This is a digest the Trading with Cody chatroom and live Q&A from the past week. Visit the Trading With Cody Chat room on the Trading With Cody iPhone App, the Trading With Cody Android App or in the Chat Room. If you have any questions about our service, just email us at firstname.lastname@example.org
Q. We need a refresher on the latest positions list. Thanks.
A. I am doing a Latest Positions write up this week.
Q. What do you think about REITs reaching bubblicious levels again? Specifically looking at Retail REITs with $Bs of debt invested in malls across the country. Retailers seem to be closing more and more stores everyday with a greater focus on internet shopping, would take billions to repurpose this space as residential or other. Rates remain low for now but should they start to climb things could get ugly. To name a couple, looking at – $PEI, $BRX, $RSE
A. I think REITs are bubblicious looking indeed. As you note, they might not pop though until interest rates start to rise. I know many pundits and former hedge fund managers who have thought rates had bottomed every year for the last five years. Oh, make that the last twenty years. Oh wait, make that the last forty years.
Q. Who are the best bets in augmented reality?
Q. Is there a reason to be looking at $AMD? The new processor technology might be a competitor to NVIDIA.
A. Yes, I look at it all the time and then I see it’s balance sheet with billions of debt and little cash to cushion. And that always keeps me away from it.
Q. I’m thinking if we get a market correction (sure seems like we’re long overdue for one, kind of like CA is for an earthquake — ok, that’s probably not funny, especially with you being in San Fransisco this week, but seriously, the market has done nothing but climb since Feb lows) $TWLO could get hit particularly hard. Thoughts?
A. I think it’s a crapshoot with $TWLO now. That stock is a battle filled stock right now and I don’t want to be one of the bodies left on the field.
Q. Anyone like match group dating site?
A. Uhm, I am sure it is fine but you could probably find true love in the Trading With Cody chatroom if you try hard enough.
Q. Besides $MU, $AMBA, $QCOM, $NVDA; what other semis do you like in a pullback?
A. I don’t think I’ve been saying I like $MU, even on a pullback. I like the other three you mention along with $SNE.
Q. Our $QQQ puts are coming up in their maturity. Any thoughts on just taking the loss on these or should we hold to maturity? Thanks.
A. I am just letting my puts, all of my puts, sit for now.
Q. What are your thoughts on $ISRG? They are the leader in robotic surgery. I wanted to buy them years ago but never pulled trigger.
A. I like $ISRG and it is indeed the leader in robotics surgery. The stock has always just been so expensive that I have never gotten comfortable and pulled the trigger. Maybe I should get a robotic hand to pull the trigger for me?
Q. Any thoughts on adding $SPLK?
A. Yes, I have often thought about adding $SPLK and kicked myself for not having done so when it sold off along with the broader markets a couple of times in the last year.
Q. Looks as if the only way $HUBS short will work is if market cracks. Not sure when and how much and if they report good earnings report next quarter. It could turn into an ugly short. Any plans for adding to short? covering?
A. I have been considering adding to the $HUBS short. I have not yet covered it but I will cover it and lick my wounds if it gets ugly.
Q. Is your $130 target for AAPL still good and what do you see the impact of this tax issue?
A. Apple’s tax issue is about as important to $AAPL as #Brexit was to the stock market. Great news item, not particularly meaningful though.
A. $AMBA, as I have long said, is a great way to invest in the wearables and drone revolutions. The stock is wildly volatile, but I own it now as I have for a long time with no plans to sell it.
Q. I’d also like your thoughts on $CMG. Fits the profile of a high flyer that’s had its wings clipped and may be in a position to have a nice rally?
Subscriber follow-up: Did your taco have a candle in it? Is Porky’s deliciosity your only reason for shying away from CMG? is there any kind of a continuing comeback story (albeit, with a risk) with them? I believe they were in the black last ER?
A. Did you see the headlne about how $CMG is being sued by nearly 10k employees who say they’re forced to work overtime without pay? I just think there are more cockroaches around $CMG, no pun intended.
Q. What are your thoughts on $FIT and is it a position you’re looking to add to? It seems to be moving in a positive direction and there is the possibility of a short squeeze with the high short interest in it. Thanks.
A. $FIT ‘s new product line looks pretty good and will likely drive some upgrades from existing users and new buyers to give Fitbit a shot. More importantly, Fitbit still has the potential to become a de facto standard as a health platform. Not there yet though. I’m holding my Fitbit steady for now.
Q. When purchasing options, what parameters do you use to determine which strike and date? If I recall, I think one time you said you like to buy 10% out of the money for the strike.
A. There’s no set way to decide which strikes and dates you use when you look at options. You have to be opportunistic and make sure your upside potential would compensate for the risk. But I do often buy options that are near the money and also often buy options that are about 10% out of the money.
Q. Cody, what do you think about $TSLA puts in the not too distant future? Cash burn is crazy and they need to raise more capital and investors are running out of patience, or so I’ve read.
A. Bob Weir’s Tesla last week in San Francisco that he uses solar panels to charge at home was pretty darn sweet, I have to admit. Furthermore, I’m not so sure about this part: “investors are running out of patience, or so I’ve read.”
Q. Hi Cody, you often mention $UA, any latest thoughts on it? It’s still near its highs but possibly a candidate in case of a market pullback?
A. I like to say you should bet on brilliance, and $UA is run by brilliant people. And it’s a stealth wearables play. I would love to buy it on a sell -off.
Q. Cody, do you ever take time to imagine how VR could be useful in our everyday life? Something we’d want to use all the time, or almost all the time. If so, and provided you’re comfortable sharing it, what would that be?
A. We will have #VirtualReality rooms and projectors and glasses and today’s #VR headsets will be like Atari is to the Play Station 4. Movie theaters and your home’s den will be like Star Trek holodecks in fifteen to twenty years.
Q. Cody, if you had to buy a stock right now, which would it be and why?
A. It is not that easy. Sometimes, I do have an answer for that question, but now is not one of those times. I did recently buy some $Z and I continue to like it here.
Q. Cody… since this is “ask me anything”, tell the truth, would you trade your success in the stock market if you could be the lead vocals and guitarist in a wildly successful rock band?
A. I truly love my life, what I’ve done in it and where I am right now is pretty great. I know a lot of rock stars and few are happy (the aforementioned Bob is one of the rare happy ones).
Subscriber follow-up: Honestly, glad you love doing what you’re doing, otherwise we wouldn’t have a captain to guide us through the market gyrations!