Stock Analysis and Trades Thread

[Kguillemette | 1,606]

On 10/7/2020 at 9:07 AM, RH said:

Well here's a question I'd not recommend 99% of the time, but do you guys have any recommendations for promising, trash penny stocks?

I ask because I have an old brokerage account that has a balance of about $8.  I could go through the ordeal of setting up new bank accounts and withdrawing it, or I could have fun gambling (that's right, I said gamble!) with those few bucks.

I'm not looking to buy/sell with any high frequency, but I might as well sink this money into some very-small cap company with a stock price of $.10-.50.  I've always stayed away from those because they are mostly gambles but in this case, if anyone knows of a really small company that is at least conducting their business well, I'd appreciate the recommendations.

It's bigger than .10-.50, but I really like Alkaline water company WTER. They have been dumping everything into marketing and trying to expand into a national brand in addition to expanding into CBD products as a company that sells wellness products, not just a bottled water company. And their sales have blown up every quarter. At 1.55 a share, it's worth a nibble now and again.

 

 

[jonebone | 1,329]

GME flirting with $14 for anyone paying attention.  Intrinsic value and worth doesn't matter, it's all hype and sentiment.  And this thing went from getting pummeled to new hype piling in every week.  Still has a ways to run with the amount of hype piling in.  Add in an earnings beat or a good winter selling season and it'll really get crazy! 

[arch_8ngel | 1,597]

3 minutes ago, jonebone said:

GME flirting with $14 for anyone paying attention.  Intrinsic value and worth doesn't matter, it's all hype and sentiment.  And this thing went from getting pummeled to new hype piling in every week.  Still has a ways to run with the amount of hype piling in.  Add in an earnings beat or a good winter selling season and it'll really get crazy! 

Well, the WSB guys have started piling in, from what I've seen in my casual reading, so the hype is definitely there in the short term it seems.  

 

[jonebone | 1,329]

31 minutes ago, arch_8ngel said:

Well, the WSB guys have started piling in, from what I've seen in my casual reading, so the hype is definitely there in the short term it seems.  

 

Sadly that's all the stock market is.  Pile in, post hype articles, increase your target estimates and try to recruit more people to buy into it.

Remember, GME was buying back stock in the $6-$8 range themselves to the tunes of several millions.  They're doubling their investment there alone. 

[a3quit4s | 4,344]

30 minutes ago, jonebone said:

Sadly that's all the stock market is.  Pile in, post hype articles, increase your target estimates and try to recruit more people to buy into it.

Remember, GME was buying back stock in the $6-$8 range themselves to the tunes of several millions.  They're doubling their investment there alone. 

Isn’t pump and dump against the rules somewhere?

[Brickman | 4,202]

34 minutes ago, jonebone said:

Sadly that's all the stock market is.  Pile in, post hype articles, increase your target estimates and try to recruit more people to buy into it.

I wonder if a lot of gamblers have entered the stock market since the pandemic. Also combine that with Robinhood and WSB.

I’ve seen some crazy things over the years but valuations are so out of whack right now and it seems a lot of kids are getting involved that have no idea what they’re doing.

I sold out at the end of January so I could focus on paying off my mortgage quickly. I’m happy to watch the craziness from the sidelines.

[arch_8ngel | 1,597]

49 minutes ago, jonebone said:

Sadly that's all the stock market is.  Pile in, post hype articles, increase your target estimates and try to recruit more people to buy into it.

For specific stocks, with specific characteristics, in the short-term, sure.

But long-term, I would disagree

[arch_8ngel | 1,597]

20 minutes ago, a3quit4s said:

Isn’t pump and dump against the rules somewhere?

It's only frowned upon  

 

[arch_8ngel | 1,597]

5 minutes ago, Shmup said:

I wonder if a lot of gamblers have entered the stock market since the pandemic. Also combine that with Robinhood and WSB.

I’ve seen some crazy things over the years but valuations are so out of whack right now and it seems a lot of kids are getting involved that have no idea what they’re doing.

It is definitely interesting to read what people are up to over there -- and there probably is money to be made paying attention to the general sentiment.

