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Old 06-17-2019, 01:50 PM
  #5361  
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Originally Posted by Boataholic View Post
​​​​​​Is the amount of different companies you own based on amount available to invest? In your opinion , what is the optimum number of stocks to hold, say in a 500k account?
It is more about how much I want to allocate to any given company. I might allocated x to company A and 5x to company B.

Over time, when the market does something foolish, I might allocate X to both again or add company C. I do tend to buy the shares in same companies. UNP in 2000, 2008, 2012(?) & 2018

Really depends on the prospects and price at any given point in time.
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Old 06-17-2019, 02:08 PM
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I personally put a minimum of $10k in a stock going up to as much as $40K. With $25K I would pick two or three good quality stocks. With $500K I wouldn’t go over 10 stocks. That’s just my opinion though.
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Old 06-17-2019, 02:12 PM
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Originally Posted by chevyrulz View Post
interesting, thanks everyone

Aubv, so you'd spread the $25k across say 5-8 companies? what's the reasoning behind this "less is more" school of thought?
I'm not him, but I have an opinion on the subject. Regardless of amount invested, I only like owning as many stocks as I can keep an eye on. I own fifteen stocks or so, and my 401k (much smaller) is separate, made up entirely of broad based mutual funds.
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Old 06-18-2019, 05:01 AM
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Got assigned 100 shares of LEG.
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Old 06-18-2019, 05:08 AM
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Originally Posted by Double tyme View Post
I'm not him, but I have an opinion on the subject. Regardless of amount invested, I only like owning as many stocks as I can keep an eye on. I own fifteen stocks or so, and my 401k (much smaller) is separate, made up entirely of broad based mutual funds.
So if you owned BA would you have sold it because of the current 737 issues?

My point is two fold, first, when you see something it is probably to late and second why I tend to buy businesses that I don’t “have” to look for years.

Knowing full well some may stumble along the way. If I am correct the business is fundamentally sound and my watching it has no bearing on how the stock performs...

This is why I simply pass on many stocks....including many on the list above.
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Old 06-18-2019, 05:16 AM
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I got a call from etrade that one of the stocks I own is eligible to earn interest if I allow the shares to be loaned. What are you guys' thoughts on this?
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Old 06-18-2019, 05:21 AM
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Originally Posted by Boogan1 View Post
I got a call from etrade that one of the stocks I own is eligible to earn interest if I allow the shares to be loaned. What are you guys' thoughts on this?
Would depend on the stock and what restrictions might be imposed, if you wanted to sell it, among other things.
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Old 06-18-2019, 06:00 AM
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Originally Posted by joe.giuliano View Post
Bac and Jpm
BMO upgraded Bank of America to 'outperform' from 'market perform'BMO said that the bank's valuation and consensus estimates are too low.

We're upgrading BAC to OP from Mkt; our $37 target implies 34% total return. One third of that upside is expected from upward consensus revisions (higher fees and buybacks, lower provisions and tax rates). The other two-thirds comes from multiple rerating; at 8.5x rolling two-year-forward consensus P/E, BAC trades at a 15% discount to the average multiple observed historically during benign economic conditions. Even in the event of a Fed rate cut, positive EPS revisions (from better fees, tax rates, provisions, and buy-backs) should more than offset any related NIM dilution.




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Old 06-18-2019, 12:54 PM
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Bought some KKR.
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Old 06-18-2019, 01:34 PM
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Sold BUD AND TPVG
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Old 06-18-2019, 02:08 PM
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i appreciate all the insights offered from everyone, my concern is lack of diversification, not diversifiction for diversification's sake...if i am not spread across enough industries, say i am holding 30% of my funds across JPM & BAC, what does that do if some gnarly banking regulation comes up out of thin air? or healthcare regulation for ANTM, UNH, & C? i would rather have a smaller piece of multiple pies in relatively unrelated (or better yet completely unrelated) industries...i did however trim some of the fat based on the advice given & closed positions with KHC, BMY, GILD, GT, NUE, CVS, F, & GM
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Old 06-18-2019, 02:17 PM
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Originally Posted by chevyrulz View Post
i appreciate all the insights offered from everyone, my concern is lack of diversification, not diversifiction for diversification's sake...if i am not spread across enough industries, say i am holding 30% of my funds across JPM & BAC, what does that do if some gnarly banking regulation comes up out of thin air? or healthcare regulation for ANTM, UNH, & C? i would rather have a smaller piece of multiple pies in relatively unrelated (or better yet completely unrelated) industries...i did however trim some of the fat based on the advice given & closed positions with KHC, BMY, GILD, GT, NUE, CVS, F, & GM
“My concern is lack of diversification” is precisely diversification for diversification sake....

