Talking stocks, trading, and investing in general

[Omega Male]

I just went to Market Watch and they had a post where a 60 year old wanted to retire in Mexico on 1.1k a month. @Omega Male couldn't scrape by on a 1.1k a month wine budget!

$37 a day? I'd have to be constantly creeping Insiders Advantage at K&L.

And I'm sorry, no one is in Bed, Bath and Beyond for any fundamental reason. This is now pure irrational exuberance.

 

[Omega Male]

 

[venividivicibj]

Solid 5% of mortgages are in forbearance

 

[brokencycle]

Solid 5% of mortgages are in forbearance

View attachment 1542616

Not a bubble.

 

[RedLantern]

Solid 5% of mortgages are in forbearance

View attachment 1542616

Was it really .025% before the pandemic? Or is the change just a swap where “defaults” are down because they are in pandemic forbearance?

 

[venividivicibj]

McKinsey Chief Admits Email Banning Staff From Navalny Rally Incorrectly Reflected Policy - The Moscow Times

The managing partner of U.S consultancy McKinsey & Company’s Moscow office has messaged his staff “clarifying” an earlier email banning them from attending an unsanctioned protest for jailed Kremlin critic Alexei Navalny. “Some of you have raised concerns about my email to the office yesterday.

www.themoscowtimes.com

 

[Omega Male]

Good explainer on GameStop.

https://www.bloomberg.com/news/arti...treetbets-pushed-gamestop-shares-to-the-moon?

 

[HRoi]

It’s these kinds of stories that make me consider getting out of the stock market completely

 

[brokencycle]

Good explainer on GameStop.

https://www.bloomberg.com/news/arti...treetbets-pushed-gamestop-shares-to-the-moon?

I don't think that subreddit community is buying enough shares to dramatically move the needle on the price alone. At almost zero share price, GameStop does seem undervalued.

When I was in business school everyone was saying that Best Buy would be gone by now because everything is going online, and I had a marketing professor argue that billion dollar companies don't just go under overnight, and they still had plenty of time to remake themselves, and he was right. They did, and the stock is up more than 5x since he said that to my class.

I think there is a parallel with GameStop although they seem to have a tougher road because while all those electronics and appliance companies aren't taking all the customers direct, it is a lot easier for Microsoft and Sony to take gamers direct with easy downloads, plus you can't make those stupid margins on used games when everything is digital.

 

[Omega Male]

Moar.

https://www.bloomberg.com/opinion/articles/2021-01-25/the-game-never-stops?

 

[HRoi]

I mean they’ve basically remade themselves into a Funko Pop retailer at this point...

 

[Texasmade]

I mean they’ve basically remade themselves into a Funko Pop retailer at this point...

Apparently that's enough to make them worth several billion $.

 

[reidd]

I don't think that subreddit community is buying enough shares to dramatically move the needle on the price alone. At almost zero share price, GameStop does seem undervalued.

When I was in business school everyone was saying that Best Buy would be gone by now because everything is going online, and I had a marketing professor argue that billion dollar companies don't just go under overnight, and they still had plenty of time to remake themselves, and he was right. They did, and the stock is up more than 5x since he said that to my class.

I think there is a parallel with GameStop although they seem to have a tougher road because while all those electronics and appliance companies aren't taking all the customers direct, it is a lot easier for Microsoft and Sony to take gamers direct with easy downloads, plus you can't make those stupid margins on used games when everything is digital.

The real question an investor has to ask, is what will it COST for a company to remake itself. Any company can re-invent its business with enough cash burn. See Dell attempting to go into servers etc. Moves into close market adjacencies can work, but large scale transformations usually end up destroying value.

 

[brokencycle]

The real question an investor has to ask, is what will it COST for a company to remake itself. Any company can re-invent its business with enough cash burn. See Dell attempting to go into servers etc. Moves into close market adjacencies can work, but large scale transformations usually end up destroying value.

While true that an investor should ask what it would cost to remake itself and if it is worth it. I'm not sure Dell is a good example you want to use here. Dell is now 50%+ revenue on the data center side and the profit margins are significantly better (not to mention the massive buying power increase it gives them with commodity vendors like Intel and Samsung).

It may cost a lot for Gamestop to transform to be viable medium-term. I don't know for sure, and at $5B+, I think GME is probably overvalued. At $300M like it was 6 months ago, it was probably undervalued.

 

[reidd]

While true that an investor should ask what it would cost to remake itself and if it is worth it. I'm not sure Dell is a good example you want to use here. Dell is now 50%+ revenue on the data center side and the profit margins are significantly better (not to mention the massive buying power increase it gives them with commodity vendors like Intel and Samsung).

It may cost a lot for Gamestop to transform to be viable medium-term. I don't know for sure, and at $5B+, I think GME is probably overvalued. At $300M like it was 6 months ago, it was probably undervalued.

To be honest I have not followed Dell so you may be right. I just remember there was a time when they were burning huge amounts of cash to get into that business. In hindsight maybe a good decision.