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Daily General Discussion and spitballin thread - June 04, 2021

Daily General Discussion and spitballin thread - June 04, 2021

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Orin__

How does HIFO cost basis work for short selling?


benjaminikuta

Cheap financing can only do so much for a company, right?


Treehuggg

Has anyone checked out a company called Desert Control (DSRT)? They make it possible to grow food in the desert


Treehuggg

https://www.google.com/amp/s/amp.cnn.com/cnn/2020/08/13/world/desert-control-liquid-nanoclay-spc-intl/index.html I think this might be a 20 bagger. Doesnt seem to be noticed by the market yet


BuyBitcoinEveryday

Uh!!


kerfuddled

how do you guys feel about ZOM? my ma wanted me to buy 100 shares so I did, but wondering about it's potential as an investment. they help animals and I'm sure animals will always need help but.... why do certain companies just tank sometimes?


Defiant_G

though 100 shares of ZOM isn't a significantly large investment and your risks are mitigated, for future investments I would suggest doing your own DD before buying shares simply because someone told you to do so. Just want you to be safe in the future! Best of luck to you!


greytoc

It's not surprising to see the stock go down. The company has a grand total of $0 revenues over the last 4 years. The company has about 18mm in expenses in the last 12 months. And I understand that the company has about 20 employees. It's kinda tough to see how this company is currently worth 886mm. It's more of a short term gamble on hype than an actual investment. Probably more downside risk than it's worth imo.


srand42

All but the largest pharmaceutical companies are high risk. There's huge variation in whether they get an approved indication that leads to strong sales, or not.


Growthing742

The market was green today and my portfolio is red. YTD, my portfolio is deep red. This looks about right.


Jeff_Bezels

I wondering what you think about [this stock I'm lowkey pumping everywhere on Reddit]? Is it a buy?


hendrix_srv

Definitely buy the dip if it's on a downtrend.


reallydisliketheAAMC

I’ll buy, but ONLY if it has a market cap in the low hundreds of millions. It also has to have already pumped once in the past few months.


Kanolie

Ya, check out the short interest on that one. It's primed for a gamma squeeze if the market makers would stop running short ladder attacks. It could easily be a 50-bagger.


BigBet0

can someone explain why growth stocks are outperforming value stocks currently?


Growthing742

YTD growth stocks have been getting crushed except FAANG. Look at the YTD for stocks in QQQ and ARKK, and compare to stocks in HDV


Night-Channels

First time contributing to my roth ira. I put 3k in FNILX, 2.5k in SWPPX and 500 in VUG. Am i an idiot? I kind of just tried to research the best stable stuff then put 500 in VUG which I found to be a higher risk buy. Thoughts?


hendrix_srv

"Am i an idiot?" Not enough data to tell. :) But wrt your funds, what you have is fine, my only question is why three? You have funds that kind of offset / countercycle each other. OK, the large cap might be up when the growth is down, but in the long run they're just going to average out, no? So are you getting anything better for that or does it just make you \*feel\* better? You'll do fine with what you have - really they're good choices - but you could just as well simplify your life and buy something like VTI.


Night-Channels

Honestly the answer to why 3 is I have no idea what I'm doing. I thought maybe splitting it up would be more "diversified". I'm kind of wanting a buy and forget about it kind of thing. An annual contribution... So would you suggest all in on 1?


hendrix_srv

The three funds you have cover different segments of the market in part and overlap in part, but they don't cover the entire US market. VTI is the Vanguard Total (US) market index fund. It covers the entire US market in one fund, proportional to the value of that market. There are other similar funds that would be equally suitable, I just don't know the names or the details so I don't want to steer you wrong without looking them up carefully. In the long run the funds you have will probably do about the same as VTI, so if you're already set up I'm sure it will be fine, but just easier with one fund.


Night-Channels

Wow great info thank you so much. Last question is any harm in doing both? Say next year I wanted to go all in VTI.. I assume I won't really be missing out as long as I keep contributing and it's not a huge deal?


hendrix_srv

Yeah I think that would be fine. What you want is broad coverage. You have pretty broad coverage with your three funds; VTI gives you a little broader in one fund. It's OK to do all four if thats what you really want to do, or switch to VTI or similar fund next year for contributions but just leave the existing money in the others. All good, as long as you keep putting money in.


