Boiler Room: The Official Stock Market Discussion

[Ohene]

If facebook falls below 20 ill buy in for 5K myself.

Why? What has Zuckerberg and the company shown you to think they deserve a $60 Billion dollar valuation and better yet that they can go from being a
$48B company to lets say back to 60% and yield you 25% in returns? Personally, the day they bring in a battle tested CEO, with experience in the sector and some real aptitude is the day I stop being a bear. I mean understand why, but still find it absurd that Facebook is considered more valuable than companies such as Ford, CBS and Mondelez-companies that are damn near monuments. Different industries, different standards of metrics, but even still. To think the IPO valued it at $100B.


And as far as my options go, I dont plan to exercise them cause they arent covered...but to sell them for a profit. If the price hits 23 or 22 before August I should have no problem banking a 40-50% profit of my 2014 ones.

 

[Hiphoplives4eva]

Why? What has Zuckerberg and the company shown you to think they deserve a $60 Billion dollar valuation and better yet that they can go from being a
$48B company to lets say back to 60% and yield you 25% in returns? Personally, the day they bring in a battle tested CEO, with experience in the sector and some real aptitude is the day I stop being a bear. I mean understand why, but still find it absurd that Facebook is considered more valuable than companies such as Ford, CBS and Mondelez-companies that are damn near monuments. Different industries, different standards of metrics, but even still. To think the IPO valued it at $100B.


And as far as my options go, I dont plan to exercise them cause they arent covered...but to sell them for a profit. If the price hits 23 or 22 before August I should have no problem banking a 40-50% profit of my 2014 ones.

Dude, you are far more advanced than me my friend. While a do agree that facebook's valuation is illogical, the same thing could be said for a litany of companies on the market right now. From what I've discovered, buying the right stock takes a combination of a reasonable P/E ration, Wall street hype, prospects for the future, and a little bit of luck. Many of the companies I have made a lot of money in (like DDD) are way over-valued if you look strickly at the books, but are still good investments right now. I would also put AMZN in this same category.

I think while facebook is overvalued right now, there are simply WAY too many people on this thing for it to go away anytime soon. Once Zuckerberg learns how to monetize the page views of the billion people that begin to patronize his site, the Wall Street cats will cause this stock to shoot to the moon. But again, there are better investments out there, but I do think that a $20 dollar facebook bet is a reasonable one.

 

[Ohene]

I hear you. That's the same reason I kind of understand its valuation i mean...not mater how you look at it having a billion users is nothing to sneeze at. Well have to see how Zuck progresses

Looks like it'll open higher today

 

[Ohene]

Live Nation beasting and I'm no longer in on it cause my money wont be transferred til wednesday

My stupid fakkit ass should have started using Questrade in the first place


14.50 a share

--

Facebook down more than 1% (with volume in 30 mins already at 33% of the average!) while the SP500 is up about 1.2% Last traded price for my options at 1.19 now. Easy $. I also don't know why my

--

KKD up 4.5%

The Markets are beasting. It doesnt make any sense how unlucky my timing is. Why couldnt LYV and the markets wait 3 days to go beast mode. KKD I understand because its earnings release is tomorrow but LYV? SMH.

 

[Ohene]

Excuse my ignorance brehs, but can someone hit me with some bullet points on getting started? The most I've done is mutual funds, but haven't been contributing lately. I'm looking to pick my investing back up now. I'll do some research of course, but basic tips would be appreciated.

1) What site does everyone use? I glanced at ETrade, but I'm sure there are a lot of options.

2) What should I expect in terms of fees and getting started?

3) Could you give me a breakdown of your current daily/weekly/monthly philosophy or courses of action when making your investments?

Thanks brehs. Glad we have threads like this.

I'll try to help you out with #3 one day.

 

[True Blue Moon]

I'll try to help you out with #3 one day.

Cool. Everyone's circumstances are different, but it'd be cool to see how often dudes are investing when they have good info on a stock. And I'm thinking about going with Sharebuilder.

 

[Hiphoplives4eva]

Just bought a bunch of Pandora today at 16.56 a share. I've been watching this stock since it fell to 7.40/share last December. I hope this stock will continue its upward trend, especially since its finally a profitable business with over 200 million users.

 

[Carlos Huerta]

AVNR anybody?

 

[Domingo Halliburton]

AVNR anybody?

I don't know much about them. they make abreva right? are they coming out with any new drugs?

