Stocks - The Best Buys 2

[DoubleK]

Originally Posted by Slava

Are you saying I’ve lost the plot or the BoE?! I’m assuming you mean they have?

Wait are we talking about the markets or golf? ;-)

[Sutter_in_law]

Originally Posted by Delthefunky

I mentioned Permex Petroleum a few months ago, I'm pretty excited about them. They just started drilling one of two wells in Texas, one of which is planned to have a horizontal leg. No debt, $8 million cash, entire company currently valued at $15 million cad.

how the hell did they land the stock ticker symbol: "OIL"?

I'm in, for that reason alone!

[Delthefunky]

along with my other holdings "gas" and "gold" I have high hopes. that is how you invest, right?

[Sutter_in_law]

Lol that's incredible.

It's like when people play Sports-Select and just choose the teams with animal names and end up winning like $900

[Slava]

Originally Posted by DoubleK

Wait are we talking about the markets or golf? ;-)

I’ve totally lost the plot in golf. I played today and I apparently forgot how to swing.

[Fuzz]

Originally Posted by Strange Brew

This is not the time to get into Netflix IMO. Wait to figure out if they have a viable plan for recapturing market share. Otherwise you're just investing on hope.

I ignored this advice and bought at $224. It's now $283, up 26.5%. Not bad for 6 months. Could have gotten in at $163!

[Table 5]

Originally Posted by Fuzz

I ignored this advice and bought at $224. It's now $283, up 26.5%. Not bad for 6 months. Could have gotten in at $163!

Definitely...but only if you sell!

I do think you bring up a good point. Oftentimes with these popular stocks, if you wait for things to get perfect before you buy, you're probably too late to catch a good chunk of the move. By the time there is a "viable plan" in place, it's obvious to everyone else too, and the stock price has already adjusted. You minimize loses waiting for solid ground, but if you're looking to capture big moves, you have to get in while things are still fuzzy.

Of course buying while the picture is still fuzzy does involve some level of guessing/hope, and things could easily go the other way. Look at the the people who bought "cheap" META stock in the spring.

[Fuzz]

Ya, I really do need to learn when to sell. Up 7.5% today, so maybe today is that day.

[Table 5]

Originally Posted by Fuzz

Ya, I really do need to learn when to sell.

I find selling to be infinitely harder than buying.

[bluejays]

One thing I'm completely curious about is what will happen to marijuana stocks? Specifically WEED? I haven't owned it recently, never made good money on it at any point, but to see the steep drop off since a few years ago, makes me wonder what will ultimately happen here. They're bleeding money, they don't have large cash reserves, but will all of them go bankrupt in a high interest rate environment? Crazy stuff.

[DoubleK]

Weed valuations will normalize to the booze stocks. Constellation, Diageo et al.

[bizaro86]

Originally Posted by DoubleK

Weed valuations will normalize to the booze stocks. Constellation, Diageo et al.

IMO the weed stocks only get a valuation like that if the market consolidates and they have power brands. Beer/spirits are very much branded products, which makes their margins/return on capital both sustainably higher. It is very possible that the weed producers end up being more like cyclical agriculture stocks - and if that happens it isn't obvious to me that growing plants in Canada inside a warehouse with artificial light will end up being the efficiency winner.

[Leondros]

Originally Posted by bizaro86

IMO the weed stocks only get a valuation like that if the market consolidates and they have power brands. Beer/spirits are very much branded products, which makes their margins/return on capital both sustainably higher. It is very possible that the weed producers end up being more like cyclical agriculture stocks - and if that happens it isn't obvious to me that growing plants in Canada inside a warehouse with artificial light will end up being the efficiency winner.

I have a buddy who is an executive in the space. He explained to me that as it stands the tax regime in Canada for cannabis is far too high and unsustainable. They need reform in order for any of these to survive. Ads in supply chain issues for products such as gummies and other edibles and it’s been a tough slug.

[bluejays]

The interesting thing is that all of them are dying a slow death. How they've all survived with little cash reserves is interesting. There were supposed to be consolidations and those happened but not really recently because there's little value in just acquiring more debt when there seems to be little hope of growth. Getting the government to change their tax structure seems to be an uphill battle where there's a ton of uncertainty. Doesn't seem like a worthwhile investment given such heavy uncertainty.

[Strange Brew]

Originally Posted by Fuzz

I ignored this advice and bought at $224. It's now $283, up 26.5%. Not bad for 6 months. Could have gotten in at $163!

I am glad it is looking good for you but I had made that comment back on April 20 when it was priced at $226. You could have still bought it for $214 on October 11.

The last 10 days have been great and it has definitely outperformed the Nasdaq over last six months. Look beyond that and it is a different story.

Monday should be another good day for the markets, so I know what I would do. And if you're smart, you'll do the exact opposite.

[Fuzz]

Originally Posted by Strange Brew

I am glad it is looking good for you but I had made that comment back on April 20 when it was priced at $226. You could have still bought it for $214 on October 11.

The last 10 days have been great and it has definitely outperformed the Nasdaq over last six months. Look beyond that and it is a different story.

Monday should be another good day for the markets, so I know what I would do. And if you're smart, you'll do the exact opposite.

Oh, I sold Friday afternoon at $290. This was never a long term one for me.

[Strange Brew]

Originally Posted by Fuzz

Oh, I sold Friday afternoon at $290. This was never a long term one for me.

I have tried the catch a falling knife strategy before and it usually doesn't prove fruitful for me. Intuit is another one you can try.

[Fuzz]

Netflix just felt oversold to me, given the pre-pandemic pricing was above where it crashed to, and that it still had opportunity to monetize that they hadn't taken advantage of. I figured once they announced some of the stuff they did, it was bound to get a bit of a bump back to it's $300 range. I definitely didn't think it was going near the previous $700 high, and still don't think it will.

[Strange Brew]

So what is your next pick?

[Tiger]

Originally Posted by Fuzz

Netflix just felt oversold to me, given the pre-pandemic pricing was above where it crashed to, and that it still had opportunity to monetize that they hadn't taken advantage of. I figured once they announced some of the stuff they did, it was bound to get a bit of a bump back to it's $300 range. I definitely didn't think it was going near the previous $700 high, and still don't think it will.

It was definitely a buy options when it dropped. Its a hard decision as even if it has good fundamentals, market thoughts could cause swings on a stock like this. Even now I don't know whether it will go up or down once they start an ad based stream and crack down on sharing.

Originally Posted by Strange Brew

So what is your next pick?

maybe as for next like a netflix stock, it is all the tech stock that is knocked down and has better valuations, I hate to say it, but a stock like Meta could be something to look at even though nobody really likes them now (maybe because no one likes them).