Stocks - The Best Buys 2

[afc wimbledon]

Originally Posted by CroFlames

I've had my eye on Tesla for a while. Kicked myself for not getting in at around $300.


I think after the quarterly report comes out, it'll take a final plunge and return to $250-$300 and I plan on buying a decent amount. I plan on keeping it long term as I think Tesla is the new Apple.

I would worry that in a long term recession, which is what we are going into, anything that is basically a luxury product isn't going to fly off the shelf

[Leondros]

With everything going on, what are your thoughts on the following:

1) US:BDX Becton Dickinson is one of the largest medical supply companies in the US and one of the manufacturers of ventilators. Assuming this thing is a long term problem, and given the fact that a lot of health care systems likely are getting a wake up call that they do not have enough of these, I think this has huge upside.

2) CAD:CGL Gold Bullion ETF. Depending on what the Canadian and US governments are planning to do in terms of fiscal support and stimulation, this could have long term consequences for inflation and currency devaluation. Gold has been a safe haven in the past for events such as these.

3) Any Canadian big 5 bank. I think these are super under valued at current prices. These banks are also in the too big to fail group. Only down side here is after 2008 these entities have bail-in debt. Bail in debt is triggered when these banks begin to fail (people can't pay mortgages, car loans, HELOCs, etc.) and are dilutive in the sense of the common share holders as they prevent the banks from failing but they issue shares in-lieu. I think we are a ways away from this happening, but this is the only downside I can see.

[Weitz]

CNQ at sub $13 is extremely tempting.

[OMG!WTF!]

Originally Posted by Leondros

With everything going on, what are your thoughts on the following:

1) US:BDX Becton Dickinson is one of the largest medical supply companies in the US and one of the manufacturers of ventilators. Assuming this thing is a long term problem, and given the fact that a lot of health care systems likely are getting a wake up call that they do not have enough of these, I think this has huge upside.

2) CAD:CGL Gold Bullion ETF. Depending on what the Canadian and US governments are planning to do in terms of fiscal support and stimulation, this could have long term consequences for inflation and currency devaluation. Gold has been a safe haven in the past for events such as these.

3) Any Canadian big 5 bank. I think these are super under valued at current prices. These banks are also in the too big to fail group. Only down side here is after 2008 these entities have bail-in debt. Bail in debt is triggered when these banks begin to fail (people can't pay mortgages, car loans, HELOCs, etc.) and are dilutive in the sense of the common share holders as they prevent the banks from failing but they issue shares in-lieu. I think we are a ways away from this happening, but this is the only downside I can see.

I don't have any specific advice because I don't really trade this way. But one thing is that pretty much all stocks on the large indexes move in the same pattern. ETF trading creates a fairly unified movement in all stocks. I think this may change a bit when the rebound happens because there are stocks that still make money but have been drug down with the rest of the dogs. Find those good balance sheets and hopefully they go up more than the rest of the field.



No to gold. That safe haven myth is done. It's traded like a stock now and reacts completely antithetical to that old way of thinking.



I'd maybe look up some of the therapeutic companies working on covid drugs. It's a bit of a crap shoot but you can also buy the etf if you think the sector will take off with this renewed interest in general.

[afc wimbledon]

Covid drugs will be useless in a year or two and free before that, a cure for a specific time limited virus doesn't seem like a great earner for a company to me

[OMG!WTF!]

Originally Posted by afc wimbledon

Covid drugs will be useless in a year or two and free before that, a cure for a specific time limited virus doesn't seem like a great earner for a company to me

That's not how it works though. There have already been several huge gainers announcing covid headlines. You're buying emotion not fundamentals. As well there are some really under performing companies with a lot of other stuff in the pipeline and a legit covid therapeutic to boot. Those are what I'd look for. As well there's a knock on effect when people start taking an interest in something. Any press is good press. That could drive a bit of a boom in drug companies in general.

[DoubleK]

Looking for an angle to profit off of a crisis is a line I'm not willing to cross.

[rain_e]

Originally Posted by DoubleK

Looking for an angle to profit off of a crisis is a line I'm not willing to cross.

You aren't reselling toilet paper on Kijiji or investing in a sin company (tobacco, alcohol, etc.) You are investing in a company that makes a product to save lives.

[DoubleK]

Originally Posted by rain_e

You aren't reselling toilet paper on Kijiji or investing in a sin company (tobacco, alcohol, etc.) You are investing in a company that makes a product to save lives.

A company that made the same product 10 years ago, yet all of the sudden it's investible?

Sorry, no. I'm not going there.

Fill your boots.

[OMG!WTF!]

Originally Posted by DoubleK

Looking for an angle to profit off of a crisis is a line I'm not willing to cross.

That's admirable for sure. Philosophically it's challenging. Like any recovery from this is going to require people making money. And money will come from opportunity and there will be opportunities on the back of this tragedy. For example would it cross a line to profit from buying Blue Apron this morning, a small company that is up on news it will scale up its food delivery service since people will be ordering in a lot more. I guess it's probably just the pharma industry but it's a curious scenario.

[Jason14h]

Originally Posted by OMG!WTF!

That's admirable for sure. Philosophically it's challenging. Like any recovery from this is going to require people making money. And money will come from opportunity and there will be opportunities on the back of this tragedy. For example would it cross a line to profit from buying Blue Apron this morning, a small company that is up on news it will scale up its food delivery service since people will be ordering in a lot more. I guess it's probably just the pharma industry but it's a curious scenario.

This is how these companies raise capital to research these cures and medicines. I don’t know how it’s admirable to not invest capital where it can best be used.

EDIT: More of a comment towards DoubleK then you

[chemgear]

Whew, DJ below 20,000. Trip the 7% again?

[Senator Clay Davis]

The 7% breaker has been hit again. Another bloodbath today.

[Johnny Makarov]

US exchanges just halted.

[Slava]

Originally Posted by Johnny Makarov

US exchanges just halted.

That's the circuit breaker. It's 15 minutes, then another 15 minutes at -13% and at 20% they close for the day.

[Senator Clay Davis]

Bill Ackman having a total meltdown on CNBC would be mostly funny if he weren't causing more panic.

[Flacker]

Originally Posted by Weitz

CNQ at sub $13 is extremely tempting.

Hope you were patient, just dipped below $10 briefly.

[Slava]

At this point there is basically no green (very few), but the airlines and energy are leading the slaughter.

[afc wimbledon]

nothing about this tempts me until it hits the ground and stays there for a few weeks or months, there isn't going to be some huge straight back up correction that you can lose out on by missing, that said I suspect 20,000 is the bottom, but 15,000 wouldn't surprise me, my fear is we are watching panic selling but at the same time we haven't even got close to the economic effects of this so irrational fear is going to be replaced by rational fear and I have never seen that and don't know what that looks like. Every other time we got the rational first then the irrational.

[flylock shox]

The heck happened to Telus today?


Also wondering why REITs are taking a battering, since they would seem to be more stable.



I had thought about maybe averaging in selectively over the next couple of weeks, but that Imperial College study linked in the Coronavirus thread has me thinking this is a total free-fall now. And the US hasn't even got its virus transmission numbers remotely in yet.