Discussion ***Official*** 2020 Stock Market Thread

[brianmanahan]

Hertz was about $20 in Feb of this year, then down to about $0.50 then up to $5 then down to $3. Talk about a wild ride. Oh, it was about $105 in 2014.

i want to get off mr. hertz's wild ride

 

[FelixDeCat]

Bought some ALT. Just buy and hold. Speculative guess and insider buying.

 

[FelixDeCat]

Dagnabbit! I knew this ralley would break down.

 

[dullard]

As a novice investor starting out whats a good resource for information? Doing some research my preference in individual stocks would be with a dividend history. I see most of you trade individual stocks here, I assume most of you have "safer" investments like EFT's and mutual funds?

Start here: https://www.amazon.com/Four-Pillars-Investing-Building-Portfolio-ebook/dp/B0041842TW

I personally suggest people stay away from individual stocks when they start out. Far too easy to lose money and far too easy to get caught up in a gambling mentality / gambling problem. Keep your investments as dull and boring (and thus as profitable) as possible. Then when you have years of experience consider individual stocks.

Also research what it means to get dividends. It isn't always what you think. Suppose I buy 1 share of a dividend paying stock today for $10/share. Suppose tomorrow it pays out $1/share dividend. Ok, great! I already earned $1 doing almost nothing! But then the stock is now only worth $9/share because the company is worth less than it was the day before when it had all that cash. So, today I had $10 and tomorrow I have one $9 share of stock and $1 cash. You'd think it is all a wash: $10 before the dividend and a total of $10 after. But, then the taxman comes around. I now owe income taxes on that $1 of profit. Suppose I pay 30% tax rates between federal and state government. That dividend actually lost me $0.30. I actually now only have $9.70.

Dividend stocks have a definite purpose and are worth buying. But, be sure you understand the downsides too.

 

[Svnla]

Well, it was less than 6% down for the S+P 500. Stay tuned for tomorrow.

It is up a little over 1% for the S+P 500 today. Same bat channel next week.

 

[Svnla]

As a novice investor starting out whats a good resource for information? Doing some research my preference in individual stocks would be with a dividend history. I see most of you trade individual stocks here, I assume most of you have "safer" investments like EFT's and mutual funds?

You do know that company could and would lower or even eliminate dividend, right? Even ones with long history of timely and steady paying of dividend. See GE for example and ...

Dividend Cuts and Suspensions: Who's Paring Back?

The COVID-caused flood of dividend cuts and suspensions has slowed to a trickle, but some notable names have still slashed payouts of late.

www.kiplinger.com

If you have time, try to read The Intelligent Investor by Benjamin Graham. There are so many other good books to read.

I use Google Finance, Yahoo Finance, Fool...and other sites when I started out. Read and research as much as possible and read some more. Most important of all, go S----l------o-----w. Use your judgement and do not rely on any "hot tip" or Jim Cramer or any "expert".

 

[dasherHampton]

So Felix, looks like we'll enter the home stretch of our wild SRNE adventure next week.

If it gets called away I'm buying you that scotch. Do you have an Amazon account? If so - you have to promise that you'll use the code I send you. I'm not wasting it lol.

If it doesn't - the ride continues.

 

[FelixDeCat]

So Felix, looks like we'll enter the home stretch of our wild SRNE adventure next week.

If it gets called away I'm buying you that scotch. Do you have an Amazon account? If so - you have to promise that you'll use the code I send you. I'm not wasting it lol.

If it doesn't - the ride continues.

I've had my first beer since Lent last weekend at the casino. Otherwise Ive been dry this year since the pandemic started. But yeah, that code will get used.

I think Im going to exit most Sorrento after the calls expire and just keep a token amount like 100/1000 shares.

 

[Svnla]

Look at the bankrupt companies and their stocks -

What's The Market's 'Craziest' Bubble? Check Out These 18 Stocks

You thought the S&P 500's 40% jump from the lows is crazy? That's nothing next to the most speculative stock rally going: Shares of bankrupt companies.

www.investors.com

 

[dasherHampton]

My only two goals for the week:

1) I want those BAC puts to expire Friday. I still think they're safe but its definitely closer than it was not too long ago.

2) I want SRNE to stay at a reasonable level by Friday. I'd actually be happy if they dropped a little under $4 but if they dropped to under $3 or so it would kind of suck because the $4 calls would probably not be very high. I really don't want to sell $3 calls.

But I don't see a huge drop happening.

 

[s0me0nesmind1]

Chesapeake energy filed for bankruptcy.

24 hour fitness filing for bankruptcy.


How many more to go eh? I estimated 50 from the start.

 

[ponyo]

Chesapeake energy filed for bankruptcy.

24 hour fitness filing for bankruptcy.


How many more to go eh? I estimated 50 from the start.

Super bullish. Chesapeake and 24 hour fitness shares will now hit all time high. Hertz showed the way. Now companies will rush to file bankruptcy so they can pump their stock.

 

[Ken g6]

Suppoedly, the market is jumping today because of a new coronavirus treatment.

For patients on ventilators, it cut the risk of death from 40% to 28%. For patients needing oxygen, it cut the risk of death from 25% to 20%.

Chief investigator Prof Peter Horby said: "This is the only drug so far that has been shown to reduce mortality - and it reduces it significantly. It's a major breakthrough."