But I don't personally view widespread options trading as being particularly healthy... but maybe I'm just not cool enough  

 

[Brickman | 4,202]

47 minutes ago, arch_8ngel said:

It is definitely interesting to read what people are up to over there -- and there probably is money to be made paying attention to the general sentiment.

But I don't personally view widespread options trading as being particularly healthy... but maybe I'm just not cool enough  

 

Some of the Tesla stuff was crazy. Some people were either incredibly stupid or had balls of steel haha. I do like that most people post screenshots to backup their crazy options trade though.

I definitely view options trading as gambling. Some people are definitely making a killing off it because they know what they’re doing but the majority just seem like gamblers who have seen the stock market is currently like betting whether your team is going to win or lose.

I take the more fundamental/long term approach so maybe I’m not cool enough either haha.

[Makar | 2,062]

On 10/7/2020 at 9:07 AM, RH said:

Well here's a question I'd not recommend 99% of the time, but do you guys have any recommendations for promising, trash penny stocks?

I ask because I have an old brokerage account that has a balance of about $8.  I could go through the ordeal of setting up new bank accounts and withdrawing it, or I could have fun gambling (that's right, I said gamble!) with those few bucks.

I'm not looking to buy/sell with any high frequency, but I might as well sink this money into some very-small cap company with a stock price of $.10-.50.  I've always stayed away from those because they are mostly gambles but in this case, if anyone knows of a really small company that is at least conducting their business well, I'd appreciate the recommendations.

Check out MHHCD. Some wild swings with that one over the past week.

[arch_8ngel | 1,597]

For some light reading -- THIS is the portfolio of a guy that really believes in GME!  

Hard to believe you wouldn't take an entire retirement-portfolio's worth of that off the table, at this point... but like I said, I'm not one of the "cool kids" (or rather, degenerate gamblers).

[jonebone | 1,329]

GME surging past $15, $15.50 today.  Hype knows no bounds of course.

[RH | 5,206]

32 minutes ago, jonebone said:

GME surging past $15, $15.50 today.  Hype knows no bounds of course.

This is why I would like to short sale.  This is why I will never short sale.

[phart010 | 1,779]

[arch_8ngel | 1,597]

Is that the market realizing that people are still going to buy cranberries for Thanksgiving, or something?  

[captmorgandrinker | 1,654]

On 10/15/2020 at 1:50 PM, jonebone said:

GME flirting with $14 for anyone paying attention.  Intrinsic value and worth doesn't matter, it's all hype and sentiment.  And this thing went from getting pummeled to new hype piling in every week.  Still has a ways to run with the amount of hype piling in.  Add in an earnings beat or a good winter selling season and it'll really get crazy! 

And to think of the verbal beratings you took from a bunch of us when you bought a bunch of GME and held onto it believing this would happen.

Congrats!

[arch_8ngel | 1,597]

20 minutes ago, captmorgandrinker said:

And to think of the verbal beratings you took from a bunch of us when you bought a bunch of GME and held onto it believing this would happen.

Congrats!

Check the link I posted upthread for what a TRUE believer in GME looks like...

[Brickman | 4,202]

What are people’s thoughts on Ant? IPO was crazy over subscribed and I think will probably shoot up on launch. 

Long term I think they’re great and if you know any Chinese people you quickly discover how ingrained their lives are with Ant. Like the PayPal of Asia.

I purchased Tencent years ago and wasn’t disappointed and I think Ant will be just as good.

[arch_8ngel | 1,597]

11 minutes ago, Shmup said:

What are people’s thoughts on Ant? IPO was crazy over subscribed and I think will probably shoot up on launch. 

Long term I think they’re great and if you know any Chinese people you quickly discover how ingrained their lives are with Ant. Like the PayPal of Asia.

I purchased Tencent years ago and wasn’t disappointed and I think Ant will be just as good.