Night-Channels

Thank you so much for your opinion. This makes me feel a bit better on choosing what to buy. Big ups.


ESB1812

Im curious as to what do yall think of NOK stock? For the purpose of discussion good investment or no go?


hendrix_srv

Check the historical and projected earnings and revenue. That's what moves stocks. In the case of NOK, sum total of last five years net income is -$2.7B; forward EPS is flat at $300M; historic revenue is flat and the projected revenue 2yr ahead is flat. NOK's data says D-O-W-N. If you want to find great companies search by revenue growth, say >15%.


Defiant_G

Do yourself a favor and just stay away, trust me. Its much better for your mental health


Growthing742

I stay away from NOK, AMC, BB, WKSH, etc for the time being


dvdmovie1

It's not been a good investment for ages. It's a meme stock and maybe it does great for some period of time because of that but it's not a great company or anything.


ESB1812

I am a complete novice but i saw that they do have a good liability to debt ratio, and although it is a meme stock, i thought i looked interesting, just mainly curious as to the data and why or why not based on the data….basically im learning how to access a stock.


thetalkinghuman

The thing is, there are a lot of companies with a great liability to debt ratios but they aren't overvalued by 100% like NOK is because they aren't meme stocks. If you think you have a good handle on what thousands of 14 year olds are going to do with their weekly allowance on Robinhood, its a good bet. Otherwise you're most likely going to lose money.


3ninesfine

Have you seen the numbers out of Europe. Huawei is getting crushed and NOK is the primary beneficiary. Partnerships established with intl amzn msft all pointing toward a bigger 5g future. They trimmed some fat this year and refocused the business model for actual growth. I’m bullish and my Jan calls have done well since they’ve moved up 40% in the past 3 months


Th3-DarkW0lf

Hey guys, I just created my first investment account and since the market is closed I bought 5 different shares as 'Limit Buy'. They are now qued, when will they go through, are they likely to go through, or how does that work exactly? Thanks.


kiwimancy

If you didn't specify GTC or extended hours, it will be active on monday and it will be filled only if the price goes at least as low as the limit price you set.


Th3-DarkW0lf

Sweet thanks!


mylandscapeshots

Do you think ERICSSON is a good buy? So… quick backstory. I got in and out of the BB craze this week super quickly. I went against my intuition and bought shares at 19 as it was ramping up, but then it fizzled and tanked. So I sold. I know I should have just held and waited out the long term play. I think it’s still a good company. This just wasn’t the one I was planning on holding. That being said, I’m looking at Ericsson for the longer term. 6mo-1yr at least. What do you all think?


Defiant_G

My advice is that if you're going to be scared out of investments so easily then stay clear of all the meme stocks. Only go into them with money you are willing to lose, it's just the safer option. I'm not digging on you by any means, just want you to be safe! As for Ericsson, I know nothing about them so I cant provide meaningful advice. Best of luck to you!


mylandscapeshots

Yeah I took a chance to see if I was comfortable with that. I wasn’t. Which is why I started off small. I also quickly realized many of those folks just have money to burn or are faking it. I’d rather do the research and put my time and effort into solid long term investments.


Defiant_G

No hate at all here because I have done the exact same thing. Your head is in the right space now and as long you're cautious and do research, you will do just fine! Also, it took me a while to learn this but try not to look at your account value constantly. I did that when I first began and stressed myself to tears if i saw red lol


guest13

So what's the difference (other than price) of BRK.A and BRK.B ? Is it just voting rights, and maybe some previous share dilution issue / split? I know I heard that Mr. Buffet didn't believe in splitting his stock and that tracks with the 6 figure share price of the class A stock... But how come the class B is 0.06% of the value of the A? [Most things I see they appear to track very closely.](https://www.google.com/finance/quote/BRK.B:NYSE?window=5Y&comparison=NYSE%3ABRK.A)


Kanolie

Class B shares have equal equity to 1/1,500 of a Class A share. You can also split an A class into 1,500 class B shares, so if the B share ever goes higher, you can arbitrage the difference. Class B shares only have 1/10,000 of the voting rights though. Other than that, there is no difference so they unless you value the voting rights, the cheaper if the two when you account for the 1/1500 ratio would be the better buy.


yewac

And good stock recommendations to buy with $80-160?


