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Stock-Age: Stocks, Options and Dividends oh my!

Zyzyxxz

Member
I'm really tempted to buy Nokia, which is hovering around $5. From what I've read they still have a ton of cash stockpiled and they're in no real danger of going under, and they're starting to try to venture back out into the US market with the Lumia 900, which is really a beautiful, powerful phone.

Obviously WP7 isn't much of a contender right now, but even if the market share only increases slightly and the Lumia is the best selling phone featuring the OS...I can see growth potential.

Financially they are fine and they still sell a shit ton of phones, I've been watching the stock for a while but I've given up on waiting for them to make a move. They still have a lot of 3rd world growth due to their non-smartphones so that is key.
 

Ether_Snake

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Don't be fooled b/c it was over $300 a while back. Germany was the biggest proponent of solar energy, and they are cutting back on it + cutting back on subsidies. Chinese solar companies are doing stuff cheaper and hurting First Solar.

Also, they delayed opening of a new plant, suspended operations on others, and cut back on a slew of business essentials as reported today.

Margins turned to shit as evidenced by their last earnings report and are getting worse.

Basically, FS will likely be in the teens sometime this year, and eventual bankruptcy is becoming more likely. It reached $300 on the back of Obama subsidy support, which you can kiss goodbye.

One of the most riskiest investments out there; I just lost about $700 on short puts on it thinking it was close to the bottom.

My STP is down 84%:p Bought that years ago when I had no idea wtf I was doing.
 
I like restaurant stocks as of late. Just bought BJRI two days ago.

BWLD is also a favorite of mine.

Both should be able to grow and grab a bunch of market share in the next few years.

Edit - OH, and restaurant suppliers like Middleby (MIDD).
 
Oh, speaking of MIDD, they just released results today. They crushed expectations. Woo!

Expected earnings were $1.30, they reported $1.87.

Can't wait for Monday!

Edit - Might pick up more shares.
 
this week was out of control; huge drops and a come back (thankfully) Man i wish i felt comfortable enough to buy in when the market was down - that would have been epic.
 

TylerD

Member
I decided to hop on the Apple bandwagon. Bought at 525 after the customary post event dip. Let's see where she goes!

Should be a big week for Majesco (COOL), moved 6.5% to 2.81 on Friday and earnings will be announced after closing on Monday. The Zumba games have continued to do very well.
 

Zyzyxxz

Member
I decided to hop on the Apple bandwagon. Bought at 525 after the customary post event dip. Let's see where she goes!

Should be a big week for Majesco (COOL), moved 6.5% to 2.81 on Friday and earnings will be announced after closing on Monday. The Zumba games have continued to do very well.

ah crap didn't notice it went out of the 2.6 range.

Too bad I don't have any cash, I would have loved to have gotten on board.
 

Ether_Snake

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Have you attempted to sell covered calls to help recoup some of the losses? If you started selling calls when the stock started to go down you could perhaps have made everything back.

Nah I don't know how that stuff works, and it sounds risky, so I don't do it.
 

TylerD

Member
Stops and limit orders are pretty much the extent of how technical I go. Options seem like a great way to be able to take advantage of a market moving up or down but I am very hesitant to get involved.
 

Rubenov

Member
Nah I don't know how that stuff works, and it sounds risky, so I don't do it.

Most people automatically assume "options are risky" and just leave it at that. However, by dedicating some time to understanding how they work, you can actually achieve bigger profits with less money than outright committing large amounts of cash by buying stocks.

But, if buying options, you gotta know what you are doing or you can lose a lot of money. It's because options are a wasting asset; they depreciate each day just by having time pass by. That's why I SELL options about 95% of the time, and buy on the other 5% of the time when I am as certain as I can be about the direction of a stock. One of my first option trades I lost about 5k on AMZN--which I remember posting about it on this thread--by buying a whole bunch of $185 calls in December without having much clue about how the whole thing works. Now, I've made about three times as much as I lost since then by selling puts.

