Investing General Discussion

Furry

Furry

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Blazin said:
For many index funds based on the Russell have crazy amounts of GME, at this market cap it doesn't even belong until they rebalance. The run up though has caused all these index funds to increase their share counts. Dark side of index investing, you own EVERYTHING even shit you would never want to be involved with. Normally the garbage has such a low market cap nobody cares about it, when the garbage runs up a few thousand percent things can get a little messy. For example look at IWM yesterday during the GME decline. GME is a little nothing company and it shouldn't be able to move such a large index.

Now the hottest new ETFs are momentum driven, and soon if GME stays up they are going to be gobbling up even more of it.
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I try not to scratch my head too much over what's in an ETF. I just diversify into different etfs with different holdings so I don't get caught by anything weird.

I mean... this is what one of my "Russel" funds holds:

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TJT

TJT

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Sanrith Descartes said:
I have found the Big Short to be pretty accurate of why shit was able to be so fucked up back then. The answer is greed. Too Big To Fail is a pretty solid look also.
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Some of the stuff in that book was truly shocking. Mortgages taken out by strawberry pickers for $750k. CDO Investment firm managers being paid as a percentage of total holdings. Incentivizing the mass buying of debt obligations because it didn't matter what the performance or risk was. They were simply paid based on how much they held.

One of the biggest CDO firms had all their leadership from not even within the finance industry. Their CEO was like an insurance salesman for 20 years and just saw a gravy train to get on.
 
Arden

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OneofOne said:
I hit it at opening. I'm holding, not flipping. We'll see where we are in 6-12 months. Feel free to point back to this post and laugh.
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Well, I won't be laughing because I'm in it long too. Not for a ton of money but still.

Definitely feel like RBLX has a ton of potential, but unfortunately when looking at the fundamentals it seems like the stock is starting out overvalued.

So while I think it can go far, first it's going to have to live up to its own expectations- which means it might take a while before it actually pays off.
 
Enob

Enob

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Jysin said:
Keep in mind, SNDL is a Canadian company. Legalization in USA or other countries doesn't necessarily mean weed companies in Canada benefit. Sure you may see some price sympathy momentum, but as legalization takes place in the US, I would prioritize investing in US based companies. Shipping weed across country borders is another thing altogether.
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When Canada went fully legal, their processors have begun gearing up for international exports. Their sights are mostly in Europe and latin america and they have good ties. Constellation brands (Corona, Modelo, etc) owns around 40% of Canopy Growth for example. When new countries legalize, they'll already have the infrastructure to begin supplying immediately and grabbing market share. It will take some time for new markets to build up equivalent processing infrastructure in house.

This is also how the US market works more or less, just without the import/export across state lines. Each state is an insulated market just like each country is. When a new state market opens, the large multistate operators swoop in and just plant a templated production facility down. They already have the capital and the know how to do it quickly and efficiently and beat out the new guys.
 
Sanrith Descartes

Sanrith Descartes

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TJT said:
Some of the stuff in that book was truly shocking. Mortgages taken out by strawberry pickers for $750k. CDO Investment firm managers being paid as a percentage of total holdings. Incentivizing the mass buying of debt obligations because it didn't matter what the performance or risk was. They were simply paid based on how much they held.

One of the biggest CDO firms had all their leadership from not even within the finance industry. Their CEO was like an insurance salesman for 20 years and just saw a gravy train to get on.
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Yeah, I am from S Fla. The shit I actually saw myself in terms of people getting mortgages was numbing. Honest to God, McDonald's counter workers getting 500k mortgages. Unemployed people getting mortgages. I saw this.
 
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Sanrith Descartes

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Arden said:
Well, I won't be laughing because I'm in it long too. Not for a ton of money but still.

Definitely feel like RBLX has a ton of potential, but unfortunately when looking at the fundamentals it seems like the stock is starting out overvalued.

So while I think it can go far, first it's going to have to live up to its own expectations- which means it might take a while before it actually pays off.
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RBLX at $45 or $60 or whatever it came out at, vs PLTR at $10 when it came out.
 
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OneofOne

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Arden said:
Well, I won't be laughing because I'm in it long too. Not for a ton of money but still.

Definitely feel like RBLX has a ton of potential, but unfortunately when looking at the fundamentals it seems like the stock is starting out overvalued.

So while I think it can go far, first it's going to have to live up to its own expectations- which means it might take a while before it actually pays off.
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Roblox recently bought a tech company to integrate the tech into the game. It also has solid plans on updating and expanding the game/features - something it has a good track record of. The recent deal with Lil Nas X wasn't the last time we 'll see that - they know who their customers are, and are making the right connections. The China opening is going to help as well.

Conversely, their market saturation is fairly high, esp in English speaking countries, so the room for growth isn't as desirable as it could be.

Over all, it's a company that's in it for the long haul, and I think they are poised well to head - if not outright lead - into the next iteration of online gaming.

I like the stock.
 
Fogel

Fogel

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KMPH has earnings tonight. No debt, recent FDA approval, high short%. Holding since 9, also is a possible buyout target which would cause it to fly.
 
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Arden

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OneofOne said:
Roblox recently bought a tech company to integrate the tech into the game. It also has solid plans on updating and expanding the game/features - something it has a good track record of. The recent deal with Lil Nas X wasn't the last time we 'll see that - they know who their customers are, and are making the right connections. The China opening is going to help as well.

Conversely, their market saturation is fairly high, esp in English speaking countries, so the room for growth isn't as desirable as it could be.

Over all, it's a company that's in it for the long haul, and I think they are poised well to head - if not outright lead - into the next iteration of online gaming.

I like the stock.
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The market saturation is high, but the monetization of their client base is low. They may not have a lot of room to grow in terms of US market share, but they have TONS of room to grow in terms of increasing revenue from their existing customer base.

Also, they aren't on any of the consoles yet. I'm guessing that will eventually happen and when it does the stock will bump significantly.
 
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