Google, Meta, Wolf, Verizon, Cramer, etc.
Here’s the transcript from this week’s Live Q&A Chat.
Q. Cody, Good morning and hope all is well with the you and family. Couple of weeks before you started adding VZ and were less convinced about AT&T. With the recent reports do you have different suggestion?
A. I’m not a fan of what AT&T has done to shareholders with the horrible, bet-the-company moves they’ve made on two bad businesses — buying DirecTV and then Warner Brothers. Neither company is “Revolutionary” and I’m in Verizon because it’s the better of the two and it’s paying us 7% dividend to hang out and I’m pretty sure it’s a safe dividend at VZ compared to AT&T.
Q. could you give an opinion on ILMN?
A. It’s a great company but it’s very expensive stock and almost always is whenever I look at it.
Q. Cody, buying any GOOG or META? Sometimes tough to pull the trigger.
A. Yes, I’ll probably buy a little of GOOG and META and WOLF today, but keeping the tranche buying small still. You guys know I’m still concerned about the broader markets, economy, etc.
Q. I just saw WOLF has tanked > 25%, What is up with that one?
A. Revenue grew 54% and the company is doing everything they can to scale up and meet demand. The market doesn’t like the report because the company can’t ramp up as fast as they want to but demand for their products is growing, margins are growing, the company has a chance to be much bigger than this in five years.
Q. Cody, Do not watch Cramer much but he just went off on all the Big Tech stocks as having lost their way and really not good companies anymore. GOOG, MSFT, META, AMZN seem to be lost to him. Only one he likes is AAPL. Seems a typical Cramer rant when his stocks get hurt. I have not seen anyone as negative as Cramer. Your thoughts?
A. Jim’s an old friend and I credit him with helping me in my career years ago and will always appreciate what he has done for me. But as far as using Cramer’s analysis to make money, I don’t know. While I’ve certainly made my share of mistakes and didn’t get us completely out of every stock we own at the top, I did warn everybody repeatedly throughout 2021 that we were in a HUGE BUBBLE and it was likely to pop soon. I don’t have much to say about what Cramer’s saying about hating on FANG stocks right now, except that I’d say it’s a little late to be helpful at this point.
Q. Did you trim any RKLB when it doubled from its low in July to its high in September, and if not, where would you consider trimming?
A. I think I trimmed a tiny bit in the hedge fund when RKLB popped like that and I’ve occasionally shorted a few call options against my common. We did trim some RKLB more aggressively back in 2021 when it doubled after we bought it initially. https://tradingwithcody.com/2021/09/09/conducting-our-semis-rklb-boom-interest-on-cryptos-and-more/ I plan on keeping most of my RKLB shares until/unless the company stops executing on the fundamentals and growing the company smartly.
Q. I have a couple of questions for tomorrow’s chat. 1. the company I work for has been acquired recently and thanks to equity, I know have 20 times as much money as I used to. What’s the best way to slowly invest that money over time? Besides stock picking, I was thinking to hedge my bets with some ETF or Bonds, how to determine what is the best choice? Finally, does it make any sense in the current context to invest in some early stage startups via Wefunder?
A. Congrats! I like that you asked about “Slowly investing” because that’s the key to building wealth — to do it slowly. There are no easy answers for your question and yes, you might consider looking at some early stage startups but be careful there. I’d be happy to hop on a call with you sometime to discuss a more comprehensive and tailored playbook. Just email us and my staff can set it up.
Q. Cody – I have a friend who’s offered me shares in the last round of SpaceX at $84.33 per share. What do you think? Good price or no?
A. I don’t know what valuation $84.33 per share gives the company because I’m not sure what stock you’re being offered. But I would say that if you can invest in SpaceX at a valuation of less than $130 billion or so where they last raised money, I would think it’s a great idea long term.
Q. Could you evaluate 23andme?
A. Yes, I will spend some time on it today. Good time to investigate.
Q. Biotech likely has great ideas – know you have some irons in hte fire – are there any sector etfs that make sense for major trends eg immunotherapy, genomics etc?
A. I’m still trying to get comfortable with biotech trends. I will keep working on it.
Q. How much do you pay attention to the “fed pivot”, RRP markets, soverign debt bubble, etc when thinking about revolutionary investing? i find it extremely hard to not go chasing things like food/ferts/fuels in times like these when we could have 40’s/70’s level inflation for a decade.
A. I think inflation has probably peaked and will be back at 2-3% in two years. Not sure how to game a Fed pivot other than to just keep analyzing the economy, the markets and the set up in as rational manner as I can.
I leave you all with a shot of little “Coltie”, aka, Toto.
