OT: Stock trading

[rip7774]

I’m not selling a share. My stocks don’t really need a growing consumer base. If I owned stocks that needed people to spend more, that would be one thing, but the ones I own count on people spending differently and on people teleconferencing. How people spend and communicate is changing - there’s money to be made in that.

Totally agree. so few stocks going up before today even but the ones that are just continue flying higher. Market pricing in new normal even before Covid spikes.

 

[Jay-Bone]

So we agree.

I might have been salty, as I did the "smart" thing of taking meager profits when I had bought stocks like Amazon at $1600 and Tesla at $350 in March expecting a dead cat bounce and not expecting the market to go straight up to 27,500. Long term holders were rejoicing. Now they're like, why the heck did I hold? My point was, in a typical boring market you try to outsmart it to make money. Right now, you're best bet is just going along for the ride.

 

[XLCenterFan]

Another reason I’m not worried...the daily top gainers always perform better than the inverse of the top losers. Today’s 3 biggest winners did 46, 41, and 28%. The 3 biggest losers lost 23, 23, and 22%. Make better picks. Myself included.

 

[tentoes4rings]

Same, I've got my biggest cash position ever. I've considered selling literally everything and then buying again when the bottom eventually falls out of the market.

I’ve been inclined to agree with you but instead I’ve just sold some stuff off like some Amzn, TSLA etc. Fortunately I got out of FB after hours last night at 232. I doubled down on small to mid cap work from home beneficiaries recently and it’s paying off. DOCU, FSLY and LVGO were big today. I’d raise some cash but also transition more to companies with lesser than $50 B valuations and stay with what’s hot. With no sports for another month and many of us working from home, I think segments of the market will stay propped up because the stock market has become a big part of many people’s lives the past 3 months and I don’t think people are ready to leave that.

 

[McLovin]

I’m not selling a share. My stocks don’t really need a growing consumer base. If I owned stocks that needed people to spend more, that would be one thing, but the ones I own count on people spending differently and on people teleconferencing. How people spend and communicate is changing - there’s money to be made in that.

Yeah my whole portfolio and investment thesis is around B2B enterprise tech companies (CRM, QLYS, MITK) and technology driven consumer financials (SQ, PYPL). Have been in all of these companies, most of them for years, before the virus came around. I've been really recently interested in companies like Zoom, Okta, DocuSign, etc. but the valuations have kept me out.

Are you worried about the valuation of some of those WFH companies? My goal is to invest in companies that can return me 10X+ over the long run. But a company like Zoom's market cap is up to $70B trading over 100X revenue ($700M in revenue) it doesn't seem like it can really hit those types of returns by looking at other well established players in the space; enterprise tech companies like IBM is a $100B cap ($77B in revenue - 1.3X), Cisco $190B cap ($50B in revenue - 4X). Unless Zoom is going to be the next Microsoft...

Not saying you're wrong at all, everyone has their own style and pallet for risk, but just curious what you think about valuations / help me think differently about these companies to see the financial opportunity you see.

 

[tentoes4rings]

Yeah my whole portfolio and investment thesis is around B2B enterprise tech companies (CRM, QLYS, MITK) and technology driven consumer financials (SQ, PYPL). Have been in all of these companies, most of them for years, before the virus came around. I've been really recently interested in companies like Zoom, Okta, DocuSign, etc. but the valuations have kept me out.

Are you worried about the valuation of some of those WFH companies? My goal is to invest in companies that can return me 10X+ over the long run. But a company like Zoom's market cap is up to $70B trading over 100X revenue ($700M in revenue) it doesn't seem like it can really hit those types of returns by looking at other well established players in the space; enterprise tech companies like IBM is a $100B cap ($77B in revenue - 1.3X), Cisco $190B cap ($50B in revenue - 4X). Unless Zoom is going to be the next Microsoft...

Not saying you're wrong at all, everyone has their own style and pallet for risk, but just curious what you think about valuations / help me think differently about these companies to see the financial opportunity you see.

The valuation thing is complex to say the least. When we look at forward looking earnings and valuations of companies like Zoom, they don’t make a lot of sense. Then again, as far as present value goes, all that matters is people keep buying it and pushing the price up. I sold Zoom 115 points ago because I thought it had its run. This week I sold the majority of Docusign fearing a pullback, when in reality it has never disappointed me. I remember a CEO years ago saying he never left a party that still had alcohol. I try to subscribe to that now. I’ll stay at the work from home party until the booze run out, but that could be months from now.

 

[XLCenterFan]

Yeah my whole portfolio and investment thesis is around B2B enterprise tech companies (CRM, QLYS, MITK) and technology driven consumer financials (SQ, PYPL). Have been in all of these companies, most of them for years, before the virus came around. I've been really recently interested in companies like Zoom, Okta, DocuSign, etc. but the valuations have kept me out.

