Labor Day Chat Transcript

Here’s the transcript from this week’s Trading With Cody Live Q&A Chat.

Q. Regarding $RKLB, could this be the reason for the price movement today? 2000 reaction wheels per year is equivalent to 500 satellite launches a year AND I really hope that’s the reason for the bump up today and not WSB. If that’s the case I think our price might be sustainable. I really wouldn’t sell any shares unless the share price goes parabolic. I’m hoping this is a 5 or 10 bagger. AND Cody – Any concern with RKLB becoming a meme stock and Reddit favorite in the short term? I recognize that long term this doesn’t change the thesis for us, but could we see some price fluctuations in the near term?

A. It’s both the news about Rocket Lab’s new reaction wheel factory, how it implies that at 2000 new wheels per year and 3-4 wheels per satellite that Rocket Lab is looking for big growth ahead and already has a lot of built up demand. The fact that RKLB is a (for now) a favorite at Wall Street Bets is a bit concerning for me, as that somewhat arbitrary demand from momentum junkies that follow such things can set us up for an exacerbation on the downside later. I’d suggest, as usual, doing a little trimming on spikes and nibbling if/when it comes back down. Patience overall, as we are looking out 5-10 years for The Space Revolution to really become mainstream.

Q. Hi Cody. Why isn’t any of space related stocks, SPACEX, RKLB, and etc. in your core?

A. SpaceX is definitely a forever-own position in my hedge fund — I can’t imagine ever selling it. The others are still too new and unproven to be considered forever positions.

Q. Any take on Amazon’s decision to integrate AFRM/BNPL solution? Is BNPL the next big thing?

A. Buy Now Pay Later doesn’t seem like it’s the kind of Revolutionary idea that I can get excited about. The Space Revolution or The Buy Now Pay Later Revolution, see what I mean? Which one has more potential upside from this moment over the next ten years? Space by a factor of 100, methinks.

Q. With google going with Samsung 5g modem for high end pixel phone, do you still rate QCOM as a buy at this level?

A. Yes, Qualcomm’s got plenty of demand for 5G modems for phones, at home wifi, etc that I think there’s still lots of upside.

Q. Are Ethereum, Helium, and other cryptos still being recommended by you? They weren’t in the latest Trade alert.

A. Yea, I’m missing UBER, ABNB and the other cryptos from the latest Latest Positions write up. I’ll get them written up and sent out Monday or Tuesday this week.

Q. Hi Cody, will you please rate SNAP and INFI also?

A. Yes, will add those.

Q. Thanks, I have always used your rating as part of my rebalancing strategy.

A. Thanks, rock on.

Q. Would you buy more INFI here (below 3.50)?

A. If I didn’t own any — and even if I did own some but felt like it wasn’t enough, I’d have no problem nibbling a little bit here. Don’t go crazy on this, obviously, one of our more speculative plays though.

Q. You have sold JMIA. Any take on OPRA? It’s another Africa play, although it is much more diversified geographically and product wise than JMIA.

A. Yes, I’ve looked at OPRA over the years and I just can’t find enough justification to own it vs other more, yes, more Revolutionary ideas.

Q. Thanks to your wisdom and your “reset” on the market a few months ago, I was able to avoid some major pain from the collapse of the Meme/Spac stocks that tanked a section of the market. My question relates to Jumia. What is your rationale for selling at the moment? Do you believe its a matter of time before Starlink etc. provides more internet? Do you believe its a matter of time before they expand to UAE or China? As their platform has recently expanded, do you believe its a matter of time before the laziness of buying online kicks-in?

A. That’s great to hear about saving you some pain from the SPACs/Memes. I gave up on JMIA partly as the final leg of my Great Reset, as a matter of fact. I’m worried that trying to monetize Africa might take a bit longer than Jumia’s set up for. I think there might be better places to put our money. I will revisit it in a month or two,

Q. What are your thoughts on Ginkgo Bioworks?

A. I looked at it a while ago and it looked like a great company but very speculative from what a I remember. I’ll take another look. Piper, let’s do the magic, please.

Q. Cody, the Joby company is pretty fascinating. Is this worth a look on our end? Definitely has the potential to be revolutionary.

A. VTOL (electric vertical takeoff and landing aircraft) as an airtaxi service will be awesome when it gets here. Like a lot of things, it’s priced very richly, this one at $6 billion for a company that’s not generating revenue or even has regulatory approval for its business plan. Joby told investors it will start earning a profit by 2026 on $2 billion in revenue, and 10 years from now, it will be generating $20 billion in revenue with 14,000 aircraft flying in 20 cities. That would be impressive if they pull it off and the stock will be much higher if they pull it off. I’m going to dig into it. Piper, magic please.

Q. Here’s 10 eVTOL Development Programs to Watch in 2021- Joby Aviation (Marina, California), Archer Aviation (Palo Alto Airport, California), Volocopter (Bruschal, Germany), Lilium (Munich, Germany), Airbus (Toulouse, France), Ehang (Guangzhou, China), Vertical Aerospace (Bristol, U.K.) and Urban Aeronautics (Tel Aviv, Israel).

A. Thanks for sharing.

Q. Is there an arbitrage between the common and the warrants?

A. I don’t know, it’s not my game.

Thanks all, that’s a wrap! Rock On!