits as a result of the legislation that has been passed and is being discussed now.
 
JohnFSilver said:
Unemployment rate is going north of 20, just saw that labor participation lowest since 1973.

Stocks are still high on the stimulus measures. I just don’t see the fundamentals in a macro economic numbers dictating upward movement.

If you can pick a single stock that is doing better due to this situation (tech, consumer staples) I get it. But less jobs, less money for people mean less earnings. The economy is retracting. People spending less.

The only thing that seems to be driving these prices to the expectation of further government stimulus.

just wondering if we are in the dead cat bounce part of the crash.

Bloomberg TV seems pretty sour on the environment.

What do I know though. The more I got into the stock market after my journalism career, the less I was sure I knew about where things are going .
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Yes and no.

I think it's a great buyer's market so long as you're really good at just sticking to really, really basic, fundamental investing strategies. It's not the time to take a on a lot of risk - but it's def. time to pick up long-term growth stocks that are underperforming.

Low volatility, high yield ETF's, lower priced oil stocks - they're going to be great buys even if they're down over the next 2-3 years. I found one ETF that trades normally at $29-$30 at $5 and rapidly climbing the last month w. a 7% dividend and a P/E at like 3. Even in the worst case scenario, it's *five dollars a share*.

I'm staying away from risky stuff in tech outside of mobile gaming. It's growth potential is huge and it's cheap to produce, affordable entertainment. I think there's 1,000% a ceiling on it, but if people want to buy stonks - those are fairly safe bets and still cheap to get into (I'm up 64.38% on GLUU at $9.42 a share and I'm up 8.2% on ZYNGA at $7.76 per share) and growing in a big market. And even if they don't, they're not stocks that are expensive enough to soil your pants.

And it's super lame - but i'm sticking to the old Warren Buffett model and that's it:

-Stock has to be stable/understandable
-Good long-term prospects (will it be around in 20 years)?
-Good leadership (esp. w/ regards to how they manage debt)
-Currently undervalued.

Keep the P/E below 10. Deep the P/BV under 1. Make sure they quarterly have more revenue than liabilities and *in most cases* - it's going to be a safe investment regardless of *most* of what's going on in the marketplace.

And that's really it. Just don't get too adventurous. Do your homework. And of course, do what works for you and don't overextend yourself.
 
Towney007 said:
Yes and no.

I think it's a great buyer's market so long as you're really good at just sticking to really, really basic, fundamental investing strategies. It's not the time to take a on a lot of risk - but it's def. time to pick up long-term growth stocks that are underperforming.

Low volatility, high yield ETF's, lower priced oil stocks - they're going to be great buys even if they're down over the next 2-3 years. I found one ETF that trades normally at $29-$30 at $5 and rapidly climbing the last month w. a 7% dividend and a P/E at like 3. Even in the worst case scenario, it's *five dollars a share*.

I'm staying away from risky stuff in tech outside of mobile gaming. It's growth potential is huge and it's cheap to produce, affordable entertainment. I think there's 1,000% a ceiling on it, but if people want to buy stonks - those are fairly safe bets and still cheap to get into (I'm up 64.38% on GLUU at $9.42 a share and I'm up 8.2% on ZYNGA at $7.76 per share) and growing in a big market. And even if they don't, they're not stocks that are expensive enough to soil your pants.

And it's super lame - but i'm sticking to the old Warren Buffett model and that's it:

-Stock has to be stable/understandable
-Good long-term prospects (will it be around in 20 years)?
-Good leadership (esp. w/ regards to how they manage debt)
-Currently undervalued.

Keep the P/E below 10. Deep the P/BV under 1. Make sure they quarterly have more revenue than liabilities and *in most cases* - it's going to be a safe investment regardless of *most* of what's going on in the marketplace.

And that's really it. Just don't get too adventurous. Do your homework. And of course, do what works for you and don't overextend yourself.
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I partly agree about the P/E model. It’s a good safe rule but you can miss out on a ton of high flyers that trade at considerably high multiples, and those have been the stocks that have made some huge gains in this market. Do you avoid every stock that has a negative multiple? I’ve done really well on DocuSign, which isn’t profitable yet but is a fantastic stock. All depends on an investor’s time horizon,
 
tentoes4rings said:
I partly agree about the P/E model. It’s a good safe rule but you can miss out on a ton of high flyers that trade at considerably high multiples, and those have been the stocks that have made some huge gains in this market. Do you avoid every stock that has a negative multiple? I’ve done really well on DocuSign, which isn’t profitable yet but is a fantastic stock. All depends on an investor’s time horizon,
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Totally - and now and then I’ll make exceptions; but I’m fairly conservative when it comes to common stock, or at least as I pick who I’m gonna buy. I make big, big bets on stocks but I’m insanely picky about what I buy.
 
