Cody Kiss & Tell: Market set-up, Russia, Amazon Music and more
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. Cody, Welcome back. Ok, while you were out and about hobnobbing, did you get a chance to talk stocks with your rocker buds? If so, what was the general vibe? Bull? Bear? Complacent? Relatively little to no skin in the game?
A. Good question and yes I did. Most folks I talked to about stocks are invested, have some nice gains in big cap tech (some of them are long-term subscribers to Trading With Cody). Not much “markets” talk though, as there wasn’t a lot of time outside of app talk — and on that note, I would mention that there sure seems to be a new wave coming the App Revolution.
Q. What is your biggest concern/fear about the market right now? Anything?
A. Mainly that the market would somehow start pricing in lower multiples across the board, discounting longer-term inevitable lower after-tax profit margins.
Q. What would precipitate pricing in lower multiples, lowered earnings?
A. I would expect there will be a serious uptick/uptrend in interest rates, some major swings in currency rates around the world, and/or a general downturn in the economy. Something we have to keep on the ball with, as always.
Q. What are your thoughts on Russia? Recently, Putin told the Russian citizens who are aboard to return to their motherland. Think he’s just saber-rattling, or is this something the US should be concerned about in terms of an escalation towards war?
A. I would change one word in what you wrote to answer your question: “REPORTEDLY, Putin told the Russian citizens who are aboard to return to their motherland. Think he’s just saber-rattling, or is this something the US should be concerned about in terms of an escalation towards war?” Overall, I just wouldn’t worry about Russia. But I am always worried about wars.
Q. On your short stage trip to San Francisco, did you meet the King of Government Subsidies, Elon Musk? Teflon $TSLA is back above $200 after being as low as $196 on Friday. If it keeps climbing, might be an opportunity to pick up some put options, especially since the market feels a little toppy?
A. Musk was not at the Citizen Genius show with Bob that night. I’ve removed $TSLA from my trading screens, in part because I see so many of them in SF and LA and people I know who drive them, including Bob who told me he uses solar panels on his rooftop to charge his Tesla batteries.
Q. Do you think Google’s new phone Pixel has a much better chance at becoming a success than past iterations because the Samsung blow up has created an opening?
A. I don’t seem to take any phone efforts from Google very seriously. At both their YouTube efforts and their mobile phone efforts there seems to be a lack of ability to execute. Not sure they even want to become a major phone vendor.
Q. Your thoughts on $AMZN getting into streaming music? Do you think this is going to be problematic for $APPL?
A. Apple Music has already failed next to Spotify and the market doesn’t care as Apple Music will never again move the needle for this iPhone company. Amazon Music Unlimited, streaming and downloading songs on demand, on the other hand is another huge hurt for Pandora, $P.
Q. Cody, how big of a position do you have in $FIT right now (like what % of a full tranche), and what do you see as the outlook on that stock, especially heading into Christmas? That name is unfortunately an ugly, bleeding ulcer on my screen, and has been almost from the time we bought it.
A. $FIT is a relatively small position, my second smallest and it’s an ugly nasty loss on my sheets too.
Q. $AAPL supposedly postponed its next earnings, and I heard somewhere that the reason for that is so that their earnings announcement is after their next event/announcement. Even heard talk that they might announce launch iPhone 8 at that time. Just more mindless chatter, or has anybody heard that is actually on the radar?
A. Nah, not expecting another new iPhone for at least a year.
Q. What do you think about snagging some $ACIA call options for a rebound trade?
A. No feel for $ACIA‘s trading action.
Q. What are your current thoughts on Zillow – Z? Thank you.
A. Still bullish on $Z long-term, not so much short-term tho. Markets acting toppy and high-beta stocks like $Z might become better buying opportunities in weeks ahead.
Q. Cody, I see $AMBA is down $11 in about a week. I’m a bit light in $AMBA. Good time to add a tranche?
A. I wouldn’t rush into it. $AMBA is such a wildly volatile name, and I wouldn’t be shocked to see high-beta stocks like it lead the markets lower into the election.
Q. Cody. Your thoughts on the company American Bullion as a way to add gold to my IRA?
A. I hear those ads about American Bullion sometimes too and I wonder about it. Let’s ask our Trading With Cody subscribers if any of them know American Bullion and/or have used its gold IRA services. What say thee, dearest Trading With Cody subscribers?
Subscriber comment: Nope. I know nothing about American Bullion. And I don’t have gold in my IRA.
Q. AXGN set a secondary at $7.50. Why did the price go up, I don’t think this is usual?
A. Yes, that is unusual but not unheard when the company removed the uncertainty of needing to raise more money and did it by selling shares at relatively high price compared to where the stock has ever been before in years past.
Okay folks, that’s a wrap, thanks!
