Boiler Room: The Official Stock Market Discussion

[Ohene]

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.

I forgot to mention another thing.

Right now JMBA's Mkt cap is about $250M.

It IPO'ed in 2005 (towards end of summer...not a coincidence) for about 7 bucks a share for a market cap of $585M and went up to a max of $12.25 for a market cap of over a billion 9 months later before it began dropping and than the dropping accelerated during the financial crisis. It's never been close to those levels since.

You would be wise to look at just what it was that cause both the rises and falls in the price.

What was management doing and how was the market for smoothies/fast food/ drinks during that time that made investors think the IPO price was valid/ had growth potential. Why did it fail to reach this potential?

Lastly and most importantly, do you see any commentary from management/analysts suggesting that the company learned from the past and is taking the necessary steps to reverse that misfortune?

Because 5 years seems a long time to finally get it together.

 

[theworldismine13]

Empire State Building Investors Approve I.P.O. Plan
http://www.nytimes.com/reuters/2013/05/29/us/29reuters-usproperty-empirestatebulidng.html?hp

 

[Domingo Halliburton]

what do you guys think about BAC? I bought it around 11.50, should i get out? I hear people say it could go to 20 but I don't know. I thinking at least 14.

 

[Ohene]

what do you guys think about BAC? I bought it around 11.50, should i get out? I hear people say it could go to 20 but I don't know. I thinking at least 14.

I PERSONALLY would not sell any American bank if I was in unless it was to buy a better bank. Personally, I'm looking at Morgan Stanley and JP Morgan for the long term. I would set a risk tolerance level for maybe $9 a share in your case because the upside is worth it.

-Financial crisis has been averted, I cant really really see another crisis coming so soon. For investment banks better markets means a lot more equity and debt offerings to handle. Corporations become optimistic about issuing securities because they feel that they'll get more $ for their shares while prices are inflated. The larger and more prevalent the offerings the more fees to earn for I-Bank divisions.


-American markets are flourishing. Not sure how much of BAC's profit comes from prop trading or asset management but I imagine a decent amount. This should help earnings going forward especially as banks continue downsizing.

- M&A still hasnt fully picked up. Much like the first point, confidence will increase as the market improves. This is a double edged sword however. Most executives become wary during bullish periods and are more reluctant to pay premiums because share prices become so expensive. However as the economy transitions from recovery to an actual BOOM (how many years is Obama left in office?) a frenzy is likely. BAC is actually number 1 in the league tables right now. Usually GS JPM and MS are top 3.

- As far as lending and mortgages though I cant get into much of that which is probably the most important. Lot more economic factors are at play there. Unemployment rates, interest rates etc etc.

Then after that you have to think about global exposure, counterparty risk etc etc etc. Overall banks are hard as hell to analyze. The balance sheet is enough of a headache. I havent even scratched the surface but I hope I gave you a little something to consider.

 

[Strapped]

cnbc is giving alot of love to tesla motors ,i should of dove in early

 

[Ohene]

and just like that KKD crushes estimates.

 

[Domingo Halliburton]

and just like that KKD crushes estimates.

Futures are ugly.
Looks like markets are going to open down today (America). Time to buy? What do you think? I think I'm buying.

 

[Ohene]

Futures are ugly.
Looks like markets are going to open down today (America). Time to buy? What do you think? I think I'm buying.

what strategy you got in mind?

Buying some Calls for S&P Futures or the SPY ETF 10 minutes after the open might turn into a quick buck come Monday.

My money is still tied up in my friends Waterhouse account. Very disappointed I havent received it yet. Could only put $800 in KKD, and I am losing out on other opportunities smh.

Gonna be very curious to see FB on Monday, today is a wash to me. Call buyers are gonna make sure this finishes in the money above 24 and 24.50

 

[Domingo Halliburton]

what strategy you got in mind?

Buying some Calls for S&P Futures or the SPY ETF 10 minutes after the open might turn into a quick buck come Monday.

My money is still tied up in my friends Waterhouse account. Very disappointed I havent received it yet. Could only put $800 in KKD, and I am losing out on other opportunities smh.

Gonna be very curious to see FB on Monday, today is a wash to me. Call buyers are gonna make sure this finishes in the money above 24 and 24.50

I saw that fb put got hit. I'm still bullish American equities. What do you make of Japan?

I do like speculating on the spy though. I own some june 14 vix calls that are in the money. If the market is down today I'm selling. I think I'm going to buy fcx or buy more BAC.

