All things STOCKS

superdave1984

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I am new to stocks. Just opened an account with TD Ameritrade. Looking at some dirt cheap stocks, but I have to wonder what happens if that company files for bankruptcy? It has been rumored in the last year or so, but they always get a breath of air. I am not going to spend a ton of money on this, but I am curious about it. I am guessing I will just lose whatever I spent while the CEO of the company cashes another 3 mil bonus check. I have watched this company in steady decline over the last 5 years. Went from $50 or so down to the current stock price of just over $2.
 

GoVolsDR

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I am new to stocks. Just opened an account with TD Ameritrade. Looking at some dirt cheap stocks, but I have to wonder what happens if that company files for bankruptcy? It has been rumored in the last year or so, but they always get a breath of air. I am not going to spend a ton of money on this, but I am curious about it. I am guessing I will just lose whatever I spent while the CEO of the company cashes another 3 mil bonus check. I have watched this company in steady decline over the last 5 years. Went from $50 or so down to the current stock price of just over $2.
Penny stocks are like gambling. My recommendation is to stay away until you're an experienced trader. Catching a falling knife is one of the hardest things to do in trading, even with the best technical analysis available.

If you're looking to invest your money, you're far better off putting your money in indexes that track the broad performance of the market. Likewise, you can invest in other blue chip stocks if you're looking for exposure to individual equities. If that is an approach you'd like to follow, I'd recommend getting familiar with a handful of companies that you like, reading their balance sheets, listening to their earnings calls, and checking out what investor relations has available.
 
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I am new to stocks. Just opened an account with TD Ameritrade. Looking at some dirt cheap stocks, but I have to wonder what happens if that company files for bankruptcy? It has been rumored in the last year or so, but they always get a breath of air. I am not going to spend a ton of money on this, but I am curious about it. I am guessing I will just lose whatever I spent while the CEO of the company cashes another 3 mil bonus check. I have watched this company in steady decline over the last 5 years. Went from $50 or so down to the current stock price of just over $2.
You've pretty much figured it out. A stock that drops from $50 to $2 is most likely going to go to zero instead of $5 or more.

Stick to names that you can see. Home Depot is always busy. Sears keeps shutting down stores. Look at companies through your job or business that are doing a good job. Which car dealerships move a lot of cars? Which hotels do a great job when you take a vacation? Just observe what's going on around you. Read the book that Peter Lynch wrote about 40 years ago. Read Warren Buffet's annual letters to Berkshire Hathaway's shareholders.
 
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Go aeiou

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I am new to stocks. Just opened an account with TD Ameritrade. Looking at some dirt cheap stocks, but I have to wonder what happens if that company files for bankruptcy? It has been rumored in the last year or so, but they always get a breath of air. I am not going to spend a ton of money on this, but I am curious about it. I am guessing I will just lose whatever I spent while the CEO of the company cashes another 3 mil bonus check. I have watched this company in steady decline over the last 5 years. Went from $50 or so down to the current stock price of just over $2.
Dirt cheap usually means piss poor. Most people shy away from cheap stocks. Especially if they are not capable of doing their own research.
Look at vanguard index funds.
Do you have a 401k. You typically want to fund it especially if your employer matches. IRA?

As others have said if you must buy stocks buy quality. It's boring to some.
 

VolAllen

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I’ve got a little skin in the game. They dropped 90% back in June. I picked some up right after the crash hoping it would bounce back to $20+. Has a 52 week high of $53.

75A62E91-281C-4829-BDBC-4668196FDB7A.png
 

GoVolsDR

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Nice beat by Humana yesterday. EPS of $6.05 and a beat of Wall St.'s expectations by 14%. The earnings beat was driven by Humana's Medicare Advantage signups. This is one of the the lines of business where I directly work with payers like Humana in my day job, and I've been bullish on Humana in particular for years because of their focus on care transformation and innovation. Payers who are getting involved in care delivery and care transformation are who you want to put your money behind. There are huge CMS-based financial incentives that these plans can quality for, and that's how your astute health plans delivery value to their shareholders.
 

Go aeiou

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Nice beat by Humana yesterday. EPS of $6.05 and a beat of Wall St.'s expectations by 14%. The earnings beat was driven by Humana's Medicare Advantage signups. This is one of the the lines of business where I directly work with payers like Humana in my day job, and I've been bullish on Humana in particular for years because of their focus on care transformation and innovation. Payers who are getting involved in care delivery and care transformation are who you want to put your money behind. There are huge CMS-based financial incentives that these plans can quality for, and that's how your astute health plans delivery value to their shareholders.
Sorry to get OT, but advantage plans are only good for healthy people. If you are nearing 65 be very careful with your Medicare choices.
I'm not implying that Humana or any other insurance company is a bad investment. No more than tobacco companies are.
Part of the growth in plans is caused by the government's choice to market advantage over traditional Medicare + Medigap + plans D.
 
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What's on your watch lists (to buy)?

The 2 that I'm probably closest to moving on are Mueller Industries (MLI) and SmartBank (SMBK). MLI as a trade and SMBK as a long term buy and hold. I want MLI to pull back a little more as they should with some of their manufacturing (or suppliers) being in China. MLI seems to stay in the same price range for long periods.

