Part 2: Shootout In NYC, Lots Of Dollars, More Space, Etc

Here’s part 2 of this week’s Trading With Cody Live Q&A chat.

Q. What’s your thoughts on Standing Repo Facility (SRF)? Is it basically QE 2.0 in a way?

A. The Fed’s money games are good for banks and giant corporations. That’s about the best way to answer that question quickly and I just don’t have it in me to dig in further after having 3 hour ride to JFK where I was apparently just a few minutes behind a shoot out with police and an armed dude after having spent a hard working week in the city on little sleep, getting home at 1:15am last night and getting to the office at 7:30am today.

Q. 40% of US dollars in existence were printed in the last 12 months.

A. Seems fair to all those people who worked careers to make some of those dollars back when there wasn’t as many dollars out there, huh?

Q. In light of your earlier comments on BKSY, what rating do you give it now?

A. Hmm, maybe a 6+ at this moment.

Q. ASTR seemed to have a good report and working on low cost rocket. I think you are out of it. Why?

A. What was good about the report? There are no revenues and just a bunch of hyped up speculation about their future business and I lost faith that the company will successfully not only get a rocket launched but scale their business. I’d rather short than buy ASTR.

Q. Space stocks have been dynamic with 5%+ daily moves common, are you buying dips or waiting to see if they reach a floor? Can we get an update on the price where you would add holdings in the SPAC space stocks?

A. I’d buy any major dip in RKLB but I’m being mostly patient with most other Space stocks. I’d buy more of each 30-40% below their current quotes though.

Q. Cody, I started following a few years ago, when 3D printing was the rage. I found you because we were looking for similar investments. After following you on market watch for a year or two, I joined your newsletter there. I found your timing was impeccable. So, I made you the first analyst to replace myself. Thanks for all the great research since then. I looked at your spreadsheet of Space Revolution companies. I saw Orbital Sciences Corporation on the list. A local company for me, living in Loudoun County, Va. Orbital Sciences Corp is now a wholly owned subsidiary of Northrup Grumman. Orbital Sciences Headquarters is off of Warp Drive. Next time you fly into Dulles, head north on 28. You’ll see the exit after a few miles. Thanks for all of the good advice on Trading with Cody!

A. Thank you for the very kind words. We’ll make the fix on the spreadsheet.

Q. Hi Cody. I joined because you were recommended by Micah and I have been a member of his service since the old Apple Trader was available. I recently had 2 eye surgeries and couldn’t see for a few months. I did listen in on a webcast you had a few months ago about forming a space crypto group. I now can see so I noticed you had a group that was going to have an offering I think in space crypto? I do not have any software to allow me to trade crypto but I do have the funds to invest in crypto in the space field . I also feel space is a great place to invest in. Is it still possible to learn about how to invest in your startup and if so how do I do it? Thanks for any help, it is much appreciated. I am 73 and willing to learn. Thanks.

A. Great email and thanks for being a part of Trading With Cody. With the SKTLs Space Token we’re not doing an “offering” but we’re literally “airdropping” / giving away 100 million SKTL tokens to the first 100,000 people who simply put in their Metamask wallet information into a confidential system. The page to sign up for that airdrop will be up on sktls.com later this week and we’ll also have a video tutorial that will walk you through how to sign up for the airdrop step-by-step. After the initial airdrop (scheduled for January 1, 2022), you’ll be able to buy SKTLs on some of the exchanges where millions of people already buy other crypto tokens every day. At what price will be set by the market and whoever is willing to pay finding someone willing to sell at whatever price they start deciding to trade with each other at.

Q. I would like to understand the rationale for trimming really good stocks, e.g. NVDA, even if we expect a downturn. In the long run these stocks will return and probably surpass the level they have attained. It is impossible to know when this will happen and we will probably not re-invest the money which we trimmed, or we will wind up doing it at an amount above the price at which we trimmed (maybe I am alone in doing this, but somehow I doubt it). Trimming less than stellar stocks or stocks which are way ahead of their fundamentals (e.g. TSLA) I get. But I really have a hard time putting money back into a stock once I have taken it out. Your reaction please.

A. Your question is only relevant during a long-time bull market, such as we are currently living through. Markets are not always in bull market mode and they don’t always go straight up and sometimes stocks go down 70%, even the great ones. I like to try to have a little cake and eat it to as the bubbles and crashes play out over years and decades.

Q. Do you have some biotech stocks to propose?

A. Yes, coming soon. Any day. Just finishing up the report.

Q. I’ve read that Thomas Knight is both the Father of Synthetic Biology and his company Ginkgo Bioworks (NYSENA) is on the forefront of this revolution but I’ve also seen his company described as a sham. Have you looked at DNA for your basket of biotech stocks?

A. Yes, we dug into it deeply and didn’t like it. Too much randomness built into their business model.

Q. Your thoughts on AVGO?

A. Not a fan.

Q. I cannot adequately convey to you the difference you have made in my life and that of my family. I hope you and your girls are well.

A. Ah shucks, genuinely, and thanks for the kind words.

That’s a wrap. I’m beat. Thank you all. Peace til next week.