Share Picks 2020

PHG wrote: »

See a lot of people averaging down here. I never do it so do not understand it.

Do people on here do it because of FOMO?
You bought originally for it to go up so why not set a SL, if its hit then bail and move onto next stock, does it not lead to an emotional attachment? You are increasing portfolio risk, profit returns and time decay to profit.
Why waste time waiting for a stock to make a profit if it keeps going down? So the opportunity cost here.
Surely there is a point where you exit at certain losses?
I hope everyone talking about BE are including transaction costs in and out.

It depends on your overall strategy. If you view a stock as worth 100 dollars today and nothing major happens and it falls to 90 tomorrow, it's "on sale". That would be a part of my strategy but I plan to buy and hold very long term so it's different depending on your outlook. I mightn't do it if I thought I might need to sell in under 5 years.

DutchYurt wrote: »

I'll never understand how Netflix is part of FAANG. Highly overvalued IMO

Because if you got rid of the 'N' it would be a bad word

PHG wrote: »

See a lot of people averaging down here. I never do it so do not understand it.

Do people on here do it because of FOMO?
You bought originally for it to go up so why not set a SL, if its hit then bail and move onto next stock, does it not lead to an emotional attachment? You are increasing portfolio risk, profit returns and time decay to profit.
Why waste time waiting for a stock to make a profit if it keeps going down? So the opportunity cost here.
Surely there is a point where you exit at certain losses?
I hope everyone talking about BE are including transaction costs in and out.

You only do it if you think the stock is going up in your timeframe. If you're convinced in a stock (like I am in Lemonade), then I bought into it first at $60, but then it went down to $45 so next month when I went to invest, I got in at a cheaper price. I have no thoughts currently that it's going to be below $60 for long, and now my BEP is $53.

If the price had still been $60 the second month would I have doubled my stake, unlikely, but seeing that it was "on sale" got me to purchase.

Shedite27 wrote: »

Also not sure why Microsoft is not included

I include it in my FAGMAN stocks

Nemeses2050 wrote: »

I would say it's a buying opportunity if INTC drops

Folks just a note, if you intend to buy INTC don't jump in yet...reading into so called analysis notes...it seems there's a consensus they're lagging behind AMD and NVDA in AI and other things and they all expecting a bit more hair cut to the Share price...so maybe wait until next week to see where they're.

I'm still tempted by Intel for a long hold but I don't think it's value at this time.

I'm still kicking myself for not getting AMD at ~40 a couple of months back.

We had this whole Intel debate exactly 3 months ago, July 23rd, when Intel annoucned the delay in producing modern chips and dropped 17% in a day from $60 to $50. The main argument people on here were using for buying was "Intel are a famous company, it just dropped 17%, it will go back up 17%". It hasn't, it's now at $48.

The new kid on the block that day in chips is Nvidia. On that same day that you could have got Intel for $50, Nvidia was $400, up 70% YTD at that point. Nvidia is $540 today.

So the "its cheap" arguent on Intel netted you -4% since July 23rd, the "it's too expensive" Nvidia is up 35% since then.

The same decision is in front of you today, with exactly the same companies. Intel looks cheap, Nvidia looks expensive. Don't make the same mistake again. One company is going nowhere, the other made big acquisitions recently to modernise.

Shedite27 wrote: »

We had this whole Intel debate exactly 3 months ago, July 23rd, when Intel annoucned the delay in producing modern chips and dropped 17% in a day from $60 to $50. The main argument people on here were using for buying was "Intel are a famous company, it just dropped 17%, it will go back up 17%". It hasn't, it's now at $48.

The new kid on the block that day in chips is Nvidia. On that same day that you could have got Intel for $50, Nvidia was $400, up 70% YTD at that point. Nvidia is $540 today.

So the "its cheap" arguent on Intel netted you -4% since July 23rd, the "it's too expensive" Nvidia is up 35% since then.

The same decision is in front of you today, with exactly the same companies. Intel looks cheap, Nvidia looks expensive. Don't make the same mistake again. One company is going nowhere, the other made big acquisitions recently to modernise.

Will be very interesting to see if that trend continues.....lets check back in another 3 months.

Intel seems to have at least bottomed out at $48. (for this week)

Pelezico wrote: »

Would not touch Intel. They are a node behind development of chips....like being the Nokia of chip makers.

The end is nigh...hence the very low PE ratio.

Yes Intel are going through a bad run but given their firepower and money they can and most likely will pump (more) money into R&D. There is no doubt that increased competition is going to hurt them but saying all that I think both amd and nvidia are either at fair value or overvalued.

The (safe) dividend with intel and share buyback when things turnaround means I'd prefer intel right now. Personnally i don't listen to what analysts say...id say half of them know as much as me (which is f**k all).

For all the negativity you hear about Intel they posted a 4.28 billion profit in the 3rd quarter during a pandemic. So yes, they've lost their way a bit but for me the risk, which I see as small, is worth the reward, which I also see as small. Its the dividend that swings it. You can't have all your money in risky stocks like zoom etc.
Anyway alot of people will fall into the groupthink bracket for me. Intel just isn't seen by people as a "sexy" stock unlike your tesla's etc.

I'm holding both intel and nvidia as I also see nvidia doing good things in the future especially in the gaming chips

LawBoy2018 wrote: »

Hi guys, long time follower of this thread! Sorry to ask such a nube question, but what would you recommend to be the best trading platform? I was talking to my friend who works in Davys and he said that their trading accounts are quite good, but I'd love to hear your recommendations! Thank you very much, any advice is greatly appreciated.

Davys is expensive, at least comparing to degiro and trading 212. I have both of them and have always preferred trading 212 as it's completely free (as long as you don't veer into leverage trading.

I use Degiro and Interactive Brokers. Both have tiny transaction fees on US stocks. No issues with either. IB have more variety of shares but is more complex interface to get used to.