By the way did you say you're Canadian?

Edit: and I know fundamentally fcx is bad with commodities getting crunched. But I've been in and out of this stock for years.

 

[Domingo Halliburton]

Guess the futures aren't as bad as when I posted an hour ago.

 

[Ohene]

I saw that fb put got hit. I'm still bullish American equities. What do you make of Japan?

I do like speculating on the spy though. I own some june 14 vix calls that are in the money. If the market is down today I'm selling. I think I'm going to buy fcx or buy more BAC.

By the way did you say you're Canadian?

Edit: and I know fundamentally fcx is bad with commodities getting crunched. But I've been in and out of this stock for years.

All my investments are north american right now. I don't have to scope for other regions lol. Yea the fb put got hit. I expected it would eventually. I was considering selling it on Wednesday and buying the 2013 one but got a tad bit greedy.

Not sure about fcx...first time hearing of it but I'll take a look.

GDP numbers in at 8:30

And Yea I'm from Toronto

 

[Ohene]

Krispy Kreme up 20%

 

[Ohene]

Gentlemen, I'm currently drafting a research report for TSLA. If you guys want a copy for the hell of it PM me your email. I aint on no bullshyt and won't share it with others believe that.

Also how many of ya'll use twitter? I deactivated mine because even though I was dropping so many gems, there was nobody in my circle to share them with. But if you guys would be an audience i might consider reactivating.

 

[Ohene]

I saw that fb put got hit. I'm still bullish American equities. What do you make of Japan?

I do like speculating on the spy though. I own some june 14 vix calls that are in the money. If the market is down today I'm selling. I think I'm going to buy fcx or buy more BAC.

By the way did you say you're Canadian?

Edit: and I know fundamentally fcx is bad with commodities getting crunched. But I've been in and out of this stock for years.

didn't realize that FXE was Freeport-McMoran. Honestly I think that Gold stocks are getting unfairly hit right now. I personally have my eye on Barrick Gold as a long time hold, and I have for about a month now.

Opinions seem very divided though. On one end people say gold was inflated in the last five years because of the financial crisis so people used gold as a safe bet and with the economy recovering gold is going back down because people want to invest in securities > commodities. Fair enough but I think thats a little overstated; in fact FCX was beat down during the crisis. Goldcorp is another on my watchlist.

The quick facts for FCX taking a quick glance is:

- Revenue and gross profit are VERY stable
- Cash flow is great due to a debt issue
- 4% dividend yield?! and no worries considering its cash balance
- Even after issuing $6B of debt last quarter, the firm remains very liquid in the near and long term
- Equity is increasing on a quarterly basis (thus assets are increasing relative to liabiities)

Lastly, I like battle tested companies and judging by how the company bounced back from the 2008 crisis I dont see why they cant hold on here.

I'd find out why operating income is decreasing between quarters and determine why it will or wont continue then make a decision.

 

[Domingo Halliburton]

didn't realize that FXE was Freeport-McMoran. Honestly I think that Gold stocks are getting unfairly hit right now. I personally have my eye on Barrick Gold as a long time hold, and I have for about a month now.

Opinions seem very divided though. On one end people say gold was inflated in the last five years because of the financial crisis so people used gold as a safe bet and with the economy recovering gold is going back down because people want to invest in securities > commodities. Fair enough but I think thats a little overstated; in fact FCX was beat down during the crisis. Goldcorp is another on my watchlist.

The quick facts for FCX taking a quick glance is:

- Revenue and gross profit are VERY stable
- Cash flow is great due to a debt issue
- 4% dividend yield?! and no worries considering its cash balance
- Even after issuing $6B of debt last quarter, the firm remains very liquid in the near and long term
- Equity is increasing on a quarterly basis (thus assets are increasing relative to liabiities)

Lastly, I like battle tested companies and judging by how the company bounced back from the 2008 crisis I dont see why they cant hold on here.

I'd find out why operating income is decreasing between quarters and determine why it will or wont continue then make a decision.

yeah the stock has taken a hit because commodities have been getting killed lately. wall street hated their acquisitions into oil and gas (the debt you mentioned). I've followed the stock for years and I wish I would of bought it when it hit 27. they have some very smart people running the company (like any big company).

I don't know whats going on with commodities. I feel the market has overreacted and they will come back up.

anyways you mentioned you're canadian, I actually work for RBC (in america though).