Investment BS Thread - Stocks/Futures/Mutual Funds/Bonds/Commodities/Options/ETFs/401ks/Etc

Salt is the only way to cure that horrible combo.

 

I’ve been debating the same thing.

 

I am not interested in this as a long term investment, so I’m debating on a rule to sell it. Do I wait for 1.5x, 2x, 3x gain? I’d be willing to wait as long as it takes if I can set some kind of rule for myself.

 

we threw some at RCL. Figure when it gets up to the 75-80 range again, take it and run. May throw down on CCL too for shits and giggles.

 

I like that mindset, I think it comes down to how long are you willing to wait for the gains. I think at the prices now, 3x will surely happen but it’s the amount of time needed to get there. As a previous post said , yes covid is bad but if it’s seen as not as bad as the hype is being put on it then the rebound maybe a short term.

 

I am not a trader, so I see how tough that must be. When CCL got into the $20’s, I thought about getting in. Then again when it hit the teens. Now again when it’s below $10. I may just watch, and my rule will be to jump in if it hits $5. Couldn’t possibly go wrong there.

 

Some thoughts from a guy I trust and follow regarding Ferd:

 

this guy must not own a Tacoma...yota over ford and Tesla any day....you buy ford for the dividend not the truck

 

I'm not going to buy a lot of just one thing. Maybe 100 bucks tops of each stock. So 100 of F, 100 with of a cruise line, 200 of BA, and a few others. If they grow they grow. If not them no biggie. I figure if I start now and gradually keep going, once day I may have something. I may also buy a few walmart at a later date, and some others who are a little pricier.

 

I am with you on this. I own a Toyota truck, Ford stock, and nothing related to Tesla. That won’t change for me, but I’ll consider an electric truck if Toyota makes one.

 

Walmart is at an all time high. I'm not saying don't buy it, or that it won't continue to go up, but it is not on sale like everything else is.

 

That's why I said later date. I would like to eventually throw some of these into my "portfolio"

 

He owns a 3.5 Raptor of all things ha!

 

Zacks has good data when researching and it's all number based ...as they say numbers don't lie.

https://www.zacks.com/

 

I'm pretty sure you can still get wiped out buying airline and cruise line stocks if a company files chapter 11. I'm sure that option is likely going to come up behind closed doors. It's not like the bills stopped coming in because they're parked on the tarmac or tied up at the dock. Without deep digging the typical lay investor doesn't know if they have an covenants tied to such assets. Multi billions in assets not making any money isn't a good thing.

 

Generally, shareholders don't lose their shares during Ch11 - it's Ch7 where everything is liquidated and the company ceases to exist.

Share value during Ch11 can drop further, as they represent the risk of moving to Ch7.

While the past does not indicate the future, have a look back at Delta's 2005-2007 Chapter 11 bankruptcy reorganization.

Also check out https://www.investopedia.com/ask/answers/10/stock-holder-lose-equity-chapter-11.asp

 

https://www.sec.gov/reportspubs/investor-publications/investorpubsbankrupthtm.html

"Note: Investors should be cautious when buying common stock of companies in Chapter 11 bankruptcy. It is extremely risky and is likely to lead to financial loss. Although a company may emerge from bankruptcy as a viable entity, generally, the creditors and the bondholders become the new owners of the shares. In most instances, the company's plan of reorganization will cancel the existing equity shares. This happens in bankruptcy cases because secured and unsecured creditors are paid from the company's assets before common stockholders. And in situations where shareholders do participate in the plan, their shares are usually subject to substantial dilution"

 

That is certainly the conservative/pessimistic angle -- and IMHO improbable with something like DAL.

In any event, nobody should be putting any money into cruise or airline stocks they can't afford to lose.

 

lol. Ford has been working on hybrid and electric for years. They can flip a switch and be ready to run full electric they just know their market isn’t wanting that. I’d love a plug in hybrid but that’s as far as I’m willing to go at the current time. Having to stop for 45 minutes to charge during a trip would suck. Assuming a compatible charger is available where you stop. No thanks. But my commute is 5 miles so a 25 mile plug in hybrid range would be awesome.

but yeah ford has been working on that for years and they’re just not acting on it because their market is not wanting hybrid or electric.

yeah some things will weather this a okay. Maybe even post earnings. Walmart’s sales will remain high as long as they don’t close stores. They’ll be the only ones open pushing even higher sales. They’ll be fine.

if I wanted a daily driver raptor that’s probably the one I’d get.

Yeah we don’t have to worry about a lot of these going out of business. I posted earlier some of the rinky dink airlines and cruise lines are in jeopardy but the major carriers like DAL, AAL, etc are not going to have a problem. They’ll probably have a bad Q2 and a mediocre Q1 and probably have layoffs but they won’t file.

that should be the rule anywhere for any investment. Your e fund should be able to carry you for 3 to 6 months. Personally I’m working on a 1 year e fund and figuring out how to be smart about that.

 

I do love hearing/reading perspectives like this tho. It’s not a bad idea and seems plausible. I’m a firm Believer in cash flows and once Tesla starts rolling in the cash —-I’ll jump on the bandwagon.