All Investing Is Value Investing, Earnings Reports, More

Here’s the transcript for this week’s Live Q&A Chat.

Q. Really appreciate the sentiment in your notes on “not being scared” and keeping a cool head. Seems like there’s lots of upside from these current prices and staying even keeled is key. Currently sitting on a good amount of cash so have slowly been slowly scaling in with this weakness. No specific question here but just feedback.

A. Thanks. Two most important words for traders is: “Be Cool.” Most important words for investors are, as my friend quoted me this morning: “All investing is value investing.”

Q. Cody, you have used percentages in the past like sell 10% of everything. Do you think you can start doing this for all trade alerts with the market being so volatile? Also, can you please give specifics for your option trades like strike, expiration? Your general trade alerts are a little difficult to follow. Thanks

A. Yes, I’ll try to. That said, most any time I buy options, I’m buying 10-20% out of the money, dated a few weeks out. If I do something other than that, I usually explain it.

Q. I see we are back on Roku. Can you please share your thoughts on their earnings report from last night? Are there any other old positions that you are considering? Like SQ or DIS?

A. The earnings report was pretty darn good, especially relative to NFLX and Warner Brother Discovery and Disney’s streaming numbers. I’m also considering get back into DIS.

Q. Amazon and Google have been long held positions in our portfolio. Both have pulled back after earnings this week. Are either Rod these worth a nibble?

A. Based solely on valuations, I think GOOG is a buy here but AMZN isn’t a buy until it drops another 20%. If you don’t own either, I’d start building a position in each.

Q. Unity was left off the recent trade rankings email. Can you please provide a rating here? Stock is well off its highs (like a lot of others) and wondering if it makes sense to add?

A. I’d rate U a 6+ or a 7- here. It’s a great company, but the valuation is still stretched, even looking 5 years out.

Q. With Intel being rated 8+ last week, would love to get your thoughts on their earnings from last night. Intel has a long road ahead but curious if the rating on this has changed with last nights report?

A. I was hoping Intel would have beaten estimates and guided higher on market share gains. Maybe they are taking some market share, but the market has slowed? We’ll have to hear/see how AMD is doing when they report to get more color on that near-term potential catalyst for INTC going higher and AMD going lower. On the other hand, it’s all systems go on the longer-term move for Intel becoming the Western world’s semiconductor builder.

Q. Morning, please look at SWAV is that not a Revolution Company ?

A. Yes, I’ve looked at Shockwave Medical before and it IS a Revolutionary company focused on: “developing and commercializing intravascular lithotripsy technology for the treatment of calcified plaque in patients with peripheral vascular, coronary vascular, and heart valve diseases worldwide. The company offers M5 catheters for treating above-the-knee peripheral artery disease (PAD); C2 catheters for treating coronary artery disease; and S4 catheters for treating below-the-knee PAD. It serves interventional cardiologists, vascular surgeons, and interventional radiologists through sales representatives and sales managers, and distributors.” I’ll take a look at its valuation by running it through my Casket of Big Cap Crashes spreadsheet and let you know if I buy any.

Q. Did you sell SPCE already?

A. I have just the tiniest amount of SPCE, only because it’s a NM-based space company. I don’t know if this company has much chance of surviving long term any more since they failed to raise money when they could.

Q. What do you think of PARA?

A. I’d rather bet on Warner Brothers Discovery’s management than Paramount/CBS/Viacom’s management.

Q. Also, you mentioned a week or two ago that you would be a buyer of NFLX below $200/share. Yesterday’s note mentioned you would be a strong buyer of NFLX at $150. Are you nibbling on NFLX here or are you being patient? Thank you!

A. I bought some in the hedge fund when it was below $200 lately. But I’m not as bullish about it as I was since I ran it through my Casket spreadsheet algorithms.

Q. What are your thoughts on Immersed and the email opportunity they sent out this week?

A. I think I’d rather bet on Immersed’s equity than on a plot of their virtual real estate if I have the choice.

Q. Cody….is RKLB still one of your top holdings ? thnx

A. It’s close to a top holding, but it’s price has fallen enough and I haven’t added much to it so it’s gotten to be a smaller position relative to the rest of the portfolio than it was.

Q. Cody…any thoughts on BABA?

A. I’m getting sick of holding BABA, but it’s still cheap. I trimmed a little bit of BABA in the hedge fund today.

Q. I have not added another tranche in RKLB since it’s decline into the single digits. Would you be supportive of a small nibble here? Thank you! I’m done with my questions!

A. I can think of worse ideas than nibbling a leader of the Space Revolution while it’s down. But I wouldn’t go crazy as the valuation is still stretched.

Last question. I have to tell you all about the wonderful 4 year-old pit bull mix mutt diggity dog that I got from the Humane Society a couple weeks ago. I’ll write more about this doggie soon, but the point is that I brought him and our mini Schnauzer to the office this morning and they want to go out side now. Have a great weekend.