Why those companies?

Did you looked at EPS estimates and calculate the growth for the next 3 years, current P/Es, relative P/Es and compared them to the other companies you kept?

If the decision to own banks is valid, why wouldn’t you own JPM and Bac? If the price paid is reasonable or even cheap.

Or put another way, would you pass on JPM or BAC to buy a company that, in your estimation, has lower expected returns in a less desirable sector, simply for diversification?

Last edited by aubv; 06-18-2019 at 05:17 PM.
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Old 06-19-2019, 01:45 PM
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Originally Posted by aubv View Post
“My concern is lack of diversification” is precisely diversification for diversification sake....
Not necessarily, and while i'd agree "time in the market is more important than timing the market", investing in multiple sectors which are relatively independent of one another is not "diversification for diversification's sake" from my perspective...then again i'm small potatoes here with my $25k lol

i do look at current & forecasted EPS and PE, but also my own personal opinion of the company from various more subjective perspectives like historical quality, current/future competition, etc.

the companies i own were purchased primarily based on low PE, safe dividend, perceived quality, perceived threats, & high market volume because being nimble is important to me, with this not being a retirement account, i do place a weight on liquidity (high avg volume)

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Old 06-19-2019, 02:01 PM
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Gold is getting close to busting through strong resistance...should be some fireworks if we can get a strong weekly close above it.
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Old 06-20-2019, 12:08 PM
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Originally Posted by chevyrulz View Post
Not necessarily, and while i'd agree "time in the market is more important than timing the market", investing in multiple sectors which are relatively independent of one another is not "diversification for diversification's sake" from my perspective...then again i'm small potatoes here with my $25k lol

i do look at current & forecasted EPS and PE, but also my own personal opinion of the company from various more subjective perspectives like historical quality, current/future competition, etc.

the companies i own were purchased primarily based on low PE, safe dividend, perceived quality, perceived threats, & high market volume because being nimble is important to me, with this not being a retirement account, i do place a weight on liquidity (high avg volume)
This has nothing to do with how much one invests, it is the thought process.

Do you do any math when you look at those numbers?

For me every company stands on its own merits or it doesn’t...

I don’t even know what sectors the companies I own are in, nor do I know for the accounts I manage. I’m not sure I could even tell you what the 11(?)sectors are.

But I also never look at liquidity when it comes to making an investment decision.

It is Interesting that a couple of the companies you sold are probably the last companies I would sell, from that list.




Just my take...

Last edited by aubv; 06-20-2019 at 12:13 PM.
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Old 06-21-2019, 07:29 AM
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Interesting on a number of levels....

Former FDA chief Gottlieb on Juul: Don't know how it proves public health benefit


Former FDA Commissioner Scott Gottliebtold CNBC on Friday that he believes it will be difficult for popular e-cigarette maker Juul to get government approval for its products.

"Juul is in a hard spot to ever get their product approved," Gottlieb said in a "Squawk Box" interview. "They have so much historical youth use with their product. I don't know how Juul gets through an application process."

In a court filing, the Food and Drug Administration proposed a 10-month deadline for e-cigarette makers to submit applications for governmnt clearance to continue selling their products. Companies would be able to sell their products for a year while under review.

The FDA proposal comes after the U.S. District Court of Maryland ruled the agency had exceeded its authority by allowing e-cigarettes to remain on the market until 2022 before companies applied for regulatory approval.

The shortened deadline may prove to be tricky for Juul, said Gottlieb, a physician, medical policy expert, and public health advocate. He speculated that Juul had wanted to get a revamped "kid proof" product together for review. "But if applications are required to be due sooner, they won't have time to do that," he suggested.

Juul will have to submit its original product with "all of that historical use" by children, Gottlieb said. Juul is facing a number of investigations into its marketing practices, as critics say it has targeted teens through its fruity flavors and social media.

House Democrats last week requested documents from Juul related to its marketing strategies, social media practices, research on Juul's impact on health, and the company's deal with tobacco giant Altria.

