Have a question in mind that you think is so dumb you’re embarrassed to ask it? That’s what we’re here for today!
This bonus post was inspired by a reader who wanted to know “where to ask a dumb question” here on Stock Gumshoe… and while his question was not actually stupid, and I’m happy to see questions pop up in our comment threads anywhere on the site, I thought it would be a great idea to open the floor and be more welcoming for the shy, the embarrassed, or, yes, even the uninformed.
So this is a no-judgement zone… smart people do things we’d call “dumb” all the time: Warren Buffett didn’t invest in Google in 2004, Albert Einstein married his cousin, and I just had to go back and double check that I didn’t call him Alfred Einstein (which I’ve done before, in print). So if you have that question that you can’t ask your stockbroker or your brother-in-law or Twitter without feeling like a dummy, let ‘er rip by submitting it below. I’ll be nice… and we might all learn something.
And yes, the SEC is always watching, so I must remind you that I can’t give personal investment advice… but I’ll try to share whatever opinion or answers I can provide to any investment-related question you’ve got, though if we end up with a lot of them it might take me a little while to answer thoughtfully.
So please, let your questions fly using the friendly little comment box below… and thanks for being the best readers in cyberspace!
(I will moderate the discussion just to make sure we don’t get too much profanity or offensive stuff, or personal attacks, but I’ll use a light hand — you can be mean to me if you like, just don’t be mean to any other participants.)
What to do to protect against coming market dienturn
If you know when it’s coming, buy puts on the broad market index ETFs. If you don’t know when it’s coming and want to protect your capital and sacrifice returns if a dip does not turn into a downturn, just set stop loss orders on all of your positions at the amount you’re willing to lose.
Personally, I do have some hedges (that’s a cost, they have cost me about 1% this year and turn out not to have been needed), but the best hedge for me is knowing my stocks and holding extra cash so I can buy more of the best ones if we have a real crash. If we have a 10-20% decline, I probably won’t do much of anything unless some of my momentum stocks hit stop loss levels.
How do I get a picture above my name?
Upload one at gravatar.com using the same email address you use at stockgumshoe, and that picture will show here and follow you around to any other websites that use the same system.
Travis. I would love to k now your’s others Opinion on CVM. Looks very promising as they are waiting for phase 3 data roll out only and the market cap only 100 mil.
OK, I have a stupid question that I am umbarassed to ask.
I am trying to do some DD on PLNHF, but I don’t really know how to value companies based on their earnings. Below I worked out some math that made sense to me, and am not sure this accurately values a companies performance. Please proof me wrong.
I don’t come from a finance background and don’t have a better way to value companies, and am very open to teachings from fellow gumshoers.
Thank you for your time.
Planet 13 Profile:
https://finance.yahoo.com/news/planet-13-begin-trading-otcqb-103000421.html
Planet 13 (www.planet13holdings.com) is a vertically integrated cannabis company based in Nevada , with award-winning cultivation, production and dispensary operations in Las Vegas – the entertainment capital of the world. Planet 13’s mission is to build a recognizable global brand known for world class dispensary operations, and a creator of innovative cannabis products.
They are opening their (40,000 sq ft) cannabis entertainment complex superstore Nov 1st. 4 Minutes from the Vegas strip. 16,200 sq ft dispensary space. With plans to add brewery, coffee shop, food offerings and convention event space.
2nd Quarter Revenue: $4.4M
Y/Y Growth: 203%
Market Cap (9/21/2018): $120.49M
adjusted EBITDA: $0.8M
Current Dispensary average 750 customers/day, average spending of $70.
New Superstore is expected over 2000 visitors/day (conversative number per CEO interview), with similar average spending.
Valuation: My very amerteurish valuation.
If current dispensaries continue its current revenue conditions: 1 year (750)(70)(365) = $19,162,500
New Superstore revenue stream: 1 year (2000)(70)(365)= $51,100,000
From todays mkt cap of $120.49M/($51,100,000 + $19,162,500) =1.71x revenue.
If we take in the current 203% yoy growth = ($51,100,000 + $19,162,500)(2.03) = $142,632,875
$120.49M/$142,632,875 = 0.845x revenue.
Are there better methods to best value if a company is over priced? underpriced?
$PLNHF np
#SillyRabbit, please see my response on the 420 Investors thread.
https://www.stockgumshoe.com/2016/03/microblog-420-investors/comment-page-8/#comment-4988608
#Best2You Ben @H0U3
#Plant13, no position (np)
When I start a discussion and shall add a topic, I am a bit lost, is there a way not to scroll down through all the topics?
Fx I cannot find Altuscher on the list.
You can just start typing, and it will match if we have that topic.
Ty, knew it was stupid ;(
Anyone know about this imminent distributed ledger sdr currency?
I was looking into some of the ADRS, as they are getting more cheaper by the day. Foxconn’s current market cap is below its quarterly revenue. Does it mean its heavily undervalued?
