Investing General Discussion
- Thread starter Furious
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Guest, it's time once again for the massively important and exciting FoH Asshat Tournament!
Go here and give us your nominations!Who's been the biggest Asshat in the last year? Give us your worst ones!
Big Phoenix
Pronouns: zie/zhem/zer
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Hateyou
Not Great, Not Terrible
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Sadly no. Bought in like five six weeks ago at $45. Been trying to offload a few things to have more cash for buys on dips, so hopefully we see a dip next few days and I can get back in around low $40s
Sanrith Descartes
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Two different days now I have set my price to bail out of WMT at the high with a nice profit and twice it took a dive about 1% below my limit. Why does it vex me so?
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With my individual account I mostly bought back into airlines on the dip, but AAL is one I never considered. They have a bad reputation and more debt than assets. I'd stay far away from AAL as they have the greatest chance of bankruptcy out of all of them currently.
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Sanrith Descartes
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A little bit of barn door and horse, but for these speculative bets like airlines I can't emphasize strongly enough digging through their balance sheets before investing. There is a reason some airlines got hit harder than others. Cheaper isn't always better.
AAL
623 million cash on hand
29 billion in long term debt
Negative cash flows the last 3 years
DAL
3 billion cash on hand
14 billion long term debt
3.5 billion in positive cash flows
This is the type of basic analysis everyone needs to examine before putting money on the table.
Second item. On speculative bets, consider using call options instead of straight cash long positions. You could have bought long dated (Jan '21) calls with a strike of $20 for 1.50 or so a share ($150 a contract). So $1500 for options on 1,000 shares at $20 a share. Less cash risk and either a homerun if it pops into the money at $20+ or smaller profit if it moves up this summer into the mid teens and scoop the time value with an early sell.
AAL
623 million cash on hand
29 billion in long term debt
Negative cash flows the last 3 years
DAL
3 billion cash on hand
14 billion long term debt
3.5 billion in positive cash flows
This is the type of basic analysis everyone needs to examine before putting money on the table.
Second item. On speculative bets, consider using call options instead of straight cash long positions. You could have bought long dated (Jan '21) calls with a strike of $20 for 1.50 or so a share ($150 a contract). So $1500 for options on 1,000 shares at $20 a share. Less cash risk and either a homerun if it pops into the money at $20+ or smaller profit if it moves up this summer into the mid teens and scoop the time value with an early sell.
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Sanrith Descartes
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Sanrith Descartes
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One more thing to add. I really want to suggest sticking to maybe sectors of the market. Trying to follow 100's of companies is balls. Its why analysts focus on sectors.
Some industries are exceedingly complex in terms of investing (hello to you energy and banking sectors). Try to focus on industries you might know or might like. Then you can spend time and energy looking at a much smaller pool of companies to research. Some industries don't have a lot of players (aerospace/defense).
Just my 2 cents.
Some industries are exceedingly complex in terms of investing (hello to you energy and banking sectors). Try to focus on industries you might know or might like. Then you can spend time and energy looking at a much smaller pool of companies to research. Some industries don't have a lot of players (aerospace/defense).
Just my 2 cents.
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Agreed, this is why I did concentrate on the airlines for my personal account. I work in that industry and follow it as a interest and hobby for years now.
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Sanrith Descartes
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Sanrith Descartes
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Bernie just dropped out of the race. Those of you who own healthcare insurance stocks please feel free to collect your winnings. UNH jumped 4%.
Indyocracy
Stock Pals Participant
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Well in my adventures in learning options I just bought a call on Disney for $115 until January 2021, if it ever hits 122 I am making money!
Sanrith Descartes
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It doesn't have to hit the strike to make money. The time value component can make you money as it rises.
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TJT
Mr. Poopybutthole
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Yeah I bought exposure to Southwest and JETS. I didn't touch AAL. I'd consider DAL and United I guess.
Sanrith Descartes
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Why? With all the blue chip, close to cant miss stocks in the bargain basement why go at something like CSPR? Why buy a stock that has negative earnings when the market was sailing when you can buy stocks with impeccable balance sheets, sales in the tens of billions and EBITDA in the billions?
Why gamble on what could be a failed IPO? There is so many better options to be had right now. It really is a fish in the barrel market.
LachiusTZ
Rogue Deathwalker Box
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My retirement fund does plenty of that. I'm doubling contributions there, and dodged the first 20% down.
This is my play account where I like to roll the dice.
Keeps it interesting. Not going to throw all my cash at it, but maybe 100 shares as a pot odds gamble.
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