What Did You Buy Today?

[fenders53]

(11-21-2018, 12:36 PM)vbin Wrote: @divmenow, I own NVDIA and I am loosing money on it right now. My average price went up due to my recent purchases. I wish I could see the future or I was as experienced and smart as some of the people here so that I could have maximized my returns. But I am not worried about the stock in long run. I am bullish on the stock not because of its recent run but because of the vision they have and the tech and revenue models they are working on. They are way ahead of anyone else in the game.

Added NVDIA

If that was directed at me for my last post I apologize because I came off wrong.  I don't consider myself smart, but I've sure got some battle scars that were financially painfully and often avoidable. I will share my war stories hoping somebody else will avoid some huge mistakes I made long ago.  I wish some internet friends had warned me, but they were busy hyping instead. 

I think NVDIA will be fine,  but it may be more than a minute.  They've survived several 65% corrections before.  May not look like it on a 20yr chart due to scaling but it happened.  Right along with the other highly successful chip stocks that survived.  The cyclical thing is very real for chips and nobody avoids it.  That is why I am forever gun shy unless I buy when they look like they are going out of business.

[stockguru]

Added to XOM and got back into TGT. Sold TSLA as it reached my target.

[vbin]

@fenders, i wasn’t criticizing anyone nor I get offended. I actually feel thankful to learn from all the smart and more experienced people here.

[divmenow]

No one can ever get mad or upset on these boards. Everyone here is awesome and each has his or her rights to agree or disagree. That's what makes a market lol. I enjoy coming on here and reading all the useful tips and discussions. I prefer this any day of the week over facebook and Insatagram.

I hope everyone had a nice Thanksgiving

I also added to XOM today. Light trading day and no buyer. XOM at $74.80 is a great buy!

[vbin]

I added XOM too. Anyone looking at BHGE or SLB?

[fenders53]

(11-23-2018, 12:09 PM)vbin Wrote: I added XOM too. Anyone looking at BHGE or SLB?

SLB looks cheap but I'm in too deep on oil already and have to stop.  The speed of this oil price crash is just crazy.  My first investment in oil would be a major for sure.  I own CVX for the upside potential and DIV, BP for the crazy good DIV.  Nothing at all wrong with XOM but I don't own it at the moment.  You won't wake up next month and any of these lost half their value.  Just be careful of the small players.  They look so good but they are lotto tickets and crash hard if oil stays cheap for 6 months.  No matter what you do in oil don't be greedy if you get lucky and get a quick profit. It's seemingly never too late to get back in later when they go on sale.  Oil is nothing like most of my holdings.  This isn't 1980 and you'll be sorry if you pretend any oil stock is JNJ.

Today I sold puts in AEP, D, SO and ED.  My old ones expired again this month.  I'll jump in straight up long if utilities will pull back some.  Not sure it happens soon so just collecting premiums.      

Open for other utility suggestions but I am limiting it to a good current yield (over 3%), and some growth prospects.  Those always seem to turn out far better a few years later.

[vbin]

@fenders do you consider SLB or BHGE small? I haven’t looked deep into them yet, Just know that GE is looking to dump BHGE stake which could add up to steep decline and could give great opportunity to own this even at lower prices.

[fenders53]

(11-23-2018, 01:48 PM)vbin Wrote: @fenders do you consider SLB or BHGE small? I haven’t looked deep into them yet, Just know that GE is looking to dump BHGE stake which could add up to steep decline and could give great opportunity to own this even at lower prices.

SLB is one of the larger oil services companies. about 5 times the size of Baker Hughes.  BHGE is a GE company.  That might make me uncomfortable because it;s no secret GE is screwed if their debt rating is downgraded to junk. They have publicly stated they'll sell a lot of assets if they need to keep the banks happy. (as they should).  BHGE sure looks like a candidate because they are a liability when oil is low.  That sale could be very good or bad for you depending on projected oil prices at that time.  