072852

You can buy a round lot (100) or more shares of TherapeuticsMD (TXMD) easily with that amount of the money. The stock has been trading on the lower side of its 52 week trading range. The company has a promising future with several FDA approved pharmaceutical products. By this time next year it should show some significant gains anyway. Look it up online.


Suitable_Sort_3920

Copart! CPRt


yewac

So glad JMIA and NIO are making its way up… to where i bought it 😭


SelectionDependent40

Same 😩literally bought at its max


lazostat

I am a little bit confused by how exactly shorting works. For example, if a stock goes 10x in a day, can they short it to drop 50% the next day? If yes, it means that shorting can get you many profits at these situations. All meme stocks have rised up the last 2 days and now lost 25%. If HF shorted them yesterday, does it mean that today they have covered?If the answer is yes, it mean that a MOASS it can never be happened. All these theories about GME to 2M and AMC to 500K can't be done, cause of shorting and trade halting. Also another question is, if to happen a squeeze you need to buy the stock at any given price or it will go up naturally. For example, if amc goes to 500+, do we need to buy more of it? Many will afraid of becoming forever-bagholders and it's the truth. I am really confused guys! Need help!


greytoc

You are confused because you are asking about conspiracy theories that have no basis in reality. Take the one about GME going to 2mm. Basic math would mean that GME would be a company that is worth 141 trillion. The entire US equity market is worth about 50 trillion. GME is a company on the verge of bankrupcy only a year ago and continues to be unprofitable with revenues declining. Does that really sound like a company that is worth nearly 3 times more than the sum of every public US company? AMC is a company where only in Oct of 2020 warned investors that they are low on cash and that they may have to file for bankruptcy. Just do the math on what a 500k/share valuation means. Shorting has nothing to do with why these companies will not achieve those valuations.


HelpfulSocialist

Your comment has incorrect assumptions. A squeeze is inherently temporary. It doesn't mean the company is worth that much, just that some short sellers who cover too late are forced to cover for a lot. 2 million is basically a dumb exaggeration but still it's a fallacy to think the peek value reached by a squeeze has to have anything to do with the underlying value of the company. Look at the VW short squeeze as an example. The company was briefly the highest market cap company in the world. That doesn't mean it had to actually be the most valuable company.


greytoc

I don't disagree with you. I'm aware of how short squeezes work. I am responding to the fallacy that some of these meme stocks are worth as much as some people believe that they are. I would also point out that the narrative around some of these stocks are based on misunderstandings and misinformation about market mechanics. You are also raising a very good point that squeezes are temporary which I often wonder if the majority of the holders in these stocks understand.


HelpfulSocialist

The theory of a short squeeze is that they are forced to cover because of margin calls. If there are not many shares available, the price goes up a lot, which makes the portfolio of the short sellers shitty, which causes more margin calls, etc.


lazostat

So panic selling can harm the squeeze?


HelpfulSocialist

Yes, that is why squeeze enthusiasts hate FUD and call everybody a shill if they say the squeeze might not happen.


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Looksmax123

Stock prices go up generally when more people want to buy than people want to sell and vice-versa. Shorting involves borrowing stock from someone else and selling it on the open market. ​ I'm not really sure what you are asking - could you be more specific?


DiamondHands1856

Genuinely hope AMC crashes lmao


Defiant_G

Give the markets some more time and you just might see everything crash........oops, spoiler alert


Dangerous_Maybe_5230

OIH .. Brent is almost breaking $72. At $72, it’s very good for oil services


JRamsbunctious

anyone tracking BDPT yet? I have been and just found out the company is slated to begin coming out with news starting next week after a long dormant period. I love these low price plays, but it's hard to keep an eye on them so you can get out when they run. I have been and just found out the company is slated to begin coming out with news starting next week after a long dormant period. I love these low-price plays, but it's hard to keep an eye on them so you can get out when they run.


