OT: Investing - Stocks/Mutual Funds/Bonds/Crypto

[hege53190]

But, I'm thinking about starting new positions in some financials. I'm mainly looking into CME Group, JP Morgan, Discover Financials, maybe Ally. It seems like this is the only sector that hasn't recovered yet.

I am a conservative investor and financials always seem so cheap. Right now I like STOR. They are a Warren Buffet Pick. They are a real estate investment firm. They purchase store fronts and rent them out. They have mostly long term leases so their income stream is good. At $24 they pay a 6% dividend and have OK run in them. I think they could get back to $35-$37 in the next year or two. You are not going to get rich off of it. However if you are looking for a solid stock that is a little undervalued and could make you a little money in the next year or two, they are a solid pick.

[HurricaneKid]

But, I'm thinking about starting new positions in some financials. I'm mainly looking into CME Group, JP Morgan, Discover Financials, maybe Ally. It seems like this is the only sector that hasn't recovered yet.

I am a conservative investor and financials always seem so cheap. Right now I like STOR. They are a Warren Buffet Pick. They are a real estate investment firm. They purchase store fronts and rent them out. They have mostly long term leases so their income stream is good. At $24 they pay a 6% dividend and have OK run in them. I think they could get back to $35-$37 in the next year or two. You are not going to get rich off of it. However if you are looking for a solid stock that is a little undervalued and could make you a little money in the next year or two, they are a solid pick.

Financials are going to get crushed as defaults skyrocket. There isnt a prognostication out there that doesn't believe loan defaults aren't going to be an issue in coming years.

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[Superfito]

But, I'm thinking about starting new positions in some financials. I'm mainly looking into CME Group, JP Morgan, Discover Financials, maybe Ally. It seems like this is the only sector that hasn't recovered yet.

I am a conservative investor and financials always seem so cheap. Right now I like STOR. They are a Warren Buffet Pick. They are a real estate investment firm. They purchase store fronts and rent them out. They have mostly long term leases so their income stream is good. At $24 they pay a 6% dividend and have OK run in them. I think they could get back to $35-$37 in the next year or two. You are not going to get rich off of it. However if you are looking for a solid stock that is a little undervalued and could make you a little money in the next year or two, they are a solid pick.

Financials are going to get crushed as defaults skyrocket. There isnt a prognostication out there that doesn't believe loan defaults aren't going to be an issue in coming years.

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I'm no pro but I wouldn't touch any company that's reliant on commercial real estate over the next few years.

[hege53190]

I am a conservative investor and financials always seem so cheap. Right now I like STOR. They are a Warren Buffet Pick. They are a real estate investment firm. They purchase store fronts and rent them out. They have mostly long term leases so their income stream is good. At $24 they pay a 6% dividend and have OK run in them. I think they could get back to $35-$37 in the next year or two. You are not going to get rich off of it. However if you are looking for a solid stock that is a little undervalued and could make you a little money in the next year or two, they are a solid pick.

Financials are going to get crushed as defaults skyrocket. There isnt a prognostication out there that doesn't believe loan defaults aren't going to be an issue in coming years.

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I'm no pro but I wouldn't touch any company that's reliant on commercial real estate over the next few years.

I don't know I am more prone to buying companies that are at a deep discount. Both of these stocks have your guys opinions built into them. Discover financial and Synchrony Financial were $80 and $40 before the pandemic. I bought Discover at $30 and now it is hovering around $50. I bought into Synchrony at $15 and now it is hovering around $23.

Before the pandemic STOR was hovering around $40. They dropped to $15. I bought in at $20 a little while ago and it is now at $23.5. IT pays a 1.5% quarterly dividend which it just signed off on and distributed. The dividend has increased by 6% year over year since its inception 6 years ago. They own the store fronts in big cities which they lease to companies. The leases are long term and if a company goes under they still own the valuable real estate which they can lease to another company. It is kind of like getting rich off selling the equipment to gold miners instead of being the gold miner.

These biases that the general public have are really built into the price but if you actually look at the company it has really solid financial footing and kind of a money maker.

Also I am not saying anybody should be taking large positions (3+% of portfolio) in any of these companies. However I think you should have some of your portfolio in discounted stocks. Because if you buy at the right time you can make quite a bit of money on them. I expect STOR to get to around $35 again in the next couple of years. I think Discover and Synchrony have a little run in them yet and plan to hold them for the year.

