For the crypto crew on the thread, massive ETH news today. Visa is going with its blockchain:
OT: Stock and Investment Thread
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Heard an interesting potential use of blockchain tech today on Fastmoney today.
Say there is a concert, and one of the buyers of the tickets is a scalper. The original ticket is for $20, and the scalper sells it for $100. By use of the blockchain they could make it so a certain % of that resale goes to the artist.
And that could go down the line, any time some thing is sold it could be set up so that again a certain %, and maybe that % changes along the way, goes to the creator or distributor or whomever.
As I don't have a great understanding of blockchain of how it would be used in real world scenarios, I thought this provided a pretty clear scenario as to how it could be use in commercial applications
Say there is a concert, and one of the buyers of the tickets is a scalper. The original ticket is for $20, and the scalper sells it for $100. By use of the blockchain they could make it so a certain % of that resale goes to the artist.
And that could go down the line, any time some thing is sold it could be set up so that again a certain %, and maybe that % changes along the way, goes to the creator or distributor or whomever.
As I don't have a great understanding of blockchain of how it would be used in real world scenarios, I thought this provided a pretty clear scenario as to how it could be use in commercial applications
Another Fastmoney tidbit from today was the Facebook is likely or planning to come out with it's own crypto currency.
A little google search shows it's not exactly new news, but it is news to me.
Facebook hopes the cryptocurrency it backs will launch in 2021 (cnbc.com)
A little google search shows it's not exactly new news, but it is news to me.
Facebook hopes the cryptocurrency it backs will launch in 2021 (cnbc.com)
Big new price target for FB, which is really undervalued. Going crypto is a good decision. Look for them to use the ETH blockchain as well.
This is a bit complicated. The complete ETH 2.0 rollout is a good 2 years or so away. However, the near term upgrades are called Layer 2 upgrades. Confusing right? The Layer 2 upgrades are mostly "roll-ups" which are parallel chains to increase speed and efficiency of transactions, but everything is still secured to the "main-net". ETH 2.0 is a completely new main-net and will be revolutionary.
There has been some whining about ETH lately, just mainly supporters of other altcoins and nets. Most of the noise is BS and ETH will remain the dominant blockchain and smart contract player.
This is a long video, but worth the time.
Aside from the technology of 2.0, the efficiency and speed will increase tremendously, reducing the “gas” price for ethereum. That is the term used for transaction fees on ethereum, which with reduced fees will increase use and attract more users. That is also why many are predicting a price of$4000 for ETH in the next 12 months.
I bet it will be north of $4k. One of the upcoming upgrades (EIP1559) will include burning some ETH and thus reducing the supply.
#KABOOM
In other Tesla news, big time hiring in TX:
Reading the details, sounds like Toyota is giving up and begging for Tesla's software and tech platform. Look for VW to do the same.
38 holdings, interesting list of companies!
Sure is. I suspect that a lot of those are just place holders for liquidity when they launch. It will be interesting to see what the holdings look like in a week or so.
That would be good for TSLA. If that happens, the stock valuation is more justified. But not sure why VW would do a "Power Day" if they are giving up. More wishful thinking from TSLA.
I'm kinda lukewarm on this since I can't have SpaceX.
Although, when Starlink spins off of SpaceX, you can bet it will be a big holding (10%?) in this ETF.
Not as much as there would have been if it really opened up 100%. I was getting ready access my Schwab account.
Ha. Its saying up 100%. Yahoo can't seem to figure this one out.
A little like a lot of accounts show a stock price drops the day it goes ex-dividend. In reality there may be no change in value or actually a gain. Dividends? What are those?
It's equally confusing, but this is much worse. With the dividends the difference is based on the accounting on whether the dividend is distributed or reinvested. Should be clearer when you look at it, but the SEC is very strict on how you report performance. They should have updated their rules a long time ago.
The case with ARKX is really bad because all you have to know is the price it launched or traded yesterday and they can't get that right. Much of Wall Street is using very old technology and mistakes that should never happen are common.
Guess Amazon will deliver in space soon and you can stream Netflix on your next space flight.
Netflix is dependent on satellites and Amazon will start supplying the international space station and catering SpaceX flights.
Looking for wide-moat tech at a great value? Check out the new MS article:
Jenny Harrington, who manages a dividend fund, and I'd say is the most value oriented of the regular traders you'll see on the fast money shows yesterday recommended NAVI.
Current p/e of 4x(though discrepencies here depending on where you look cause I also see 6x but cheap nonetheless). It is a company that has always sold at a low multiple, and fwd estimates are predicting shrinking future earnings. It does have strong upward momentum, likely riding the value trade which in general looks to have legs. Also plays a 4.5% dividend.
Harrington, as well as a few of the other more conservative traders were also either buying or looking at VIAC after it has been cut in half. I rode this one from $27, up to $95, before selling at $65. So did very well, but felt like I left some money on the table, Think I'll jump back in see if I can get that money back. 11x PE, so again cheap, but again, looking fwd, not expecting growth. Hope is the streaming services is offers gets those earnings trending in the right direction.
Current p/e of 4x(though discrepencies here depending on where you look cause I also see 6x but cheap nonetheless). It is a company that has always sold at a low multiple, and fwd estimates are predicting shrinking future earnings. It does have strong upward momentum, likely riding the value trade which in general looks to have legs. Also plays a 4.5% dividend.
Harrington, as well as a few of the other more conservative traders were also either buying or looking at VIAC after it has been cut in half. I rode this one from $27, up to $95, before selling at $65. So did very well, but felt like I left some money on the table, Think I'll jump back in see if I can get that money back. 11x PE, so again cheap, but again, looking fwd, not expecting growth. Hope is the streaming services is offers gets those earnings trending in the right direction.
I would assume VIAC will pop back up a bit. Some of the down was due to artificial reasons (i.e., not company related but rather Archegos).
NAVI seems similar to Tyler Tech with both supporting the public sector. Good stable businesses, but not sure about growth potential. Something to research!
NAVI vs TYL is an interesting comparison in that one is trading at 80x while the other is 6x. NAVI's future looking earnings are expected to decrease, while TYL's is expected to increase, but by a relatively low rate. So I wonder if there are underlying expectations for TYL that do not show up in print.
TYL does have some news this morning, acquiring Dataspec, which handles veterans benefits. Tiny company though, 4 employees.
If TYL has plans to expand beyond public customers perhaps it can be a real winner. Yes, there is growth in the public sector, but that world moves so slow. Great for building a financial foundation, but real growth may need to come from elsewhere. Just my top of mind thoughts. TYL may need to go on my watch list.
I liked ROP from that list. Much more reasonable p/e with better future earnings growth.
Edit: CERN as well, same as above, plus buying on a bit of a dip. Long term chart looks interesting as well, having been range bound for about 5 years, though it did fail pretty miserably on a break out which was followed by the dip. Not sure how normal that is on breakouts.
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