All things STOCKS

[Thunder Good-Oil]

Yeah...the kiddo's love that one. The spook business is very sexy.

Haven't dug deeply, but think their only product is software.

Data mining, AI, consulting. High margin software to manage computer systems and make client operations more efficient and effective. They’re just now in the early phase of adding commercial customers to their client base. Stock seems to be priced for perfection.

 

[walkenvol]

Last week, I dove back into Lockheed Martin (LMT) as they hit a 52-week low.

Was that value investing or attempting to catch a falling knife?

Right now, feels like a razor sharp saber.

I researched LMT on your post and decided to take a position - thanks for sharing.

 

[Majors]

NVDA outside of $180 in pre-market.

 

[Thunder Good-Oil]

I’m going to try selling some PLTR covered calls today. 8/8s or 8/15s about $5-$8 strike above the current $159 +/- quote.

 

[Jax_Vol]

I researched LMT on your post and decided to take a position - thanks for sharing.

Hope it works for us. Good luck!!

 

[DinkinFlicka]

SOFI just paid for my next vacation today.

 

[DinkinFlicka]

NVDA outside of $180 in pre-market.

I think I'm going to redirect my weekly contributions to NVDA and start gearing toward AMD. The bull run I thought was going to happen seems to have started early amid tech earnings.

There are arguments to be made that AMD's ceiling is higher, and I say that as Jensen's fanboy. The market cap difference is stunning.

Plus, as a tech dude, I can tell you the gap is closing between the two. This time next year AMD might be NVDA's GPU equal.

Plus, CPUs.

 

[Jax_Vol]

To continue my theme of getting sliced by falling knives. I jumped into Novo Nordisk.

Taking one for the husky housewives team.

Pain

 

[Thunder Good-Oil]

To continue my theme of getting sliced by falling knives. I jumped into Novo Nordisk.

Taking one for the husky housewives team.

PainView attachment 759369

Wow. 20% discount today. New 52 week lows.

It’s kind of a diabetes barbell. Over half their sales are in the US. And we be fat. On one hand, Medicare cuts and those negotiations haven’t ramped up. But Plan D Medicare could open up for a lot more hefties getting eligible for treatment. Adding eligibility could actually cut healthcare costs if the obesity rate falls (but Novo isn’t the only player - Lilly and Sanofi are in the space).

RFKjr (and MAHA) is working on getting the garbage off of the dinner plates, but Big Pharma and Big Food make a formidable opponent. I doubt that pivoting away from crappy diets will move quickly.

It’s a tempting trade. But I’d take any short term profits and move to an ETF like XLV for the long haul. I’d want the diversification since drug pipelines can be volatile.

 

[@1RBFjr]

Part of our fifteen year haul with FAST came to an end yesterday. It seems overbought and neither my broker nor I could find anything justifying its share price, so we transferred some to our church and a nonprofit. To me, things seem on the high side. I’m guessing profit taking is in the near future.

 

[Thunder Good-Oil]

Part of our fifteen year haul with FAST came to an end yesterday. It seems overbought and neither my broker nor I could find anything justifying its share price, so we transferred some to our church and a nonprofit. To me, things seem on the high side. I’m guessing profit taking is in the near future.

Good move to let charity/church keep all of the capital gains tax free and not letting the government have it to waste it.

 

[walkenvol]

Good move to let charity/church keep all of the capital gains tax free and not letting the government have it to waste it.

I’ve gifted appreciated securities to grandkids and it didn’t appear to trigger a taxable event. This gets me wondering, if I gift securities to any individual for an amount less than $19K do they carry my cost basis in the stock or is their cost basis the day they take ownership?

 

[Jax_Vol]

I’ve gifted appreciated securities to grandkids and it didn’t appear to trigger a taxable event. This gets me wondering, if I gift securities to any individual for an amount less than $19K do they carry my cost basis in the stock or is their cost basis the day they take ownership?

Not a 100% but think they carry the cost basis.

 

[Jax_Vol]

Wow. 20% discount today. New 52 week lows.

