Trade Alert: A Couple Nibbles, HF Crypto Update, SpaceX BK?, Lots of Stock Questions

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

Q. Do you see the S&P up or down before Christmas?

A. Slightly down from here, but lots of volatility along the way.

Q. Cody, are you more bullish or bearish now versus when you did your great reset earlier this year?

A. Ooh, that’s a tough question. I’m less bearish on some of the former highflyers, including in our own portfolio, that have come down 50-70% since my Great Reset in February/March. But I’m not terribly bullish on the markets or on most of those names right now either.

Q. I would love to hear where you would throw puts around in this “kangaroo” market.

A. Hmm, I buy some puts on index and/or some crappy stocks quite often in the hedge fund, but rarely in the personal account. For example, I do think GM looks like a good short here by the way, using some slightly out of the money puts that expire in the next few weeks and I have bought some of those today. But again, I haven’t done that in my personal account at all with GM.

Q. Hi, Cody. All the best. When you say you might be nibbling some BTC and ETH Futures in the hedge fund soon, can you provide us with more specifics when you do so; strike price and date? Also, when you exit those buys? Thanks!

A. I’ll try to, but it’s not really that relevant to you at home as compared to my personal account. I’d not selling any crypto right now in the personal account and I’m not looking to buy any crypto in the personal account unless/until the next crypto crash comes. Which will probably be when the SEC eventually sends out some cease and desist letters and/or otherwise finally cracks down on some of the most fraudulent and silly cryptos out there.

Q. Cody, any update on when and how to get in on the airdrop for SKTLs Space Token?

A. Yes, I’ll be sending out an update on it tomorrow, I hope.

Q. I would love to hear your opinion on BKSY and RDW at these prices. Are they discounts, or do you feel like they are actually regressing in attractiveness?

A. Trade Alert, I just nibbled a little bit of BKSY and RDW in both the hedge fund and the personal account today. Just a little bit though, as I’ll look to add more at lower prices if we get them.

Q. Awesome, because I just bought some BKSY and RDW due to impatience. On the subject of space though, how do you feel about the comments by Musk on SpaceX engine problems? Do you think this is good for RKLB? Do you think they might collaborate? I know Peter Beck is about to be interviewed, so I am watching that as well.

A. I don’t think SpaceX is really at risk of going bankrupt next year. I don’t think there’s anything that Rocket Lab can bring to the table for SpaceX that SpaceX can’t do in house or probably already has. On the other hand, I do think Boeing or Lockheed Martin or someone else could REALLY learn A LOT from collaborating (or acquiring) Rocket Lab RKLB although I have no expectation that Boeing or Lockheed will do so anytime soon.

Q. Cody, do you prefer SpaceX at 100 billion or RKLB at 7 billion? Thanks.

A. SpaceX by far although I am still finding it too cumbersome and laden with fees to buy SpaceX at $100B which is the company let insiders sell some shares in the private markets a couple months ago.

Q. Would you be supportive of nibbling some RKLB here?

A. If you don’t own any. I own quite a bit and am in no rush to add to it personally or in the hedge fund just now.

Q. Cody, any interest in SPCE?

A. Maybe if you don’t own any, I’d look to nibble a little bit. I’m keeping this name small.

Q. I am curious about your thoughts on the company Planet Labs? It’s going public via SPAC (DMYQ) later this week/next week and seems to be similar to Black Sky. Thank you!

A. Yes, looks a lot like BSKY, but I had a hard time reconciling some of the numbers they put in their 10Q fillings and investor presentations.

Q. Cody, do you see FB do 5x in the next 5 years?

A. I’d say that’s very unlikely, maybe a 2x or 3x in the next five years is a bit more likely. The only way FB would go up 5-fold over the next five years is if the next iteration of Oculus sells hundreds of millions of units, which is unlikely. Maybe the next version or the one after that when your Oculus headset can double as your sunglasses.

Q. Thank you for the unity trade alert. Can you please provide some context on the change in course here?

A. I think the Metaverse is going to be a multi-trillion dollar economy in five or ten years and this is one of the best platform plays on the Metaverse.

Q. Will U be a medium or small sized part of our portfolio?

A. Small for now, but I’d look to make it a medium-sized position if it gets back closer to $100 again.

Q. Hi Cody. Do you know anything about the company c3.ai (AI)?

A. Yea, I’ve done some work on it. It’s a Tom Seibel company and the stock is down 70% or more from its highs earlier this year. It seems like their AI technology might not be good enough to compete long-term and that kept me away from it.

Q. Hi Cody, I hope you and your family are doing great. You’re just awesome! I don’t need to give any explanation to that statement. I had a question about Ethereum. At what price would you buy more or sell some? Thank you for all the investment advice. I sincerely appreciate your effort to explain your investments and your ability share revolutionary companies. Wish you and your family wonderful holiday season ahead.

A. Thank you so much for all the kind words. I’d probably start to buy some more ETH below $4000 again and then I’d be aggressive in buying more starting around $3500 or so. On that note, I let all my bitcoin and ETH futures expire in the hedge fund earlier at the end of November and while I still own crypto in my personal account, I do not have any crypto exposure in the hedge fund right now. I’ll probably nibble some bitcoin and eth futures again soon in the hedge fund, but it’s not the same as a long-term personal account and as you know, I’m worried that crypto is very crowded right now.

Q. Can you provide your thoughts on FUBO at these levels?

A. I should have sold it when I thought about cutting it loose 30% higher than the current quote. Instead I nibbled some now that it’s come down to these levels. Good company, bad time to have been in the stock. Not sure what the next catalyst for the stock will be though, although sometimes that alone can be the next catalyst- that nobody can see a catalyst.

Q. Cody, would you be interested in adding to INFI here? It’s considerably lower since the trade alert.

A. Yea, I could nibbling some here, but no rush.

Q. NNDM’s current assets plus bank deposits conservatively are worth more than the market cap right now.

A. Yea, I’ve looked at it many times and while I don’t see much problem nibbling some here if you really love the company, I just haven’t warmed up to the company’s prospects yet.

Q. My play has been selling covered calls on NNDM. At what point does liquidation value backstop stock price in your opinion?

A. The downside is probably limited here. It’s more a question of opportunity cost with tying your money up in this name.

Q. I also own a cannabis stock that is near cash value. Has that sector started to have appeal?

A. I’d be interested in buying a marijuana stock or two if I could find one or two that have any sort of actual competitive edge.

Q. Any thoughts on the fintech payment stocks PYPL, AFRM and SQ? They have come down considerably.

A. I like PYPL and SQ but not a fan of AFRM at these prices.

Q. Cody, do you think JMIA is worth a nibble here or is it going to a dollar?

A. I haven’t looked at JMIA since I sold it after they’d been missing a couple of quarterly earnings reports that weren’t very good. I’d still be worried about it.

Q. There aren’t many questions that you haven’t answered so I will ask about one more stock. How about CRSR?

A. I’ll take a look later.

That’s a wrap. Thanks all!