JRamsbunctious

I came across them by accident by looking up all-natural pain options. I found PluriPain and am giving it a shot for the heck of it.


BoomDani13

Anyone have advice on how to invest 401k, my work has us enrolled with WellsFargo. Can I choose a different 401k service or do I have to use Wells Fargo? Thank you in advance.


Jeff_Bezels

They set it up but you can roll it into an IRA when you switch jobs (if you do). Are all your retirement savings going to be in the 401k? If so, just pick an asset allocation that's right for you. Could do worse than picking one of the Vanguard target retirement date funds and either buying it if you can or picking a mix of funds closest to it. If you have a Roth IRA (or Roth 401k) and a traditional 401k (/IRA), I'd suggest buying the assets that you expect a higher return from in the Roth accounts and the ones you expect to have lower returns in the traditional account, for tax purposes. I'd just make sure my target allocation (e.g., 70/30 stocks:bonds) held up when looking across all accounts.


BoomDani13

From my previous job I have a rollover IRA, I moved in to fidelity and invested into stocks. The 401k in wellsfargo is invested between Vanguard small cap,Vanguard 500 index , Vanguard equity income, and PGIM QMA small cap.


Jeff_Bezels

That sounds reasonable. I'd just come up with an overall asset allocation plan across all of your portfolios--something easy like what you see in the Bogleheads 3 fund portfolios--and just make sure that your combined holdings roughly reflect that.


RealAvonBarksdale

You will have to use the wells Fargo 401k. Look and see what investment options are available, they are often very limited with plans at places like wells Fargo/BOA. Pay attention to how much the funds cost (expense ratio). If you want to keep it very simple choose a "total market index" like VTI. Ideally you want to own different sections of the overall market (not in equal proportions). That means large, mid, and small cap US companies, along with international developed and emerging markets.


Bitter-Basket

I advised my son, 80% in SP500 and 20% in the NASDAQ 100. VOO and QQQ will get you there. I started investing in the SP500 when I was 22. Retired early. Make sure you get your companies matching at a minimum - if they do that.


PlutoIsMyHomeboy

Very basic question: I bought stock in one company (Zanabis) that got bought by another company (Hexo). I had 100 Zanabis stock and when Hexo bought them it converted 1 zanabis to .017 Hexo stock so I ended up with 1.7 Hexo stock. Obviously. 7 is a weird number, but whatever. I looked at Wealth Simple today, and now I have 1 stock of Hexo. The stock are like 8 bucks each so it's not like I lost a bunch of money, but why did I lose the .7? There didn't seem to be a way to buy .3 of a stock after it converted (and I didn't realy look it up before, I just saw a super cheap stock and water to buy 100 for the sake of having 100 of something). Do you just lose incomplete stock when there's a buy out? Do I have to pay more attention to stock I own?


SirPalat

I am not sure for wealthsimple specifically but some brokerage do not deal with fractional shares and will either cash out the 0.7 and give it to you in cash or they take it. You need to see the terms of service. My broker cashes out and gives it to me and they send a notification whenever a ticker is going to be bought out to warn me about that or if I DRIP and there isn't enough to buy a full share.


PlutoIsMyHomeboy

Thanks! I didn't really check how much I had, I'll see if it's like 6 bucks more than before.


SirPalat

I hope you got your 6 bucks and if you didn't I seriously feel like you should switch brokers. It seems abit scummy to take the cash of fractional shares even if it's only $6


zzotus

check your account history to see where the dollars from the fraction went. it can’t just vanish.


PlutoIsMyHomeboy

Oh, I'm just on wealth simple, so no human broker. I just honestly had no idea how it worked and wasn't particularly sure how much I had to begin with. (I'm just putting a few hundred in to play around with. I have EFTs as my main investments because as you can see, I do not pay enough attention, haha.) Trying to math it out it seems like the money is back, just had to calculate how much I put in and spent because there wasn't anything in history about that change.


Hellkyte

Totally random question but when I see price targets set by "financial analysts", who actually is doing that? I guess what I mean is what is the actual job title of someone who does that, is it "financial analyst"? That title seems kind of vague, and when I search that term I get salaries that really dont strike me as commensurate for that kind of work. Main reason I'm curious is just trying to figure out what kind of background these folks usually have.


