Boiler Room: The Official Stock Market Discussion

[Thethirdpew]

Before you invest that amount please please do your research

I did

 

[Futuristic Eskimo]

Think i’ll buy stock option puts on luxury companies next week to get my feet wet

ive never done options before, i was looking for luxury items with pps under $5 with bad income statements and balance sheets

whose thinking of buying luxury shyt at a time like this


Any thoughts?

Wouldn't do that. Options are very expensive now. You pay for implied moves so you might get the direction right but if it's not as big of a move as priced into the option, then you can still lose money.

 

[winb83]

I'm really bad at balance sheets. All i readly take into consideration is their revenue vs debt.

Revenue isn't on the balance sheet. That's on the income statement.

To read a balance sheet look at the cash and cash equivalents then look at the current and long term liabilities.
At the moment revenue is moot because who knows what that's going to look like with the current situation. Think of a balance sheet as you think of your own personal net worth. Add up all your cash and assets then add up all your debt and subtract the latter from the former.

Your income (kinda like revenue if we consider gross income) doesn't control your net worth like that. Your net worth is what you've done with your income over time. It's the results of your actions. Same with a business. In the blink of an eye your income could vanish. If it does and you have a negative net worth what happens? Same with a business.

 

[winb83]

I'm really bad at balance sheets. All i readly take into consideration is their revenue vs debt. The rest is alien to me

Im going all in on the abbott testingg kit monday. Dropping 10K on it. I have 30k in checking and 50k in savings so ill be aight if it desnt go well. Do you discourage this move? I looked at their balance sheet and their revenue to debt ratio is low.

I'll break it down for you.

ABT has like $4 billion in cash and equivalents. Net receivables (money owed to them by other companies) is like $5 billion. They have $1.4 billion in current debt and $10.8 billion in total current liabilities. Factor in the further out liabilities and it's $36 billion.

Typical revenue is like $8.3 billion as of last quarter. Operating expenses are $3.4 billion.

If their revenue is say cut in half do you think they can survive a quarter or 2?

 

[Donald J Trump]

Wouldn't do that. Options are very expensive now. You pay for implied moves so you might get the direction right but if it's not as big of a move as priced into the option, then you can still lose money.

Short it is

 

[Thethirdpew]

I'll break it down for you.

ABT has like $4 billion in cash and equivalents. Net receivables (money owed to them by other companies) is like $5 billion. They have $1.4 billion in current debt and $10.8 billion in total current liabilities. Factor in the further out liabilities and it's $36 billion.

Typical revenue is like $8.3 billion as of last quarter. Operating expenses are $3.4 billion.

If their revenue is say cut in half do you think they can survive a quarter or 2?

Quick question. If the volume of a stock is 364 M and the ASK is 48,000 K but the bid is only 2,200K does this mean that the price will go down once the "ask" have sold all their shares? This would create a pullback on the chart right?

 

[Donald J Trump]

Quick question. If the volume of a stock is 364 M and the ASK is 48,000 K but the bid is only 2,200K does this mean that the price will go down once the "ask" have sold all their shares? This would create a pullback on the chart right?

that spread

 

[analog]

Quick question. If the volume of a stock is 364 M and the ASK is 48,000 K but the bid is only 2,200K does this mean that the price will go down once the "ask" have sold all their shares? This would create a pullback on the chart right?

Only if they're willing to sell shares at the bid price.

Also, a stock with large volumes would typically have a much tighter spread.
If this were a real scenario

 

[winb83]

Quick question. If the volume of a stock is 364 M and the ASK is 48,000 K but the bid is only 2,200K does this mean that the price will go down once the "ask" have sold all their shares? This would create a pullback on the chart right?

I think the volume is just the number of shares sold. the ask and bid are what the seller wants and what the buyers offer. I look at the main share price and set a limit buy. I don't usually buy at market price.

 

[Thethirdpew]

Only if they're willing to sell shares at the bid price.

Also, a stock with large volumes would typically have a much tighter spread.
If this were a real scenario

It is a real scenario. Not sure if I should go all in since it's clearly a pump and dump. However I'm planning on dropping 10k on $TOPS tomorrow. It's sitting at 26 cents a share right now and the company is trying to get to 1 dollar a share to remain on the NYSE. This company is in so much debt and has gone through so much reverse splits though . On the other hand I don't want to miss out on the pump and dump .

 

[Thethirdpew]

that spread

I don't understand

 

[ill]

It is a real scenario. Not sure if I should go all in since it's clearly a pump and dump. However I'm planning on dropping 10k on $TOPS tomorrow. It's sitting at 26 cents a share right now and the company i trying to get to 1 dollar a share to remain on the NYSE. This company is in so much debt and has gone through so much reverse splits though . On the other hand I don't want to miss out on the pump and dump .

If you know it’s a pump and dump you should prob stay away. Unless you have insider info you’ll most likely be left holding the bag

 

[Donald J Trump]

I don't understand

 

[HALLOWEEN]

I bought 2000 shares of CPE at .61 i really hope it pays off because they went down to .58

I got 780 shares at .64 lol

I might drop 1k on Monday if it goes down even further. What ya hoping for this to reach to?

At least 2 dollars.. If not, I'm hoping to just double it

 

[Majestic]

Quick question. If the volume of a stock is 364 M and the ASK is 48,000 K but the bid is only 2,200K does this mean that the price will go down once the "ask" have sold all their shares? This would create a pullback on the chart right?

Where can you the volume of stocks breh?