OT: Lets talk about stocks (Part 2)

[LyricalLyricist]

If it lasts, sure, but as we both know oil prices are quite volatile.

They’re expected to rise. Highest they’ve been in 7 years. The clean energy movement abandoned oil too quickly and if there’s a rough winter oil prices can spike even further.

 

[LyricalLyricist]

Financials don't look good. EPS .80 cents, Yield 2.82%

That is generally the quarterly range for their EPS. You can see in their history.

dividend yield is now at 1.68$/share at a current share price of 28.22. 5.9% dividend yield.

The share price should go up on the good news though. They’ve paid off billions in debt and done billions in share buybacks.

All their projections are based on 70 WTI in 2022 but WTI is in the 80s now and may hit 90s over the winter.

Buying now is not quite as rewarding as it was before. I bought at 21$ and I’ve made dividends plus I’m expecting improve in share price. This isn’t a stock I’m keeping for 20 years but I might double my money from growth and dividends by end of next year. I’m pretty happy. I can pull out early too. I’ll gauge as it goes.

 

[Lafleurs Guy]

With all the earnings coming out now, a lot of my stocks are popping. I'm seriously thinking about selling them. I think there's a lot of volatility on the horizon.

 

[QuebecPride]

With all the earnings coming out now, a lot of my stocks are popping. I'm seriously thinking about selling them. I think there's a lot of volatility on the horizon.

I wouldn't go out of the market if I were you, but rebalacing your winners and investing in other ideas is not a bad idea.

Personally, the 'fun' part of my portfolio (bitcoin, Ethereum, Lion Electric, Small caps, SPACs, Video game ETF) has a bigger allocation than my target, but it's only 2-3% more. As along as it's not +/- 5% the target allocation, I don't rebalance.

What I do instead is I allocate my contributions to the underweighted allocations (VXC and QXM). Of course, it's an easy solution for me because I don't have 150K+ in my investment accounts and my contributions are big enough to move the allocations. In 5-10 years it might not be the case anymore.

 

[llamateizer]

Suncor cut dividends during pandemic. They just announced they’re doubling it back. I don’t think many here are in Suncor but this is great news.

The oil price surge might result in huge dividend increases over next few years.

That's good news, it's almost back to 6%.
I wanted to invest into ENB, but they didn't recovered their pre-market crash of march 2020

instead, I'm into Split share corps, covered call and REITs that gives more div (6 to 15%). the price is stable.

SHIB to the moon!!!!

lol, people are getting millions with 100$ investments. that's crazy, 200 trillions dilution happened overnight and the price isn't affected lol

 

[LyricalLyricist]

That's good news, it's almost back to 6%.
I wanted to invest into ENB, but they didn't recovered their pre-market crash of march 2020

instead, I'm into Split share corps, covered call and REITs that gives more div (6 to 15%). the price is stable.




lol, people are getting millions with 100$ investments. that's crazy, 200 trillions dilution happened overnight and the price isn't affected lol

Yeah the Suncor price isn’t quite as stable but it’s due growth. Up ~10% today and new price targets have it in the 40s. So I’m patiently waiting for it to grow and then I’ll cash out.

 

[Scintillating10]

Well, putting $1,000 in Upcake. See how it goes.

 

[BehindTheTimes]

Memes stocks, gme, koss, amc etc all up after hours likely triggered by bed bath and beyond share buy back. Funny how a bunch of supposedly unrelated stocks all rising together. The shorts have covered, they say lol.

 

[llamateizer]

Sooooo
I bought Santa coin, got profit, left a small bag.

Right now I'm at 20x (of the small bag) and getting .1% BUSD/hour (part of the tokenomics)

Not sure what to do. I feel I'd be killing the golden chicken (poule aux oeufs d'or) if I sell everything.

It can be rug pulled, major crash or still do another 10x


Looks "legit" project as they've been KYC'd and passed two audits.

 

[QuebecPride]

Sooooo
I bought Santa coin, got profit, left a small bag.

Right now I'm at 20x (of the small bag) and getting .1% BUSD/hour (part of the tokenomics)

Not sure what to do. I feel I'd be killing the golden chicken (poule aux oeufs d'or) if I sell everything.