SMBK seems like a well run bank that's new and is headquartered in Knoxville. The P/E is around 11x, but they had a windfall when a planned acquisition fell through and they received a deal dissolution fee of $8mm +/-. I don't know if that figure is reflected in that P/E or not. The market cap is under $300mm. I read through the transcript of an earlier conference call by management and they seem very focused on prudently growing the company. Small caps aren't generally a great idea with an uncertain economy, but they aren't scaring me off. Plus their branch buildings are really cool looking. And they are in prime locations in Knoxville. AND I think they've been getting some accolades for being a great place to work.
 
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Square, ENPH, Pinterest
Why doesn't Apple have their own credit card reader for iPhones and iPads? Square could quickly become irrelevant if that happened or if Verifone and/or the merchant services companies got into that space in a big way. Would Shopify or PayPal potentially bite into Square's business? What about Amazon, Google, and Mucrosoft? Aren't they kind of a hardware company that generates their revenue by taking a transaction fee? Surely Capital One and similar companies aren't going to ignore that threat.
 
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Why doesn't Apple have their own credit card reader for iPhones and iPads? Square could quickly become irrelevant if that happened or if Verifone and/or the merchant services companies got into that space in a big way. Would Shopify or PayPal potentially bite into Square's business? What about Amazon, Google, and Mucrosoft? Aren't they kind of a hardware company that generates their revenue by taking a transaction fee? Surely Capital One and similar companies aren't going to ignore that threat.
Good point. It’ll be interesting to see how it plays out. They did just sell their food delivery company to doordash for 410 million.
 

GoVolsDR

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What's on your watch lists (to buy)?

The 2 that I'm probably closest to moving on are Mueller Industries (MLI) and SmartBank (SMBK). MLI as a trade and SMBK as a long term buy and hold. I want MLI to pull back a little more as they should with some of their manufacturing (or suppliers) being in China. MLI seems to stay in the same price range for long periods.

SMBK seems like a well run bank that's new and is headquartered in Knoxville. The P/E is around 11x, but they had a windfall when a planned acquisition fell through and they received a deal dissolution fee of $8mm +/-. I don't know if that figure is reflected in that P/E or not. The market cap is under $300mm. I read through the transcript of an earlier conference call by management and they seem very focused on prudently growing the company. Small caps aren't generally a great idea with an uncertain economy, but they aren't scaring me off. Plus their branch buildings are really cool looking. And they are in prime locations in Knoxville. AND I think they've been getting some accolades for being a great place to work.
Really interesting chart action on SMBK. Definitely a company I'll keep an eye on, especially since they're local. Big impulse up in April, and you have Support at 20 that was tested once and immediately bounced back. It's been pretty range bound between 20.50 and 22.50. Since the start of the year I like the double bottom pattern that's formed, and if the price action right now is simply a confirmation of the support at it's current lows, then I might take a nibble on this one. As I zoom out and look back at the chart since the start of 2018, the RSI indicates it's extremely oversold. MACD is also a big large red histogram, which I like. You're making higher lows on the daily, and once the oscilators change direction and indicate positive momentum, I'll have the 3 signals I want that confirm bullish divergence and a good spot to take a position.

Plus you've already broken through resistance at 21.50 and 21.75. There's a lot of room for this one to run, since you don't have any other really established points of resistance until you hit 24, and then you see further rejection at 25 as well. My TA is telling me that the current price action is a confirmation of buy signals that are indicating a long term bull trend.
 
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superdave1984

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The company I work for offers a discount to buy their stock. I did so and have made a little money at it. They are about to do an Accelerated Share Repurchase. Assuming the thing doesn't tank and stays on its current trend, what will that do to my stock value in the short term? Over the next 6 months? A year?
 

DancingOutlaw

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If this has already made the news, nothing. Presumably the buyback is already reflected in the current price. Common thinking is share buybacks indicate the company thinks it’s future presents a good opportunity, and it’s betting on itself by buying its own shares. It can also be used to manipulate EPS and some other metrics to please the street.
 
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Scanning my watch list, no orders placed yet. Might buy a few or nothing at all.

MLI Mueller Industries has finally had a good pull back. They have some China exposure and were holding up pretty well.

SMBK SmartBank for some growing small cap exposure. Maybe it'll come back down a bit more since this isn't the favorable textbook environment for smaller companies.

Defense... maybe Raytheon or L3Harris

UPS and/or FedEx. And AMZN.

Healthcare... TeleDoc, Cerner, HealthEquity

GOOG
DIS

Looking for CAT and/or BA to bottom out. Caterpillar might be on their lows for a while. I think that Boeing will soar once they can start delivering their grounded planes again. I think that they're hoping for regulator's clearance in October.

I'm interested in the iShares India ETF INDA, but I don't know if the currency valuations are hedged. I don't want to own the Indian currency versus the USD.
 

GoVolsDR

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Still buying Bitcoin. BTC is back over $12k again, once we push past resistance at 12,2, next stop is 13,3. If Bitcoin keeps impulsing up, the run up in price action would see levels at between 15k-16k.
 

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