Trade Alert: SHOP + Chat Transcript (Chips, Cody’s Top 5 And More)
With Shopify getting killed today after already having gotten killed for weeks on end, I’m sneaking in and starting a position here around and below $730. SHOP is still not cheap, but I’ll start a position here and will look to add more on further weakness. More analysis to come obviously.
Here’s the transcript from this week’s Trading With Cody Live Q&A chat.
Q. Cody, since we’re building up a position in INTC, should we be reducing our exposure to TSMC and QCOM? Any concern about being overweight on chip companies? With the Russia/Ukraine news, are there any geopolitical concerns with TSMC?
A. Yes, I might consider trimming some TMC and QCOM and NVDA. Please see my article from last week when I talked Taiwan/Ukraine parallels, I agree.
Q. Thank you for all your guidance. Very much appreciate the words of encouragement towards the end of yesterdays write up on INTC. Always a good reminder to keep a level head!
A. Amen!
Q. Cody, since u expect INTC to be like buying TSLA in 2019, can the move be more explosive than a double to potentially 3-5x times?
A. That’d be a stretch, I think, but if everything went right for a decade, maybe.
Q. Cody, also do you have any opinions on companies developing Hyperloop systems? What about the very “boring” boring company? “VACQ you very much.”
A. Haha, I wouldn’t bet against Elon’s hyperloop system, but I doubt that I’d find much investable in any other hyperloop companies.
Q. Cody, should we be adding to RDW or BKSY?
A. I added to my BKSY as noted in a recent Trade Alert. Not adding to RDW yet.
Q. Hey CW! Do you think a lot of the risk is removed from buying RKLB here at or around $10 per share going into earnings? Also, feet to fire, what are your views on the results and future of the company? I saw that you bought more recently when it was getting hit to increase your position.
A. There’s still plenty of risk in RKLB and there will be for another year or two at least until the company gets closer to cash flow positivity and real earnings, etc. No idea about what the last quarter was like, but long-term I continue to hold a very high risk/high potential reward position in the name.
Q. Cody, are you still positive on AMZN? It seemed their partial ownership of Rivian really helped their earnings and without that they would have been so so. They are valued at almost 50 times earnings. Thank you.
A. I like the new CEO at AMZN and I’m long in both the PA and HF.
Q. Cody, what should we do with Ethereum? Are we selling all of our ETH? or should we sell the newer ETH that hasn’t at least doubled and just keep the older already multiple X timed ETH? Thank you for answering.
A. I sold my ETH in the hedge fund to just let crypto cool off for a while. I still hold ETH in my personal account and am not going to sell any for now.
Q. Have you ever heard of Haru Invest? Is this something you would ever consider if you were a crypto holder? Apparently, their schtick is to let crypto holders act as liquidity providers to a swap pool to generate earnings from transactions as swaps happen. According to this, they’ve been around since 2019. They claim to offer attractive rates (15% fixed). This is the explanation : https://www.prnewswire.com/news-releases/haru-invest-releases-farming-just-got-easier-allowing-users-to-inves
A. I don’t follow the scammy exchanges well enough to know if I’ve heard of Haru at some point or not, but I would avoid it.
Q. did you ever look at MTTR? Matterport, Inc., a spatial data company, focuses on digitizing and indexing the built world. It offers Matterport digital twins, a 3D data platform to design, build, operate, promote, and understand spaces. The company offers Matterport Capture, an application that enables to capture depth, data, and imagery of a space using 3D cameras, 360 cameras, and iPhones; Matterport Workshop application to customize, add additional details, and share spaces.
A. Yes, I looked at it, but didn’t pull the trigger and now I need to go refresh my memory and look at its current valuation, which I’m sure is much better than it was the last time I looked, as I’d imagine the stock is probably down 50-70% from its highs?
Q. What did you think of ABNB’s earnings from last night? Is it still too expensive from your seat?
A. Great numbers, nice growth, still way too expensive for me right now in this market environment.
Q. It always helps if you could let us know your top five positions in your hedge fund.
A. Alphabetical order: FB (after I covered some hedges on it this morning) INTC, RKLB, TSLA, UBER.
Q. At what price would you buy FB? And, what are your thoughts on MP? I am thinking of selling it. Thanks.
A. By covering some FB hedges today, I essentially bought some FB for the hedge fund today around $213ish. No rush though. I think FB could bounce between $200ish to $240ish for a while. As for MP, nothing’s changed for me there. The company’s been doing a pretty good job on delivering what they say they will, but it is a small position for me and I do occasionally hedge it because it’s sure not cheap right here.
That’s a wrap. Thanks for the questions, gracias!