Foxconn
https://ycharts.com/companies/HNHPF
Market Cap 31.88B
Quarterly Revenue: 36.25B for June 30, 2018
All figures has been converted to USD.
The market cap for Hon Hai/Foxconn has been very close to 1/4 of annual revenue for most of the past seven years — they do have a strong revenue base thanks to their strong and growing relationships with major consumer electronics brands who outsource assembly to Hon Hai… but though it’s a massive business with some growth, the top line growth has not been terribly exciting in recent years and the very tight profit margins have kept a bit of a lid on the stock most of the time. Revenue per share has gone up only 5% in five years, and the profit margin is still tight at about 3% and has not improved meaningfully in the past few years.
So it’s a huge and important business, but not one that has rewarded shareholders very much — and though they are trying to move up the value chain and acquire some brands (like Belkin recently) to sell their own products, it’s hard to see that making a huge impact while most of their revenue comes from major customers like Apple who put a lot of pressure on Foxconn to keep its profit margins low.
That’s just my opinion, though, Alex Green has been pushing the idea very aggressively in his Oxford Club ads as the “secret” stock that he says is a “single stock retirement plan” … maybe he sees something that I don’t.
@travis, Thanks for the clarification. It may be a little too early to bargain shop, but was looking into companies with a positive EBITDA, positive net income, over 25% more down from 52wk High, with good yoy growth. Foxconn was one that popped up along with many of the Chinese ADRs.
Thank you for your input on their low margins, to drill you further.. though they are growing revenue 30% yoy, still doesn’t make the company attractive?
Long list, but going through them one at a time…hopefully come out with some good picks.
Always wanted to start a position with TTD, TDOC, AMZN, and BRKB. But AMZN and BRKB still pricey…waiting…
I have a daily list to remind myself stocks I need to research, position adjustments, etc. But on that list everyday is…
*Look for DEALS!!!!
NO SCARE,NO GREED
10% Hedge/30% CASH/ 60% STOCKS
DONT” RUSH…DONT” BE GREEDY
ONLY BUY LOW!!!!!
Have a nice Friday, looks to be green today, and tomorrow we can all rest. Looking forward to your Friday file after this week. Like to see your thoughts on FIVE, TTD, TDOC, ROKU (its down quite a bit this week), and also your hedges (GDX, GDXJ, NUGT and JNUG)
Does anyone know the company the recent Penny Stock Millionaire newsletter is teasing as “This 40 cent stock is toppling a trillion dollar global industry”? The article is about dynamic power management technology (DPM), electric generators, motors, and a new gearing system. Thanks for all the good research on this site!
Does anyone know the company the recent Penny Stock Millionaire newsletter is teasing as “This 40 cent stock is toppling a trillion dollar global industry”? The article is about dynamic power management technology (DPM), electric generators, motors, and a new gearing system. Thanks for all the good research on this site!
Travis, I know you aren’t into crypto, but I do have a question regarding putting a small portion of my savings, in the form of a traditional IRA, into a rollover IRA Crypto. Is there an honest IRA for crypto?
Is your retirement secure enough that you can risk your actual core retirement savings on cryptocurrencies? If so, good on you.
And no, I don’t know of any reliable custodians, sorry — the world of nontraditional IRAs is so sketchy and so replete with high fees for folks who want to try to hold gold coins or real estate or cryptocurrencies in their IRAs that it’s a real buyer-beware situation. I’m sure there are some decent ones out there, but they aren’t cheap.
My advice, though you didn’t ask for it and I’m being a little preachy, is to max out your retirement savings in IRAs or whatever vehicles you have in traditional asset classes (bonds and equities, mostly, depending on your age), and then, after you’ve saved enough to not have to worry about your retirement plan, play with cryptocurrencies in your taxable accounts (I’d say the same thing about other wildly speculative stuff, not just cryptocurrencies). If you get the 1,000% returns that cryptocurrency traders hope for, paying your capital gains taxes will be the least of your worries… if you get a 90% loss, it won’t set back your retirement savings plan.
Speculate away, speculating is fun and sometimes it’s hugely lucrative… but don’t start to think that these are investments that belong as a core part of a retirement portfolio that you will actually need in the future, that’s a psychological slippery slope for most people…. and it leads to underfunding retirement plans, because speculating is more fun.
Thank you for your honest input. It is money that would not effect our retirement, but your response has given me pause. I appreciate it!
Not sure that this is the right place to ask but I could not find any thread more recent about James Altucher and his microcap top 1% advisory service (emails today) and the identity of the $ 400 million electronic police company with 33 patents etc-. Apricus seems to have been a non starter based on its current share price and so I am reluctant to invest $2000 for a year even if it includes a free Samsung S3 Smartwatch or even $550 for 3 months but the name of the e.p. company could be interesting.(thinkolator?)
I have only just seen the add a topic box but don’t see the topic title so hopefully the question is not stupid even if its placement is.
