Let’s just get another update out there today since it’s such an ugly week in tech stocks and in many of our own stocks.
Quick takes on some of our positions:
Twitter: As Spek, one of my TWC Chat Room analyst/monitors, explained in the TWC Chat Room: “That was a great quarter from TWTR. Revenue and profit growth is accelerating, the cleaning up the platform is a healthy thing and it will bring more ad revenue. Whats better – 33OM real MAUs or 335M total with 5M fake ones which are decreasing the engagement of users. I don’t understand why it should be punished by -20%.” I’m thinking about nibbling some TWTR next week.
Solar Edge: I like SEDG (certainly more that FSLR as I explained in the Latest Positions update recently) but my cost basis is in the teens….not sure I’d load up here, but if I didn’t own any SEDG I’d probably nibble some.
Intel: I keep telling you guys we’re not buying Intel for the data server business which had a bad quarter and is why everybody is selling it today. If I didn’t own any SEDG I’d probably nibble some.
WDC: As Spek put it in the TWC Chat Room, “WDC announced a $5B buyback programme. That’s 25% of market cap! NAND pricing is a short-term problem, but it will be settled down. In the longer run, the most important is 3D NAND technology where MU and WDC are the leaders.”
More importantly, here’s something that Trading With Cody subscriber @jckptrs, who told me “I am 35 and have followed you for about 5 years now, originally on MarketWatch — a Trading With Cody subscriber since 2015” when I asked, wrote in response to some of the panicky subscriber commentary in the Chat Room today.
“Ok guys, I understand it’s always a bad day when the stocks we own go down, especially when they go down big time. However as others have said this is an INVESTING not trading site. Can we please step back and look big picture (years not quarters) Cody makes mistakes like every single stock investor on the planet. Most of our portfolios are up huge compared to even just a few years ago. Outperforming the QQQ by a large margin. I will assume he ALWAYS tells us when he makes trades, so if he thinks it’s the time to buy or sell it’s the time.
My understanding is this site was created to follow HIS investment performance. So if we choose to invest on our own, or at different rates WE live with those results. Pullbacks happen, crashes happen, selling before, during or after pullbacks is never a long term winning trade because no one does it consistently.
Selling before crashes is different, but still as you are saying about those Perma bears, they will eventually be right but they miss out on explosive market growth while being wrong. It’s easy to take sides when it looks bad, but staying objective and long viewed is what has made most of those who have become wealthy in the market successful. They are not reactionary, but visionary. All these posts are reactionary, have this quarters results they really changed your 10 year Investment thesis on where a company will be? If so, sell it!! If not, relax or even buy it!! The only time buying pullbacks has ever been a failed investment philosophy is during a market crash or a bad Investment, so if this is a market crash in your opinion, be cautious.
These mini crashes have happened thousands of times over 100+ years and unless someone sells into them, they have not hurt tho invested long term. Cody is not selling everything because he does not believe this is a market crash!! If he felt this is the bubble crash, I am sure he would sell. His inactivity speaks as loud as his activity.
For all our sakes, let’s not forget the primary objective of signing on to this site. It’s to make Invest in great companies and HOLD them as long as they are great! Not trade great companies Everytime someone writes a new negative article or says something bearish. I am not trying to speak for Cody, he can do that for himself when it’s time, but we also don’t get anywhere by overreacting to every bad news that comes out.
I am trying to help us see that what’s right for one will never be right for all. If advice is given to everyone based on a specific person’s question (really only relevant to that person’s time frame) it would do a disservice to everyone else that do not have the same needs.”
Cody back now. Thank you @jckptrs for putting this so incredibly clearly from a long-term subscriber standpoint!