Space Race Is On, EVs Everywhere, Rate These Stocks and More

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

Q. Cody, God Bless you and your baby girl sir. No need to apologize one bit. So happy she is better. I will pray for you and your family. I’m so blessed I found this site 5 or 6 years ago. I have a ways to go but I feel like I’m first and goal on the 5 because of your hard work and courage to put it out there. Thanks so much.

A. Thank you so much for the kind words. Amaris is doing much better.

Q. Hello Cody, good wishes to Amaris and your family. Do you see any headwinds to the market? It looks like Biden has brokered a deal within Democrat factions, and the infrastructure bill may get passed (most likely). So, except for earnings surprises and reopening’s most of the goods news is baked in. So, market experiences pull back before seasonal Christmas cheer market move upwards.

A. In my entire lifetime, the Republican Democrat Regime hasn’t made a single significant change to their endless march of loopholes and tax tricks and subsidies for giant corporations and the industrial military complex and the banking industry. The rest is just details and noise along the way. The markets don’t really change their valuations or directions or whatever just because whatever the corrupt administration in power passes yet another complicated manipulation of the tax code. Anyway, I’m still concerned about valuations in the market in general and I think there’s a lot of fraud in cryptos and SPACs that is still going to come out but in general, I don’t have much of an opinion on how to game that.

Q. RDW…Wow! RedWire to participate in the buildup of a new space station with blue origin and other companies.

A. Yea, this is yet another indicator of just how early and just how big The Space Revolution is going to be. “Redwire Space, which went public in September, will run the station’s payload operations and build deployable structures. Redwire also plans to use Orbital Reef for microgravity research, development and manufacturing.”

Q. Tesla hits $1 trillion market cap for the first time after Hertz said Monday it would buy 100,000 electric vehicles.

A. You’re welcome!

Q. Hi Cody, what’s your take on the TSLA Hertz news and TSLA rating at $1 trillion? Are you hedging?

A. No surprise that the rental car companies are going to buy Tesla’s to make sure that Tesla doesn’t end up killing them by itself over time. I think I’ve predicted exactly that several times for you guys over the last two years. Yes, I trimmed about 5% from my personal account and hedged some more TSLA in the hedge fund today too. Dr Evil says, “1 TRILLION DOLLARS…. hahaha.”

Q. Do you consider holding ATVI/NIO at the moment?

A. I like NIO just fine, not very interested in ATVI but I don’t hate it either.

Q. Cody, Elon musk says launch is a $3 billion a year business. Even if he’s 100% off, are we at risk of overvaluing that side of rocket lab?  The musk quote is apparently from the code conference and multiple citations say he said for SpaceX, launch will be a $3 to $4 billion business. So, not the total size of market but the share SpaceX expects to get.

A. Yes, it’s certainly a risk that we’re overvaluing any particular space company right now while The Space Revolution is in the first pitch of the first inning. Do you have a link for the Elon Musk quote about the size of the launch business?

Q. Cody, DIDI appears to have weathered the China Internet storm and may list in Hong Kong. Is a renewed and stronger DIDI, flush with new capital, a threat to Uber’s ability to grow outside the USA?

A. Didi’s sure got scale, but I’d bet on American innovation and systems before I’d bet on China’s.

Q. Thinking about adding 1 more tranche into Facebook. But before I do that what do you rate Facebook at?

A. I like FB here, maybe I’d rate it a 7+/10.

Q. How would you rate FUBO? Thanks.

A. A 7+/10 right now.

Q. There’s a bunch of big tech earnings reporting this week (FB, GOOGL, AMZN and APPL). Are you concerned for any of them because of Snap’s earning call from last week? I know its only a guess, but how would you rate them going into earnings and would you also be a buyer of any of them if they fell after they reported?

A. I’d be a buyer of any of those names if they get slammed after their earnings reports. I’d expect FB and GOOG to have some pain from the Apple iOS privacy issue but not as bad. as SNAP was slammed last week.

Q. PayPal out on $PINS which is down almost 12% in the PM. Nice call selling it last week Cody.

A. Yea, turns out Paypal doesn’t actually want to pay $50 billion for it. We had a very nice run on PINS from the low teens where we bought it 20 months ago to the $60ish where we sold the last of it last week.

Q. For the chat today, can you comment on the steady INFI decline? Simply no near term catalyst?

A. I’m surprised at the slow decline in INFI as the fundamental outlook remains compelling. Stocks ebb and flow though. I’m holding my remaining INFI steady.

Q. All my play money is in an IRA. I used GBTC and ETHE. I know you don’t like them. I don’t understand this thread. Ryan Selkis ⁦‪@twobitidiot‬⁩ 1/ Grayscale continues to be the most misunderstood product in crypto…even amongst people who know a lot about the space, and the ETF arms race. Today’s announced DCG “buyback” is a sleight of hand that does nothing structurally to close the discount to NAV.

A. I didn’t read it but at a glance I have no idea what that tweet is about either.

Q. I do not own Snap, is it a good level to buy a first tranche now?

A. I can think of worse ideas than starting a new position in SNAP after it got slammed last week, but I’d rather find great Space Revolution stocks.

Q. Hi Cody, I would love it if you could look into APHLF and give me your opinion on owning the stock. Yes, I bought 1000 shares for 45 cents and it now trades at 66 cents, LOL. It is a penny stock but I think a potential play on lithium. From what I’ve read, Alpha has become on of the largest lithium developers in Argentina. Thx!

A. Hmm, I’m generally less than bullish on the lithium space because of its commodity-pricing issues, and APHLF looks like a bad bet in a bad industry, to be frank. “Alpha Lithium Corporation engages in the acquisition and development of lithium brine deposits in North America and Argentina. It holds 100% interests in the Tolillar Salar project comprising 10 exploitation concessions totaling 27,500 hectares located in the province of Salta, Argentina; the Green Energy lithium brine project covering an area of 4160 acres located in Grand County, Utah; and the Hombre Muerto project that covers an area of 4,087 hectares situated in Argentina. The company was formerly known as Voltaic Minerals Corp. and changed its name to Alpha Lithium Corporation in July 2019. Alpha Lithium Corporation is headquartered in Vancouver, Canada.” I mean, the company has zero revenues, for one thing. Be careful out there, your money is hard-earned.

Q. Any comment on $DWAC? I’m just looking for a possible play on it.

A. Run for the hills.

Thanks for the great questions. Be safe out there and rock on!