Investing megathread extravaganza

[DaFace]

A place to talk about investing stuff.

[BigBeauford]

Originally Posted by lewdog

That's cool. A speculative stock doesn't mean their financial sheet matches the stock price. Sooner or later that ALWAYS catches up with companies.

Their profits have to explode to meet the current valuation of the stock price....otherwise in the end, it's just that, speculating.

They have over 6 billion in cash so they are fine for the time being. Man, lot of doubters here! Tesla is basically the Kleenex or Bandaid of Electric cars. They have a huge head start.

[lewdog]

Originally Posted by BigBeauford

They have over 6 billion in cash so they are fine for the time being. Man, lot of doubters here! Tesla is basically the Kleenex or Bandaid of Electric cars. They have a huge head start.

Can you tell me their PE ratio?

[Hammock Parties]

**** tesla

when am i getting my VTIQ cashout?

[BigBeauford]

Originally Posted by lewdog

Can you tell me their PE ratio?

Who needs a P/E ratio!? Roll them bones!

[ChiliConCarnage]

This is an interesting article about some of the recent Fed changes and how much better our banks are positioned than 2008. It seems CCAR and the stress tests have worked?

https://www.bloomberg.com/opinion/ar...much-money-now

Very loosely speaking, the regulatory response to the 2008 financial crisis was to increase bank capital requirements and push banks to raise as much capital as quickly as possible; the (bank) regulatory response to the 2020 financial crisis has been to reduce bank capital requirements. The latter is much better! I don’t mean that regulators were wrong in 2008; the problem they faced was a crisis of confidence in the banking system, which required them to shore up confidence by increasing capital and implementing stress tests.

But ideally what you want is for banks to have lots of capital in bad times, and then relax those requirements—let them lever up and buy stuff and take deposits and lend and trade Treasuries and generally support the financial system and the economy—when the crisis comes. If you get too lax in the good times, then the crisis becomes a banking crisis and that approach doesn’t work. But if you spend the good times making banks better capitalized and more stress-resistant and generally more credible, then you can spend down some of that credibility in the bad times.

[BigBeauford]

Damn this is insane.

Sales vs Year Ago Q1 (via @john_beans)
Tesla: +40%
Kia: +1%
Genesis: -6%
GM: -7%
Toyota: -8%
Fiat-Chrysler: -10%
Hyundai: -11%
Volvo: -12%
Volkswagen: -13%
Ford: -13%
Audi: -14%
BMW: -15%
Lexus: -16%
Suburu: -17%
Honda: -19%
Porsche: -20%
Infiniti: -25%
Nissan: -30%

BOOM! ��

— Alex (@ajtourville) April 3, 2020

[ChiliConCarnage]

Originally Posted by Rain Man

I've been watching for several years now, and they've always outperformed the S&P 500 and Dow. I figured they'd underperform in a bear market, but nope.

I've noticed this too and wondered. Take a day 3 years ago where the S&P was up 1% the NASDAQ would be up 1.7%. Vice versa for down. It's always been more volatile so I wondered why it was holding up better.

I knew it was tech heavy and excluded financials. Looking through that list, it looks like it's outperforming more by avoiding downside than gaining upside. It's out performance is based on stocks it doesn't include

It has no
Financials (Bank of America is down 40%)
Oil and Gas (complete massacre)

1 airline, 1 travel company, 1 hotel, and 1 closed retailer that's been mauled (Ulta 50% down)

Any grouping of stocks that avoided the major blast zones would be outperforming. It does have a lot of MSFT & AMZN and they've been lucky to benefit from the coronavirus situation. The big 5 or so tech stocks are all very safe and cash flush and you'd expect money to flock to safety.

[RunKC]

Originally Posted by Discuss Thrower

Here's why I'd be hesitant to long Disney at this present moment in one picture courtesy of the Fool:



Tesla is a meme company. Nothing about their valuation makese sense. Their merger with SolarCity a few years ago borders on criminal malfeasance.

If you've got enough money to buy a share and it's not going to hamper your overall goals then why not. Otherwise nope. I don't believe in a con man like Elon Musk.

People are always going to go to their parks. I think once a vaccine is created, people will slowly go back and if you long that thing, that’s what matters right?

Their new CEO was in charge of running the parks and all aspects of that side of the business too. Feel like he’s going to make that a priority.

Like I said before, this feels so much like 9/11 to me. People were scared of going to parks and history shows buying in at that point was a good deal.

[Discuss Thrower]

Berkshire unloaded hundreds of millions in airline holdings.

[Rain Man]

Originally Posted by RunKC

People are always going to go to their parks. I think once a vaccine is created, people will slowly go back and if you long that thing, that’s what matters right?

I like how you put this. If I've got a 20-year time horizon, do I think that Disney will be fully recovered in 20 years? Do I think any of these companies will be fully recovered? My hunch is yes.

[lewdog]

Thanks for the suggestions.

Made long term buy for 3M and Wells Fargo on Friday.

[synthesis2]

Originally Posted by Rain Man

I like how you put this. If I've got a 20-year time horizon, do I think that Disney will be fully recovered in 20 years? Do I think any of these companies will be fully recovered? My hunch is yes.

The company work for is very conservative and our President is even more so. He is very confident that by December-February we will have a vaccine ready to go . We will have tens of millions ready by the time it’s approved and a billion or more by the end of next year .

My take is the market bounces back had if this happens and I think by 2022 things are better than even and completely bounced back and then some . I think 2021 will have huge gains as the vaccine is announced and by the end of the year when most people have had their shot the economy will
Be stronger than ever.

[RunKC]

“This will be the worst week. A very painful week is coming.”

Dow up 1,100. Okay I’m confused. Did not think there would be any green this week

[lewdog]

Originally Posted by RunKC

“This will be the worst week. A very painful week is coming.”

Dow up 1,100. Okay I’m confused. Did not think there would be any green this week

Markets are not rational.

[Hammock Parties]

**** yeah!

Still waiting on my goddamn hand sanitizer and green truck money, Strongside. GIMME!!!