Investing megathread extravaganza

[DaFace]

A place to talk about investing stuff.

[Neuromancer]

Amazon, Google, Microsoft, Apple

[Discuss Thrower]

The Mortgage Bankers Association in a dire letter to regulators Sunday warned that the U.S. housing market is “in danger of large-scale disruption,” due to efforts by the Federal Reserve that were intended to help rescue the mortgage market.

At issue are the Fed’s unprecedented $183 billion of purchases last week of mortgage-backed securities. The purchases were meant to drive down rates, and they did.

But together with the storm that gripped financial markets from the coronavirus, they also effectively blew up a widespread hedge that mortgage bankers use to protect themselves against rate increases. The hedge pays them if the prevailing rate in the market is higher than the mortgage rate they locked in with the customer.

Source

Spoiler!

Source

List of Publicly Traded Real Estate Companies

List of Publicly Traded REITs

A comparison widget that shows trend, earnings per share (EPS), P/E ratio and beta for each of the companies on this list can be accessed through the link below.

Mortgage Service Industry Comparison Widget

Select the company’s link to access charts, news links and company website and social media information.

Mortgage Services: Small-Cap Stocks

Altisource Portfolio Solutions S.A. (ASPS) (Mortgage, financial and technology services to the real estate, mortgage and consumer debt industries)

Nationstar Mortgage Holdings Inc. (NSM) (Mortgage servicing)

Ocwen Financial Corporation (OCN) (Mortgage servicing)

PennyMac Financial Services, Inc. (PFSI) (Loan production, loan servicing and investment management)

PHH Corp (PHH) (Mortgage servicing)

Mortgage Services: Micro-Cap Stocks

Impac Mortgage Holdings, Inc. (IMH) (Residential mortgage loans)

Security National Financial Corporation (SNFCA) (Diversified: Mortgage loans, deathcare services, life insurance)

Walter Investment Management Corp. (WAC) (Servicing and origination of residential loans)

[Buehler445]

Aww hell. Nobody thought of that huh?

Speaking of hedges, I got out of my wheat spread and my hedges are all making money now.

[Discuss Thrower]

Originally Posted by Buehler445

Aww hell. Nobody thought of that huh?

Speaking of hedges, I got out of my wheat spread and my hedges are all making money now.

I've had my trading account flagged as a PDT and I'm needing to meet margin requirement in order to do any additional trades.

So today has been fun.

[BigBeauford]

Originally Posted by lewdog

Now is not the time to get foolish. Let's talk about long term investing in sound companies. Here's my current list of positions I'm looking to add during this downturn for long term growth.

Johnson and Johnson
Visa
McDonald's
Apple
Catepillar (I question having this included)
Nike
Honeywell

Companies you'd add?

3M is nicely priced and pays good dividends. Great long term hold.

[Rain Man]

Originally Posted by BigBeauford

3M is nicely priced and pays good dividends. Great long term hold.

And they're a major mask maker. They got a contract a couple of weeks ago to make 35 million masks, and you figure more orders are coming.

[Buehler445]

Originally Posted by Discuss Thrower

I've had my trading account flagged as a PDT and I'm needing to meet margin requirement in order to do any additional trades.

So today has been fun.

Pattern Day Trader? Is that what you mean by PDT?

Last year I had enough margin calls. I got whipsawed on a bunch of hedge positions, because I thought I knew what I was doing. Ended up fine because I still had the physical, but mother****er, approving those ACHs are ass. I've had enough (As I sit here with a bunch of hedges through contracts on LOL).

Side story that probably only I think is funny, but I talked to an old guy I bought this sprayer from. Got a call from my broker. On call. Whatever, approve the ACH. He told me he had cattle hedged in the 80s, whatever year the market was limit down for something reeruned like 12 days in a row or something ****ing horrific. Anyway he told me the secretary for the broker would always call at the same time and had some cringey voice that was like nails on a chalkboard, "STAN, you're on call again today." I'll probably never forget the face he made. I laughed for days about that.

But yeah, that cattle market in the 80s. Those guys were tough sons of bitches. Paying ridiculous interest and daily limit margin calls.

[MahiMike]

Originally Posted by MahiMike

Speaking of great dividends I just bought KOL. 17% dividends. Wow.

Also bought USO. Oil won't get much cheaper than this.

Both longterm plays.

USO up 17% today. Doubled down today w/HAL.

[mililo4cpa]

Anyone venturing into the Airlines? or am I the only idiot?

[mililo4cpa]

Originally Posted by Rain Man

And they're a major mask maker. They got a contract a couple of weeks ago to make 35 million masks, and you figure more orders are coming.

Exactly this!

[Discuss Thrower]

Originally Posted by mililo4cpa

Anyone venturing into the Airlines? or am I the only idiot?

Why did you buy airline stock?

[Hog's Gone Fishin]

Originally Posted by mililo4cpa

Anyone venturing into the Airlines? or am I the only idiot?

my brother bought BA at 167. A little early but BA isn't going to fail. Our defense dept. depends on BA.

[mililo4cpa]

Originally Posted by Discuss Thrower

Why did you buy airline stock?

several reasons:

1. Up to mid-Feb, each airline was doing just fine relative to where they are now
2. CARES funding into airline industry to keep them afloat
3. No way Govt won't continue to bail airline industry out....what are they going to do, let airlines fail? Then what....it's not like any company can just come out and buy the assets in a fire sale and resume business....
4. Once travel is permitted and fear subsides, people will be eager to get out of the home and take the trips they couldn't now. Business travel will resume as soon as humanly possible, but I believe the discount airlines will do OK too because they'll get the business travel + those itching to get away....

I think the prices today are a by-product of fear, and once we're out of this, then it will recover nicely. It's a long play to be sure, but hey, buy low / sell high right?

[mililo4cpa]

Originally Posted by mililo4cpa

several reasons:

1. Up to mid-Feb, each airline was doing just fine relative to where they are now
2. CARES funding into airline industry to keep them afloat
3. No way Govt won't continue to bail airline industry out....what are they going to do, let airlines fail? Then what....it's not like any company can just come out and buy the assets in a fire sale and resume business....
4. Once travel is permitted and fear subsides, people will be eager to get out of the home and take the trips they couldn't now. Business travel will resume as soon as humanly possible, but I believe the discount airlines will do OK too because they'll get the business travel + those itching to get away....

I think the prices today are a by-product of fear, and once we're out of this, then it will recover nicely. It's a long play to be sure, but hey, buy low / sell high right?

P.S. It's not like I put my entire life savings into it....just made some speculative buys that plays on risk / reward......but I'm curious as to others thoughts on this

[Discuss Thrower]

Originally Posted by mililo4cpa

P.S. It's not like I put my entire life savings into it....just made some speculative buys that plays on risk / reward......but I'm curious as to others thoughts on this

It is your money but buying airline stock is accepting an outsized amount of risk without a corresponding increase in reward.

It took years for airlines to rebound from 9/11. Then people were afraid of being collateral damage in a highly improbable terrorist attack.