The Official Stock Market Thread

[jcardstore]

JMarch - How do you feel about BWA?

I'm reviewing my LEA position and comparing it across the industry. I still like my position in LEA but as I was comparing BWA has a very attractive valuation (I think).

- Price to sales < 1 which I like.

- Product line that won't be disrupted by EV push (it only stands to gain imo)

- PE is about average for the industry but on the lower end. PEG is a bit higher than the big players > 10B market cap but still sub 1.

- ROE/ROA twice that of it's peers.

- Total yield for the prior year was 5.25% which was almost a full percent higher than the next closest and twice that of LEA. Quarterly yield also came in above industry average. + a small dividend.

To sum this up. BWA seems like an undervalued company with solid returns in an industry with solid growth looking forward.

[JMarchand1981]

Originally Posted by jcardstore

JMarch - How do you feel about BWA?

I'm reviewing my LEA position and comparing it across the industry. I still like my position in LEA but as I was comparing BWA has a very attractive valuation (I think).

- Price to sales < 1 which I like.

- Product line that won't be disrupted by EV push (it only stands to gain imo)

- PE is about average for the industry but on the lower end. PEG is a bit higher than the big players > 10B market cap but still sub 1.

- ROE/ROA twice that of it's peers.

- Total yield for the prior year was 5.25% which was almost a full percent higher than the next closest and twice that of LEA. Quarterly yield also came in above industry average. + a small dividend.

To sum this up. BWA seems like an undervalued company with solid returns in an industry with solid growth looking forward.

HA!

So my good friend Josh who is in this thread put me on to this one a few months back. His analysis was the same as yours, in a sense.

My take?
Excellent financials
Priced low relative to peers
Leadership is meh
Good company, decent industry

Why isn’t it higher? Wall Street has absolutely no love for this company.

We own the $47.50 1/22 call with a cost around $1.25. We own 20 contracts. I don’t expect those options to hit but there are two earnings reports prior to expiry.

[Josh611]

Originally Posted by JMarchand1981

HA!

So my good friend Josh who is in this thread put me on to this one a few months back. His analysis was the same as yours, in a sense.

My take?
Excellent financials
Priced low relative to peers
Leadership is meh
Good company, decent industry

Why isn’t it higher? Wall Street has absolutely no love for this company.

We own the $47.50 1/22 call with a cost around $1.25. We own 20 contracts. I don’t expect those options to hit but there are two earnings reports prior to expiry.

You were spot on about this one back when we discussed it. I think you said $52 was what you felt a reasonable price was for it and I took off the majority of the position at that as well and it worked out well.

My only thought other than the street hating this one is the exposure to Europe and how Covid seems to be impacting them more. If that's the case, that should be more of a tailwind at this point if data out of EU keeps improving. Then again I'm not sure how much of their earnings come from there as well.

[elny43]

Nice to see a value day today. Strong move for Fins with the 10yr creeping up, now 1.35%. I'm still of the view that we should see the 10yr normalize higher from here.

[mhcubsfan]

Absolutely amazing earnings report from Upstart, may have to add to my positon after that!

[finfangfan]

Originally Posted by finfangfan

Added to my DMYI position today (IONQ spac). It’s been inching above the $10 level so hopefully it will get a spike once merger completes.

The DMYI/IONQ merger vote date appears to be set for September 28th. So maybe will start to see a little movement in DMYI in the lead up to the vote. The stock has been pretty flat the last 2 months.

[sportsfan12345]

Assuming the MUDS and Topps merger occurs. Are cheap call options for October a solid play? I know financials aren’t great but just some momentum from the name Topps or probably a no go?

[monkeymcgee]

Originally Posted by sportsfan12345

Assuming the MUDS and Topps merger occurs. Are cheap call options for October a solid play? I know financials aren’t great but just some momentum from the name Topps or probably a no go?

Too risky for me—you may end up with non-standard contracts after the ticker change and spreads are too wide. I’d stick with shares.


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[jcardstore]

FDX setup looking really nice. If it bounces off the 200day I'm going to swing trade it up

[Josh611]

Originally Posted by jcardstore

FDX setup looking really nice. If it bounces off the 200day I'm going to swing trade it up

I’m in that one at $275. 200 day was around $280 I believe.

I figured it would get a bounce by now but just hasn’t.

[jcardstore]

Originally Posted by Josh611

I’m in that one at $275. 200 day was around $280 I believe.

I figured it would get a bounce by now but just hasn’t.

200day is sitting at 270.79 right now. (I'm using EMA not SMA). Experimenting with Heikin Ashi instead of traditional candles and depending on how today goes the downward momentum looked to be slowing.

[Josh611]

Originally Posted by jcardstore

200day is sitting at 270.79 right now. (I'm using EMA not SMA). Experimenting with Heikin Ashi instead of traditional candles and depending on how today goes the downward momentum looked to be slowing.

Gotcha. Figured it might be something like that.

[Josh611]

Speaking of cards. I bought SLAM today. Just 100 shares but it's rumored to merge with Panini. Speculative obviously but rumors started about a month ago. Will let this one sit for awhile and will likely sell on news of an agreement.

[persona]

Originally Posted by persona

SAVA - Triple digits coming with possibility of higher upside compared to BIIB run.
ATHA - Steal a these levels and back to $17+ once the smoke clears
INDI - Adding this to my forever hold.