Jeff_Bezels

You get a degree in finance and you learn some things about asset evaluation.


newrunner29

look up Equity Research type roles. Most backgrounds are top 50 school or so, CFA, finace/econ/accounting background


Hellkyte

Thank much


BlindfoldedChimpanze

Just wanted to share my blog called [The Blindfolded Chimpanzee](https://theblindfoldedchimp.com/) where I wrote an in-depth explanation of what's going on AMC and GME. I thought it would be interesting to people here.


ElGuapodeRico

BNGO


Oogway_panda-123

Anyone have any advice on pulling large amount of data for some relative valuation? I wish I had a subscription to CapitalIQ but it is too costly. I want to be able to pull into excel large amounts of data on approximately 30 companies in the solar industry. Any advice on finding a free similar platform to CapitalIQ?


BeardedYellen

You might need to be more specific about what data you are looking for. In general it will be expensive if you want a good dataset, and even more expensive if you need something unique.


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Jeff_Bezels

Gonna go off the CPI data rather than the u/435880Churnz sentiment index.


wowowow864921

People want inflation to be a thing so bad. Lol. Everyone must have dumped a shit ton of money into like gold or stuff and are now getting skittish it was for nothing.


Jeff_Bezels

I dumped some money into gold, too, but mostly just to hedge. I'm worried about bonds and stocks drifting into positive correlation territory. Part of it is ideological. You didn't see a lot of inflation hand-wringing until Democrats came into office again even though rates were low and we were deficit spending under Republicans, too. I think we'll see moderately high inflation along with economic growth, which is not scary at all to me.


O0O00O000O00O0O

This is an older article but it addresses your question. https://www.clevelandfed.org/en/newsroom-and-events/publications/economic-commentary/economic-commentary-archives/2008-economic-commentaries/ec-20080601-rising-relative-prices-or-inflation-why-knowing-the-difference-matters.aspx


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Jeff_Bezels

I mean, partly you're right but attacking a straw man. The Fed does say there's inflation. There was a 4.something annualized rise in the CPI in April, or a 3.something rise ex-food and energy. That's a fair bit of inflation. I don't think it's a huge deal as long as the economy continues to grow, and I think it's definitely preferable to widespread unemployment (without joblessness benefits). But there has been some rise in prices even setting aside absolute price increases. The thing is, inflation has been so low for so long that wgaf?


O0O00O000O00O0O

Scroll down to "relative price changes are not inflation" and read that section. Many things have gotten more expensive this year because of supply chain disruption caused by the pandemic meeting pent up consumer demand, not because of a weaker dollar. The dollar index is at 90 which is lower than last year but far from an all time low. https://www.marketwatch.com/investing/index/dxy


WeenisWrinkle

I don't know how anyone can look at the record increase in demand and the pandemic constrained supply and realize that some of this inflation is a temporary supply curve imbalance that will naturally subside over time as supply chains ramp up production to pre pandemic levels.


IonizedDeath1000

let me know when they all go back to work and hop off the government hand out list


Hellkyte

There are also lingering effects of global supply chain disruptions Its only inflation if you're paying more for the same value. Some prices have gone up because the supply chain can't easily meet all of the supply, so it isn't actual inflation its just a cost increase. Ed: I just realized you were talking about the supply chain as well, for some reason I was thinking you were hitting a different angle I need to read more.


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WeenisWrinkle

Supply chains take time to ramp back up production, but I would expect by the end of the year it will have mostly caught back up.


DarthWenger

Any thoughts on dLocal ($DLO) - IPO launched yesterday?


abdul10000

Why is the Freight and Logistics industry down -1.5% today when the whole market is up? Any specific reason?


Asleep-Stop4930

Thoughts on CLNE ?


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Defiant_G

I'm not sure recommending stocks that are known as "meme stocks" is the best option here.


