Trades

Trade Findings and Adjustments 02-23-2023

Trade Findings and Adjustments 02-23-23

Why do some stocks that had great earnings not continue up?

  • Those stocks already had a good run over the last quarter
  • Looking ahead, it’s hard to justify buying into future catalysts that aren’t there for the market.
  • Profit taking on a good short term bullish quarter

 

What IS the next catalyst?

  • The next interest rate hike being 0%

So what if stocks keep falling down again?!

  • Enjoy another opportunity to buy more shares again
  • Protection has been on since earnings!

Price vs Value

  • Stocks run on emotion in the short term and value in the long term
  • Price is short term, value is long term
  • Changes in stock price isn’t always logical or based on fundamentals
  • Value is ALL about fundamentals
  • Value: how well a company delivers profit, income, growth to share holders
  • Look at stocks as COMPANIES
  • When there’s a sale, you buy more
  • You know when companies shares are on sale when you understand the value.
  • “A bubble is when there is no sustainable relationship between the value and the price of a company.” – Warren Buffet Accounting book

Stocks vs Gold

  • Companies GENERATE income, profit and growth.
  • GOLD generates what? How do you profit from gold?
  • You sell it at a higher (hopefully) price than you bought it.

AAPL vs PTON

  • AAPL has shown for decades that they can deliver value to share holders.
  • PTON basically was showing for the first time that they could sell some products
  • How has AAPL delivered value to shareholders over time?
    • Innovate with new products (iphone, ipod)
    • In doing so, they created new markets and revolutionized markets for audio players and phones
    • Growth into new markets of other countries. Global growth
    • Share buybacks

 

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