It can be rug pulled, major crash or still do another 10x


Looks "legit" project as they've been KYC'd and passed two audits.

To minimize regret, I'd sell some and leave the rest invested. You decide what % is comfortable with you. You won't be 100% satisfied, but you won't be 100% unhappy either. If you sell some and it goes 10x, you'll still get some return as you still have some coins. If it goes to 0, you'll be happy you sold some of it at least.

You're basically playing with house money from what I gather. Time to cash in some of that return, and let the rest in the roller coast, for better or worst.

 

[Senovision]

I drank the koolaid and bought some Shiba Inu.

 

[Hacketts]

icoa

 

[Scintillating10]

Any you guys ever leverage stocks?

 

[QuebecPride]

Any you guys ever leverage stocks?

Don't do it.

 

[Scintillating10]

Don't do it.

Be good to know how to do?

 

[zzoo]

Any you guys ever leverage stocks?

Is selling puts considered as stock leverage ?

 

[QuebecPride]

Be good to know how to do?

Buy stocks on margin, shorting, etc. But companies are already levered, you don't need leverage yourself. You should not use debt on something volatile like stocks. If you do, do so lightly like Berkshire Hathaway. Say they invest 100$ in a company, they may borrow an extra 10$ to invest 110$ in said company. But 10/11 of the money is actual cash.

"My partner Charlie Munger (Trades, Portfolio) says there are only three ways a smart person can go broke: liquor, ladies, and leverage. Now the truth is - the first two he just added because they started with L - it's leverage."

"This table offers the strongest argument I can muster against ever using borrowed money to own stocks. There is simply no telling how far stocks can fall in a short period. Even if your borrowings are small and your positions aren't immediately threatened by the plunging market, your mind may well become rattled by scary headlines and breathless commentary. And an unsettled mind will not make good decisions."​

Timeless Advice from Warren Buffett on Using Leverage​

Why do you want to use leverage?

 

[Scintillating10]

Buy stocks on margin, shorting, etc. But companies are already levered, you don't need leverage yourself. You should not use debt on something volatile like stocks. If you do, do so lightly like Berkshire Hathaway. Say they invest 100$ in a company, they may borrow an extra 10$ to invest 110$ in said company. But 10/11 of the money is actual cash.

"My partner Charlie Munger (Trades, Portfolio) says there are only three ways a smart person can go broke: liquor, ladies, and leverage. Now the truth is - the first two he just added because they started with L - it's leverage."

"This table offers the strongest argument I can muster against ever using borrowed money to own stocks. There is simply no telling how far stocks can fall in a short period. Even if your borrowings are small and your positions aren't immediately threatened by the plunging market, your mind may well become rattled by scary headlines and breathless commentary. And an unsettled mind will not make good decisions."​

Timeless Advice from Warren Buffett on Using Leverage​

Why do you want to use leverage?

Interest rates low, been returning 40% average last 2 years

 

[QuebecPride]

Interest rates low, been returning 40% average last 2 years

Borrowing a bit on your house to invest in the market is not a bad idea, but investing on margin through your broker, yeah, don't do it.

On your house you can fix the rate, the margin will increase in cost as the rates rise.

 

[japhi]

Interest rates low, been returning 40% average last 2 years

We borrowed a chunk 12 months ago, was a no brainer, equities were cheap(ish) and I had access to cash at 1.74%. Total no brainer.

The math has changed a bit. Rates are expected to go up a fair amount over the next 24 months - 4-6 increases next year. And growth stocks are stupid expensive and highly sensitive to rate increases. So while I can't predict the future, borrowing to invest at some point will likely turn on guys that are highly leveraged. If you get margin called and HAVE to sell, it can be a disaster. This bubble will pop - they always do - and people will get caught holding bags. So invest accordingly.

 

[llamateizer]

We borrowed a chunk 12 months ago, was a no brainer, equities were cheap(ish) and I had access to cash at 1.74%. Total no brainer.

