The stock market thread.

[montreal]

Thank you. This is my line of thinking as well. I'm going to sell a large chunk of the shares if and when it happens with this rumoured buyout. I could diversify that cash into safer stocks/index funds and reward myself with a trip.

But I think it would eat at me if I sold the stock, and it went up to 10 bucks (What it was before oil crashed) per share, knowing I could have made $18,000 instead of $12,000.

That's the intensity, and "fun" of the stock market though.

What I tell people in that situation, speaking from experience, you will be a lot madder if you don't sell any shares and it goes down a good bit vs not selling any shares and it goes up a good bit. At least for most. But it's all about what you are trying to do, the chart, the fundamentals, the sector, the economy, how the overall market has been doing. Taking at least some profits off the table is usually the smart move but it would also depend on the factors I listed and your gut feel for the stock. It's easy to get caught up in greed and want more, as I've done that a lot of times over the years, sometimes it worked out better other times it didn't (or I had a long wait to get back to those levels).

I talked a college buddy into buy Amazon at 30 bucks years ago, this person didn't know much about trading but he had some cash to invest. When it hit 300 I said either take some profits or sell it all as it was up huge. In hindsight it would have gone much better had he not sold out since they just got a price target of 520. You just never know though how things are going to end up going. Surprises good or bad can always be right around the corner.

anyone looking at the shopify ipo being launched today? 17 bucks a share.

I usually don't buy ipo's, I did well with Visa's but often I will just sit back and track them for a little. That's what I did on Facebook and Twitter.

 

[Thucydides]

Always good advice. Thank you.

The company in question is legacy oil and gas. Pretty sure there's an announcement coming shortly. I threw 3600 at the stock , thinking it would be a good play when the price was 1.80 , as I liked their assets. The price today did a huge run up on a lot of volume - 4 million shares traded within an hour or two. Seen the same thing with pacific rubiales.

I've already doubled my money so I'd be happy with that if worse comes to worse.

 

[Ducksforcup]

Always good advice. Thank you.

The company in question is legacy oil and gas. Pretty sure there's an announcement coming shortly. I threw 3600 at the stock , thinking it would be a good play when the price was 1.80 , as I liked their assets. The price today did a huge run up on a lot of volume - 4 million shares traded within an hour or two. Seen the same thing with pacific rubiales.

I've already doubled my money so I'd be happy with that if worse comes to worse.

Very impressive. Well done. A speculative move to be sure, but it seems like you did your HW.

As far as oil, I've been looking a lot at MPC lately. Also own shares of SLB.

And montreal, concur with stingo you are certainly giving excellent advice. That story about your friend...sure that guy loves you now. What a capital gains! Ya he missed out on some more, but the way I like to look at it...it could just as easily have gone the other way. Better to sell if you have some doubts. Nothing wrong with taking a profit and investing that money elsewhere. Like you said, you just never know what is going to happen (and that's what makes this so exciting).

 

[The Joker*]

I got a small allotment in the Shopify IPO (not small, but small compared to what I requested). Still holding, with a stop-loss on it. Will see how it moves for the next few weeks if it doesn't get stopped out.

 

[montreal]

Always good advice. Thank you.

The company in question is legacy oil and gas. Pretty sure there's an announcement coming shortly. I threw 3600 at the stock , thinking it would be a good play when the price was 1.80 , as I liked their assets. The price today did a huge run up on a lot of volume - 4 million shares traded within an hour or two. Seen the same thing with pacific rubiales.

I've already doubled my money so I'd be happy with that if worse comes to worse.

I hadn't heard of legacy before but just looking it over, looks like a good call by you. Looks like there's support at the 2.50 level, if it breaks out above he 3 dollar level it will be interesting to see what range it moves into. I did really well a several years back with an oil company from Norway, was called Stolt but now is called Subsea7 (Subcy) bought in in the 3's sold out at 13 and bought back in around 10 and sold out again at different levels up to 30. Haven't looked at it in a long time but might start keeping an eye, just not really sure where oil is headed though in the short term and I've got my hands full with so many bio-techs for now.

As far as oil, I've been looking a lot at MPC lately. Also own shares of SLB.

And montreal, concur with stingo you are certainly giving excellent advice. That story about your friend...sure that guy loves you now. What a capital gains! Ya he missed out on some more, but the way I like to look at it...it could just as easily have gone the other way. Better to sell if you have some doubts. Nothing wrong with taking a profit and investing that money elsewhere. Like you said, you just never know what is going to happen (and that's what makes this so exciting).

I used to own SLB, sold it back when oil was around 100, did well although I should have bought back in as it has moved back to the 90's quickly. Solid company that is well run and makes money.

 

[Thucydides]

Very impressive. Well done. A speculative move to be sure, but it seems like you did your HW.

As far as oil, I've been looking a lot at MPC lately. Also own shares of SLB.

