Cody Kiss & Tell: Snapchat, Weightings, $PI 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 what about the upcoming $SNAP IPO?

A. I’m still getting comfortable with the $SNAP revenue model, but it’s presence as the anti-FB for younger people is certainly compelling. I’ll probably be a buyer of the stock below $20 billion market cap, but again, I’m still learning about it.

Q. Cody, I can get shares of SNAP at IPO price, should I take them? From what I read , WhatsApp is rolling out a product that does the same thing?

A. Let’s get closer to the actual IPO and see where $SNAP actually comes public at. I agree with your follow subscriber’s $SNAP vs Whatsapp analysis: “Whatsapp is releasing a clone of the ‘stories’ feature; but Instagram also cloned that feature as well and it didn’t destroy Snapchat. Snapchat isn’t just about one feature, it’s also the community and content that they’ve built, and they keep coming out with new features and products like the Snap Spectacles.”

Q. Cody, I have had this question for some time. You rank your stocks from largest to smallest holding which is clear. But this could be skewed by $AAPL, $FB, $GOOG being long held hugely successful investments. If you were starting over and filled out your tranches in the stocks listed, and had lots of investing years left what would be the relative holding size of your stocks? Would $GOOG be a 5X and $TWTR a 1X? SNE 3X? To me this is a critical missing element of my TWC knowledge. Thanks.

A. That’s why I use the latest Revolution Investing rating on a scale of 1 to 10 for each position in each Latest Positions. Essentially, I’d start with building up the highest-rated stocks first and also establish slightly larger positions in the most-often highest-rated stocks over several months. I have found that this approach I use of using a frequently-upsed Revolution Investing Rating for each position combined with listing them in order from largest to smallest and then communicating in each Trade Alert when I want to build up a position into something ever larger and/or, for example, when I bought yet more Apple common and added some Apple call options back 13 months ago even though Apple was already a very large position for me since I’ve owned forever.  I’ve found it’s the most transparent, efficient and straight forward way of trying to communicate how I would trade and how I am trading.

Subscriber follow-up: Cody so I understand, in your last update I believe almost all long positions were 7’s and 8’s, so that tells me my position size in all 14 or so longs should be about the same dollar amount. Not to be anal, but is this correct? $TWTR, $NVDA, $GOOG, $FB, et al about the same within 10% of each other. Thanks again.

A. I guess my answer would be — “sure.” One thing that I try to make clear is that everybody’s risk tolerance, cash levels, incomes, etc are different, including mine from yours, so do your own due diligence on each stock and tailor your portfolio accordingly.

Q. What percentage of your Revolution portfolio is long vs. short?

A. Hmm, let’s give a range — I’ve probably got 20% as much exposure on the short side as I do on the long side.

Q. Hey what’s up C.W., seen your last trade alert about $IWM, I have a couple of questions for you related specifically to your $IWM trade. Comcast forced us to sell all of our 401K CMCSA class A stock on 01JAN17, since then I rolled everything (including all future contributions) into $VSCPX small cap ETF, which trades in tandem with your $IWM. I have done great so far but with your current $IWM short trade my questions for you are: 1. Since I am 100% in the small cap ETF and am now looking to raise cash to prepare for that sooner then later pullback, what percentage (if all in now) should I put on the sidelines right here right now? But don’t want to miss the train if we do climb higher. 2. Would you start putting future contributions right here right now on the sidelines too or let them continue to be invested in the small cap ETF? Since I will only be trading in and out of this ETF for my 401K for the next 15yrs. My wife still wears the “TWC 1 yr anniversary” tee. And yes I am one of your followers that bought FB at 19/share and made a small fortune lol! Still brag about that today. Thanks, you rock!!!

A. That’s awesome, Doug, congrats on $FB and thanks for telling us! Lots of questions to address and some I’d need to know much more detailed info about your age, your risk-tolerance, your upward mobility, your inheritance potential, etc. That said, I do think you should be much more diversified in your 401K than having it all in one small cap ETF. No more than 30-50% at most in one ETF is probably more than enough.

Q. Will you be doing a similar thing as you did last year for Stocks Wanted for 2017?

A. Wasn’t planning to, but if by popular request you guys want a Stocks Wanted for 2017 Report, I’ll crank one out.

Q. Hi Cody – thanks for everything you do! What’s your take on $PI’s earnings and guidance?

A. $PI‘s earnings and guidance certainly weren’t thrilling, but we didn’t expect they would be. They show steady strong growth and and if they indeed do become the de facto standard for RFID for retail or any other sector, there’s huge upside in coming years. Very risky and volatile stock though, as I’ve said it would be from day one.

Q. Cody, thoughts on $PI here, good for a first tranche? Is it good for a second?

A. I’m not in a rush on adding to the $PI but I’d rather be a buyer than a seller of it here. Maybe just a small nibble, but it could be weak until the next quarterly report.

Q. Cody, I have been out of the $HUBS short since low 50’s any interest in shorting more?

A. Yes, I shorted a little bit more $HUBS just yesterday as noted in the Trade Alert: https://twc.scutify.com/trade-…

Q. Can you comment on $FSLR? Thanks.

A. What a frustrating name $FSLR has been for the last year at least. As for the quarterly report last night, $FSLR beats on both EPS and revenue. EPS of $1.25, beats by $0.28. Revenue of $480M, beats by $67M. $FSLR remains frustratingly cheap.

Q. Cody, when are you going to publish the new Latest Positions article?

A. Oh I know….I started working on it a week ago and now what I wrote is probably old anyway, so I need to start over on it again. I’ll do one before Friday, I promise!

Okay folks, that’s a wrap. Thanks!

FYI, I’ll be speaking at the New York Trader’s Expo next week: 02/28/17 1:30PM – 2:15PM Flip It: You’re Doing It All Wrong Why everything you thought you knew about trading, investing and Wall Street is upside down. http://cody.newyorktradersexpo…