by Travis Johnson, Stock Gumshoe | July 10, 2020 11:08 am
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I’ve owned Sandstorm for quite awhile, recently trimmed a bit, but still my largest holding. I have a good size position in EMX as well. Any thoughts on EMX? I think it has been rather undervalued but has recently caught fire for some reason.
buying SAND at $4 was one of the best pandemic purchases I made, just wish I had bought more than a nibble! lol
Can you give more insight into:
“I consider the proceeds I get from lending out my shares to short sellers to be somewhat like dividends, and I reinvest them — the effective yield over the past year has been in the 10% neighborhood for me”
I got an email from Etrade about their “Fully Paid Lending Program.” I read the risks, I didn’t see anything too negative except for how dividends are taxed. I’ve been hesitant to sign up because I haven’t seen anyone that I trust say that they were lending out their shares until now.
Likewise, looking for more info on this. Didn’t have any luck looking it up on my TDAmeritrade account. Much appreciated Travis.
Interactive Brokers makes it available to most accounts who opt in, I think, it may be over a certain size.
There is no real risk to lending out shares in my mind, though it’s possible that there are technical or theoretical risks that I’m unaware of. In my case, Interactive Brokers and I split the income 50/50 — I’m willing to lend out any of my positions in that account to short sellers, but most of the time the income is not high, it’s just that WRTC is so heavily shorted that they typically charge 20-40% to borrowers these days, and half of that adds up pretty nicely (my TDOC shares are often borrowed as well, for example, but rarely for more than a 1-2% cost to borrow).
I haven’t lent out dividend paying stocks, but I understand there is a tax issue there — you wouldn’t get the preferred dividend tax rate, since you don’t actually hold the shares and you’re just getting the money from the borrower. That would make it not worthwhile for most people unless the cost to borrow was quite high, but I don’t typically have dividend paying stocks in that particular account so I don’t worry about it.
I want to buy some cloud stocks to my portfolio. Has anybody researched or have comment on IVES Wedbush global cloud tech ETF?
Thnx in advance!
I hope I’m not reading something into your potential sell positions, after reading your column from the other day, I snagged some TTD at 450. Glad to see the opportunity. Watching SHOP also.
I’m just being mindful of elevated risk in my portfolio at current valuations for all those companies — they’re great operations, including TTD, and should grow for many years, but the stock prices seem to me to be taking a lot of that growth for granted now.
Mr.Travis, Just wondering do you have any plan to launch youtube channel. Based on your musings here in stockgumshoe. i just thought of your occasional video talk would be more entertaining and informative. or may be an opportunity to extend extend your viewer base.
thats a good idea..!……though im not sure Travis has the time to edit etc..? What about a podcast?…same same probably….but yeh good thinking..
FYI G. Gilder is selling SHOP
Bubble will pop before it goes hirer. About 20% cash. Waiting for buying opportunities. Long term bullish. Especially after Trump is reelected. Next couple months will be bumpy to outright chaotic.
Facedrive has been on a tear this month also. Up about 80% just this month.
FD.V or FDVRF
If Travis or anyone could help me…I would be grateful! I have a significant position in VUZIX, and today the after market went on a bender! Closed at 3.55, then buyers came from everywhere. It went to 4.47 beginning immediately in the after hours trading. Anyone know anything about why? I’ve looked everywhere for info or potential news brewing, and can’t find a thing. Any insights would be welcome. It’s at 4.23 right now. Volume huge as well. 3 days in a row.
Michael (sometimes known as “Mavihoja”.
Presume it’s being driven by this Verizon news. https://www.prnewswire.com/news-releases/vuzix-selected-by-verizon-for-integration-with-its-5g-enabled-ems-solution-to-deliver-enhanced-medical-augmented-reality-for-first-responders-301090953.html
Someone tell me about NEXCF…Canadian company..really starting to move….and it’s early…
Hi Travis just a general portfolio question did you sell simulations plus (slp)? I know you originally bought a small amount in anticipation of building a larger position but i can’t seem to see it in the portfolio and i can’t remember you selling it or writing about if for a while.
Yes, I was stopped out soon after buying it. Selling turns out to have been a mistake.
I got nervous and sold Fastly #FSLY at $82.50 near the end of today’s trading. Now is probably a good time for everyone to jump in and buy, if everything goes as planned whenever I sell.