Anyway, you can sell one covered call for each 100 shares of a stock that you own. This is the safest option strategy (only requires Level 1 approval), and it automatically deposits cash into your account. The trick here is that if the stock is above the strike price you chose (say you sold a $13 call on ATVI and the stock is above $13 on the expiration date you chose) then you are obligated to sell 100 shares per call sold at the strike price (in this case $13).

Best way to do this is when you have already made profits on some stocks, want to sell but you are unsure... you can sell a call at the price you are willing to sell the stock for and earn the profits + cash paid to you for selling the option.

On STP, I think you are done brah. I briefly looked over the stock and there is no way IMO that you will get your money back. If I were you, I would take whatever amount of money you have left in there and put it to use somewhere else. Or just blow it on videogames or something. It is psychologically hard to take such a large loss, but in some cases it must be done. What happened to you with STP has happened to me with other stocks, and this is why I studied and slowly made the transition from stocks to options.

If any of you is interested in learning about options, here's a good starting point:

http://www.theoptionsguide.com/stock-option.aspx
 

Anno

Member
Repeatedly selling covered calls against slower-moving stocks, especially those that already pay a decent dividend, is a great way to juice income returns in an otherwise flat market. I think I netted like 10% on EXC last year through it's dividend and selling a few calls when the stock was otherwise pretty flat. That's pretty much as far as I want to go with options, honestly.
 

TylerD

Member
Majesco once again above $3.00, now I'm just hoping it doesn't have a sell off after their earnings announcements later today (smart money is on "yep, there'll be a sell-off").

VIX going down is a nice thing to see.

Oh yeah, there was a sell off of about 9% so far.
 

Shanks

Member
What site is the easiest to browse, buy, and sell stock? I'm looking for one that is clean and relatively easy to use. Cheap would be nice too.
 

Zyzyxxz

Member
Yeah boi!

AAPL has fully recovered and now just waiting for it to hit $600, at that point not sure if I will keep holding. I've read anywhere from 650 by years end to 850 next year.
 

TylerD

Member
Damn, COOL plummeted. Think it's a good dip buy?

It looks like there is still a lot of potential.

Some people long COOL said that for 8 straight quarters they have had big drops after earnings. If I didn't have money tied up in other positions right now I would have sold at market close yesterday and bought at the low today since all my shares were bought at 2.62

They beat revenue expectations but it seems like a late analyst revision on earnings caused them to miss. Development costs, canceling a game and additional promotion hurt the numbers. But they have almost 4 times as much cash as they had this time last year and are working to develop several Facebook games that have some nice potential. Zumba 3 will be coming later this year as well.

I checked after hours about 10 minutes after market close and it was at 3.21 and I was thinking HERE WE GO. Checked 5 minutes later and it was at 2.72 :/. I reset my stop back to 2.40 again like I did the first time I bought COOL. If it drops below that i'm done with it and moving on to another speculative position.
 

dpatel304

Member
Yeah boi!

AAPL has fully recovered and now just waiting for it to hit $600, at that point not sure if I will keep holding. I've read anywhere from 650 by years end to 850 next year.

So glad I got back in on AAPL. This is the third time I've bought shares. I always end up selling too soon. I still make a good profit, but the damn stock just keeps rising. Bought it again at $530, and think I might wait for it to hit $650.
 

TylerD

Member
So glad I got back in on AAPL. This is the third time I've bought shares. I always end up selling too soon. I still make a good profit, but the damn stock just keeps rising. Bought it again at $530, and think I might wait for it to hit $650.

I bought AAPL at $525 for the first time after the iPad presentation when it dropped. Yep, not regretting that one bit.
 

Shanks

Member
What do you guys think about Microsoft? They have really been cloning these past two months. Curious what some of the more seasoned people think...
 

Zyzyxxz

Member
Nice surprise to wake up to Apple's stock moving up 3% today.

What do you guys think about Microsoft? They have really been cloning these past two months. Curious what some of the more seasoned people think...