Dangerous_Maybe_5230

Thoughts on ABNB as a summer play? I just booked a place for the summer at a National park about 3 hours away from where I live. Almost everyone else I know has booked an Airbnb and travel of some sort for this summer. - I’m from California, don’t know if this just a California thing but everyone seems to be wanting to do at least one sort of travel this summer, and most people prefer to stay at a whole house instead of hotel room


alexwasnotavailable

Why did AirBNB drop 35% of its value in the last 3 months? Why did AirBNB stock go up during the pandemic when nobody was renting? Makes no sense. It would seem like it’s a BUY at a discount right now but there’s more to the story


Distinct_Sympathy660

I’m not qualified to give financial advice but that sounds logical to me


atunasushi

I recently moved some of my core long positions from a normal brokerage account into a Roth IRA. My understanding is that (at my age) as long as none of the gains are withdrawn they are not subject to income tax, but are they still subject to capital gains tax?


Bitter-Basket

My understanding is that you can't transfer stock positions from a non-IRA brokerage account into a Roth IRA.


zzotus

i think it may depend on the brokerage firm. years ago schwab made me liquidate and repurchase shares when wanting to convert shares/funds from my ira to my roth, and pay the tax due along the way. recently, i was able to simply (well, long form to fill out) convert some shares from ira to roth and pay the taxes out of my pocket. withdrawals from the roth are tax free, including the gains. edit: withdrawal from roth is tax free if 59-1/2, and didn’t screw something up along the way.


Bitter-Basket

You going from an IRA to a Roth IRA is fine (after paying taxes), because they are both qualified retirement plans. Thats a rollover. That's not what he's doing. He's going from a plain brokerage account to a Roth. You can do that with cash. But not stock positions.


ekkidee

>from a normal brokerage account into a Roth IRA This is not the same as a normal rollover, which maintains the tax status on the account through the transfer. This is more like a straight-up Roth contribution using funds from your brokerage account. Therefore, you will have an annual limit on how much you can contribute to a Roth, depending on age and income. Yes, please do consult a CPA for your specific case (which you should have done before making this move). The IRS may see this as an attempt to avoid paying taxes on your gains.


WeenisWrinkle

They aren't subjected to any tax as long as the gains are not withdrawn before you turn 59 1/2 years old.


Sheeple0123

You can generally get a free consultation with a reputable CPA for 30 minutes to discuss a question like this. If you are unwilling to read the IRS publications, this is probably a better choice than rando advice from the internet. Good luck. Sample IRS pub on Roth IRAs: [https://www.irs.gov/pub/irs-pdf/p590a.pdf](https://www.irs.gov/pub/irs-pdf/p590a.pdf)


thetalkinghuman

A normal brokerage is subject to capital gains tax, only when you sell at a profit (unless you get dividends). A roth will not tax you on gains but you cant withdraw any gains (penalty free) until you're an old coot.


Cash_Visible

What do you all like to use for a REIT in your non-taxable account?


Ironleg01

LAND


Kenney420

Im Canadian so maybe this doesn't help you but I went with ZRE


No-Worldliness-9538

Anybody have any insights on Lava Therapeutics? LVTX.


mrdr89

Are ESG funds actually good investments or are they just lessoning my potential return by trying to make me feel a little better? Currently have funds in VCEB and VSGX as part of my portfolio.


kitsune

I think they are probably a form of green washing. The developed world needs to reach net zero in 2030-2035 and the rest of the world roughly 10 to 15 years later for there to be roughly a 66% chance of staying under 2 degrees of warming.


kiwimancy

Generally they will perform about the same as other broadly diversified equity funds, gross of fees. You could have two theories for expected ESG performance: (1) They should underperform because you are investing in them for explicitly non-financial reasons in order to lower the cost of capital for those companies and raise the cost of capital for poor ESG companies. This translates into lower returns for the investor but encourages the formation and continued existence of good ESG companies over poor ESG ones. Or (2) E, S, and G are good factors for a company to have which are not yet adequately priced into stocks on average, so good ESG companies will outperform poor ones. (ESG funds generally encourage this view)


Jeff_Bezels

Theory (3): If enough investors invest along ESG principles, capital will be cheaper for ESG companies and they'll be more economically successful for that reason.


kiwimancy

Is that not (1)?


