OT: Stock and Investment Thread
- Thread starter RU05
- Start date
Can someone explain how a stock NWGI (sports/poker gaming site) issues a Press Release for 4,000,000 shares at $2.40 plus the option to buy a second share.....Then the next day the stock tumbles to $2.00 a share? Did they artificially try to generate investment and basically are tanking, now everyone is selling off?
I do not know the company. However, they filed an S-1 registration statement for a public offering of approximately 4.6 million units at $2.40 per unit. Each unit consists of a share of common stock and a warrant to purchase an additional share at $2.50. The warrant option expires in five years. The offering was to raise $10 million, you’ll have to read the registration statement (Use of the Proceeds section) but I assume it’s for working capital. Once the offering is effective, the price is determined by “the market” (investors). It’s not unusual to see market-driven prices differ from an offering price once trading begins. Also, issuance of more stock can be viewed as dilutive. For what it’s worth, this is a very small company and an investment in it would be highly speculative, in my opinion.
I encourage people to read registration statements rather than something like Motley Fool for such offerings. Similarly, I’d encourage people to read other SEC filings of a company they are interested in.
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All I know is that robinhood has helped make trading much easier for many people and also the lack of sports gambling has helped people gamble in a different way through day trading.
Companies like AAPL and TSLA will benefit
In that after their stock splits as this sticker prices for 1 share which will be more compelling for the retail investor to invest in.
look no further than the momentum trading that happened in hertz bc of robinhood
Companies like AAPL and TSLA will benefit
In that after their stock splits as this sticker prices for 1 share which will be more compelling for the retail investor to invest in.
look no further than the momentum trading that happened in hertz bc of robinhood
The 2020 comeback to record highs resembles storied market revivals of the past
https://www.cnbc.com/2020/08/15/the...bles-storied-market-revivals-of-the-past.html
https://www.cnbc.com/2020/08/15/the...bles-storied-market-revivals-of-the-past.html
I’m basically retired so no significant money going into retirement accounts now. So I was wondering does it make sense to put money into stock mutual funds outside of a retirement account?
I was thinking of opening an account in my name and one in my wife’s and dollar cost averaging about $3000 a month into them
My retirement accounts are solid. No debt. A lot of cash or cash equivalents already
I was thinking of opening an account in my name and one in my wife’s and dollar cost averaging about $3000 a month into them
My retirement accounts are solid. No debt. A lot of cash or cash equivalents already
Sure, makes great sense. If you’re retired and don’t have earned income you can’t contribute to a traditional or Roth IRA. You could use some cash to pay the taxes to convert some from traditional to Roth, or you could invest in a taxable account, or both. If you have kids, they’ll get a stepped up basis from the taxable account when you and your wife pass (assuming the tax law doesn’t change) and that provides some advantages over an IRA. There are other benefits, too.
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That was what I was thinking
I would expect the accounts to ultimately go to my daughter
I'm not sure if this is prior to, or including the 4 million new shares(I assume the former) but I'm seeing 10 million shares outstanding and 5 million floating, so that new issuance of shares is huge relative to those prior outstanding. So they drastically increased supply, which by the laws of supply and demand will make the price drop.
Then consider the over reaction by the market which is also pretty standard. Given this was a $4 stock prior to covid, got back to $4 in May, and was around $2.80 prior to the announcement, these this $2 looks like a pretty attractive price, but that was a major dilution of shares.
Still not looking good for airlines:
https://www.cnbc.com/2020/08/16/a-f...ndustry-struggle-in-coronavirus-pandemic.html
https://www.cnbc.com/2020/08/16/a-f...ndustry-struggle-in-coronavirus-pandemic.html
CYDY had been on a great run from April to early July on the hopes of a Covid treatment, but has lost half it's value since it's peak, and as you've seen continues to stumble.
They recently released seemingly positive results from the phase II trial but that didn't seem to help. They have a request in to the FDA for emergency use of the drug. As well as request in to the UK for use of the drug there as well. I figure if either of those get approval or if Phase 3 results come back positive, then the stock will jump. But until then? Remember this was a $1 stock prior to Covid.
Ya I recently bought a little bit knowing we still have a ways to go before Airlines are back to making money. I wanted to wait till fall but the trigger finger got itchy. They will jump short term on news, whether that be gov't support or vaccine related, and I'll probably trade a bit off that news, but the long run view is these stocks will need to double just to get back to precovid levels. So I'm going to resign myself to short term declines and volatility with the long term view of big returns.Still not looking good for airlines:
https://www.cnbc.com/2020/08/16/a-f...ndustry-struggle-in-coronavirus-pandemic.html
Overall, the industry is not going anywhere. We need a thriving airline operation, so prospects are positive over the long run. Life will return to full normal. Most airline stocks look down about 60% YTD. If individual stocks are your thing, I assume this is bottom (but what the hell to do I know!
