Here’s the transcript from this week’s Live Q&A including a couple trade alerts.
Q. Cody, with the significant pull back in tech, should we start nibbling? I never nibble on a Friday on the way down but maybe start next week? Or let AAPL, et al report first? Thanks.
A. Well, let me put it this way — with the big pullback in many tech names and other highflyers, I’m not hating EVERY stock’s charts or valuations anymore. I can see doing a little nibbling on some of our names if you’re feeling underinvested in a particular one or two of them. That said, I’m not doing much buying yet.
Q. Cody, Buy DVAX around $ 9 after the pull back from $12?
A. As usual, my answer is that if you want to own a little more DVAX or don’t own any, you might want to nibble some now and give yourself some room to add more in coming days or weeks.
Q. Cody, Which one would you favor now, Bitcoin or GLD?
A. Good question and the answer is that I prefer Bitcoin at $9500ish over GLD at $179ish right now. Bitcoin’s one of the few assets in the world that hasn’t gone parabolic in recent weeks. Maybe it still won’t. But I tend to think it’s set up to make a move higher before the end of the summer and/or end of the year.
Q. Hi Cody, Your thoughts on LULU long term? Would you get into SPOT before earnings next week? Do you like LEAPS? If yes, would it be possible for you to include some ideas in your updates sometime? Thank you.
A. 1) Lulu seems like a great company, but the stock looks overvalued to me. I’d be interested in buying some of it especially after its recent Mirror acquisition. 2) F2F, I’d guess SPOT will be flattish into and after earnings next week, but I wouldn’t try to game it. Maybe nibble a little now and add more later after earnings regardless of what the stock does? 3) LEAPS (options dated 1 year or so out) are okay, but they often expire worthless even if the common stock has made people money over the time you own the LEAPS because you are paying for the time slippage. 4) I do include ideas when I’m excited about some opportunities. That hasn’t been the case lately. I’m getting more excited about some opportunities now though as the market has sold off finally.
Trade Alert here: I literally just took a break from the chat to go over to my portfolios to cover a little bit of our index short hedges as the market got hit again intraday here. Just a bit. Feelings are irrelevant, but isn’t it almost a relief to finally get a pullback?
Q. 3 days ago markets closed at 155% market cap s GDP with negative earnings growth no less The largest financial bubble ever. This according to Sven Henrich Northman Trader. Any thoughts on this Cody .?
A. Sounds a lot like what I’ve been saying for the last few weeks as the markets went parabolic and I was writing that it could a blow-off top to the Bubble Blowing Bull Market. But I’m pretty sure Northman Trader’s been a permabear during this whole Bubble-Blowing Bull Market that you and I have ridden for a decade now?
Q. Cody. You sold some TSLA calls against your long. Do you buy them back with a $300 drop and sell a lower strike?
A. Yea, maybe. It depends on how hedged you want to be after a $300 point drop.
Q. Whats the best way to store bitcoin?
A. There’s risk in storing bitcoin no matter how you do it. Sort of like there is with gold coins, but digitally.
Q. Yes on the pullback. its healthy, maybe very healthy…but i don’t want it to go too much farther.
A. The lower the market goes, the better some of the pitches will get.
Q. hey Cody, Great call on short INTC long AMD from the last meeting. Kudos! you have to immortalize that one.
A. I thought I’d talked about that idea to TWC at some point, but I can’t find it. Do you have the quote?
Q. Hey Cody, a couple others that I own, MA and CMG, any comments? I know that you weren’t too keen on CMG, but I like how it is positioned, in this new world. Regarding INTC, AMD. we were chatting last week, and you mentioned it, so its on the tape toward the end when we were talking about other stocks you might like that hadn’t moved as much after you mentioned CSCO, and played the war tune.
A. MA is one I should have owned. Might have to add it someday. CMG’s a restaurant stock, right? Not really my thing, but it does seem like a great company.
Q. Whats up Cody any Ole Fashion “Feet to the Fire” calls on a direct Vaccine maker?
A. F2F prediction on all the direct vaccine makers: Buying puts across the board on them, dated out to December, will probably pay off because most of them will crash from these levels and one or two might actually end up tripling from these levels so the puts on the winners would go to zero while the other puts will probably pay off big.
Q. Cody, your thoughts on the future of college education? Will online education be the demise of all the prestigious universities? Forever gone are the days of packed lecture halls? Is CHGG the best bet for online education?
A. This too shall pass, perhaps in a few years at worst case scenario, but The Coronvirus Crisis will pass when there is a widely available vaccine some day. And then kids will go back to school and uni and all that as pretty much they always have, I think.
Q. Is CHGG the best bet for online education?
A. It’s way over focused on right now, IMHO. I’d rather be sell than buy CHGG in July 2020.
Q. Hey guys nice move on TSM today. I wish I flipped my Intel over to that like I should have. Do you know if Cody ever recommended dropping Intel or is that still a holding. If not is there a play on that at this point. Should we be moving the Intel to TSM still?
A. I sold INTC a while ago and I do still like TSM but it’s now gone parabolic today and I trimmed some.
Trade Alert Alert here. I also trimmed some AMD today.
Q. Cody, any thoughts on Commscope COMM as a 5G play? Or Nokia NOK for 5G?
A. Wow, COMM looks pretty interesting here at $8, or about 4x earnings. No revenue growth though. I’ll take a deeper dive on this name, thanks, haven’t looked at COMM in years. NOK is good for 5G and as an anti-Huawei play.
Q. Cody, I read Arizona sending Covid patients to NM hospitals. AZ doesn’t have capacity.
A. Ugh, I mean, it’s not like NM has a ton of capacity either. NM has a much smaller population than AZ. Covid patients who can’t find help in AZ still need help though. Ugh. https://www.usnews.com/news/best-states/new-mexico/articles/2020-07-16/albuquerque-public-schools-announce-back-to-school-plan
Q. Nibble on Slack now that it’s below $30/share?
A. Same answer as usual. My answer is that if you want to own a little more WORK or don’t own any, you might want to nibble some now and give yourself some room to add more in coming days or weeks.
Q. @Cody: Q. Cody, any thoughts on Commscope COMM as a 5G play? A. Wow, COMM looks pretty interesting here at $8, or about 4x earnings. No revenue growth though. I’ll take a deeper dive on this name, thanks, haven’t looked at COMM in years. …..Didn’t you recommend this name (briefly) just last year – winter 2019?
A. You are correct, but in my defense, the last year has felt like 5 years.
Q. Bought CSCO and Qcom. Thanks . I know it’s a lot of work but could you please give us the “ where I would buy more at “ on your picks. That is great for us average joe investors. Also any new put ideas. Thanks so much for your service especially for our law enforcement and armed forces. G0D Bless You your wife and girls sir
A. Yes, will do and thanks for the kind words and back at you!
That’s a wrap. Lunch time.
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