Sava ran and rode it from $30’s to $120’s
ATOS - rode it from $1 to $9 and dip back into take a loss but still not bad overall with Hefty profits
INDI - still holding
ATHA - holding bags

Added - Z - Spot - PTON on the daily dip

[persona]

Anyone have any thoughts on ISRG with the split?
I recall while back when isrg was still in the $500’s with ER coming up and Jmarchland1981 mentioning it and I sat on the sideline just to watch and ever since the company does nothing but grow.

[JMarchand1981]

Originally Posted by persona

Anyone have any thoughts on ISRG with the split?
I recall while back when isrg was still in the $500’s with ER coming up and Jmarchland1981 mentioning it and I sat on the sideline just to watch and ever since the company does nothing but grow.

Love this company.

I love it and have for years.

2020 was a bad year for them. They are healthcare but not Covid related. Love this company. We own it. We own options. I am also long the stock as well.

[persona]

Originally Posted by JMarchand1981

Love this company.

I love it and have for years.

2020 was a bad year for them. They are healthcare but not Covid related. Love this company. We own it. We own options. I am also long the stock as well.

Thanks for the prompt reply

[Josh611]

ISRG has been on my watch list ever since it was discussed in the thread. Another one of the those that has done nothing but gone up.

I did buy $52.50 DKNG call for $.53 I believe. 1% risk, really just hoping there are some headlines or statistics released about these NFT's.

[JMarchand1981]

Originally Posted by persona

Anyone have any thoughts on ISRG with the split?
I recall while back when isrg was still in the $500’s with ER coming up and Jmarchland1981 mentioning it and I sat on the sideline just to watch and ever since the company does nothing but grow.

Originally Posted by persona

Thanks for the prompt reply

Originally Posted by Josh611

ISRG has been on my watch list ever since it was discussed in the thread. Another one of the those that has done nothing but gone up.

I did buy $52.50 DKNG call for $.53 I believe. 1% risk, really just hoping there are some headlines or statistics released about these NFT's.

The issue with ISRG is this Delta variant talk. So, if there (HUGE if, I know) is a widespread re-enactment of Covid-19 with this Delta variant, the elective surgeries will be pushed off into the future.

Why do we care? The Da Vinci machine primarily does elective surgeries. I think one of the few emergent surgeries performed by the Da Vinci is the lap appy. JMarchand1981, why the hell do I care about that?

GOod question. So, it costs quite a bit of money to set up and calibrate the Da Vinci machine. Most hospitals around here account for about $8k-10k in time to set the machine up. YRMV in other parts of the country. I don't live in other parts of the country so I cannot speak to that. Anyway, this "Setting up" of the machine is a fairly frequent occurence.

I am not as computer savvy as the other guys in this thread, so please pardon me if this doesn't work.

https://www.ncbi.nlm.nih.gov/books/NBK168933/table/T16/

That link shows some raw numbers. It is very expensive to operate this piece of machinery.

So, again. If the Delta variant becomes as big a drain on hospital resources as the Covid-19 and pushes hospitals to the same measures, there is a likelihood that ISRG and the Da Vinci get pushed out another yet. It doesn't matter a ton to ISRG because I believe these machines are all built to order. Where it would hit ISRG is the lack on consumables and those types of reorders. Due to the cost of setting up the machine, hospitals will be less likely to set up said Da Vinci machine. It generally isn't set up for any one surgery on one day, just because the key to maintaining to operating cost is being able to spread the $8-10K set up cost over a series of surgeries in any given period.

I kind of babbled here.

TL;DR
I love ISRG long term. It may face rocky roads in the short term. The options are absurdly priced. I mean absurdly priced. You would have wanted to buy them when the stock was much lower. Stick to the equity if you are compelled to enter.

[JMarchand1981]

Originally Posted by jcardstore

FDX setup looking really nice. If it bounces off the 200day I'm going to swing trade it up

Originally Posted by Josh611

I’m in that one at $275. 200 day was around $280 I believe.

I figured it would get a bounce by now but just hasn’t.

Originally Posted by jcardstore

200day is sitting at 270.79 right now. (I'm using EMA not SMA). Experimenting with Heikin Ashi instead of traditional candles and depending on how today goes the downward momentum looked to be slowing.

FDX used to be a winner. For about 18 months they have had a wicked losers mentality in their conference calls. That said, a 14 p/e is sexy as hell. You guy can do the technicals all you want. I appreciate seeing it. I love the fundamentals. I see this as a re-opening play. Get commerce back going again.

This is one where we don't own anything. No equity. No options. Remember, losers mentality. We don't do losers.

I am going to sell puts on it. Pay me while I don't own it and then give it to me if it hits my price.

[finfangfan]

PLTR up 12% this morning to get back to $25/sh. It always seems to stall around here.

[JMarchand1981]

Originally Posted by finfangfan

PLTR up 12% this morning to get back to $25/sh. It always seems to stall around here.

49% revenue growth. Pretty impressive.

[Josh611]

Originally Posted by Josh611

ISRG has been on my watch list ever since it was discussed in the thread. Another one of the those that has done nothing but gone up.

I did buy $52.50 DKNG call for $.53 I believe. 1% risk, really just hoping there are some headlines or statistics released about these NFT's.

Hehe this worked well. Bought another on the sell off in the morning for $.40

Taking some off this profit from this and playing a Dis $185 call for earnings today.

[finfangfan]

Nice to see my 2 gambling stocks DKNG and GENI doing well today too. I am hoping GENI has a nice run in the fall in the first year of its NFL contract.

[finfangfan]

And Disney up 5% after hours on strong DIS+ growth. Today was probably my best day in the market all year. Crazy!