Investing General Discussion

Look at the top 10 of each basket and tell me if it really matters. Exclude MSFT. The weights are heavier in QQQ for AAPL and AMZN and to a lesser degree FB and GOOG but keep in mind if they get broken up you get shares of each component. I think the return is worth the risk. And besides I already individually own AAPL, AMZN, and FB so...

IVV:


QQQ

Locnar said:

which is why i'm pissed off that I get no QQQ style choice in my 401k. Best bet is the IVV clone , or something managed with a much higher fee.

I also have cashed in some profits, and it feels good (especially since it was right before this latest dip in tech and cruise stocks). This is my first year as a active investor and it was hard to sell some stuff but now feels right. I've matured as a investor so much just this year.

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Remember, you can never lose money taking profits. At worst you just miss out on some gains.

Fogel said:

I think the one way I'll try to temper my active investing is if I can get a better return then simply indexing that also justifies the time investment I put into it, then its worth it. It's also fun and interesting so I don't even mind the time investment as it were. For every story of someone who bought in early on an amazon theres thousands of stories of people who lost a lot chasing the next amazon. If I can get just half a percent gain doing weekly calls/puts, thats still 26% for the year.

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My opinion is there is a place for both individual equities and passive indexing. I use both. My indexes (QQQ and SPYG) are fire and forget. I dont look at them. My analysis time is spent on individual equities where I see a price that isnt where I think It should be or can be. I spent months researching the SPAC vehicle and feel I understand it enough to make some money on them either as speculative short term bets or as early entry points on quality companies going public.

As for short term options like covered calls, I pretty much only do them on my DAL position and I have made over 10% return on my initial DAL investment selling covered calls so far this year. The implied volatility of the airlines makes short term out-of-the-money calls quite rewarding.

NKLA
I am quoting the best part of the article. "Nikola needs access to GM's supply-chain, engineering resource, the Ultium battery and Hydrotec fuel cells to de-risk the Class 8 truck initiative".
LMAO - The class 8 truck was their entire business model and they cant make it without all the actual parts and engineering being supplied from GM. I pity those peeps who were buying this shit in the $90s.

Threw some dice on Dec Puts for HYLN at $15 strike. The stock is getting hit by shorts right now so if some good news sparks a squeeze I am in the bling. Worst case I get some stock for $15 - $1.05 = $13.95 which is actually lower than when I bought in when it was the SHLL SPAC in the spring.

Made another 20% on Spy puts this morning, think it may be time to hold off instead of going back to the well. Looks like my Dal 32 puts for Friday are in a good spot for now.

LachiusTZ said:

Go out of town for a few days, get back and . . .

GE and US Steel finally in the green. Lol

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Sounds like you need to travel more

LachiusTZ said:

Go out of town for a few days, get back and . . .

GE and US Steel finally in the green. Lol

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GE Stock Is in a Stealth Bull Market. Here's Why. -- Barrons.com
General Electric (GE) stock entered a stealth bull market Friday. Shares are up again Monday. There is little significant news ahead besides the company's third-quarter-earnings report, set for next week, leaving investors to wonder what's going on.


GE stock (ticer: GE) is up 1.4% in midday trading Monday. Shares are now up almost 22% over the past 17 trading sessions. Shares closed Friday up 20% from their Sept. 24$6.06 closing price.


Wall Street doesn't appear to be responsible for the gains. There haven't been any upgrades, or downgrades, recently. The average analyst price target is up about 4% since Sept. 24. The average analyst price target for GE stock is still about $8. Price target adjustments don't account for a plus-20% rise.


Targets and estimates are getting adjusted before the next big event for GE stock: earnings. The company reports third-quarter numbers on Oct. 28. Analysts are looking for a loss of 4 cents per share on sales of $18.7 billion. And analysts expect the company to have burned through almost $1 billion during the third quarter. Wall Street earnings, sales, and cash-flow estimates are actually down a little compared with a month ago.


Aerospace optimism appears to be the be the biggest reason GE stock is up. Boeing(BA) stock, for instance, is up almost 16% since Sept. 24. The optimism isn't because more people are getting on planes. Instead investors appear to be more optimistic about the prospects for an effective Covid-19 vaccine. Pfizer (PFE) said this past week that it hopes to be have an emergency-use authorization by late November for its vaccine being developed with BioNTech (BNTX).


Covid-19 has decimated demand for commercial aerospace. People getting on planes in the U.S. fell more than 90% year over year in April. Demand this past Sunday showed some improvement, but was still down about 60% year over year.


GE's aviation unit is its largest, most-profitable business. In 2019, aviation accounted for roughly 34% of sales and almost 70% of operating profit. That's a big reason GE stock is sensitive to vaccine news.


Year to date, GE stock is down about 34%, worse than comparable returns of the S&P 500 and Dow Jones Industrial Average. The performance, however, is a little better than Boeing(BA) and similar to other aerospace-supplier stocks.

I am just throwing this out there for anyone who might be looking for yield vs growth. Different people are at different stages of their investing path. T reports earnings on Thursday. Its stock is currently down near the low of the Coronachan Black Monday (March 23rd). It makes money and has 59b in EBITDA and 29b in free cash flow. It also has 173b in debt from various purchases like Time Warner and Directv. I bring this up because at its current price it is paying a 7.75% annual dividend yield. If the stock never goes up a penny, you are making nearly 8% a year. It has the cashflows to pay the dividend and is a dividend aristocrat. I am not saying its a good company and I don't own it (currently), but just pointing out that with treasuries yielding under 1%, some of you might be looking for steady income.

LMT - Double beat top and bottom. Raises guidance. Stock is down. NKLA is up today. Gotta love the stock market.

LachiusTZ said:

I bought some ATT.

Starting to wonder if the housing market is going to crash instead of when is it going to crash

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Interest rates being so low, I don't see a housing crash being likely at the moment, especially with so much forgiveness in the air. It's the rental market which is really taking a hit in some places. The pandemic and other factors arising from it (online availability/work at home culture) seem to be generally pushing people out of cities and toward homes. This can be dramatically seen in areas such as new york. I wouldn't be surprised to see this evolve into a longer term trend.