Jeff_Bezels

Yeah, I didn't read (1) carefully enough. I guess I'm imagining a variation where ESG goodwill makes these companies good investments in different ways: they can get better loan rates from banks, they other companies are willing to incorporate them into their supply chains, they outperform because they have good financial numbers, etc. I don't see this as being a very likely outcome. But maybe it will be. Investors in cigarette companies have benefited from the unwillingness of large institutions to give them money, but at some point being excluded from a lot of capital makes them less healthy businesses.


berlinjo

what happens to Ford?


KeDoG3

Like a lot of individual stocks the latest new jobs report nosedived a lot of stocks.


caucasian_asian03

NVdA just a darling wish I would have loaded up more around $500


ekkidee

It's flirting with memeness.


TechnicallyYou

Recently put $300 into 1847 Goedeker while it was 1.50 a share. It went up to 2.70 a share. So I made $100 off it. Kinda feeling like a real Stock man now...


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Defiant_G

\*sigh\*


Jeff_Bezels

You mean the once popular phone company whose most identifiable product was rendered obsolete by the smart phone?


Asleep-Stop4930

I mean if there are tons of people buying it doesn’t that drive up the stock ? Serious question LOL


Jeff_Bezels

If tons of people have bought BB then your entry point will be high for a share of an unprofitable company that makes 2003's hottest new gadget.


zzotus

i haven’t looked at bb in years, even after finding my device in a box in the basement a little while back. at the time their products became obsolete, it seemed the company became a repository for the 1000’s of tech patents they owned. i don’t know if that’s still the case.


Jeff_Bezels

Don't telecom patents tend to lose value over time? I'm not saying there's nothing to the company, but if you have to ask for people's takes here, just commonsensically it seems like not a smart play. Like investing in a buggy whip manufacturer that owns lots of wagon patents.


zzotus

i’m certainly not going to argue with “not a smart play”, or else i’d be in there. i mentioned i hadn’t looked in years, do your own dd. underlying tech patents don’t necessarily lose their inherent value because a successful product that used that particular technology went south. without looking, i’ll guess someone ones something like bluetooth and it’s licensed out everywhere. (remember, just a no research example)


TheRedWon

Depends. I bought it at $7 so for me it was a great investment. For the people that bought at $24 probably not so good.


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thetalkinghuman

Its a meme stock so it isnt an investment its a gamble. It might pay off but there's no logic to it. Its all random chance.


Asleep-Stop4930

Why did I get downvoted it was a serious question 😭


thetalkinghuman

Didnt downvote you but the reason is, r/investing is a safe space from all the memestock craziness. I have to avoid even saying certain keywords or the bot will remove my post.


Asleep-Stop4930

LOL its just a serious question😂


awadepharmd

That said, a good chunk of the market is operating that way right now. I would think we’ll see a return to “normal” within the year.


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DrugsAreJustBadMmkay

If institutional investors own ~75% of the market, and retail investors began investing in huge numbers back in January/February, dumping stimulus money, unemployment money and savings into a stock market that seems to only go up, isn’t it likely that we will see a massive institutional investor sell off next year? What would that look like if it were to happen?


dvdmovie1

> January/February, dumping stimulus money, unemployment money and savings into a stock market that seems to only go up, isn’t it likely that we will see a massive institutional investor sell off next year? What have they been buying for the most part? Meme stocks and a lot of that money has gone into hyper growth stocks/themes (Ark, etc) and those things already got obliterated shortly after that money piled in in January/February.


ChebyCheby

Dear Europoors, What is the best broker for options trading?


cheesenuggets2003

It is not clear to me what effect inflation tends to have on the stock market, and I could not easily discern that from a cursory internet search. Does anybody happen to know of analysis done on this?


Ironleg01

It looks like equities go up and up but actually when you divide equities price by total money supply equities are just staying flat. That has happened in Venezuela and Weimar Republic.


cheesenuggets2003

Thank you.


Looksmax123

Frankly - no one knows - inflation is one of the most poorly understood economic phenomena.


joy_of_division

In general, over the long term in an inflationary period you'd want to hold stocks in order to keep up. However in the short term coming inflation means raised rates, which will lead to a market downturn.


cheesenuggets2003

Thank you.