And montreal, concur with stingo you are certainly giving excellent advice. That story about your friend...sure that guy loves you now. What a capital gains! Ya he missed out on some more, but the way I like to look at it...it could just as easily have gone the other way. Better to sell if you have some doubts. Nothing wrong with taking a profit and investing that money elsewhere. Like you said, you just never know what is going to happen (and that's what makes this so exciting).

Haha thanks. I had been watching the stock as it fell from 4 bucks all the way down to 1.17 (should have bought in then) but I was new and greed kicked in, and I wanted and expected it to go lower. Human nature. I knew there was a lot of inside ownership , and that they owned it at 10 bucks a share. The assets looked great , so I made a move. Worked out okay.

Thanks for your input on legacy Montreal. Appreciate that. It bottomed around 2.56 the other day and I was going to buy some more but told myself to wait. Has a real hard time holding 3 bucks and fell to 2.99 right at the close today. Haha. See what happens tomorrow . I don't expect it to be too busy with it being Memorial Day in the states, but I am anxious to hear more about the sale. I just hope it's not another head fake, but with articles in the globe and mail I don't think it is this time.

ducks for cup (or anyone ) what would you consider buying levels for Wells Fargo? Low 50s?

 

[Ducksforcup]

Don't know about an exact price target for WFC, but if it gets back down to that area of 50 bucks I'd start thinking about it. I don't think it will make a killing capital gains wise, but there isn't a more solid bank to buy IMO.

Its tough because at this point no one truly knows when the Fed will raise interest rates. The banks more than any other industry would benefit immensely from such a move of course.

 

[montreal]

Haha thanks. I had been watching the stock as it fell from 4 bucks all the way down to 1.17 (should have bought in then) but I was new and greed kicked in, and I wanted and expected it to go lower. Human nature. I knew there was a lot of inside ownership , and that they owned it at 10 bucks a share. The assets looked great , so I made a move. Worked out okay.

Thanks for your input on legacy Montreal. Appreciate that. It bottomed around 2.56 the other day and I was going to buy some more but told myself to wait. Has a real hard time holding 3 bucks and fell to 2.99 right at the close today. Haha. See what happens tomorrow . I don't expect it to be too busy with it being Memorial Day in the states, but I am anxious to hear more about the sale. I just hope it's not another head fake, but with articles in the globe and mail I don't think it is this time.

ducks for cup (or anyone ) what would you consider buying levels for Wells Fargo? Low 50s?

What I would look for in the quick glance I gave it, is if it falls through the 2.50 support, I'd look to see where the support comes in and if it shows strength at the new support level then I would consider adding more. On the other hand it looks like resistance is at the 3.00 level, so the problem is if it keeps trying to break through and keeps failing, without news it should drop back to the support level at some point. It would depend on how much you believe the sale will happen and when.

Don't know about an exact price target for WFC, but if it gets back down to that area of 50 bucks I'd start thinking about it. I don't think it will make a killing capital gains wise, but there isn't a more solid bank to buy IMO.

Its tough because at this point no one truly knows when the Fed will raise interest rates. The banks more than any other industry would benefit immensely from such a move of course.

I would guess that they are looking at a Sept rate raise but I'm skeptical that it will even happen then unless the GDP was impacted more from the bad weather in the 1st quarter as that 1st quarter GDP # was terrible. At this point it's hard to say when they will raise the rate, I personally lean towards it being later then Sept but that could change quickly when the 2nd quarter #'s are out.

 

[Thucydides]

Thanks - still no news, and again the stock breaks 3 dollars but hovers around 2.95-2.99. Big volume again today on this stock - 5 million alone on the TSX.

Will continue to wait it out.

 

[Thucydides]

Broke 3 bucks today and held past the close.

Meaningless, or hope? Haha

 

[Ducksforcup]

Market taking a little shellacking today.

Making some buying opportunities methinks.

 

[Thucydides]

That legacy deal went through. Not good for anyone who didn't get in at a real low. Bought for 2.87 - below the price it closed at today.

Crescent point bought them and all my legacy shares are being converted into crescent point shares. Ceescent point pays a nice dividend so I am okay with my money in a safer stock.

A lot of shareholders will be calling for investigations into this deal before its all said and done.

Yes ducks - market took a beating today . Think I'm going to wait to do more buying.

 

[Dave is a killer]

The stock market is so over valued right now, expect it to take a dump in the near future... That's when you should jump in ... the economy isn't really as strong as the stock market is bearing it out to be.

 

[montreal]

The stock market is so over valued right now, expect it to take a dump in the near future... That's when you should jump in ... the economy isn't really as strong as the stock market is bearing it out to be.

depends on what you consider the near future and how much of a drop you consider a dump? We'll see where the US economy ends up, it was a terrible 1st quarter but was it more to do with the bad weather or is the recovery losing steam? We'll find out when they announce 2nd quarter gdp, personally I think the US economy is better then the 1st q #'s showed but I guess we'll see.