Are you worried about the valuation of some of those WFH companies? My goal is to invest in companies that can return me 10X+ over the long run. But a company like Zoom's market cap is up to $70B trading over 100X revenue ($700M in revenue) it doesn't seem like it can really hit those types of returns by looking at other well established players in the space; enterprise tech companies like IBM is a $100B cap ($77B in revenue - 1.3X), Cisco $190B cap ($50B in revenue - 4X). Unless Zoom is going to be the next Microsoft...

Not saying you're wrong at all, everyone has their own style and pallet for risk, but just curious what you think about valuations / help me think differently about these companies to see the financial opportunity you see.

I am not worried about the valuations of WFH companies. Even if the tide subsides somewhat, this is going to become a normalized trend IMO. But then again, I don't even look at numbers like that anymore. When I first started investing around 2006ish, I used to pour over numbers and consider them all. I found myself going crazy, and ultimately realized that the time I spent considering those numbers was not making me a better investor. Since then, I purely go off of where I see consumers moving towards. One summer, I was on vacation and looked down at the table...there were literally like 9 Apple devices sitting there. My wife and I bought a bunch of stock, and bingo! About a year ago I noticed people saying " just Venmo me," as they say "Google it," or "I need a Kleenex." When a brand starts becoming a verb, buy. I did, and bingo! When the pandemic started, my calendar became absolutely filled with Zoom meetings. I bought in, and bingo! Tracking consumer trends and discussing ideas with people is how I invest now. Sometimes I hit and sometimes I miss, but my hits outnumber my misses, and I'm OK with my current approach. I do always prefer dividend stocks, but that's not really "looking at numbers."

 

[XLCenterFan]

I’ll stay at the work from home party until the booze run out, but that could be months from now.

It could never truly end. Even when this pandemic subsides, people are going to have become normalized to these services and brands. The "low-tide" for the DocuSigns and Zooms of the market is way higher than it ever was. Also, companies are going to lean on them more, realizing they don't need as much of an "office presence." I could even see Zoom becoming similar to a FB, where users have their own page and profiles, and there's a feed, and stuff like that. People have even turned Venmo into a verb, using it as they have Google. That's big.

 

[tentoes4rings]

It could never truly end. Even when this pandemic subsides, people are going to have become normalized to these services and brands. The "low-tide" for the DocuSigns and Zooms of the market is way higher than it ever was. Also, companies are going to lean on them more, realizing they don't need as much of an "office presence." I could even see Zoom becoming similar to a FB, where users have their own page and profiles, and there's a feed, and stuff like that. People have even turned Venmo into a verb, using it as they have Google. That's big.

I’m with you guys on the verb thing. Cashapp through Square is another one. It’s a wise investment rule to spot the trends in everyday life and go with it. I’m hoping to get PYPL tomorrow on a pullback. I use Venmo all the time. Another stock I recently picked up is Sonos. I have Sonos at home and love the products. They’re dominating the home speaker market now and even if not taken over should continue to do well, especially as more and more people stay home.

 

[Jaker]

Take a close look at WLL this week, potential for a quick pop and scalp, rumors of the company reorganizing and exiting bankruptcy.

 

[tentoes4rings]

Take a close look at WLL this week, potential for a quick pop and scalp, rumors of the company reorganizing and exiting bankruptcy.

I’ll wish you well on that one and root for you but I’m avoiding those stocks. There’s a cloud security company named Tenable (TENB) that had 3.5 x its typical volume Friday that I’m going to take a chance on tomorrow. I still didn’t buy this yet. Got hit hard on my WFH stocks today but got to add PYPL, DDOG and FB back. Doubled positions in MSFT, AMZN, TSLA. Back to “safe” playbook for me with 2/3 in big cap tech.

 

[Jay-Bone]

 

[Jaker]

I’ll wish you well on that one and root for you but I’m avoiding those stocks. There’s a cloud security company named Tenable (TENB) that had 3.5 x its typical volume Friday that I’m going to take a chance on tomorrow. I still didn’t buy this yet. Got hit hard on my WFH stocks today but got to add PYPL, DDOG and FB back. Doubled positions in MSFT, AMZN, TSLA. Back to “safe” playbook for me with 2/3 in big cap tech.

Yup, I picked up some more FB, good buy right now.

 

[Scot-e]

FB is a POS company. Bought it early and sold out my entire position on principals 6 months ago. I hope they burn.

 

[XLCenterFan]

FB is a POS company. Bought it early and sold out my entire position on principals 6 months ago. I hope they burn.

I practice divesting as well. I refuse to use FB, Amazon, or Walmart, and similarly refuse to invest in them.

 

[Chin Diesel]

I’ll wish you well on that one and root for you but I’m avoiding those stocks. There’s a cloud security company named Tenable (TENB) that had 3.5 x its typical volume Friday that I’m going to take a chance on tomorrow. I still didn’t buy this yet. Got hit hard on my WFH stocks today but got to add PYPL, DDOG and FB back. Doubled positions in MSFT, AMZN, TSLA. Back to “safe” playbook for me with 2/3 in big cap tech.

