Hellllllooooo. Let’s get ready to rumblllllle. Ask me anything.
Q. Cody: really simple question for you. If you had to buy 1 or 2 positions if two stocks today at these levels what are the two you would put your hard earned money into.
A. Tough one. At a glance, feet to fire, I’d probably start buying $SNDK, $YELP, $CCC and/or $AMBA if I were starting a new long-term portfolio right this minute.
Q. Cody, with this pullback, how would you rank the top 3 stocks your would recommend someone add if they already had a scattering of most of your portfolio recommendations…meaning…what 3 stocks have gotten the most attractive with this pullback in your opinion? Cody, you basically answered my question already.
A. I would be remiss were I not to mention that I’d also want $FB, $AAPL and $GOOG in my portfolio as core positions.
Q. Would you be willing to list the % of each of your holdings, as well as what % of your portfolio is in cash? (I’ve spent countless hours trying to backtrack through old postings to get some idea of your basis in these stocks and when they were purchased. It’s tough for a new person to figure out where to begin.)
A. I get this question from new subscribers a lot, and I’m happy to explain that I think giving you a % of how much I have in each stock and especially how much I have in “cash” ends up being misleading at best and outright confusing at worst. I have a lot more income than I do have capital that I have exposed to stock relative to most people. I also have hard to value assets like my ownership in private media ventures. I also have much more risk tolerance and technology understanding than most people. So all that’s to say that the reason I list my portfolio in order from largest notional holdings to smallest is to help guide you in a responsible and meaningful way without you having to try to mimic my exact exposures.
Q. Actually, what I meant was something more along the lines of x% of the total amount that I am going to put in the market is in Facebook, x% is in Sandisk, etc. and I’m sitting on x% in cash (waiting to put it to work). Without this information, I have no idea what to do with the information. That is, what if you have 75% of your holdings in 5 stocks and I have 15% of my holdings in those same 5 stocks. Then, our rates of return would be vastly different. I’m trying to get a return close to yours…
A. Hmm, same principle that I outlined earlier stands. For some people having 15% of their holding in my top 5 stocks is probably appropriate while for others a much higher percentage (maybe up to 50%) would be appropriate.
Q. Hi Cody, do you see further pull back in broader market? Did you do that famous survey, who is more feared?
A. If Russia’s troops keep accumulating and Putin keeps standing firm/pushing buttons and/or for other reasons, I think the markets could get hit another 3-5% in a hurry. Path of least resistance has been downward since early July, as I’d noted at the time, and I think that remains the case.
Cody: BTW, folks. By being a member of TWC, you and ONLY you/other TWC subscribers get: * Access to a complete rundown of my Latest Positions * Trade Alerts notifying you of when I buy and when I get of a position completely * My Weekly Q&A and the transcripts of that Q&A * All my Investment books, including the three new books I’ll be releasing in the next week (each running $29-$49 each) * Instant access to my analysis * Access to EVERYTHING I write all the time.
Cody: And also, btw, check out this pic. I have a new Android Smartwatch from Russia into which I popped an AT&T prepaid SIM card and I now have a fully functional Android Smartphone on my wrist. http://www.scutify.com/profiles/leader.aspx?q=codywillard&s=53e27830d36feb133cb1efbe
Q. Hi Cody. Thoughts on $SWKS? Looks like a good fit.
A. With $SWKS earnings likely growing from $3.13 to over $4 a share next year, the stock is cheap on a price to earnings to growth ratio. I have long cited it as an App Revolution play but I’ve not owned it in years. I am looking at it as a Wearables/Drone Revolution play long term too.
Q. Any interest in $Fuel now that its trading at $18.00?
A. The one year $FUEL chart is about the worst looking chart I’ve ever seen. Probably means the stock is indeed a buy for a trade kind of set-up, but I’m not liking the company’s fundamentals at all and that’s going to keep me away entirely. Good luck either way. http://www.scutify.com/img/scuttles/53e27095d36feb133cb1ef3e.png
Q. Hi Cody, Looking at the action in Apple it seems to be in a range. Do you see a potential “Sell the News” after the iPhone 6? With a rumored date of the launch the stock has not moved and is trending lower. Thanks.
A. Nice forward thinking in your question, ‘Do you see a potential “Sell the News” after the iPhone 6 in annc?’ I wouldn’t be shocked to see $AAPL pull back 5% or so if they don’t roll out an awesome iPhone 6 and/or something else cool like a wearable watch. That said, I’d probably buy some long-dated $AAPL calls again if $AAPL were to fall back into the $80s anytime soon.
Q. Cody –please expand on $FEYE 11% drop. I understand that this is a high beta stock, but earnings were very good. Is there a major concern over the change in revenue recognition?
A. Earnings were great and I don’t think there’s anything shocking about the markets selling a high-beta, high-growth, highly-valued money-losing new company when they announce revenue recognition changes in the midst of a major market sell-off as we are currently in. Nobody will remember this revenue recognition change a year from now if the company delivers on the topline growth forecasts of 50%
Q. Funny to me that you would choose $Yelp…as it’s such a momo darling…is the business model that good?
A. I think the $YELP toplline growth is going to be phenomenal again this year and next and the earnings leverage when they then want to turn it on will also be huge. Not to mention that I think it’s likely going to be taken out for a premium at some point in the next year or two.