You buy Microsoft for the increasing dividend the price stays relatively stable overall. If you are going to buy and hold on the best time to buy is when it dips which isn't now.
 

Ovid

Member
Nice surprise to wake up to Apple's stock moving up 3% today.



You buy Microsoft for the increasing dividend the price stays relatively stable overall. If you are going to buy and hold on the best time to buy is when it dips which isn't now.
The past doesn't always dictate the future. Your assumption is based on the share price for the past 10 years.
 

Zyzyxxz

Member
The past doesn't always dictate the future. Your assumption is based on the share price for the past 10 years.

That is true about using historical data but a steady dividend with a history of increasing it helps to keep the price very stable. Microsoft's growth days are over IMO.

*edit* Wow stock hit 594 today but dipped back down. Are we going to see $600 and a massive selloff tomorrow?
 

Zyzyxxz

Member
Hey guys I need some opinions. Now I've been watching IPSU a sugar company for a few weeks looking for a dip to buy, after the recent selloff I saw that there is an OTC stock STVF which produces Stevia a all natural sweetener with no calories.

Considering its already cost competitive to rising sugar prices and the company saw over 400% revenue growth at the current price of 1.06, am I looking at a big potential money maker or a risk? So far I'm only seeing upside as they are going to start growing the plants for production in the US, Coca-Cola is using testing their product as a sweetener for Sprite in France.

I think I may dip my feet with a 1000 shares to test the waters.
 

Ether_Snake

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Wondering if I should sell ADSK. It's up 22% for me, and has reached my $40 target, but I see the company as no differently than before: monopoly, in the field of simulation (which can only keep growing over the years).
 

Anno

Member
Hilariously, there's an HBAN add on the page as I read this. I'll second the suggestion as well.
Spoiler: I work for them. I really do think the business is doing well, though.

Until interest rates pick back up I think it'll be tough for most banks to really grow. In the meantime I have FNFG and HCBK on my watch list.
 

Ovid

Member
Hilariously, there's an HBAN add on the page as I read this. I'll second the suggestion as well.
Spoiler: I work for them. I really do think the business is doing well, though.

Until interest rates pick back up I think it'll be tough for most banks to really grow. In the meantime I have FNFG and HCBK on my watch list.

This doesn't make sense.

Please elaborate.
 

Anno

Member
This doesn't make sense.

Please elaborate.

Average Net interest margin continues to decline across the industry. This is especially harmful to more traditional banks - see Hudson City Bancorp, which took a massive restructuring hit last year as it tried to shift around its balance sheet to account for current interest rates.

On top of low rates, banks also face, among other things:

-Further pressure on non-interest income from new regulations and increased customer scrutiny
-Increased capital requirements and regulator scrutiny
-Potential loss of income from items such as proprietary trading

All things told I just think it will be difficult for the banking industry to grow revenue over the short term. That doesn't mean I don't think that they will be good investments, particularly as dividend rates pick back up. Profit growth can probably continue to outpace revenue growth as loan loss reserves continue to be drawn down and average credit quality improves. Raw loan growth will continue to help as well, even if they are at depressed interest margins.
 

Ovid

Member
Average Net interest margin continues to decline across the industry. This is especially harmful to more traditional banks - see Hudson City Bancorp, which took a massive restructuring hit last year as it tried to shift around its balance sheet to account for current interest rates.

On top of low rates, banks also face, among other things:

-Further pressure on non-interest income from new regulations and increased customer scrutiny
-Increased capital requirements and regulator scrutiny
-Potential loss of income from items such as proprietary trading

All things told I just think it will be difficult for the banking industry to grow revenue over the short term. That doesn't mean I don't think that they will be good investments, particularly as dividend rates pick back up. Profit growth can probably continue to outpace revenue growth as loan loss reserves continue to be drawn down and average credit quality improves. Raw loan growth will continue to help as well, even if they are at depressed interest margins.
Got ya...I agree.

Anyways, BAC is on a tear. Just though I throw that in there.

Bought some more May 2012 calls two days ago. Feels good man.
 
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