Stock Advice Thread
- Thread starter dgtatu01
- Start date
Every retirement account needs fixed income and nothing is safer than US treasuries.
Interest rates increased in I-Series bonds from 1.68% to 3.54% for May-October 2021. Such increase may foreshadow further measures in the future by the Fed.
Yeah some folks believe they will taper their treasury purchases but they've given us no indication that will happen but something has to give eventually. Chairman Powell is a dove apparently unfazed by inflation. They have an argument given the deflationary cycle over the decades. Guessing as a novice that automation and productivity being two of the biggest reasons. Less money in circulation could be interesting given the massive rise in crypto currencies. But how deflationary is it? Gold prices don't seem to indicate any problems. Unless Bitcoin replaces it. Then what?
For the more knowledgeable investors than I...which is about everyone.
How much attention do you pay regarding the P/E of a stock and why.
How much attention do you pay regarding the P/E of a stock and why.
That's the question the market is asking right now.
Growth stocks don't usually have profits so what we've seen with the hint of possible inflation, they have tanked. They are geared to take as much market share as quickly as they can before shifting to making a profit. They were definitely overvalued. Don't know if they're done falling yet.
Value stocks are more mature and should be showing profits. They are later in their growth curve and have switched from growing.
So to answer your question, P/E is good to compare similar companies but doesn't mean much when comparing growth companies.
As a value investor, personally speaking, P/E ratio represents one of my primary metrics when evaluating an equity. In fact, P/E serves as a baseline followed by Price to Book, Debt to Equity, PEG and free cash flow. I also consider consensus target prices, which usually falls within a year, and market cap.
Austin and Blue did a great job explaining PE.
For me, it's one measure that I look at but it's not the only one. For example, Scotts-Miracle Grow (SMG) is currently at 26.45 FPE.....which is a little high but it's not crazy. Some people would be turned off by a number this high, but I look at the fact that it has a 1.02% dividend yield that has grown every yr over the last 11 yrs......the price has gone up >350% over the last 2 yrs......and the future of agriculture is poised to catapult SMG to unseen heights.
Then looking at something like Palantir (PLTR) who just went public 7 months ago......FPE is 115.61. Or Tesla at 141.73. Both are very overpriced according to this metric. Because I believe strongly enough in the future of both of these companies......and I'm willing to hold them forever.......I can over look the high metric. (but I also understand the risk)
For me, it's one measure that I look at but it's not the only one. For example, Scotts-Miracle Grow (SMG) is currently at 26.45 FPE.....which is a little high but it's not crazy. Some people would be turned off by a number this high, but I look at the fact that it has a 1.02% dividend yield that has grown every yr over the last 11 yrs......the price has gone up >350% over the last 2 yrs......and the future of agriculture is poised to catapult SMG to unseen heights.
Then looking at something like Palantir (PLTR) who just went public 7 months ago......FPE is 115.61. Or Tesla at 141.73. Both are very overpriced according to this metric. Because I believe strongly enough in the future of both of these companies......and I'm willing to hold them forever.......I can over look the high metric. (but I also understand the risk)
A PE ratio is everything right now because it means a company HAS earnings.
A year ago it meant nothing at all to investors.
A year ago it meant nothing at all to investors.
Call me a buyer this week. Dipped my toe into SPLK and IHI if elective surgeries are coming back. Would buy more lower also.
I'm cautious, but I'm bullish on the future of the market. Sooo, I've been buying when the opportunity presents itself. Cathie Wood recently came out and said that this pull back in the market hasn't changed future prospects....just provides more buying opportunity.
Agree. I'd be buying but have no money right now.
I'll be adding when I can but we haven't seen the lowest of lows yet, IMO. Gotta have more pain and fear, force everybody out, and then the big buyers will come in.
Glad I'm not retiring yet. Plenty of time to recover and as I get closer will transition to more value/stable equities. I'm probably 80/20 growth/value. The pain is real.
I read that but I can't own all her disruption ETF's. Sticking with ARKF and will buy more lower. Also got other orders much lower wondering if this market gets there. I doubt it if earnings matter but this is the most hated market I've seen in a year.
In a way, I like it. Been trying to buy lower.
Ruh roh. First DOGE and now BTC.
finance.yahoo.com
Bitcoin, Dogecoin sink after Elon Musk walks back Tesla's support for crypto transactions
Elon Musk said on Wednesday that Tesla would stop accepting Bitcoin in car purchases.
Report in Barron's today states T dividend faces 50% cut in WarnerMedia deal. Hate seeing it, as I considered and still considering buying back in, but such payouts are not sustainable.
I was really close to buying T last week, glad I waited. Put the money into JEPI instead.
Cathie Wood’s advice scares the hell out of me, but that’s my opinion!
I saw that today too, it popped this morning, then closed down. I'm not sure what to think about it. On the business side, it's a good thing as they are trying to shed debt. As a dividend investor, I'll probably sell it and move it to something else. Overall I'm up 5% on the stock, so at least I can say I came out ahead. I'll have to read up some more, but I don't think I'm interested in weathering this transition.
Three years ago T had bitten off more than they could chew in that Time Warner deal for $85 billion. Today the new CEO is selling this DISCA deal like the old CEO sold that one. The moral of the story being it's better for Time Warner and likely Discovery than it is for AT&T.
Bought VICI yesterday, another REIT for my IRA. They own the real estate for gambling venues and resorts like Caesars, Century, Hard Rock, Jack and Penn National Gaming. It has a 4.23% yield.
Getting some TSP, autonomous trucking company that has been tested.
I have been trading UWMC and PSFE from their bottoming out in the last 10 days.
Also, if you are into lottery plays, buy EVFM yesterday at it's bottom and hope for the bounce back. Yesterday, they announced an additional share sale at $1.
Also, if you are into lottery plays, buy EVFM yesterday at it's bottom and hope for the bounce back. Yesterday, they announced an additional share sale at $1.
WSJ yes. Others are mostly unpaid or at least most of the stories that I read.
It's hot and IPO's have insider lockups but as I learned in 2021, it's best to let it cool down some.
I've become very luke warm on IPO's as well. I jumped on Palantir at launch and was ecstatic to see it blow up. However, I've tried to purchase a few other IPOs and they haven't gone nearly as well.
Any of you guys own shares of the weekly dividend payers like WKLY or TGIF? Seems like they are fairly pricey for their yield, and that it would take either a fairly large initial capital investment or a lot of time to see any real benefit. Would like to know your guy's opinion on them. Thanks.
I increased to 300 sh of RBLX early week, up 10.3% today, hot, hot. Probably ahead of itself, but parents seem to love the company for its educational games for young children, so I don’t think it’s just a one year wonder.
I didn't know that existed.
Get Weekly Dividends With SoFi's New WKLY ETF
The fresh-faced SoFi Weekly Dividend ETF (WKLY) ups the ante on dividend frequency by paying its investors every seven days.
www.google.com
COIN breaking out on a down day for BTC is interesting.
HYFM aquiring House & Garden is as well. Spending money and still rocketing higher.
HYFM aquiring House & Garden is as well. Spending money and still rocketing higher.
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And still playing tricks on us, Austin! Why doesn’t it just cooperate and quickly make multi millionaires out of us?
I don't typically deal with cyclicals a whole lot - though I have a few in my portfolio - but if you are looking for something relatively safe and reliable, X (US Steel) has been trading in a slight upward channel for quite sometime now ... it is currently at the bottom of that channel trend line .... with potential future infrastructure plays in the making I think we can project, I think this might be a good safe long investment for most of this calendar year.
