Stock Advice Thread

lz

Active member
Jan 27, 2002
28,680
32,303
83
Revenue and earnings growth are big no matter what business it is. In these times, I want to own few of the companies in massive debt without much growth so the ratio of debt/equity is something I look at. In addition, I look at how their peers are doing. I can stomach an expensive P/E ratio if a company is best of breed in their sector because these type businesses always get a higher valuation.
Cramer and many “gurus” never or rarely mention debt or gross margin, yet both items (albeit GM doesn’t apply to all companies) are critical. I understand interest rates are low, but mountains of debt are a hurdle regardless.
 

jameslee32

New member
Mar 26, 2009
33,643
22,325
0
Cramer and many “gurus” never or rarely mention debt or gross margin, yet both items (albeit GM doesn’t apply to all companies) are critical. I understand interest rates are low, but mountains of debt are a hurdle regardless.
This is true. I hear operating margin a lot more than gross margin and debt/equity. But then again CNBC is IPO, ETF, technology and hedge fund whale focused most of the time these daze!
 
  • Like
Reactions: lz

BlueRaider22

New member
Sep 24, 2003
15,562
9,058
0
P/E's are good quick reference. I love to to see a revenue growth trend.

But probably my biggest factors are:
1. Can I understand the business?
2. Does it have a moat?
3. What does the future hold for the company?
4. Earnings growth.
5. Free cash flow.......and can it pay off debt with the free cash flow in a few short years.
6. What price am I comfortable buying in at?
 

BlueRaider22

New member
Sep 24, 2003
15,562
9,058
0
Interesting bit of news.....might need verification. Apparently the US Market averages about a 2% return during the first year of a new POTUS. And with the economy.....next yr may suck. But it might be good buying opportunity.
 

bluthruandthru

Well-known member
Feb 24, 2009
3,814
3,928
113
Don't know OKE. Energy befuddles me.

Bought FTNT while selling ATVI. It had been good for me but I think FTNT will be a better investment especially at its current price.
 

lz

Active member
Jan 27, 2002
28,680
32,303
83
My SPWH up 20.3% in a month since I bought, still $3-4 more per share perhaps, EDUC up nearly 5% in a week, looks like a steadily growing stock of a small company-kids’ quality books to read at home for fun and knowledge.
 

AustinTXCat

Well-known member
Jan 7, 2003
52,093
306,194
113
Just purchased LEVI at $11.95/sh. Feeling good about future prospects.
LEVI popped. Huge earnings beat. $16.22 after hours.

 
  • Like
Reactions: jameslee32

bluthruandthru

Well-known member
Feb 24, 2009
3,814
3,928
113
Tomorrow should be interesting...
------------------------------------
All right. Let's see what you guys think about this:

I'm about to add to my ADSK position tomorrow but I saw that there is unusual options activity for the Oct 9 $210 put. 3100 open interest. The stock is at $228.

Any thoughts?

Edit: I checked an options calc and that drop is over 2SDs of change. They gave it 0% chance of happening. It's only a 7.9% change though.
 
Last edited:

AustinTXCat

Well-known member
Jan 7, 2003
52,093
306,194
113
Does anybody own OKE? I'm thinking about grabbing some shares. Any thoughts?
Looked at it. Liked some fundamentals. Backed out.

Supposedly, OKE gas volumes have been increasing. Might be worth a risk, even with a possible dividend cut. Winter is coming.
 

jameslee32

New member
Mar 26, 2009
33,643
22,325
0
Tomorrow should be interesting...
------------------------------------
All right. Let's see what you guys think about this:

I'm about to add to my ADSK position tomorrow but I saw that there is unusual options activity for the Oct 9 $210 put. 3100 open interest. The stock is at $228.

Any thoughts?

Edit: I checked an options calc and that drop is over 2SDs of change. They gave it 0% chance of happening. It's only a 7.9% change though.
My sisters' and John Lennon's birthday. Could sell some upside calls if you think it's too risky at $228 but I'm not an options guy either.
 
  • Like
Reactions: AustinTXCat

lz

Active member
Jan 27, 2002
28,680
32,303
83
Last edited:

BlueRaider22

New member
Sep 24, 2003
15,562
9,058
0
Right now, I'm bullish on Walmart.


While it's grown nicely over the last decade, I think the best is yet to come. Little by little they've been changing their business model. They want to challenge Amazon in online sales. COVID has forced them to adapt to grocery pick up. Etc, etc.






 

jameslee32

New member
Mar 26, 2009
33,643
22,325
0
Right now, I'm bullish on Walmart.


While it's grown nicely over the last decade, I think the best is yet to come. Little by little they've been changing their business model. They want to challenge Amazon in online sales. COVID has forced them to adapt to grocery pick up. Etc, etc.






KR is doing similar things out of necessity. The Marketplace store I frequent now offers delivery, free pickup, free wifi to check coupons, recipes, rewards, prescriptions, Little Clinic appointments and contactless payments by scanning credit card or mobile payment QR codes on your phone.
 