A major breakthrough it may be, but I don't consider the improvement enough to reopen the economy.

 

[Red Squirrel]

https://finance.yahoo.com/news/shares-bombardier-blackberry-drop-removal-162513919.html

Bombardier got removed from blue chip index. Glad I sold mine at 2 bucks years back. They're at 48c now.

It was my first stock to buy actually, I bought like 100 mostly to test out the process of buying and selling.

 

[dullard]

Suppoedly, the market is jumping today because of a new coronavirus treatment.



A major breakthrough it may be, but I don't consider the improvement enough to reopen the economy.

That and a record 17.7% increase in US retail sales:

U.S. economy starts long recovery as retail sales post record jump

U.S. retail sales increased by the most on record in May after two straight months of sharp declines as businesses reopened, offering more evidence that the recession triggered by the COVID-19 pandemic was over or drawing to an end.

www.reuters.com

It isn't a full recovery. But it shows that this can be just a temporary downturn and not a long-term downturn. The last down turn was caused by debt. Debt recessions take a long time to recover from. Bankruptcies take 7 years to get off the books. Debt that isn't in bankruptcy takes 10 to 30 years to pay off. You can't recover quickly from a debt-caused recession.

 

[s0me0nesmind1]

Suppoedly, the market is jumping today because of a new coronavirus treatment.



A major breakthrough it may be, but I don't consider the improvement enough to reopen the economy.

LOL 25 to 20% is practically rounding error equivalent.

Hell - you also can't just take measurements like that at face-value. As little as a month ago, they were saying OMG VENTILATORS SO IMPORTANT! WE need more fast!! Then as of late it's been more along the lines of "Actually, ventilators are leading more people to death".

I doubt they account for things like that in their "measurements"

 

[Roger Wilco]

I sold everything at the opening bell. I will likely buy back in soon.

 

[Svnla]

And Hertz wants to issue even more stocks?

Hertz says it expects stockholders to lose all their money in filing for selling more stock

Hertz Global Holdings warned potential stock buyers that it's almost certain that the equity will become worthless.

www.cnbc.com

Does not compute.

 

[FelixDeCat]

Just issue 20 billion shares, payoff the bonds and keep 700,000 rentable cars.

Viola! No more bankruptcy.

Then do the biggest reverse split in history and it will be like nothing happened (except dilution of biblical proportions).

The worthless Greek shipping company Dry Ships did this for over a decade. One shady deal and ATM (at the market) offering after another and nobody was ever held to account as far as I know. Every secondary was followed by a reverse split. The owner used shell companies to support the bid and buy and sell assets with.

....and for those who are not familiar with the long sordid story of Dry Ships, you will have to Google that....

But one notable event happened years ago with DRYS: after diluting the stock from a multibillion dollar market cap to about 5 million.....the stock started rallying for no reason. No news. No nothing.

Day after day DRYS would go up 50-100%. The stock went from $1.50 to $100 in less than a week. $1 grand became $100,000!

The SEC was eventually forced to halt trading until the company explained what was going on. The company could not explain. They continually halted trading and eventually ground the stock back to near zero.

Finally one day the founder put the company out of its misery and bought all remaining shares.

The end.

 

[zinfamous]

hahaha DRYS...oh man

 

[FelixDeCat]

Surprise, surprise, surprise!

SEC halts HTZ offering.

 

[Svnla]

This is why you don't get nice thing. If you are a newbie and clueless, D-O-N-T do anything stupid and risky (only use the money that you can afford to lose). Tragic.

20-Year-Old Robinhood Customer Dies By Suicide After Seeing A $730,000 Negative Balance

Amid the wave of newcomers to what has become a casino stock market, a novice options trader takes his own life.

www.forbes.com

 

[Artorias]

This is why you don't get nice thing. If you are a newbie and clueless, D-O-N-T do anything stupid and risky (only use the money that you can afford to lose). Tragic.

20-Year-Old Robinhood Customer Dies By Suicide After Seeing A $730,000 Negative Balance

Amid the wave of newcomers to what has become a casino stock market, a novice options trader takes his own life.

www.forbes.com

Sadly it seemed like it like it was only a temporary negative balance.

Kearns may not have realized that his negative cash balance displaying on his Robinhood home screen was only temporary and would be corrected once the underlying stock was credited to his account. Indeed it’s not uncommon for cash and buying power to display negative after the first half of options are processed but before the second options are exercised—even if the portfolio remains positive.

“Tragically, I don’t even think he made that big of a mistake. This is an interface issue, they have slick interfaces. Confetti popping everywhere,” says Brewster referring to the shower of colorful confetti Robinhood routinely deploys after customers make trades. “They try to gamify trading and couch it as investment.”

Says Robinhood: “We are committed to continuously improving our platform and are reviewing our options offering to determine if any changes may be appropriate.”

 

[dasherHampton]

I've seen that article all over today and it still makes no sense. I don't know how that number would even be possible on that kid's account.

Does Robinhood automatically qualify every new customer for non-cash secured puts no matter what? That would be fucking insane.

 

[Artorias]

Lets say if he did owe 700K+ would he not be able to file for bankruptcy? Since he is an adult at 20 his parents are not on the hook for anything, sure it wouldn't be very good for the next few years, but at such a young age he could recover from something like that. The courts would be question how he was qualified to make these trades and be lenient in my view.