The small exploration companies are what I am most gun shy of.  They take a chance and leverage up when times are good, then they just about go bankrupt when oil falls.  Some of them do go bankrupt, cut dividends etc.  If you don't know the industry  they can be lotto tickets.  To me they are swing trading stocks and not long-term investments.  

Whatever you decide, pull up a 20 year stock chart and see what you are getting yourself into.  Make sure the dividend didn't disappear at times. That's how $5 oil stocks are born. About the same as my chip stock preachins lol.  Three year charts will mask the risk.  It's the reason I just dabble in the oil majors now.  Energy is very political, but then again it seems hard to avoid that in many sectors.  In oil, a public statement from the US Prez or Saudi  can swing the oil market 10% in a hurry, and worry the market it's a trend.   To invest intelligently you have to understand the current logistics and politics of fracking, challenges of moving oil from the Permian Basis, Bakken fields, offshore drilling, pipelines, etc. The CEOs screw it up about half the time so I accepted my reality the the Aristocrats are far safer. I believe we'll see the oil majors like XOM, CVX and BP  diversify over the next ten years.  They just have to.  It could be bumpy but they have the resources to adapt.  They could bully their way into solar, wind or ice cream if they choose.

EDIT: Swear I didn't see this article before I posted all that. CNBC's talking heads are discussing what's really the minimum you need to make yourself aware of before you dive into anything other than an oil major. It supports a lot of what I stated. The market thinks it's true so it is for now. Will we burn down our new US oil industry jobs, and then take corrective actions to fix it later when election season starts up? It's certainly a possibility. Just look at the AG industry. Devasting tariffs to farmers and Deere etc, then subsidize them 60 days later when the sky was truly falling. This gives me a headache lol.

https://www.cnbc.com/2018/11/23/trumps-q...llers.html

[fenders53]

(11-23-2018, 11:36 AM)vbin Wrote: @fenders, i wasn’t criticizing anyone nor I get offended. I actually feel thankful to learn from all the smart and more experienced people here.

I'm pleased to hear that.  I know I come off preachy sometimes (maybe often lol).  I just hate to stand by and watch a forum friend get smoked when I already paid the "tuition" for that investing mistake 20 years ago.  I don't ever want to scare people from investing in growth, but when everybody loves it and nobody seems to care the PE is obscene, Divmenow and I know how it's gonna end sooner or later when the music stops.

[vbin]

@fenders, great points. sticking specifically to BHGE, I am looking at it from a prospective that If fundamentally nothing is wrong with BHGE and it’s able to grow over next 10 years, (oil demand is only going to grow, despite recent volatility) then in the event of GE unloading their stake, market will pull down BHGE further which can provide a great opportunity to buy and hold for next few years.

I am not looking beyond BP, RDS,XOM, CVX, PHX with an exception of BHGE, SLB, OIH.

[fenders53]

(11-24-2018, 12:29 PM)vbin Wrote: @fenders, great points. sticking specifically to BHGE, I am looking at it from a prospective that If fundamentally nothing is wrong with BHGE and it’s able to grow over next 10 years, (oil demand is only going to grow, despite recent volatility) then in the event of GE unloading their stake, market will pull down BHGE further which can provide a great opportunity to buy and hold for next few years.

I am not looking beyond BP, RDS,XOM, CVX, PHX with an exception of BHGE, SLB, OIH.

Baker Hughes was a very good company for a lot of years.   I haven't followed them lately.  The last correction was brutal and long, and balance sheets changed for most oil company's.  I agree oil demand will rise provided world economy doesn't have a recession.  And so will supply if proper price point is maintained.  Oil just about oozes out of the ground in the Middle East.  Fracking is a lot more expensive to extract than that and the oil is lesser quality.  But their break even oil price point is considerably lower than even 5 years ago.  OPEC know's this and has no choice but influence the world's supply.  The US is a big oil importer and exporter, which makes no sense  at first glance.  It's pretty complicated.

[Kerim]

Added a little MO yesterday. First time I've bought shares with new money since 2008/2009. Yield over 6 percent on menthol scare.