It’s kind of a diabetes barbell. Over half their sales are in the US. And we be fat. On one hand, Medicare cuts and those negotiations haven’t ramped up. But Plan D Medicare could open up for a lot more hefties getting eligible for treatment. Adding eligibility could actually cut healthcare costs if the obesity rate falls (but Novo isn’t the only player - Lilly and Sanofi are in the space).

RFKjr (and MAHA) is working on getting the garbage off of the dinner plates, but Big Pharma and Big Food make a formidable opponent. I doubt that pivoting away from crappy diets will move quickly.

It’s a tempting trade. But I’d take any short term profits and move to an ETF like XLV for the long haul. I’d want the diversification since drug pipelines can be volatile.

It is ironic...less than a week ago, I was badmouthing value investing.

Then I turn around and buy both Lockheed Martin and Novo Nordisk because I respect those two old companies.

We will see how it goes.

 

[Thunder Good-Oil]

I’ve gifted appreciated securities to grandkids and it didn’t appear to trigger a taxable event. This gets me wondering, if I gift securities to any individual for an amount less than $19K do they carry my cost basis in the stock or is their cost basis the day they take ownership?

I thought that the person gifting appreciated stock to an individual paid the capital gains tax, but after googling it looks like the basis transfers with the stock and it is the original purchase price of the stock. But the recipient doesn’t get to take advantage of capital loses - the donor needs to sell the stock to get tge tax benefit of the capital loss.

If the person gifting the appreciated stock instead sells it and gifts cash, then they pay a capital gains tax.

The stepped up basis for appreciated assets willed to heirs is a very favorable tax treatment. The heir gets to bump up their basis to the current market value and the donor avoids any capital gains taxes.

The $19,000 relates to GIFT tax rather than capital gains included in INCOME. $19,000 (per person) is the cut off of when the gift has to be REPORTED to the IRS. There’s a lifetime gift tax exclusion of $14 million. Occasionally the soak the rich politicians push for lowering the $14 million to even a million or so. The selling point of the $14 million exclusion is to prevent family farms and businesses from having to be liquidated to pay the gift/estate tax when passing those assets to heirs.

Gifting appreciated stocks (that aren’t in Roth accounts - they’re not taxed no matter who receives those assets) to charities/churches avoids taxes since they are tax exempt. They can sell immediately and not have a tax liability.

 

[Thunder Good-Oil]

Tip: if you need cash, consider taking out a margin loan using stock as collateral instead of selling the stock and paying a capital gains tax. This makes a good case for owning boring, slow growing, but safe investments.

 

[walkenvol]

I thought that the person gifting appreciated stock to an individual paid the capital gains tax, but after googling it looks like the basis transfers with the stock and it is the original purchase price of the stock. But the recipient doesn’t get to take advantage of capital loses - the donor needs to sell the stock to get tge tax benefit of the capital loss.

If the person gifting the appreciated stock instead sells it and gifts cash, then they pay a capital gains tax.

The stepped up basis for appreciated assets willed to heirs is a very favorable tax treatment. The heir gets to bump up their basis to the current market value and the donor avoids any capital gains taxes.

The $19,000 relates to GIFT tax rather than capital gains included in INCOME. $19,000 (per person) is the cut off of when the gift has to be REPORTED to the IRS. There’s a lifetime gift tax exclusion of $14 million. Occasionally the soak the rich politicians push for lowering the $14 million to even a million or so. The selling point of the $14 million exclusion is to prevent family farms and businesses from having to be liquidated to pay the gift/estate tax when passing those assets to heirs.

Gifting appreciated stocks (that aren’t in Roth accounts - they’re not taxed no matter who receives those assets) to charities/churches avoids taxes since they are tax exempt. They can sell immediately and not have a tax liability.

Make sure I understand.

Appreciated stock in an after tax brokerage account carries the original cost basis forward to new owner if gifted?

A minor gets a standard deduction of $14,600 if they file a 1040 and are still claimed as a dependent on their parents 1040?

