This has been a busy but productive week as I’ve had lots of meetings and even hosted those guys from the Toronto hedge fund I had given a speech to last month.
Here are some highlights from the Trading With Cody Chat Room.
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A. I’ve owned $GOOG since its IPO at $47 and have owned $FB since it was in the $20s and they’re both large positions for me since they’re up so much over the years. Do I have to pick just one? How about owning some of both 🙂 If I had to choose between eating sushi or NM Hatch green chile for the next 10-20 years…well, I don’t want to choose and I don’t have to and likewise I can just continue to bet on both $FB and $GOOG for the long run.
Q. Looks like rotation out of energy into biotech so far.
A. Yea, for the last couple weeks or so perhaps. “looks like rotation out of energy into biotech so far” and into tech too.
Q. My question to you yesterday re: $P Pandora was before their announcing hiring bankers to “explore options.” Does that blip up represent even more incentive to re-enter with a new short, or not?
A. Probably not time to short Pandora while they are now looking for a buyer.
Subscriber follow-up: OK — thanks. I share your glum view of the company, as a user (much better competition out there) and an “analyst,” but I did think it’s tenuous to short if SOMEONE out there might be interested for some reason .
Q. “Hey Cody – here’s an excerpt from MarketWatch’s live blog and Tim Cook’s comments re: Apple TV: Analyst asks about Apple TV and whether or not Apple wants to get into developing its own content. Cook says to think of what it has done in Apple TV to date as a “foundation for what we believe can be a broader business over time.” Apple TV = a foundation that Apple can do “something bigger off of” — perhaps this is a hint as to Apple’s broader media play, which many people have been speculating about after it announced just before the earnings that it won the rights to ‘Carpool Karaoke’”.
A. Well, I’d be more encouraged that Tim Cook understood the supreme value of platforms vs content, but the quote is actually about the fact that Apple just bought content. 🙁
Q. My friend is a smart guy and he owns INFN. He does not look so smart today as INFN is down 34%. How can a company be down 34% for guiding lower? Is this an opportunity? My friend says 3rd Q will be bad but 4th Q strong. Do you know INFN? Thanks.
A. Yes, I know $INFN. As for any stock being down 30% on lowered guidance, well, sometimes the guidance and/or other information in the earnings is just so bad that some of its major institutional investors just lost complete faith in the company’s business model. The crash in $INFN could be a buying opp tho, so I will take a fresh look at it over the next week or two.
Q. I will echo a question from above, good time for a TWTR trade here for a beginning tranche? I, like the subscriber above, didn’t get in to the teenager basket. Are you still bullish on TWTR or do you think it is the yahoo of social media? Thanks Cody!
A. Speaking of when lowered guidance can make an investor lose faith in a company’s business model, the fact that $TWTR just guided for 5% topline growth for next quarter means it’s growing about 1/10th as fast as $FB is even though $FB is working off a 10x larger baseline. I’m not willing to buy any more $TWTR.
Subscriber follow-up: Cody, my question re TWTR was for a first time buyer? Good entry here?
I’m more likely to sell my own $TWTR than buy any more, so probably not.
Q. So you seem pretty down on $TWTR. Does this latest pessimism change what you said a couple of days ago about getting out of the September $15 calls that took a swan dive a couple of days ago? I’m still in, and they seem to be climbing back a bit. Hold on? Despite your pessimism, does September offer the opportunity for more recovery?
A. I don’t think the set up for $TWTR is bullish for the near-term any more.
A. Start small in $FIT and hopefully they do a great job in their next earnings report and we might pay up for more than.
Q. Hi Cody. Would you be a buyer of FB? Stellar report, shares are currently unchanged.
Q. What’s your feel for GOOGL going into ER? Thanks.
A. We’d talked about buying $GOOG common because it’d been an underperformer and was probably ready to play catch up here on the Trading With Cody Chat Room several times about a month ago. The stock is up 10% since then and I’m not sure what to expect from the earnings report now. The stock could get hit for 10% tomorrow and it’d only be back to where it was a month ago. It could pop 10% tomorrow and hit all-time highs ala $FB today. I wouldn’t want to try to game it’s action tomorrow.