Cody Kiss & Tell: Election, stocks and sectors
Here is the transcript to this week’s Live Q&A Chat. Visit the Trading With Cody Chat room on the Trading With Cody iPhone app , the Trading WithCody Android app or in the Chat Room. If you have any questions about our service, just email us at support@tradingwithcody.com.
Q. Considering how the depth of selloff in the Dow Futures, were you surprised that there was no follow through when the markets opened this morning?
A. I wasn’t terribly surprised by the markets buy-the-news reaction to the Trump win by the time the markets opened this morning. I was more surprised that Trump won!
Q. Any new names you are working on? Or the ones we already have in the portfolio?
A. I’m always working on new names and I’ve got a couple I might nibble on soon. Stay tuned!
Q. Can you please clarify how much of your portfolio is for the puts? Is this another hedge worth 1% of your portfolio? Last time I bought more puts than I should have.
A. Yes, slightly less than 1% in the puts I bought today.
Q. Do you think the new Republican Administrations’ policies will hurt Teflon Tesla?
A. I don’t know that we have any idea what the new Trump-led GOP will focus on and I don’t think $TSLA‘s going to lose all its support from the government and its allies and customers.
Q. Just an observation, but what a swing in the past 12 hrs from the futures to now…an 1,100 point swing on the DOW. Crazy twist for sure.
A. 1,100 point swing! Yes, crazy.
Q. Do you think $APPL will ever launch a bundled entertainment package?
A. Yes, I think most corporations would love to be able to bring their cash back onshore to play more financial engineering games while avoiding paying any meaningful % of their earnings vs small businesses and individuals.
Q. My cost basis in $TST is $1, and it is down about 7% as the stock is now at .93 . I am thinking of averaging down. Anybody have any thoughts?
A. If you don’t have as much $TST as you want to own, then yea, I could see nibbling on some more here.
Q. Do you think $NVDA‘s expected ER beat and rosy forward guidance is already baked into the stock price?
A. For the very near-term, ti’s possible that $NVDA‘s fundamental strength is already baked into the stock price. But I think there’s still quite a bit of long-term upside in years to come for $NVDA.
Subscriber follow-up: Thanks for your thoughts on $NVDA earnings. One other q regarding it, you said you think it can be a huge winner over the next 5 – 10 years, could you give a little context to it’s potential stock appreciation relative to the growth you see coming down the pike?
Cody’s A: If $NVDA becomes the leader of the computers/networks that run AI, self-driving cars, robotics awareness, deep learning, etc…the stock could be valued at $100-200BB. That’d be a 5-fold return from here.
Subscriber follow-up: Re $NVDA‘s growth – then it’s safe to say that it’s a stock that we’ll be adding to our core position on any meaningful pullbacks, right?
Cody’s A: Probably will look to add to $NVDA if it gets hit sometime soon hard if its for a silly reason.
Q. What are your thoughts on coal stocks for a short-term to intermediate trade? $BTU $ANR $ARLP
A. I haven’t looked at coal and don’t think it’s a very revolutionary industry to invest in. The only way to trade/invest in coal is to game politics. Playing coal wouldn’t rank as the best of ideas right now for me.
Q. Playing coal wouldn’t rank as the best of ideas right now for me. Can you share some ideas that would rank at the top of your list?
A. Best sectors to invest/trade: #AI, #VR, #DeepLearning, #Drones/Self-driving vehicles, #apps, apps, apps.
Q. Cody, why is solar in your view any different than $TSLA with using taxpayer money to prop up there business and profits?
A. I think that solar industry is a long-term solution for energy. I would prefer it not be subsidized at all, but it is for now. In five to ten more years, solar will be cost-effective without subsidies and I want to have some exposure to solar before that happens.
Q. Would you short $FIT now? I don’t ask any questions Cody but I did think this may be the next Blackberry. Or Kodak. Thoughts?
A. No, probably not. For one thing, even if Fitbit is the next $BBRY, it’s already priced at the same per share price. I don’t know if $FIT is going to zero, but I could see it drop another 50% closer to its net cash balance, I suppose. But personally I’m just removing it from my screens entirely for now.
Q. In light of Wikileaks, do you think $PANW is going to be winner of the cyber security upgrades that’s sorely needed in our government (and other corporate entities) going forward? If so, at what price point would you initiate a position?
A. I’d probably look to buy some $PANW at some point but not quite yet. Maybe $10-20 lower.
Best and most accurate phrase I’ve heard all day comes from WSJ’s John Carney : “Put not your faith in princes. I’ll give Trump the benefit of the doubt. I expect he’ll break the hearts of his supporters . But I doubt he’ll be any worse than Obama.”