In December, Altria took a 35% stake in Juulas the Marlboro maker looks to take what it calls "significant action" to prepare for more adult smokers transitioning from cigarettes to vaping. Juul said its deal with Altria is a way for it to reach more adult smokers, which it claims is its targeted audience not kids.

Juul, which dominates the e-cigarette market, has implemented changes to curb the mass appeal to teens and denies it marketed to minors.

A spokesperson for Juul did not immediately respond to a request for comment on Gottlieb's statements.

Last edited by aubv; 06-21-2019 at 07:35 AM.
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Old 06-21-2019, 07:42 AM
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I read somewhere this morning that the big banks stress tests will be released today or maybe next week and that analysts are saying to expect double digit increases in dividends.
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Old 06-21-2019, 08:03 AM
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Originally Posted by joe.giuliano View Post
I read somewhere this morning that the big banks stress tests will be released today or maybe next week and that analysts are saying to expect double digit increases in dividends.
BAC should announce or about the 27th. Last year it was a disappointing 25%. They diverted more to the buy back..
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Old 06-24-2019, 07:21 AM
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Originally Posted by aubv View Post
This has nothing to do with how much one invests, it is the thought process.

Do you do any math when you look at those numbers?

For me every company stands on its own merits or it doesn’t...

I don’t even know what sectors the companies I own are in, nor do I know for the accounts I manage. I’m not sure I could even tell you what the 11(?)sectors are.

But I also never look at liquidity when it comes to making an investment decision.

It is Interesting that a couple of the companies you sold are probably the last companies I would sell, from that list.




Just my take...
i appreciate the perspective for sure, which ones that i sold are one's you'd have probably held onto? & which ones that i didn't sell would you probably avoid owning? & why for both questions, always interesting to hear someone else's thoughts on this stuff, that's why i'm here, anyone else feel free to chime in if you want

in other news, i'm looking at averaging down in KR vs. closing the position which is currently -8%, they just hit a new 52 week low, no clue why, & their earnings call is today, so must've been something they said or perhaps just your typical earnings dip, they met EPS expectations, & by my quick review they appear financially stable

also looking at buying back my BMY postion, because it's -7% so far today lol

Last edited by chevyrulz; 06-24-2019 at 07:37 AM.
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Old 06-24-2019, 07:28 AM
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Originally Posted by aubv View Post
Interesting on a number of levels....

Former FDA chief Gottlieb on Juul: Don't know how it proves public health benefit


Former FDA Commissioner Scott Gottliebtold CNBC on Friday that he believes it will be difficult for popular e-cigarette maker Juul to get government approval for its products.

"Juul is in a hard spot to ever get their product approved," Gottlieb said in a "Squawk Box" interview. "They have so much historical youth use with their product. I don't know how Juul gets through an application process."

In a court filing, the Food and Drug Administration proposed a 10-month deadline for e-cigarette makers to submit applications for governmnt clearance to continue selling their products. Companies would be able to sell their products for a year while under review.

The FDA proposal comes after the U.S. District Court of Maryland ruled the agency had exceeded its authority by allowing e-cigarettes to remain on the market until 2022 before companies applied for regulatory approval.

The shortened deadline may prove to be tricky for Juul, said Gottlieb, a physician, medical policy expert, and public health advocate. He speculated that Juul had wanted to get a revamped "kid proof" product together for review. "But if applications are required to be due sooner, they won't have time to do that," he suggested.

Juul will have to submit its original product with "all of that historical use" by children, Gottlieb said. Juul is facing a number of investigations into its marketing practices, as critics say it has targeted teens through its fruity flavors and social media.

House Democrats last week requested documents from Juul related to its marketing strategies, social media practices, research on Juul's impact on health, and the company's deal with tobacco giant Altria.

In December, Altria took a 35% stake in Juulas the Marlboro maker looks to take what it calls "significant action" to prepare for more adult smokers transitioning from cigarettes to vaping. Juul said its deal with Altria is a way for it to reach more adult smokers, which it claims is its targeted audience not kids.

Juul, which dominates the e-cigarette market, has implemented changes to curb the mass appeal to teens and denies it marketed to minors.

A spokesperson for Juul did not immediately respond to a request for comment on Gottlieb's statements.
Thanks for posting this. Sold the MO July 19 $47.5 Put on Friday, picking up $100 in premium. I already own 1100 shares, another 100 would be my limit.
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