The Market Thread

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bleedinorange

Federal Marshal
Jan 11, 2010
12,638
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Close, very close
So where we at guys?? I hope we're not giving up on this thread.
Hope not, it's about the only sensible thread here. I've been enjoying my DexCom the last few days. It jumped 13% just today. Amazon is sucking mud these days. Lam Research (LRCX) has been a pleasant surprise also. I was hoping for a bump in NVIDIA but no such luck. The split has done as predicted unfortunately. Right now, inflation worries me some as it will affect interest rates. I'm on a hold kick right now until I get a better feel (or find a sure winner <eyeroll>).
 
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okstate987

Territorial Marshal
A/V Subscriber
Oct 17, 2009
8,761
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Somewhere
Finally AMD is going on a run. They have been crushing the competition, have had record profits and profit margins the last 2-3 quarters and for whatever reason their stock had been lagging. It isn't anymore.
 
Dec 9, 2013
1,018
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Curious as to what some of your thoughts are on buying preferred shares w a high dividend where the underlying common would have to trade at 5 multiple prior to converting the preferred shares.

This is more of an income generator/asset protector and not a growth strategy for this part of my portfolio.

It replaces muni’s that have been called where YTC have gone in the crapper.
 
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steross

he/him
A/V Subscriber
Mar 31, 2004
31,582
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oklahoma city
Curious as to what some of your thoughts are on buying preferred shares w a high dividend where the underlying common would have to trade at 5 multiple prior to converting to preferred shares.

This is more of an income generator/asset protector and not a growth strategy for this part of my portfolio.

It replaces muni’s that have been called where YTC have gone in the crapper.
My personal experience with this has been poor.
I didn't have the background/time to sort these myself and used a service. It seemed that their stated track record was far better than my results. High dividends are high because there is risk. I ended up with some bankruptcies and others that did poorly. Some held steady and generated income but it just wasn't worth it for me. Be careful chasing yield unless you know a lot more than I knew.
 
Dec 9, 2013
1,018
319
713
51
My personal experience with this has been poor.
I didn't have the background/time to sort these myself and used a service. It seemed that their stated track record was far better than my results. High dividends are high because there is risk. I ended up with some bankruptcies and others that did poorly. Some held steady and generated income but it just wasn't worth it for me. Be careful chasing yield unless you know a lot more than I knew.
Thank you. I’m trying to wade through some of these companies and cull out which ones would be equivalent to my standards (credit ratings and location) for munis. There are no guarantees but at least I can try.
 
Dec 18, 2019
399
104
93
41
Central Oklahoma
So what is really driving things? I had a conversation with a good friend banker today and asked him where is this money coming from? Who can afford to buy vehicles and homes at the levels they are today. He didn’t have a good answer outside of people are leveraged to the hilt.
Also have another friend who is in the body shop business. They are setting records monthly. Way above anything they did before covid. He couldn’t explain it. He said every body shop in Stillwater is the same way. Are people getting into more wrecks now because of covid?
 

H2Orange

Sitting on the Group W bench
A/V Subscriber
Nov 17, 2007
4,930
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Edmond
Curious as to what some of your thoughts are on buying preferred shares w a high dividend where the underlying common would have to trade at 5 multiple prior to converting the preferred shares.

This is more of an income generator/asset protector and not a growth strategy for this part of my portfolio.

It replaces muni’s that have been called where YTC have gone in the crapper.
If you are interested in these, I would look at some ETFs such as EPRF, PFFD, and SPFF. Yield won't be as high as the individual offerings, but less overall risk. There are a lot more ETFs, but these three are among the more popular.
 

bleedinorange

Federal Marshal
Jan 11, 2010
12,638
16,481
1,743
Close, very close
Curious as to what some of your thoughts are on buying preferred shares w a high dividend where the underlying common would have to trade at 5 multiple prior to converting the preferred shares.

This is more of an income generator/asset protector and not a growth strategy for this part of my portfolio.

It replaces muni’s that have been called where YTC have gone in the crapper.
I firmly agree with @steross. It has never made sense to me that people give large sums of money to a company to be handed a small fraction back over an extended period of time. It limits ones potential to generate more profit than the percentage offered. Dividends can be cut or eliminated. The Dr gave you good advice.
 

okstate987

Territorial Marshal
A/V Subscriber
Oct 17, 2009
8,761
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Somewhere
The commodities market is rather interesting right now. Gold & Silver are more or less treading water, but URNM has been on quite a run as of late.
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Jan 11, 2010
12,638
16,481
1,743
Close, very close
So where we at guys?? I hope we're not giving up on this thread.
Not by a long shot. September is notorious for being brutal. Now is the time to take some off the top of the recent gains. It's likely stocks will skid the rest of the month based on the 20 year average of stock performance in September. Sixteen percent of stocks will gain according to annual averages and 84% will fall. Difficulty is figuring out which winners to take profits from and which potential losers to sell. Whatever the case, selling some of your junk, taking profits and being prepared to pickup bargains when they materialize is always good. What's not good is riding stocks to the bottom. Been there, done that.