To download a pdf copy of my 25 Stocks for the Wearables Revolution, click the link below. 25StocksfortheWearablesRevolution To download a pdf copy of my 12 Stocks for the Robotics Revolution, click the link below. 12StocksfortheRoboticsRevolution To download a pdf copy of my 12 Stocks for the Drone Revolution, click the link below. 12StocksfortheDroneRevolution
A. Cool and great question! I do think we’ll see legislation that will limit the capabilities of future mass-marketed consumer drones like the DJI Phantoms to 400′ reach and geographic dead zones, etc. They’ll force the manufacturers themselves to implement that and you’ll have a whole slew of “jailbroken” drones that will go 5000′ anyway. Regulation is definitely NEEDED, but I don’t think there’s any stifling the mass consumer drone market unless they’re outlawed completely. Which I suppose could also happen, but I doubt it.
Q. Hey cody if I am registered for the money show do i need to do anything else to make sure i can sit in on your classes?
A. I don’t think there’s anything else to do on the Money Show, Jeff Miller, Lucy Bottrell and Kheang Ly and I will also be manning our Scutify booth, so just come on by there and we’ll make sure you get into all the events I speak at.
Q. Cody – I have heard a non-stop flow of analysts talking about how the end of the bull is near, a 20% correction is coming. One guy today said “what would surprise the market the most? 20% sell-off.” I know you are a contrarian, but with this non-stop negativism, do you think we are setting up for a giant slide? When I see you buying speculative names like HiMax (which has worked out well thus far) it makes me think you are not *so* worried about the bottom falling out of the market.
A. I’m not freaking out about the markets topping out here, as I think there’s still bubble-blowing bull market forces, including corporate earnings growth, GDP traction, employment traction, and the ramifications of Fed policies like 0% rates and QE still driving the markets for the next year or two. I am definitely less long now than I was two or three years ago though when I was aggressively net long.
Q. Ciena – where is a potential bottom /base? I wanna buy but seems like no real buyers there for some time…
A. I hear ya, I’m about sick of Ciena’s not ever going up too. The fundamentals have been improving according to what I wanted to see when I’d bought it, but the stock has been straight down since the last report despite the big pop it had had. Here’s JPM’s analyst notes on Ciena from this morning and I’m inclined to agree with their assessment: “Telecom & Networking Equipment: Hall Monitor: August 2014. The sector only slightly underperformed the S&P this month with a 2.0% decline vs. the S&P’s 1.7% decline. On a weighted basis our list outperformed with a decline of 1.7%. CIEN underperformed again but AAPL was up slightly against the Index. Looking forward we keep our lineup relatively unchanged. Fundamentally we continue to like AAPL, as well as core networking stocks like CIEN and INFN. We move RVBD up our list this month while CSCO and QCOM remain toward the bottom.”
Q. slonda beat me to the CIEN question, Cody…You have it listed as an 8…the highest of your rated stocks and a large position for you. I recently bought some Jan $20 calls partially on your rating and the fact that it is so hated right now…hard to tell whether a buying opp or a sign of deeper trouble. How often would you buy calls when a stock is beaten down as opposed to when a stock looks like it has momentum and upward trend?
A. No set rule on buying call options in a beaten down vs a momo-upward stock. Just try to be opportunistic. I like your CIEN idea frankly, but haven’t risked my own capital on any CIEN call options lately.
Sub: Thx Cody, as you say, keep on rockin´ or steady as she goes. I try to learn it again and again and you are a big tutor & help, take care and rock on.
A. Rock on, indeed! Rocking on and steadying as she goes’in are two keys to success in trading/investing!
Q. Thoughts on BKS at this level? Do you anticipate adding to your short position and/or buying any puts at any point soon?
A. Yes, I do anticipate adding to my BKS short at some point, but it’s had some momentum behind it lately and I am in no rush. Will let you know when/if I do of course!
Q. Cody, on the other hand, SIMO looks like it has no limit except of sky. Any comment on it pls?
A. I’m so disappointed in myself for not having ridden the SIMO to these new highs. Looks like it can keep going as the fundies keep improving. Follow Robert Marcin on Scutify for SIMO.
Q. I remember you trimmed SNDK at the top before ER. Do you have plan to buy sandisk again?
A. I’d like to buy a little more SNDK back if it gets down another 10% or so. I have huge gains and plenty of SNDK common for now.
Q. How about a few words on FB…two blowout quarters in a row and the stock has not moved in proportion. Is the stock priced for perfection for the near term, waiting for anything negative for a downward swoosh? Sure seems that way…my intuition says be cautious, as I was not rewarded on the risk I took on call options two quarters in a row…
A. FB and Zuckerberg have completely ticked off and mishandled their new messaging app rollout. Why take functionality away from the original FB app. When Scutify rolled out our new Sentiment App, we didn’t take away the ability to use Sentiment on the main Scutify app! I seriously think the way they’ve bungled this messaging app rollout has held the stock back. No catalyst for the near-term, methinks. Patience.
Q. Cody. A while back you indicated you would provide a ‘buy up to $xx/share’ to give us an idea as to the max we should be paying for the stock. This will help to determine if the price is still a good trade if not executed when you buy. Also, unless I missed it, I’ve not seen a weekly trade summary for a while. Thanks and keep on with the great insight and guidance.
A. I forgot about trying to do the “Buy up to $XX/share” on the Trade Alerts. Will try to implement. And I need to train someone to do the weekly trade summaries. Will do. Thank you for the prompt.
Q. Hi Cody! What’s your take on the $JDSU ER? Is today’s pullback actionable (start/add, trim, do nothing)? I am at about 40% of my target full position in $JDSU.
A. I might look at another 20% tranche if you’re at about 40% of where you want $JDSU to be in your portfolio. Easy does it. Long-term play.
Q. CMGE – I remember you are not big fan of chinese stocks having trust problem with them, but its price is beaten down, mobile gaming sector in china has no doubt big upside, zero debt, raised capital…
A. I’ll take a look at CMGE. If the co actually grows earnings per share from $1.33 to $2.33 as the analysts have modeled out, that stock will be back at $30 this time next year. Not my thing to invest in Chinese stocks though. I’d still only touch $BIDU as my China play.
Q. Robert Marcin has expressed concern two quarters in a row about IXYS management and their inability to execute…do you share his concerns?
A. Yes, absolutely. The whole of the IXYS investment depends on management there executing their business plan.
A. I hadn’t noticed. NINE nationalities in one weekly chat. I’ve seen up to 20 on here before though!
Q. Cody do you ever sell puts to enter stock at cheaper price or just to pocket premium?
A. No, I’m not a big fan of shorting options simply because the losses can get so big so fast and they’re not limited to 100% loss either.
Sub: Thanks for HIMX, BTW…so far so good
Sub: Great chat session today, people!
Q. On Yelp. What is your thinking about some class action lawsuit that have been filed against the company? Any concern on the supposedly ads practices?
A. I’ve always got concerns about any stock I own and class action lawsuits sound plausible as a headwind to $YELP near-, mid-term. I don’t think the suit has merit though.
A. Not yet, I’m still trying to build my HIMX position up. I’ve got those call options though, so no rush.
Cody: Good one today folks, gracias!