).Well a company like Delta actually hit it's low in May, not March, so it has stumbled past a previous low once already in the COVID environment. Though while I can certainly see it dip from it's current level, I doubt it retests the May low, at least not any time in the near term.Overall, the industry is not going anywhere. We need a thriving airline operation, so prospects are positive over the long run. Life will return to full normal. Most airline stocks look down about 60% YTD. If individual stocks are your thing, I assume this is bottom (but what the hell to do I know!
Overall, the industry is not going anywhere. We need a thriving airline operation, so prospects are positive over the long run. Life will return to full normal. Most airline stocks look down about 60% YTD. If individual stocks are your thing, I assume this is bottom (but what the hell to do I know!
Yes, we certainly need an airline industry, and yes, passenger miles will increase. Question is how much of a secular hit to business travel has come about as a result of the pandemic. I think it will be a long time before business travel rebounds to pre COVID levels, and that is generally the most profitable segment for carriers.
The value of these businesses will rebound, in time, but the benefit to equity holders will likely be hampered by the amount of debt incurred to fund operations. I suspect you could have a few carriers file and wipeout stock holders entirely as well.
I would assume one of the big airlines doesn't make it, but with all of the consolidation in the industry there are really only 3 large ones left. The gov seems to be on board with supporting them (both parties).
I think Southwest is included in the domestic major category, though you don’t see them nearly as much in this region. I also don’t think you’re looking at a liquidation, but a filing where current debt holders end up owning the company isn’t out of the question.
Sounds logical.
What are your thoughts on value investing? Read this a few days ago (pretty poor track record and I'm not sure about the near term future):
https://www.morningstar.com/articles/997608/value-investing-isnt-broken
Well, I’ve always been of the view that investments made at attractive valuations are more likely to provide superior returns with less risk, with risk defined as loss of capital as opposed to volatility of price. Invest when you can acquire assets selling at a meaningful discount to value, and sell when the gap between price and value,he has been closed. That, I think, is really what all investing is about, No one would consciously pay more than an investment is worth. And that is the core tenet of what’s commonly referred to as value investing,
Now, as your linked article states, value indices seek to invest in stocks trading at low multiples (either to earnings, cash flow or book value). The article also correctly states that such metrics are incomplete to assess whether a stock is selling at an attractive value relative to its price. To determine that, you’d need to actually value the business and simply looking at multiples doesn’t accomplish that task. That said, I do think screening for stocks using those metrics may turn up a few promising opportunities but I wouldn’t advocate investing in all of the names appearing on such a screen.
I’ve never loved the idea of categorizing investment styles as growth or value. It’s certainly possible to purchase a rapidly growing company at a discount to intrinsic value even if the summary metrics scream that the business is overvalued. Alice Schroeder, the woman who worked on Buffett’s biography a few years ago, gave a talk after it was published discussing how Buffett made investment decisions. He didn’t use a computer, or a calculator for that matter. He looked at he business and the price he was paying to determine when he would be able to earn a 15% rate of return on capital. If that was feasible within 12 months, he deemed it attractive. And a rapidly growing business can meet that threshold despite a high P/E multiple.
Good post, very interesting. Obviously, what you are saying is way beyond my capabilities (both time and current expertise), but it's good to understand the basic POV of how investing should work. I assume/hope the managers running the funds were are invested in are doing this!
Of our investments, about 60% are via various indexes and 40% managed funds.
Good post, very interesting. Obviously, what you are saying is way beyond my capabilities (both time and current expertise), but it's good to understand the basic POV of how investing should work. I assume/hope the managers running the funds were are invested in are doing this!
Of our investments, about 60% are via various indexes and 40% managed funds.
They are, but have huge limitations. The larger to pool of capital, the harder it is to generate returns above the market averages. The conflict that arises is one where the business of asset management conflicts with setting up vehicles where good returns can be generated. In general, smaller funds will do better. Their managers will have a wider selection of possible investments than will a manager with $10 billion or more.Finding undervalued stocks in the S&P 500 is really hard, as countless analysts are pouring over each company. Looking at smaller businesses that are no investable by large mutual funds is a better place to hunt.
Stocks to surge as coronavirus vaccine boosts economy: Goldman Sachs
Goldman’s economists expect at least one COVID-19 vaccine will be approved by end of this year
https://www.foxbusiness.com/markets...onavirus-vaccine-boosts-economy-goldman-sachs
Make sure you are all in when this happens!
