Here’s the transcript from this week’s Live Q&A chat.
Hi everybody. Long night and morning at my house as I was on Amaris duty last night while the electricity decided to go off four different times last night. With all the equipment and breathing apparati in her room, it’s a bit of a challenge when it all goes off. Full speed this morning though, let’s rock. AMA.
Q. Cody, what are your top 5 holdings right now?
A. FB, INTC, RKLB, TSLA, UBER (in alphabetical order). Intel’s my largest position in the hedge fund now.
Q. When you report your top 5 positions can we assume that it’s in $$$ value? Not in # of shares?
A. Oh yes, absolutely. The dollar amount is what matters, not the number of shares. For example, the hedge fund owns 100x more shares of INFI than it does TSLA, but TSLA is almost 10x larger in value than INFI.
Q. Cody, what are your expectations about the IPO of Mobileye. If INTC bought it for $15B in 2017 and now they IPO the company at a valuation of $50B, does it mean they might have a similar pedir with this investment a la AMZN and RIVN?
A. We don’t own INTC for the MobileEye business, but it’s a nice kicker if they can get it spun out at a 3+X the price they paid for it. We own Intel for the domestication of the chip supply chain.
Q. Any thoughts on the recent INTC products coming out trying to compete with AMD and NVDA?
A. Yes, the more research I do on Intel’s new line up of chips for laptops and servers indicates that Intel’s new chips are priced about as cheaply as their old versions but are better than the competition.
Q. Good morning Cody and crew. The hits keep on coming on the space stocks recommendations, with BKSY,RDW,RKLB all down significantly from time of recommendations. I don’t currently own any BKSY. Is it worth a short here sir? Also INFI, do you still believe in this company?
A. I think BKSY is a good company but the market has hated this stock since it came public. It’s got a lot to prove as the company has guided estimates lower like every time they report since coming public. I still like the CEO and have a quite small position in this name as part of my basket of space stocks. Which obviously have been slammed along with the rest of the highest speculative areas in tech, although I think space stocks will indeed come back over the next couple years as the space economy continues to develop. Space stocks are ten to twenty year time horizons, not trades. Yes, I still own a very small position in INFI as part of a biotech basket.
Q. What about Terran Orbital?
A. I’ve met the CEO of Terran and I like him and I think this is a good space company. But I’m not sure valuations are good just yet, as the company negotiated its SPAC price back before Space and Speculative stocks crashed.
Q. Elon Musk takes position in TWTR….opportunity to sell?
A. I’d rather buy than sell TWTR if Elon’s going to be involved in it. Not sure it’s wise to chase this morning but I wouldn’t sell it if you still own it.
Q. Can we be assured that Elon Musk is “involved” with TWTR, or is he just another investor?
A. I don’t think Elon’s going to actively try to run or influence Twitter, but he will certainly influence the business/strategic choices the company makes henceforth and that’s a good thing, in my humble opinion.
Q. Bloomberg posted an article on Sunday titled “Tesla Crypto Tokens Rise as Traders Discount Shanghai Shutdown” which included the paragraph- “For now, investors are betting on Chief Executive Officer Elon Musk’s push to build even more cars, with a new factory just opened in Berlin and another set to open in Austin, Texas, on April 7 — its fourth overall. Tesla crypto tokens on the FTX exchange were trading at $1,141.55 as of 2:45 p.m. Sunday in New York, about 5.3% above Friday’s Nasdaq closing price of $1,084.59.” Are you familiar with Tesla crypto tokens and can they be bought and sold like a crypto currency?
A. I’d not heard of it, but it sounds stupid and scary to me. Here’s how the describe the concept on coinmarketcap.com: “Equities are stocks that trade on traditional regulated exchanges. FTX lists tokens on select equities. These spot tokens are backed by shares of stock custodied by CM-Equity. They can be redeemed with CM-Equity for the underlying shares if desired.” If you’ll go to the Bloomberg article now, it has changed the title from “Tesla Gains as Record Deliveries Outweigh Shanghai Shutdown”. No mention of the Tesla Token at all in the article now. I’d stay as far away from cryptos that are supposed to reflect the stock price. Stick with the stock.
Q. Cody, what odds would you give for China to invade Taiwan in the next 12 months?
A. 5-10%, but that’s up from 1-5% last year. Not trending the right way.
Q. What do you think of LRCX as a way to play the heavy investment cycle by INTC, TSM and others?
A. Great company, I just haven ‘t owned that stock in probably 15 years. AMAT and ASML are also great companies.
Q. Hi Cody, glad you got your power back. Is SKTLS still on track for the May 6th airdrop?
Q. Rather than having to send out latest positions (and having many of us bug you for them on a regular basis), can you just put your latest positions, ranking/rating, brief thesis and any other helpful info for us into a Google spreadsheet and share that with the group? We would still appreciate an email for any Trade Alerts but it would be great to see how you view each investment in the portfolio on a real time basis. I’ve noted that a number of other investment advisers do this and it works really well. Thanks for all your efforts!
A. I’ve brought on someone to revamp Trading With Cody, including the site and some of the features available to subscribers and we will address this with a solution similar to what you’re suggesting.
Q. Hi Cody, I hope all is well with you and the family . In your next positions report (highly anticipated) can you provide some price entry points where you would be a buyer of those names? Thanks in advance.
A. Yes, will do, we’re trying to figure out a way to deliver this kind of information just a click away for subscribers. Stay tuned.
That’s a wrap, thanks all!