The math has changed a bit. Rates are expected to go up a fair amount over the next 24 months - 4-6 increases next year. And growth stocks are stupid expensive and highly sensitive to rate increases. So while I can't predict the future, borrowing to invest at some point will likely turn on guys that are highly leveraged. If you get margin called and HAVE to sell, it can be a disaster. This bubble will pop - they always do - and people will get caught holding bags. So invest accordingly.

I did borrow some money from HELOC. I know I could've took a loan for cheaper.
Best decision ever.
the bubble is about to explode for the last 13 years.
I wouldn't be concerned if you plan to leave it at least a few years.


nothing interesting came to me in the last few months.
slowly buying VFV and AAPL
while increasing my div stocks for the long term

 

[Lafleurs Guy]

I did borrow some money from HELOC. I know I could've took a loan for cheaper.
Best decision ever.
the bubble is about to explode for the last 13 years.
I wouldn't be concerned if you plan to leave it at least a few years.


nothing interesting came to me in the last few months.
slowly buying VFV and AAPL
while increasing my div stocks for the long term

I borrowed cash for my TFSA. Doubled it. Didn't sell at the right time and then sold at a 20 point gain. I don't think it's a bad idea if you can afford to lose the cash. The real trouble starts when you borrow what you can't pay back. That's a whole different kettle of fish.

I've sold all my tech stocks now except for EGLX which is finally coming back. Made great gains on Shopify and Microsoft. Decided to take the profits and see what happens in the markets over the next little while. People are spooked by inflation right now and there's a lot of downward pressure in tech. I'll go back in later on but I think stocks will go down before they go back up.

 

[llamateizer]

I borrowed cash for my TFSA. Doubled it. Didn't sell at the right time and then sold at a 20 point gain. I don't think it's a bad idea if you can afford to lose the cash. The real trouble starts when you borrow what you can't pay back. That's a whole different kettle of fish.

I've sold all my tech stocks now except for EGLX which is finally coming back. Made great gains on Shopify and Microsoft. Decided to take the profits and see what happens in the markets over the next little while. People are spooked by inflation right now and there's a lot of downward pressure in tech. I'll go back in later on but I think stocks will go down before they go back up.

yep, totally.
It's hard selling at the right time. taking small profit over time is a good approach.

I'm so glad that I stopped the acceleration of the refund of my house mortgages. (did a few double payment to reduce the capital and interest)
The net value gain increased 3x in the last 18 month (mar 2020- Nov 2021) than 18 before (nov 2018 - mar 2020)

slowly refunding my HELOC.

I'm becoming a more passive trader with 1-2 growth stocks for some fast $$$

 

[japhi]

I did borrow some money from HELOC. I know I could've took a loan for cheaper.
Best decision ever.
the bubble is about to explode for the last 13 years.
I wouldn't be concerned if you plan to leave it at least a few years.


nothing interesting came to me in the last few months.
slowly buying VFV and AAPL
while increasing my div stocks for the long term

Don’t disagree with those that can buy and hold.
I was referencing buying on margin, which can result in margin calls which require instant liquidity.

We also leveraged home equity, so no chance we get in trouble. Also a great decision for us.
But lots will get caught when this bubble pops, whenever that is.

 

[Lafleurs Guy]

yep, totally.
It's hard selling at the right time. taking small profit over time is a good approach.

I'm so glad that I stopped the acceleration of the refund of my house mortgages. (did a few double payment to reduce the capital and interest)
The net value gain increased 3x in the last 18 month (mar 2020- Nov 2021) than 18 before (nov 2018 - mar 2020)

slowly refunding my HELOC.

I'm becoming a more passive trader with 1-2 growth stocks for some fast $$$

I was holding out for the end of the year, hoping they'd stay up. But LSPD crashed with a bad report. I gave it until earnings and then it crashed again. I got out with a small gain.

Nuvei kinda followed along. Not as bad but... the market forces are too big to ignore right now. I think Nuvei's a great stock but with all the downward pressure I see more downside than up in the short term. Hopefully I didn't sell at the wrong time because that can happen too.

I'm going to wait and see and then look at re-entering later. Right now with all the fears on interest rates it just seems like a good time to take a breather on tech stocks. At least I realized some big gains on some of them.