  • Like
Reactions: BlueRaider22 and lz

lz

Active member
Jan 27, 2002
28,680
32,303
83
My KR is inflexible, request anything and the local management’s hands have been tied by the home office for many years. I once asked why there were several rows of a particular brand that wasn’t popular, yet only one row of the brand locals bought fast every week. He just grinned and shrugged “I said I know, inventory selection is out of your control locally.” Some of the Kroger brand cheeses started going bad on us after a few days about once a month despite great expiration dates, no refund once you take them out of the store, so we get cheese at Aldi now. Unhappy, but no real competition locally.
 

jameslee32

New member
Mar 26, 2009
33,643
22,325
0
My KR is inflexible, request anything and the local management’s hands have been tied by the home office for many years. I once asked why there were several rows of a particular brand that wasn’t popular, yet only one row of the brand locals bought fast every week. He just grinned and shrugged “I said I know, inventory selection is out of your control locally.” Some of the Kroger brand cheeses started going bad on us after a few days about once a month despite great expiration dates, no refund once you take them out of the store, so we get cheese at Aldi now. Unhappy, but no real competition locally.
Hmm, I've never had an issue with refunds. Meat and dairy is where they usually shine as well. I took back a stale box of Kroger brand grahams crackers 2 weeks ago just one day before expiration and they will either replace it or refund my money. If something scans wrong, I take it to the service desk and get it free or $5.00 and a new item if it costs over that amount.

Of course they have competition here, even in their home city. In fact, Target is in the same shopping center as my store. Fresh Thyme is across the street. Aldi is a half mile away tops.
 

lz

Active member
Jan 27, 2002
28,680
32,303
83
Hmm, I've never had an issue with refunds. Meat and dairy is where they usually shine as well. I took back a stale box of Kroger brand grahams crackers 2 weeks ago just one day before expiration and they will either replace it or refund my money. If something scans wrong, I take it to the service desk and get it free or $5.00 and a new item if it costs over that amount.

Of course they have competition here, even in their home city. In fact, Target is in the same shopping center as my store. Fresh Thyme is across the street. Aldi is a half mile away tops.
Look closely at any Kroger brand block cheese if you buy it.
 
  • Like
Reactions: jameslee32

Blu-ish

Well-known member
Nov 10, 2019
865
1,622
93
WKHS and DHCP....patience appears ready to pay off. Both up over 10% today on date set for DHCP merger vote and WKHS USPS contract speculation. My first big single stock rodeo and I learned a lot.
 
  • Like
Reactions: rbs and lz

jameslee32

New member
Mar 26, 2009
33,643
22,325
0
Look closely at any Kroger brand block cheese if you buy it.
I haven't in a while but every Kroger brand I buy says Quality Guaranteed with an 800 number on it. Doesn't mean I'll buy it though. Especially if I don't like it or it's a hassle to return. I've just never had the return issue. Although many store brands are good, all aren't. Their vanilla wafers are turrible.
 

bluthruandthru

Well-known member
Feb 24, 2009
3,814
3,928
113
-Looked at NIO. Probably buy in if it ever drops. It's been on the watch list.

-Looking at AMWL, similar to TDOC. Not a question of if I buy, but when.

-BAC looking really good now. JPM as well. I think they put plenty aside for the forecasted downturn. WFC, not so much.
 
  • Like
Reactions: BlueRaider22

BlueRaider22

New member
Sep 24, 2003
15,562
9,058
0
-Looked at NIO. Probably buy in if it ever drops. It's been on the watch list.

-Looking at AMWL, similar to TDOC. Not a question of if I buy, but when.

-BAC looking really good now. JPM as well. I think they put plenty aside for the forecasted downturn. WFC, not so much.



I too am looking at BAC. I bought JPM on the dip for ~$87.

I've heard that because the fed is going to hold interest rates down for years.......that it's going to hold banks down for a few yrs as well. Great to buy and hold.....but it'll take a while........i guess its more time to buy.
 
Last edited:
  • Like
Reactions: jameslee32

BlueRaider22

New member
Sep 24, 2003
15,562
9,058
0
Just bought a couple shares of JD. I wanted to strengthen during a little pull back before the Holiday season.....and before earnings come out in December.
 
  • Like
Reactions: bluthruandthru

jameslee32

New member
Mar 26, 2009
33,643
22,325
0
Started very small but went with some growth and value this week.
INSG is a small cap 5G play whose chart looks like a trading vehicle.
M is brick and mortar of course and hasn't really broken out yet like some of the others in the space.
 
  • Like
Reactions: AustinTXCat

BlueRaider22

New member
Sep 24, 2003
15,562
9,058
0
"IF" the rumors are true and we are close to another stimulus check.......what are you thinking of doing with it?



FYI, Supposedly the $ has changed from $1200 for adult.....and now $1000 for each child.