Chainlink, solving the oracle problem while verifying real-world data into the execution of smart contracts.
 
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tentoes4rings said:
I partly agree about the P/E model. It’s a good safe rule but you can miss out on a ton of high flyers that trade at considerably high multiples, and those have been the stocks that have made some huge gains in this market. Do you avoid every stock that has a negative multiple? I’ve done really well on DocuSign, which isn’t profitable yet but is a fantastic stock. All depends on an investor’s time horizon,
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The problem with the P/E model under 10
is you are missing the entire tech sector. Where can you get explosive growth from?
 
I’d love to start a list of everybody’s stock top performer this year and one top pick moving forward. Also, does anyone own Twilio? Almost bought it today and it fully rebounded, it’s on fire.
 
uconndogs said:
“Revenues to liabilities“ is a new one on me.......
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lol. isn’t that debt To income?

also, you metric has to depend on the industry. REITs are really good but you want to know the leverage ration.

EBITDA is also a good measure.
 
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JohnFSilver said:
lol. isn’t that debt To income?

also, you metric has to depend on the industry. REITs are really good but you want to know the leverage ration.

EBITDA is also a good measure.
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I see......
 
UConnSwag11 said:
Nice, which ones are you looking at? Do you invest in Crypto itself or just the companies?
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There are companies and there are the currencies. I have some of both. I like chain link as well lots of smart people in that company. Another favorite company is Theta- founded by the guy that created YouTube.
 
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JimHurley said:
I have considered dumping my Berkshire Hathaway and getting into Google as well as increasing positions in Disney and JPM. I loaded up on Berkshire about a month ago because I thought Buffett would be buying a lot in this downturn, but instead he’s selling
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This type of market and this type of economy doesn’t play in to Buffet’s strengths. Paradigms shift. Just because you were the best one time doesn’t make you the best forever. He sold out of airlines and banks. He would be doing a lot better if he had 6% of Amazon AAPL and msft. Instead he has owned IBM since 180ish. He has missed the boat on many opportunities in recent years.
I used to hold on to every word of some of these guys. Gundlach was a guy I had a ton of respect for. Now I don’t. He has gone of the deep end talking his book, tweeting non stop and fighting this tape. I still respect Buffett but most of these other guys have an agenda.
 
UConnSwag11 said:
Nice, which ones are you looking at? Do you invest in Crypto itself or just the companies?
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Right now, chainlink is my top priority to continue to accumulate. The have some nice partnerships with Oracle and Google Cloud to name a few. Price has shot up from like 32cents per link from a couple years ago to around 4 bucks per link today.

I also hold bags of Ethereum.

Dont own really any bitcoin, as I purely see the function of bitcoin as a digit store of value, rather than an actual company.
 
uconntoatl said:
Right now, chainlink is my top priority to continue to accumulate. The have some nice partnerships with Oracle and Google Cloud to name a few. Price has shot up from like 32cents per link from a couple years ago to around 4 bucks per link today.

I also hold bags of Ethereum.

Dont own really any bitcoin, as I purely see the function of bitcoin as a digit store of value, rather than an actual company.
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I’d like to have bags of ethereum-only have about 50.
As far as companies- I think Theta may be one of those long term sleepers- pick it up for .15 could go above $10 down the road.
Own several bitcoins but most of my holdings are in alt coins. I like the currencies as well- just as a hedge on governments making bad choices or printing too much money moving forward. I think the currencies will be looked at as a safe haven ( as crazy as that sounds) in 4-5 years.
 
djct1999 said:
This type of market and this type of economy doesn’t play in to Buffet’s strengths. Paradigms shift. Just because you were the best one time doesn’t make you the best forever. He sold out of airlines and banks. He would be doing a lot better if he had 6% of Amazon AAPL and msft. Instead he has owned IBM since 180ish. He has missed the boat on many opportunities in recent years.
I used to hold on to every word of some of these guys. Gundlach was a guy I had a ton of respect for. Now I don’t. He has gone of the deep end talking his book, tweeting non stop and fighting this tape. I still respect Buffett but most of these other guys have an agenda.
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I just sold actually. I looked at the Berkshire portfolio, and I hate it. Lot of analysts saying Buffett’s investment strategy is out of style. He’s made a lot of bad industry bets, and isn’t exposed to much tech. I bought GOOG and will be increasing positions in DIS and JPM.
 