Waiting on the sidelines for a serious drop that could be years away (if say you are talking about a 20% correction) it might be awhile. If you just mean a sharp pull back, well the summer months in July and August tend to be slow so you might find some stocks will be cheaper before the best time of the year in Dec/Jan.

 

[Fixed to Ruin]

depends on what you consider the near future and how much of a drop you consider a dump? We'll see where the US economy ends up, it was a terrible 1st quarter but was it more to do with the bad weather or is the recovery losing steam? We'll find out when they announce 2nd quarter gdp, personally I think the US economy is better then the 1st q #'s showed but I guess we'll see.

Waiting on the sidelines for a serious drop that could be years away (if say you are talking about a 20% correction) it might be awhile. If you just mean a sharp pull back, well the summer months in July and August tend to be slow so you might find some stocks will be cheaper before the best time of the year in Dec/Jan.

Weather excuse is a joke imo. Its just putting lipstick on a pig. Even the Oilers used the weather excuse this season to explain poor attendance. Had nothing to do with a bad hockey club according to management (at the time)

 

[Dave is a killer]

depends on what you consider the near future and how much of a drop you consider a dump? We'll see where the US economy ends up, it was a terrible 1st quarter but was it more to do with the bad weather or is the recovery losing steam? We'll find out when they announce 2nd quarter gdp, personally I think the US economy is better then the 1st q #'s showed but I guess we'll see.

Waiting on the sidelines for a serious drop that could be years away (if say you are talking about a 20% correction) it might be awhile. If you just mean a sharp pull back, well the summer months in July and August tend to be slow so you might find some stocks will be cheaper before the best time of the year in Dec/Jan.

From the Bureau of Economic Analysis

And there is a chart to boot related with that article

 

[Ducksforcup]

The stock market is so over valued right now, expect it to take a dump in the near future... That's when you should jump in ... the economy isn't really as strong as the stock market is bearing it out to be.

This is certainly true.

The way I explain it...this situation is the same as a voter voting for one guy because they hate the other guy.

Everyone knows the stock market is overvalued, but there are very few other decent options for people to put their money.

By in large I am saving for the inevitable correction/selling off my holdings.

Having said that, I still there are deals to be had even in this current market. And with the economy not looking so good...maybe the Fed prolongs this cheap money policy. In a cheap money market, I think the stock market actually looks pretty good honestly. Small cap is the way to go for sure.

 

[Thucydides]

I was thinking 3 different index funds - total market, dividend paying one, small cap one.

I agree - small caps are a great way to go.

 

[puckguy11]

Started an IRA with a portion of my tax refund this year; right now have it split between VTI and EWC. Looking to add some non-North American exposure in the near future.

 

[Ducksforcup]

I was thinking 3 different index funds - total market, dividend paying one, small cap one.

I agree - small caps are a great way to go.

Index funds are probably one of the best long-term investments you can make. Excellent idea.

 

[Ducksforcup]

Started an IRA with a portion of my tax refund this year; right now have it split between VTI and EWC. Looking to add some non-North American exposure in the near future.

Good for you! Are these your first stock positions?

IRAs are a fantastic investment vehicle.

 

[nhldiedinthe90s*]

Come from a finance background and very involved in the stock market.

Day trading is a fool's game. Almost all day traders will underperform the market in the long-run after factoring in fees and taxes.

Invest in low-cost ETFs unless you have the time, energy, intensity, and quantitative financial skills to research individual stocks (which most people in the world don't have). I also invest in blue-chip "dream" companies, but only at times when the world is ending, like during the last financial crisis. Unless you're in a recession, most blue chip companies are either fairly priced or overly priced, which means that they're probably not the best option if you're trying to maximize long-term returns.

Most people fail at whatever they pursue in life. Doesn't make their pursuit a fools game.

I mostly do technicals. Penny stocks are over-rated IMO, story driven stuff doesn't appeal to me.

 

[hitman9172]

Most people fail at whatever they pursue in life. Doesn't make their pursuit a fools game.

I mostly do technicals. Penny stocks are over-rated IMO, story driven stuff doesn't appeal to me.

Spending time day trading when there's a massive chance you'll underperform the market is a fool's game. You could buy an S&P or total stock market index fund, do something else far more enjoyable or productive with all your spare time, and end up better off than the vast majority of day traders.

 

[Onslow]

Idk if this has been mentioned yet, but novice investors/traders should be aware of the different tax implications (at least in the US. I'm assuming Canada is similar?) for long term gains and dividends versus short term gains.

 

[puckguy11]

Good for you! Are these your first stock positions?

IRAs are a fantastic investment vehicle.

Not my first rodeo; I have a 401(k) from a prior job I plan to roll into the IRA. Did have a question though: While the main focus of my portfolio will be ETFs (Broker has commission free ETFs), I do have a few individual stocks I'd like to add at some point. Should I be that concerned about the weight of certain holdings in the portfolio, or if I just buy what I know/love alongside the cornerstone ETFs?