I haven’t seen that ad, but it sounds like it’s almost certainly ShotSpotter (SSTI), which has suffered the fate of most of the high-growth tech names over the past month or two but is still up big on the year. I wrote about it for an Ian Wyatt teaser back in June but haven’t looked at it recently.
Hi nagromed, his Microcap Advisory, has been discontinued and the recommendations were included to his other newsletter, called Top 1% Advisory. Also, for your info the Apricus stock was sold on February of last year with -50% loss on his recommendation. If you need anything else, feel free to ask, ok?
Everybody running their teasers as we enter the holiday season. sjuggerrud’s “Melt up” sounds tempting. price of admission is expensive. options: #1- start a “go fund me” event; #2-wait for someone share the info; #3-find like minded investors to share in cost. what do you think?
Option 4: think for yourself. He’s almost certainly touting biotech again (IBB) plus probably Tencent/Naspers and a portfolio of a few smaller growth stocks. The willingness to buy growth stocks that look overvalued into a “melt up” is what matters, not the specific growth stock you buy.
Assuming, of course, that there is another “blow off” top in the market after it “melts up” over the next year or so — that has happened before at the top of markets, but I don’t know that it’s all that predictable or that we’ll all be smart enough to sell near the top.
Tony Daltorio’s “The Next Digital Helix Windfall” estimates a 2,537% windfall. You must make your move by November 29. Any ideas?
Good morning Travis, may you and your family have a great holiday season.
I’m going to use the Ask a stupid question again. During my research this morning I came across a company in China that posted their earning. The company is Pinduoduo Inc. ($PPD NASDAQ). Total revenues were up $491 million an increase of 697% for the year. Active users were 231.7 million, an increase of 226% and active buyers in the 12 month period were 385.5 million an increase of 144%, what am I missing? The stock was trading at around $20 and only moved up 1 point since the earnings. From all I can see this stock is an deal at the current price of $21.00 or so. Any thoughts ?
Not PPD – the symbol is PDD
Ha … that’s what happens when you get old, thanks for the correction …. lol
How old? I’m 80.
Ha .. you’ve got me beat by 12 years 🙂
Brand new IPO in July. No track record. Risk unknown with Chinese company.
Bought a few hundred shares And some April 25 call option just in case … lol
Cancer treatment and info on this company stock symbol.
What is crispr company stock symbol? Thank you! Greatly appreciated
Hey Travis I’m a new member. Do you think Aurora is still worth getting into at $6.38 where it closed today? Granted they weren’t offered the big deals like for example Canopy but I’ve read that quite a few people think they will kill it this year. Also, with these marijuana stocks is there like a general rule of thumb as far as how low of a price we should be looking for? For example once a stock reaches $100, if that were to happen the ship has basically sailed correct?
Thanks
Scott
I never got comfortable with the valuations of any of the big Canadian pot stocks, I’d be inclined to wait until it’s possible to have some clarity about what pricing and margins might be like for the big producers, when demand stabilizes, these valuations don’t leave me much room for thinking rationally about the big players as agricultural or consumer product businesses.
I am in the process of taking over the management of my investments. I worked in a financial advisors office for several years, so I have some fundamental trading knowledge. Technology has evolved so much since that time I find myself inundated with information. I feel as if I am trying to drink from a fire hose.
This site is a real gem, it helps me sift out some of the more questionable self proclaimed gurus. I use Fidelity’s trading platform and their research / trading tools. These are adequate for my needs. I follow the news, have tried out a number of newsletters and will pare these down to three at the most. I find that by the time a stock hits a newsletter, the opportunity for a reasonably profitable trade has usually passed.
My question is what other resources do you use to find potential investments? Buy quality and hold was my previous strategy, but I feel it is somewhat outdated in today’s market. Any ideas on how to get started? I am overwhelmed.
Thanks for reading, Jane
James Altucher is promoting a new Amazon bitcoin, claiming they have filed for 3 different websites involving the new “Amazon bitcoin”. Does this seem legit? Any info on it?
No, Amazon claiming a few URLs as a defensive or “maybe someday” measure (probably) doesn’t mean they’re going to endorse or start using some cryptocurrency. Several newsletters have touted this over the past 18 months, but seems very silly to me.
Is there a list anywhere of most or all of the marijuana stocks that Stock Gumshoe has discussed to today? (Today: Feb 21 2019.) And thanks.
bfpot, a list of all the marijuana stocks sounds like a good idea. I don’t remember anyone else suggesting that, but you might like to read this article, and the over 400 comments, and jot down the ones you like.
https://www.stockgumshoe.com/reviews/technology-profits-confidential/whats-the-pre-election-secret-50-marijuana-stock-blueprint-pitched-by-technology-profits-confidential/
Catherine
41 Top Revenue Generating Cannabis Stocks Ranked as of February 15th
https://www.newcannabisventures.com/41-top-revenue-generating-cannabis-stocks-ranked-as-of-february-15th/ and several other lists in the 420 thread: https://www.stockgumshoe.com/2016/03/microblog-420-investors/ Best 2 you!