Seems like I should be using this minor standard deduction on my 5 grandchildren to avoid paying capital gains tax of $14,600 for each on highly appreciated stocks?

Am I missing something here?

 

[kiddiedoc]

To continue my theme of getting sliced by falling knives. I jumped into Novo Nordisk.

Taking one for the husky housewives team.

Gosh, I haven't really paid attention to NVO since I cashed a year or so ago for a handsome profit. What happened to them? LLY is still cooking and I'm ready for AMGN to pop.

 

[mrorange211]

Trump says theres a deal with EU. With other catalysts this week, the market is going to continue ATH imo.

This is what makes the market so fun.

 

[Jax_Vol]

Gosh, I haven't really paid attention to NVO since I cashed a year or so ago for a handsome profit. What happened to them? LLY is still cooking and I'm ready for AMGN to pop.

HIMS....was allowed to use the NVO secret sauce to "compound" making the weight loss drug affordable.

They were allowed to do that because the juice was in shortage.

Now, the shortage is over. The courts ruled that that they need to stop compounding. However, per NVO, they aren't complying with the court order.

In the long haul, HIMS will perhaps own NVO a lot of money. In the short haul, we down 22% today.

 

[Thunder Good-Oil]

Make sure I understand.

Appreciated stock in an after tax brokerage account carries the original cost basis forward to new owner if gifted?

A minor gets a standard deduction of $14,600 if they file a 1040 and are still claimed as a dependent on their parents 1040?

Seems like I should be using this minor standard deduction on my 5 grandchildren to avoid paying capital gains tax of $14,600 for each on highly appreciated stocks?

Am I missing something here?

I think that minors only get a standard deduction of $1,300 or earned income plus $450 (2024 tax year). So if their only income is capital gains, they don’t get the $14,600 deduction.

Dependents – If you can be claimed as a dependent by another taxpayer, your standard deduction for 2024 is limited to the greater of: (1) $1,300, or (2) your earned income plus $450 (but the total can't be more than the basic standard deduction for your filing status).

Topic no. 551, Standard deduction | Internal Revenue Service

Topic No. 551 Standard Deduction

www.irs.gov

 

[kiddiedoc]

HIMS....was allowed to use the NVO secret sauce to "compound" making the weight loss drug affordable.

They were allowed to do that because the juice was in shortage.

Now, the shortage is over. The courts ruled that that they need to stop compounding. However, per NVO, they aren't complying with the court order.

In the long haul, HIMS will perhaps own NVO a lot of money. In the short haul, we down 22% today.

Dang, that makes sense. I have read that the online alternative GLP1s are much cheaper.

I'm just hoping they don't hurt LLY and that Amgen's new once-monthly drug gets final approval. Lilly is fairly insulated with their other products.

 

[Jax_Vol]

Dang, that makes sense. I have read that the online alternative GLP1s are much cheaper.

I'm just hoping they don't hurt LLY and that Amgen's new once-monthly drug gets final approval. Lilly is fairly insulated with their other products.

NVO down another 5%.

I remember now why I'm not a fan of "value investing"...

Hard for me to believe that the institution funds are dumping this fast. But perhaps?

Is there any clever way to determine if it is more day-traders who are heavily shorting? The volume is 10x normal.

 

[Go aeiou]

Any opinions on SMCI? How high can it go?
Almost doubled money, and have been selling chunks along the way.

Other one is TRMD. Still in the red. dumb buy.

 

[Thunder Good-Oil]

Any opinions on SMCI? How high can it go?
Almost doubled money, and have been selling chunks along the way.

Other one is TRMD. Still in the red. dumb buy.

I’m working on closing out the rest of my SMCI. But it’s looking like I set my covered call limit sell order a little too high. It has gone up 20 fold in 5 years and is still reasonably priced, but I just don’t believe that management won’t eff up the bookkeeping again.

I was too early ditching more than half of it at a small gain a month ago. But can’t ever be unhappy selling for a gain. And nobody can consistently sell the top and buy the bottom.