Cody Kiss & Tell: End-of-year view, when to trim, FANG and more stock talk
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. Has your end-of-year view changed?
A. Not really, I think there’s still likely to be a ramp into year end, but we’ve already have some of that.
Q. The obvious question-time to trim our exposure to $AAPL, $AMZN, $FB, $GOOG in expectation of lower prices or time to do the opposite or just sit tight?
A. I usually tell people that if they’re asking me if they should hedge/trim their long positions that they probably should be. Your asking about it is probably an indication that you’d be very uncomfortable if there were a 10-20% pullback in the stock market and therefore, probably an indication that you should trim some while you can and not when you have to. $AAPL $AMZN $FB $GOOG all up nicely today, so that’s a better time to trim today than yesterday! 🙂
Q. What level would you buy a tranche of each of the FANG stocks?
A. It depends on what’s going on in the markets, what other stock opportunities I see and a host of other things, but the short answer to your question is that I’d probably look to nibble on more $FB at $110 or so, $AMZN at $650 or so, $NFLX at $70 or so, $GOOG at $650 or so. Remember that I own lots of $FB AMZN and $GOOG and am not in a rush to add to them.
Q. Just looked at $FFIV. Has made a nice run since you sold. I assume you would still stay away?
A. You had to bring up a stock that went up after I sold it? I don’t know that I’d necessarily stay away from $FFIV, as I’ve always like the management there and the stock wasn’t expensive when we sold it. I might not want to chase it just now, but after doing more homework on it and what’s going on there right now, I could see buying the stock again, even if it’s up from where I sold it. Can’t let pride dictate our trades! 🙂
Subscriber follow-up: Thanks Cody. I honestly can’t remember why you sold it. Are you saying you have done more research on it recently or you will soon? Thanks.
Cody’s A: I will do more research and revisit $FFIV afresh.
Q. Would you nibble at some NVDA at these levels?
A. I’m in no rush to add to our stocks but yea, I do think $NVDA is a name looking attractive for a nibble here or soon.
Q. I still have $NFLX from your previous purchase. Would you add back at the right level?
A. I just don’t feel like I’ve ever been able to be objective about $NFLX and it’s just so darn expensive vs. the next couple years’ earnings estimates.
Q. What makes $AMZN being so expensive justifiable versus a company like $NFLX? The fact its in multiple revenue streams?
A. $AMZN has become the de facto way to shop for the vast majority of Americans. That, and Amazon’s huge cloud business, along with the fact that I consider Bezos the closest thing to a Steve Jobs these days are most of the reasons why.
Q. $GIMO has been growing earnings report and revenus at a pretty high pace. It’s also in network security. Is it possible that is a stealth trump trade with cyber warfare being more of a potential issue?
A. Looking at the $GIMO stock chart makes me sick for not having bought some of it earlier. It’s a fast growing company and it’s profitable. Trading at 40x next year’s earnings estimates isn’t cheap, but it could actually earn $2 next year which means it’s forward P/E is under 30. I’ve been working on that name and just haven’t bought it and it’s been running away from me, so that’s what I’m juggling with it for now.
Ok folks, I’m going to go get gas for the trip to Roswell’s Airport and then home to pick up my wife who gets to sleep/relax while I work away in Vegas for the next 2.5 days and 3 nights. LOL