Other than volume what do you see in an investment like TENB? Is there a new product or service they are provided or is their market just expanding? Looking at its history it's currently near high level marks. Other than other investors putting money in there what do you see in the company?
Just trying to learn more about strategies and what to key on when considering investing in a company.

 

[Sandeman]

Other than volume what do you see in an investment like TENB? Is there a new product or service they are provided or is their market just expanding? Looking at its history it's currently near high level marks. Other than other investors putting money in there what do you see in the company?
Just trying to learn more about strategies and what to key on when considering investing in a company.

I apologize for not reading the beginning of this thread. So if my questions have been answered sorry. Anyone here on Stocktwits? I focus mostly on bio stocks. Made some good money in ARIA, ARRY, MDCO buyouts. Also hit big on AUPH phase 3. Rode NVAX from 12 to 43 (wish I never sold) Current holdings are AUPH, TGTX, and GTHX.

 

[tentoes4rings]

FB is a POS company. Bought it early and sold out my entire position on principals 6 months ago. I hope they burn.

Other than volume what do you see in an investment like TENB? Is there a new product or service they are provided or is their market just expanding? Looking at its history it's currently near high level marks. Other than other investors putting money in there what do you see in the company?
Just trying to learn more about strategies and what to key on when considering investing in a company.

i subscribe to Investors Business Daily and it listed it as a stock to watch after unusually high volume the other day. They just went profitable last quarter and look to be the only cloud security company to not run wild. With that said, I haven’t bought it yet but continue to watch it. I opted to buy CRWD recently and DDOG on a dip yesterday. NVTA looks intriguing too but it has doubled in weeks. Anything new on your radar you’d suggest?

 

[Scud49]

If you have been involved in the market long enough, you've probably seen stocks take some seemingly unjustified hits and deep dives - like INO here recently.

This video with Jim Cramer being interviewed explains some of what's goes on:

 

[UConnSwag11]

If you have been involved in the market long enough, you've probably seen stocks take some seemingly unjustified hits and deep dives - like INO here recently.

This video with Jim Cramer being interviewed explains some of what's goes on:

ELI5 please

 

[Jaker]

Because more and more people are daytrading, volitility is increasing as well.

 

[tentoes4rings]

Wow, eye opening. Thanks for sharing. The stocks i refuse to own now are the ones that trade on relatively low volume and there’s never any news on why they’re up or down sharply. They seem too easy for one or two hedge funds to completely manipulate their market.

 

[Jaker]

Wow, eye opening. Thanks for sharing. The stocks i refuse to own now are the ones that trade on relatively low volume and there’s never any news on why they’re up or down sharply. They seem to easy for one or two hedge funds to completely manipulate their market.

And what stocks would those be??

 

[lavuuk153]

I’m not reading this entire thread. Stonks!

 

[tentoes4rings]

And what stocks would those be??

Gartner (IT) for one. CT based company and I used to work there so I know how well run the company is. But it seems to march to the beat if its own drummer with no news on why it’s up or down so much. Plus on those days volume can often be light. Great company, good longterm hold, well off its highs. Just one of the few I will never try to time again because I lose every time. FIVN was another but when it approached 110 and all time high again today I caved and got back in. I think it’s poised for a 10-20 point run but I’ve been headfaked on it twice already.

 

[Jaker]

Gartner (IT) for one. CT based company and I used to work there so I know how well run the company is. But it seems to march to the beat if its own drummer with no news on why it’s up or down so much. Plus on those days volume can often be light. Great company, good longterm hold, well off its highs. Just one of the few I will never try to time again because I lose every time. FIVN was another but when it approached 110 and all time high again today I caved and got back in. I think it’s poised for a 10-20 point run but I’ve been headfaked on it twice already.

LOL, I thought you were going to tell me you got caught holding the bag on CARV.

 

[Jaker]

Glad I held onto my PFE, almost dumped all of it last week, thought better.

 

[tentoes4rings]

Glad I held onto my PFE, almost dumped all of it last week, thought better.

What is it? An index fund? Tech based? Last two days awesome for tech. Hoping no selloff tomorrow headed into long weekend. Tesla should have another big day tomorrow.

 

[JimHurley]

Did a little trimming today. I'm a fairly short-term investor so I'm not sure I can take another huge drop, which I fear is coming. I plan on selling everything I own within 2 years. I love everything I own long-term but I'm not in the game for that long so I can't afford to wait it out. Looking to trim some DIS and possibly JPM next. I got in AMZN at $1700 and will sell if it hits $3000.

 

[tentoes4rings]

Did a little trimming today. I'm a fairly short-term investor so I'm not sure I can take another huge drop, which I fear is coming. I plan on selling everything I own within 2 years. I love everything I own long-term but I'm not in the game for that long so I can't afford to wait it out. Looking to trim some DIS and possibly JPM next. I got in AMZN at $1700 and will sell if it hits $3000.

Awesome. Congrats on AMZN. I was in earlier and now again since 2500 or so. Have been taking profits on it and buying on pullbacks recently. I’ll be trimming like Edward Scissorhands tomorrow myself if there’s another pop.