I have mixed feelings about Chinese stocks.  For instance "BABA" (the US-market-traded version of Alibaba) is NOT actually real shares in the company, in the way you buy shares of US or European companies.  I haven't researched it deeply, but it wouldn't surprise me if the same was true for other Chinese companies that trade on US exchanges.  (if I recall correctly, it had to do with company ownership rules in China)

And at the end of the day... it is no great secret that financial reports from Chinese companies are fabrications, through and through.  Coupled with those companies only operating at the pleasure of the CCP.  Shareholders just choose to ignore that, for the most part - at least for now (and in extreme cases like Luckin Coffee)

Obviously, there is still money to be made trading or owning those stocks -- but in terms of what your shares actually represent, it seems fundamentally different, in a way that, personally, I wouldn't want to own much of it.

(also, Jack Ma is weird, even by billionaire standards :P)

Edited October 27, 2020 by arch_8ngel

[Brickman | 4,202]

7 minutes ago, arch_8ngel said:

I have mixed feelings about Chinese stocks.  For instance "BABA" (the US-market-traded version of Alibaba) is NOT actually real shares in the company, in the way you buy shares of US or European companies.  I haven't researched it deeply, but it wouldn't surprise me if the same was true for other Chinese companies that trade on US exchanges.  (if I recall correctly, it had to do with company ownership rules in China)

I could be wrong but I don’t think they will be listed on the US stock exchange. I plan to buy them on the HK stock exchange. That’s what I had to do with Tencent.

I think you’re right about not actually owning the shares due to some Chinese company ownership laws. This doesn’t really bother me though because even owning MSFT shares I know that as a retail investor if they went bankrupt I’d pretty much get nothing anyway.

You do raise some valid concerns that are things to consider before purchasing Chinese companies. Long term, China aren’t going anywhere and will soon over take the US. Just like the US has questionable practices, so does China.  

I do think China will open up more financially this decade (they really have no choice) and pension funds around the world will want to diversify more into Chinese tech/finance.

I only plan to invest $5-10k just to give me a small exposure and go from there.

[arch_8ngel | 1,597]

11 minutes ago, Shmup said:

I could be wrong but I don’t think they will be listed on the US stock exchange. I plan to buy them on the HK stock exchange. That’s what I had to do with Tencent.

I think you’re right about not actually owning the shares due to some Chinese company ownership laws. This doesn’t really bother me though because even owning MSFT shares I know that as a retail investor if they went bankrupt I’d pretty much get nothing anyway.

You do raise some valid concerns that are things to consider before purchasing Chinese companies. Long term, China aren’t going anywhere and will soon over take the US. Just like the US has questionable practices, so does China.  

I do think China will open up more financially this decade (they really have no choice) and pension funds around the world will want to diversify more into Chinese tech/finance.

I only plan to invest $5-10k just to give me a small exposure and go from there.

"Owning" the shares isn't about being made whole in a bankruptcy, since I agree that isn't realistic.  But there are other types of accountability that go along with it that I think do matter.

I agree that China isn't going to go away... but there are a lot of layers to the intentionally obfuscated and artificially inflated financial onion over there that can lead to the rug being pulled out from under you as an investor.

 

In terms of how much exposure I'd take, I'd think more in percentage than absolute-$, but a small stake is probably worth the risk, given what you've mentioned about how ingrained they are in that market.

[Brickman | 4,202]

3 minutes ago, arch_8ngel said:

I agree that China isn't going to go away... but there are a lot of layers to the intentionally obfuscated and artificially inflated financial onion over there that can lead to the rug being pulled out from under you as an investor.

Yes very true. A lot of these Chinese companies are basically bankrupt with the Chinese government keeping them alive. I think Ant’s financials are a bit more accurate, but it is definitely something I have considered in my risk profile.

[Californication | 1,491]

If Biden wins I think the govt will put some money into testing.

I still think Codx is interesting. So they restated their Q2 earnings change their Q2 Net Income from .08 cents a share to .50 cents. I am interested to see how this will affect their P/E ratio. And they are going into earnings next week. The big firms have been moving away from a lot of the small caps I watch, but I am thinking about dumping some cash in today just in case.

Edited November 3, 2020 by Californication

[Brickman | 4,202]

Well looks like the corrupt Chinese Government cracked the shits and put a stop to Ant financial listing. Can’t imagine this company get listed now or in the future.

https://www.cnbc.com/2020/11/03/ant-group-ipo-in-shanghai-suspended.html