JimHurley said:
I just sold actually. I looked at the Berkshire portfolio, and I hate it. Lot of analysts saying Buffett’s investment strategy is out of style. He’s made a lot of bad industry bets, and isn’t exposed to much tech. I bought GOOG and will be increasing positions in DIS and JPM.
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There’s nothing wrong with the style if you do it correctly. But he is human. And sometimes wild stuff happens that you don’t get to get control as an investor.
 
Can someone here explain bitcoin to me How is it backed, and who uses it besides Russian hackers, terrorists and organized crime?

I am being serious on the criminal front. Seems that bitcoin is a terrific way to launder money and could have been the reason for its popularity. But that is just a fleeting bar-room theory.

Also, if you ever want to confuse someone just try and explain how a sell-side analyst gets paid at a brokerage. Lol.
 
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JohnFSilver said:
Can someone here explain bitcoin to me How is it backed, and who uses it besides Russian hackers, terrorists and organized crime?

I am being serious on the criminal front. Seems that bitcoin is a terrific way to launder money and could have been the reason for its popularity. But that is just a fleeting bar-room theory.

Also, if you ever want to confuse someone just try and explain how a sell-side analyst gets paid at a brokerage. Lol.
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I'll do my best here.

In the past your analysis is pretty spot on. If you don't know, research the Silk Road and how Bitcoin was first used for all sorts of illegal things.

Bitcoin is backed by blockchain technology (like all other cryptocurrencies). There is also a fixed number of Bitcoin, so no more can ever be created. Every transaction made using bitcoin is logged onto a public ledger in blocks of transactions (after so many transactions occur, a new block is created to continue logging legit transactions) aka the blockchain. Bitcoin can be transferred from one wallet (assigned to a user that is encrypted with a bunch of numbers and symbols) to another. The creation of a wallet is logged onto the blockchain.

To make sure a transaction between one wallet to another is a true transaction (that one wallet actually has the amount they say they have and is valid), a bunch of miners (anonymous computers) will verify this by looking at the blockchain (public ledger) that these are legit wallets addresses, and also verify the wallet that is sending the bitcoin actually has that amount of bitcoin in the wallet. Once again, this is verified through the blockhain, as every wallet's purchase of bitcoin is logged into the blockchain. For performing this verification, the miners are rewareded with a small amount (a fraction) of Bitcoin, providing incentive for miners to continue verifying transactions. Thus, the blockchain creates a decentralized avenue of verifying transactions, vs. a bank (centralized). To further clarify, any person in the world can set their computer up to be a miner.

Today, you pretty much have to buy Bitcoin on an online exchange, so you have to create an account to do so, so not as shady (completely anonymous) like before. Bitcoin can also be used to buy other cryptocurrencies. I would say an advantage to cryptocurrency in general is that as long as you have internet access, anyone in the world can receive "digital currency" in a matter of seconds/minutes, and is almost impossible to hack.

Something like 8 or 9 years ago, you could buy Bitcoin for less than a dollar. A couple years ago one Bitcoin was worth $20,000. Currently, the price of one Bitcoin is floating around $9800.

Bitcoin essentially acts a store of value. Taking blockhain technology a step further, companies like Ethereum are baking in "smart contracts" into the blockchain. For example, you and me could agree to a smart contract based on a bet that we have. I bet that UConn will beat Syracuse by at least 50 points this year. You say that UConn will win, but by less than 50. If you and me wanted to wager this and not have to worry about when we would pay each other, we could write a smart contract into the Ethereum blockchain agreeing to this bet. Once the game finished, a company like Chainlink (that verifies real-world data and uploads this data into smart contract blockchains) would execute our agreed upon bet, and that money in the form of Ethereum (Ether) would automatically end up in one of our accounts within minutes. Take this concept of smart contracts and expand it to all aspects of life agreements (payroll, mortgage, insurance, etc...)
 
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tentoes4rings said:
We started discussing this in another thread so I decided to start a new thread. Would love to know what sectors and stocks people are in, with successes and if you want to share, bad trades or holds. My brief story below:

Traded a lot from 99-01 but volatility of Dot Com Market collapse forced me out with a decent profit. Fast forward19 years, I dove back in at the bottom in March. Had some success trading Comcast the first week, got caught in a bad trade with Citrix. Had an initial wishlist of NFLX, DOCU, Roku and Comcast. Didn’t pull the trigger quickly enough and watched most run away. Roku and Gartner I’ve been in and out of but just can’t seem to win on them. Two big winners have been DocuSign and Five Nine Inc (FIVN). I’m out now except for a small position in DocuSign, as I expect tech stocks to sell off soon and want to be ready to buy on dip.

