Stock hunting, Asteroid mining, Netflix competition declining, GDX and more
Here’s the transcript from this morning’s Live Q&A Chat in the Trading With Cody chat room. I was a bit late, sorry about that. Next week we’ll have a full hour and I expect we’ll have a full house too.
Also, the next The Cody Willard Show will be broadcast live tomorrow, Wednesday July 18, at noon ET. The Cody Willard Show is my new once weekly 35-50 minute live show that you can find on Facebook, YouTube, Periscope, and Twitter. We’ll be publishing it each week in podcast form on iTunes and Soundcloud. I’ll also send out a transcript of each show exclusively for Trading With Cody subscribers, of course.
Q. Any new buys coming soon?
Q#2: When is soon? We need new buys like Axogen at $4.25!
Another subscriber comment: Y’all are probably only making Cody more bearish with all of these new buy questions, lol.
Subscriber comment: You are right except he alluded to a few potentials not long ago. Getting a new company is like the rush at the blackjack table.
A. Haha, you guys are all right: “Cody, need new ideas!” and “Cody when will we get another 10-bagger?” Gambler notes that you guys will make bearish by asking/pleading/hoping that I’ll have another new buy asap…and that you guys act like finding another Axogen, Bitcoin, Nvidia, FB, GOOG, AAPL and so on is easy for me! (Well, it ain’t! and I’m trying every day to find another great name. But I won’t buy a new name just because people want a new name to buy. Rock on!
Q. Hi Cody – what ‘s your opinion on investing in asteroid mining? I know it is a gamble but would you classify it the same as investing in bitcoin when you invested in bitcoin the 1st time?
A. I remember reading recently that Goldman Sachs predicted that the world’s first trillionaire will be an asteroid miner. Now I absolutely believe that people will make a lot of money mining asteroids some day. But the odds of a retail investor being able to successfully invest in a company that will mine asteroids is about zero percent. Maybe in 10 or 20 years there will be asteroid mining pureplays that trade on the public markets. But not right now, I don’t think.
Q. Cody: I have approx 4% in gold miners ETF (GDX) and I am approximately break even. I am ready to throw the towel and sell it. Should I treat this as a contrarian indicator (i am holding the position for about 3 years now) ? If I am to sell should I put money aside to money market or invest in some particular stock right away?
A. No easy answers to those questions. I’m not a fan of GDX (I’d rather own gold than the miners and if I’m going to own a miner, I’d want to meet the CEO and get to know the individual miner companies that I own. That said, I like gold long-term. Not sure how else to answer your question since I’m not involved with GDX.
Q. Any interest in NFLX after tonight’s earnings report and blunder? Or AVGO after a huge drop related to its acquisition of CA? Thanks!
A. No interest in chasing $NFLX. And if anything I think $AVGO just proved its cynics correct that it is a desperate roll-up scheme. I’m thinking about shorting $AVGO, not buying it.
Q. Cody, regarding your comment on $NFLX Disney is pulling out from $NFLX this coming year + competition from the usual collection of monopolists = good call, in fact maybe a short
A. Good question/analysis you hint but I think you might have it backwards, IMHO. That is, if Disney and Fox and Comcast and Warner Brothers and AT&T are all combining into fewer competitors, that means there is less competition for Netflix too. So wouldn’t that be good for Netflix, not bad?
Q: Cody, just a thought – I’m looking on our small CAP stocks like TST, AXGN or CALX, they are looking good and seem not to be so influenced by maxro trade movements and threats. Should not we more concentrate on finding some other stoks like that, instead of adding stocks of other Tech giants? Actually what about to trim the “Giants”, which are owned by “everybody” and add other small cap stocks
A. I think we want to have balance. It’s not big vs small. It’s how do we maximize our upside potential and minimize our downside risk for the whole portfolio. That’s what I focus on every day and long-term too.
Q. Cody, let’s talk some beat-up solar, if one was considering some exposure to the sector, would you prefer nibbling some $SEDG or $FSLR (both currently in the mid 50s)… or just sit tight?
A. I’m considering buying more SEDG and selling my FSLR. More in the Latest Positions write up I’m about to send out.
Q. Cody, How would you distribute your investment between BTC, ETH, XLM and XRP? If 1% of investment figure was $100K which needed to be spread across above Crypto’s. How much more weightage would you give to XLM than XRP? Thanks!
A. I don’t like to give people that kind of detailed answer without knowing much more about your personal risk-tolerance, wealth, potential, income streams, goals, etc. That said, I’d think having 1/10th of 1% in each of those cryptos is probably about the most I’d suggest anybody putting in. Maybe at most a total of 1% of your stock portfolio put in across all our crypto investments is probably about right.
Q. I’ve heard you talk about where shares of $VZ could be in 5-10 years if they execute and don’t go off the beaten path. Where could you see $INTC in 5-10 years?
A. INTC could be at $200-300 a share in 5-10 years if they pull it off.
Q. Any thoughts on use-cases/survivability of Ethereum Classic vs. Ethereum (why ETH was selected for the TWC portfolio as opposed to ETC)?
A. Still studying both of them. Just trying to game the most likely winner, which I think is ETH vs ETC right now. But I could be wrong.
Q: Cody, I always thought about VZ as value play that I invest to get reliable 5% dividend from. This makes me think that this 5% “expected” dividend is going to put lid on stock price performance. Thoughts? Thank you!
A. I’ve seen many stocks turn from dividend plays to growth plays if the growth is there. The fundamental revenue and earnings growth is what will drive the stock more than any expected level of dividend performance. The tail don’t wag the dog!