I also like BMO Harris as a Buy and a long term hold in the financial sector.

[HurricaneKid]

Financials are going to get crushed as defaults skyrocket. There isnt a prognostication out there that doesn't believe loan defaults aren't going to be an issue in coming years.

Sent from my SM-G955U using RealGM mobile app

I'm no pro but I wouldn't touch any company that's reliant on commercial real estate over the next few years.

I don't know I am more prone to buying companies that are at a deep discount. Both of these stocks have your guys opinions built into them. Discover financial and Synchrony Financial were $80 and $40 before the pandemic. I bought Discover at $30 and now it is hovering around $50. I bought into Synchrony at $15 and now it is hovering around $23.

Before the pandemic STOR was hovering around $40. They dropped to $15. I bought in at $20 a little while ago and it is now at $23.5. IT pays a 1.5% quarterly dividend which it just signed off on and distributed. The dividend has increased by 6% year over year since its inception 6 years ago. They own the store fronts in big cities which they lease to companies. The leases are long term and if a company goes under they still own the valuable real estate which they can lease to another company. It is kind of like getting rich off selling the equipment to gold miners instead of being the gold miner.

These biases that the general public have are really built into the price but if you actually look at the company it has really solid financial footing and kind of a money maker.

Also I am not saying anybody should be taking large positions (3+% of portfolio) in any of these companies. However I think you should have some of your portfolio in discounted stocks. Because if you buy at the right time you can make quite a bit of money on them. I expect STOR to get to around $35 again in the next couple of years. I think Discover and Synchrony have a little run in them yet and plan to hold them for the year.

I also like BMO Harris as a Buy and a long term hold in the financial sector.

The FIRST default is the unsecured loan/line. You pay your mtg/rent, then auto, then CCs. We are already seeing defaults spike and with UE over 11% and CARES ending today running into that market because the stock price is lower.

That they made money during the biggest economic expansion ever is immaterial.

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[hege53190]

I'm no pro but I wouldn't touch any company that's reliant on commercial real estate over the next few years.

I don't know I am more prone to buying companies that are at a deep discount. Both of these stocks have your guys opinions built into them. Discover financial and Synchrony Financial were $80 and $40 before the pandemic. I bought Discover at $30 and now it is hovering around $50. I bought into Synchrony at $15 and now it is hovering around $23.

Before the pandemic STOR was hovering around $40. They dropped to $15. I bought in at $20 a little while ago and it is now at $23.5. IT pays a 1.5% quarterly dividend which it just signed off on and distributed. The dividend has increased by 6% year over year since its inception 6 years ago. They own the store fronts in big cities which they lease to companies. The leases are long term and if a company goes under they still own the valuable real estate which they can lease to another company. It is kind of like getting rich off selling the equipment to gold miners instead of being the gold miner.

These biases that the general public have are really built into the price but if you actually look at the company it has really solid financial footing and kind of a money maker.

Also I am not saying anybody should be taking large positions (3+% of portfolio) in any of these companies. However I think you should have some of your portfolio in discounted stocks. Because if you buy at the right time you can make quite a bit of money on them. I expect STOR to get to around $35 again in the next couple of years. I think Discover and Synchrony have a little run in them yet and plan to hold them for the year.

I also like BMO Harris as a Buy and a long term hold in the financial sector.

The FIRST default is the unsecured loan/line. You pay your mtg/rent, then auto, then CCs. We are already seeing defaults spike and with UE over 11% and CARES ending today running into that market because the stock price is lower.

That they made money during the biggest economic expansion ever is immaterial.

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They didn't JUST make money. They doubled in price. I didn't even buy in at the low point. They already had 50% gains before I bought in. Your concerns are noted in the stock price.

Hey we have different investing strategies. Out of favor stocks are just a small part of mine. And I am making pretty good money off of them. Good luck on yours.

[Stannis]

DFS usually loans to the poorly graded. I backed off from them. I see Store dropping big time if we get corrected again. I feel more comfortable investing in data center and tower REITs. I also got HASI for my value play REIT.