Goldman’s economists expect at least one COVID-19 vaccine will be approved by end of this year
https://www.foxbusiness.com/markets...onavirus-vaccine-boosts-economy-goldman-sachs
Make sure you are all in when this happens!
When Walmart is doing well, the economy/recovery is normally doing well:
Walmart second-quarter results crush estimates, as e-commerce sales jump 97%
https://www.cnbc.com/2020/08/18/walmart-wmt-q2-2021-earnings.html
Walmart said Tuesday its second-quarter earnings got a boost as shoppers rushed in to spend their stimulus checks, while its online business continued to surge during the pandemic.
Walmart’s e-commerce sales in the U.S. shot up by 97% as customers had packages shipped their homes and used curbside pickup. The retailer’s U.S. same-store sales grew by 9.3% in the second quarter, fueled by purchases of food and general merchandise.
Shares were down less than 1% in premarket trading after jumping by more than 6% at one point to reach an all-time high.
Here’s what the company did in the fiscal second quarter ended July 31:
Walmart second-quarter results crush estimates, as e-commerce sales jump 97%
https://www.cnbc.com/2020/08/18/walmart-wmt-q2-2021-earnings.html
Walmart said Tuesday its second-quarter earnings got a boost as shoppers rushed in to spend their stimulus checks, while its online business continued to surge during the pandemic.
Walmart’s e-commerce sales in the U.S. shot up by 97% as customers had packages shipped their homes and used curbside pickup. The retailer’s U.S. same-store sales grew by 9.3% in the second quarter, fueled by purchases of food and general merchandise.
Shares were down less than 1% in premarket trading after jumping by more than 6% at one point to reach an all-time high.
Here’s what the company did in the fiscal second quarter ended July 31:
- Earnings per share: $1.56 adjusted, vs. $1.25 expected by Refinitiv’s consensus estimates
- Revenue: $137.74 billion vs. $135.48 billion expected by Refinitiv estimates
- U.S. same-store sales: up 9.3% vs. gain of 5.4%, expected by StreetAccount survey
Target = BOOM!
Target reports a monster quarter — profits jump 80%, same-store sales set record
Target reports a monster quarter — profits jump 80%, same-store sales set record
Target = BOOM!
Target reports a monster quarter — profits jump 80%, same-store sales set record
Remember what happened to WMT and HD yesterday? Up big pre-market on earnings then down for the day.
Caveat emptor.
Of course a pullback is happening at some point. But the US markets always rebound. Hence those who missed out in March on the fire sale will never see that opportunity again. It was a lifetime event.
Another BOOM:
Apple becomes first U.S. company to reach a $2 trillion market cap
Apple becomes first U.S. company to reach a $2 trillion market cap
Target = BOOM!
Target reports a monster quarter — profits jump 80%, same-store sales set record
Yes. That extra $600 a week really helped people and the economy.
Sold my SVXY position 3 days ago to some nice profits. Figured with S&P hitting ATH and europe about to go back into lockdown it would be a good time to take profits given the way SVXY is structured.
Market futures and VIX this morning suggest this was a great short term decision.
Market futures and VIX this morning suggest this was a great short term decision.
IPO questions....I noticed an IPO will price the market at $17 but doesn't go live to the secondary market until 10am or 11am. And the price was not $17, it was more like $21. Would an abundance of buy orders cause a spike in the "real" secondary market number, and are the purchases from $17-$21 filled by the largest buyers? I set a limit order at $18, it didn't fulfill, and I had to buy at $21.50. I still made money but was confused by the general IPO release, how the secondary number was nowhere near the $17...any insight is helpful.
Lots of articles about the market being overvalued based on market cap to GDP
I am never all in nor am I ever all out.
Right now I am in between 30 to 40% and its been that way for a few years. I will always have that much in but I plan to just pass those accounts to my daughter
You must not live in Ca. Eyes are on taking away more inheritance than they already do.
Interesting article:
The S&P 500′s return to a record doesn’t tell the full story with 60% of stocks still with losses
It's a market of winners and losers.
@Frida's Boss
@RU-05
@albanyknight
Thoughts about this?
The S&P 500′s return to a record doesn’t tell the full story with 60% of stocks still with losses
It's a market of winners and losers.
@Frida's Boss
@RU-05
@albanyknight
Thoughts about this?
Basics about margin trading. Never have done it and doubt I ever will. Seems too risky for me:
All right I finally get to agree with you. Margin trading is dangerous for the average investor. Things can get quickly out of hand if not paying attention. BTW, that is how Robinhood makes most of its money.