Stocks Im looking at adding:
MSFT
AMZN
FB
ROKU
TWLO
FIVN
BX (Blackstone)
Tesla
OKTA
PENN
Walmart
CCL (Carnival)
IT (Gartner)
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I’ve been buying and selling PENN on the ups and downs. Currently don’t own any but always on the radar. They need casinos and sports to open up ASAP. Holding Apple for life most likely. I like your list... I have visa and Lululemon in addition but need another drop first.
 
JohnFSilver said:
Can someone here explain bitcoin to me How is it backed, and who uses it besides Russian hackers, terrorists and organized crime?

I am being serious on the criminal front. Seems that bitcoin is a terrific way to launder money and could have been the reason for its popularity. But that is just a fleeting bar-room theory.

Also, if you ever want to confuse someone just try and explain how a sell-side analyst gets paid at a brokerage. Lol.
Expand ...
The US dollar is by the far the most used currency for illicit dealings

Bitcoin was a response to the 2008 financial crisis. People saw what the government, the Fed, and big banks had done to the US Dollar and the economy. The goal is to have a finite amount that cannot be “printed” endlessly like fiat.

I’ll go more into details about Bitcoin later when I’m off of work, but this Doc.is pretty good IMO

 
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I think the old adage buy low and sell high is kinda dead. I work in finance, but trade my own accounts pretty actively (ok, way too actively) and for the past 5-7 years I’ve just bought momentum names and they largely continue working. The mistakes I made/make are in emotional decisions to sell to raise cash in market gyrations and not take gains quickly enough in a fading tape, this is #1. I have gotten shaken out of FB so many f in times to count, usually On regulation/bad news.

I have clients all he time wanting to buy airlines and oil names for years and years and maybe they will work this time since down so much, but I showed a client yesterday since late 2018, right into that quickie bear market of 2018 and through now a tech/software etf is up 26% with two crashes basically picking worst possible timing), while a steady eddy dividend etf is down -9%.

I used to hesitate on tech companies I didn’t know enough about,but stocks breaking out to new highs most often go higher. It’s taken me a long time to get there. This is so important.

additionally, I love to buy core holdings on dips, Apple, Amzn, amd - these stocks will always pull back from time to time and i always wish I bought more on those dips. they’re still “high” on those dips vs value plays but that works almost every time.

to reiterate I make so many mistakes, but don’t sit out after them. I’m sure when I sold fb $50 lower a few mos back, I put that $ somewhere quickly and did ok. That helps the psyche a lot - at least my fragile one! Good luck!
 
uconntoatl said:
Yes, but only in companies that provide real-world value
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Scot-e said:
I’d like to have bags of ethereum-only have about 50.
As far as companies- I think Theta may be one of those long term sleepers- pick it up for .15 could go above $10 down the road.
Own several bitcoins but most of my holdings are in alt coins. I like the currencies as well- just as a hedge on governments making bad choices or printing too much money moving forward. I think the currencies will be looked at as a safe haven ( as crazy as that sounds) in 4-5 years.
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I don't have much BTC as I got in late and the price is way too high. I have Monero bc I think it's going to be the currency to have in the future as most people will go to it for complete privacy. I also have ETH, BAT and every once in awhile I'll go for some others. I also use DAI as a stablecoin. But my biggest bag is XRP (Ripple) as it's going to skyrocket. VISA is now going to be using the Ripple network, and it's not the first major company or bank to do so.

Ethereum might go higher when they release Version 2 this summer

I've invested in companies/banks that use Ripple and XRP - Moneygram, WU, BOA, etc just to see what will happen when this takes off

Visa Files Patent for Cryptocurrency System to Replace Cash | Bitco...
www.forbes.com

14 Common Misunderstandings About Ripple And XRP

Zooming in on some of the most common misunderstandings about Ripple's products, their business model and XRP.
www.forbes.com www.forbes.com
www.xrparcade.com

Top 100 banks and Ripple - XRPArcade

This list is based on the 2019 S&P Global Market Intelligence report of the 100 largest banks in the world by total assets. The list links the top 100 banks by assets and Ripple.
www.xrparcade.com www.xrparcade.com
www.crypto-news-flash.com

Ripple reaches milestone: 300 partners and XRP volume increase

Ripple has announced that the three hundredth partnership was completed yesterday, marking a historic milestone.
www.crypto-news-flash.com www.crypto-news-flash.com
decrypt.co

Complete list of Ripple Partnerships using xRapid (XRP) - Decrypt

Ripple has more than 200 partnerships but not all of them are using its commercial product xRapid, which only uses XRP. Here is a list of those who are.
decrypt.co decrypt.co
 
Anyone use Zack’s premium grading service? It’s the one that fees reported about in a lot of financial publications with its 1 (strong buy) - 5 (strong sell) scale.
 
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