I still wanted some discounted stocks, so I decided to go with Bank of America. They are making some underrated moves in the tech field, imo. But I do fully expect them to tumble if we have a crash.

[MissKhriddleton]

Can someone explain puts/options and how people on reddit go from $10,000 ---> $500,000 ---> $0 in a short amount of time?

[ejn1214]

Can someone explain puts/options and how people on reddit go from $10,000 ---> $500,000 ---> $0 in a short amount of time?

I am not qualified enough to answer this for you, but please be careful with options. I was bored during the pandemic with no sports and messed around a bit. Almost gave myself a heart attack thinking I had an option with unlimited loss potential and stopped. A bunch of those guys on reddit made a ton of money on risky tesla calls or similar trades. I know you can hedge and make good money if you are well versed with options, but I think about 99% of that wallstreetbets subreddit do not do anything smart.

[ejn1214]

Can someone explain puts/options and how people on reddit go from $10,000 ---> $500,000 ---> $0 in a short amount of time?

I am not qualified enough to answer this for you, but please be careful with options. I was bored during the pandemic with no sports and messed around a bit. Almost gave myself a heart attack thinking I had an option with unlimited loss potential and stopped. A bunch of those guys on reddit made a ton of money on risky tesla calls or similar trades. I know you can hedge and make good money if you are well versed with options, but I think about 99% of that wallstreetbets subreddit do not do anything smart. And my random stock I like right now is WAITR.

[HaroldinGMinor]

Can someone explain puts/options and how people on reddit go from $10,000 ---> $500,000 ---> $0 in a short amount of time?

My guess is most people on reddit go from $100 ---> $500 ---> $0

[vital_signs]

Can someone explain puts/options and how people on reddit go from $10,000 ---> $500,000 ---> $0 in a short amount of time?

I'm not well versed enough to explain but I had watched some youtube videos previously that gave me a general sense of the idea. I then lost 75% of what I had invested, thank god I don't throw much in, and swore them off . The profits are intriguing but they are out of my league.

Edit - I just know 1 contract = 100 shares so every .01 above, or below on a put, the breakeven nets a dollar in profit. The process of selling the option/expiring I dont understand.

[Erifee]

Watch on YouTube

This is responsible for a lot of those stories.

[MickeyDavis]

Can someone explain puts/options and how people on reddit go from $10,000 ---> $500,000 ---> $0 in a short amount of time?

Yeah well don't put much into random internet guys, reddit or here, claiming big options or stock wins.

[vital_signs]

Been holding onto MPC and thought today was going to be my payoff as 7/11 is buying their Speedway gas stations for 21B. Wtf do i know? Apparently not much cause that sucker aint moving post pre-market.

[Ryan5UW]

DFS usually loans to the poorly graded. I backed off from them. I see Store dropping big time if we get corrected again. I feel more comfortable investing in data center and tower REITs. I also got HASI for my value play REIT.

I still wanted some discounted stocks, so I decided to go with Bank of America. They are making some underrated moves in the tech field, imo. But I do fully expect them to tumble if we have a crash.

That's the route I went too, with a little bit of healthcare/retirement community stuff mixed in.

[JEIS]

Pretty good chance Benzo buys out JC Penney's in the near future. He just pulled out $3 billion worth of his Amazon stock... The other bidder offered 1.75 billion. Could be a nice play.

[jschligs]

Options are gambling, simple as that. 99% of reddit guys lose at it and then run away from their account. Those posting big gains are the 1%ers.

[Nowak008]

Pretty good chance Benzo buys out JC Penney's in the near future. He just pulled out $3 billion worth of his Amazon stock... The other bidder offered 1.75 billion. Could be a nice play.

Good suggestion - I'll roll the dice with you.

[hege53190]

Pretty good chance Benzo buys out JC Penney's in the near future. He just pulled out $3 billion worth of his Amazon stock... The other bidder offered 1.75 billion. Could be a nice play.

Good suggestion - I'll roll the dice with you.

I am always in for a bargain. However JC Penny has $2.2 Billion in lender debt. The offers in Bankruptcy court were like $1.8 Billion. Out of the $3Billion that Benzo withdrew I would assume that a significant portion is going to taxes (like 20-25%). JC Penney has 320 million shares of common stock outstanding.

I am just not sure how you make money off of this. I am asking because I am curious.