 

[Carlos Huerta]

I don't know much about them. they make abreva right? are they coming out with any new drugs?

They've just received the green light on a their drug Nuedexta -- extremely "niche" and unique. Aids in balancing out emotions for those with Alzheimer's agitation. "Expansion becoming more visible".

http://seekingalpha.com/article/141...esults-earnings-call-transcript?source=etrade

 

[Spin]

Dude, you are far more advanced than me my friend. While a do agree that facebook's valuation is illogical, the same thing could be said for a litany of companies on the market right now. From what I've discovered, buying the right stock takes a combination of a reasonable P/E ration, Wall street hype, prospects for the future, and a little bit of luck. Many of the companies I have made a lot of money in (like DDD) are way over-valued if you look strickly at the books, but are still good investments right now. I would also put AMZN in this same category.

I think while facebook is overvalued right now, there are simply WAY too many people on this thing for it to go away anytime soon. Once Zuckerberg learns how to monetize the page views of the billion people that begin to patronize his site, the Wall Street cats will cause this stock to shoot to the moon. But again, there are better investments out there, but I do think that a $20 dollar facebook bet is a reasonable one.

Zuckerberg said he's going to wait until Instagram stops growing before he attempts to monetize it. I think it's a good idea because he doesn't want to turn people off before he can get everyone on the ship.

I had forgot about Pandora. Thanks for the reminder.

I have been wanting to get into TRIP, but that thing just going straight up

 

[True Blue Moon]

What do ya'll think about Jamba Juice? It seems like one of those food franchises that could be on the come up.

 

[Ohene]

What do ya'll think about Jamba Juice? It seems like one of those food franchises that could be on the come up.

They dont have Jamba in Canada but don't be fooled by the price ascension this year. A lot of that is due to speculation that SBUX will acquire them and it actually seems like a possible move due to:

- Net Loss creating an income tax benefit for an acquirer once consolidated(Better cash flow)
- Low enterprise value (30 million in cash, basically no debt)

Beyond that though, I dont see much of a reason that makes Jamba a good investment. Their balance sheet is compressing and cash flow is meh. The price to book ratio is about 12 so thats a lot of risk. And with small cap companies its best to have a somewhat lower float to increase demand (due to a low supply) for shares.

I'm guessing most of their revenue/earnings falls between the April - September months though. I'd wait til the end of this next quarter and if I saw something encouraging I'd make a move. Do a lot of people fukk with Jamba where youre at?

 

[Ohene]

What do you guys think about this strategies:

Activision is priced at 15.75 as I type this. I see potential with Call of Duty Ghosts and Diablo being early releases for the new gen of consoles.

Buying 01/2014 Call options for Activision (Strike of 17) - Priced at about 1.06 right now and selling them right after the Q4 release in November 2014.

-- Speculating that people will get tired of Call of Duty much like Assassins Creed to due its yearly releases I will then be...

Buying 01/2015 Put options next March after the earnings release for Activision (Strike of 15)

-Additional points:
*Warcraft subscriptions have decreased
*The company has actually claimed that it expects popularity to decrease, but I'm not sure Battlefield is ready to trump COD yet when the PS4 launches.

Gonna continue doing more research on current/prospective products to develop a legit outlook but right now this is just an idea

 

[True Blue Moon]

They dont have Jamba in Canada but don't be fooled by the price ascension this year. A lot of that is due to speculation that SBUX will acquire them and it actually seems like a possible move due to:

- Net Loss creating an income tax benefit for an acquirer once consolidated(Better cash flow)
- Low enterprise value (30 million in cash, basically no debt)

Beyond that though, I dont see much of a reason that makes Jamba a good investment. Their balance sheet is compressing and cash flow is meh. The price to book ratio is about 12 so thats a lot of risk. And with small cap companies its best to have a somewhat lower float to increase demand (due to a low supply) for shares.

I'm guessing most of their revenue/earnings falls between the April - September months though. I'd wait til the end of this next quarter and if I saw something encouraging I'd make a move. Do a lot of people fukk with Jamba where youre at?

Thanks for the analysis, that makes perfect sense. I've heard Starbucks rumbles but didn't know if there was any merit to it.

Yeah, I'm in Cali and a whole lot of people fukk with it. That's what made me think about it and look them up. I don't want to live in a bubble, though. I'm not sure how they're received outside of LA, which is super health conscious and trendy anyway.