Gurthang99

Gurthang's Mostly REIT Portfolio \-0.07% from 6/3/21 \+1.07% from 5/27/21 \+46.97% Lifetime I am long on O, STAG, BND, VIG, VYM, AMT, CCI, MSFT, IRM, QCOM, ESTC, ET, LAND, CRLBF, PW I like to DRiP monthly payers.


alexwasnotavailable

CRLBF is going to skyrocket in the next few years.


Gurthang99

I think that PW will as well. They are a specialty REIT that builds and leases buildings for doing weed stuff.


alexwasnotavailable

Nice, this is helpful. I have O. Might add others.


Gurthang99

I like stability and most of these are very reliable and predictable. No wild swings even during major corrections. I also like income, hence the monthly payers.


TheRedWon

FYI you're way better off buying and holding SPY or similar.


alexwasnotavailable

Just checked into SPY. I’ll probably put $3k in it thank you for the recommendation


TheRedWon

No problem. ETFs beat picking individual stocks most of the time.


BrianBoyko

Question: I've been on a discord group for investors interested in a "currently popular" swing play, but there's a lot of noise to signal on that discord group. I was thinking about taking the best and brightest minds -- the ones who do due diligence, who think about why they're investing, rather than getting on the latest bandwagen -- and inviting them to a different communications platform - maybe another discord, maybe a whatsapp group, so that we can discuss among ourselves. Together I'm sure we own less than 0.000001% of the total market cap of the security in question, but I'm just worried that I'm opening myself up to legal jeopardy because even though we all act independently with our decisions, would talking about our strategy together be legal? Would it be "insider trading?" (doubtful) or "market manipulation"? or something else that a lawyer could have a field day with? Just trying to limit my legal liability.


Defiant_G

Short answer, no. If that were illegal then none of us would be on this sub discussing ideas.


TechnicallyYou

This sounds like a promising group


The_Contrarian01

Good morning contrarians! Not much doing in stock futures so far. S&P and Nasdaq are flat, Dow Industrials and Russell 2000 down about 0.1% and 0.2%, respectively. Cryptos are getting beat up again, with bitcoin down almost 7%. Meme stocks not looking that great either, with AMC down another 6% in the premarket. That’s as of 0700. This follows a day where tech stocks sold off (Nasdaq gave up 1%) and the S&P dropped 0.4%. For the most part it’s been a quiet, holiday-shortened week. Not much in the way of economic data or other events to move markets. Today is all about non-farm payrolls, out at 0830. The May number is expected to come in at 671k, which would be a substantial increase from the 266k we saw in April. Remember that that figure was a massive surprise, as almost 1 million new jobs were expected (and some analysts, now sadly not yet discredited, were calling for twice that number). Remember too that the market shrugged off that massive miss. As I’ve said the NFPs are just not as important as they once were. Maybe that will change today if there is another disappointing report. Of course, a disappointing number could also mean the Fed will keep its foot on the gas for longer, which markets presumably would like. So there is that. We’ll just have to see. My thoughts on this are in the audio. Don’t feel like typing it all out. Have a great weekend!.


BillNye69

>non-farm payrolls Came in at 559K. [Source](https://tradingeconomics.com/united-states/non-farm-payrolls)


walkinglantern

What do you think about HE1 (Helium 1 Global) shares?


blind_ekorre

It’s a scam bc they don’t actually do or sell anything


walkinglantern

Interesting! I will look further into this.


Dsheets9213

Interested to see what you find. I haven’t seen anything myself about the company being a scam but I’d appreciate any additional info


blind_ekorre

It’s a scam bc they don’t actually do or sell anything


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Hefaystos

Thoughts on Disney as 5-10 years holding?


Defiant_G

Swing trading would be the correct term to use here. I find it to be more enjoyable and overall more profitable than sitting and waiting for years on end.


blind_ekorre

I’d consider whether you really mean 5-10 which is easier to think you’ll do when the sun is shining. That said it’s a great company. Buy a little here and there. Accumulate, maybe sell some if it pops big and rebuy. There’s no rule to buy it all now and wait.