Stock Market (9 Viewers)

OP
AFL_ITALIA

AFL_ITALIA

MAGISTERIAL
Jun 17, 2011
29,596
  • Thread Starter
  • Thread Starter #802
    Do you guys trade often? I own some publicly traded bundles of oil royalties and litigation claims and pretty much just wait for them to pay out. I'm not jumping in and out or looking at techincals.
    I mostly buy and hold. Every now and then I'll try for a short-term play though if I see something interesting. Watching tickers every second of the day isn't for me.

    What are these?
     

    alaska

    Senior Member
    May 25, 2013
    1,165
    I mostly buy and hold. Every now and then I'll try for a short-term play though if I see something interesting. Watching tickers every second of the day isn't for me.

    What are these?
    Same, buy and hold. There are publicly traded royalty companies (mining, oil, etc). The one I have is TPL. Royalty owners have a superior business model to oil production companies. Their net margins rival software companies because they have such low overhead costs, and they take a percentage of the oil revenue (not earnings).

    The litigation claims are in the form of publicly traded litigation funding companies, of which there are a handful. Really new and niche field and all of the public companies are microcap or small cap.
     
    OP
    AFL_ITALIA

    AFL_ITALIA

    MAGISTERIAL
    Jun 17, 2011
    29,596
  • Thread Starter
  • Thread Starter #804
    Same, buy and hold. There are publicly traded royalty companies (mining, oil, etc). The one I have is TPL. Royalty owners have a superior business model to oil production companies. Their net margins rival software companies because they have such low overhead costs, and they take a percentage of the oil revenue (not earnings).

    The litigation claims are in the form of publicly traded litigation funding companies, of which there are a handful. Really new and niche field and all of the public companies are microcap or small cap.
    Interesting. I've never heard of these before, I'll look into them. TPL seems super high now, too late to get in you think?
     

    alaska

    Senior Member
    May 25, 2013
    1,165
    Interesting. I've never heard of these before, I'll look into them. TPL seems super high now, too late to get in you think?
    Depends on what you think will happen to the price of oil, and to drilling in the Permian Basin (where TPL has all its acreage). The profit margins are very high and it has no debt, which is part of the reason it is valued at a much higher multiple than the drilling/fracking companies. The economics of the business are just different. Most of the time the TPL just collects checks, it doesn't have to do much work.
     

    Bjerknes

    "Top Economist"
    Mar 16, 2004
    111,508
    That's why I never hold options into earnings anymore. Just a disaster waiting to happen.

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    Stonks, amirite?

    Reminds me of the people buying SPCE (Virgin Galactic) thinking it was the ticker for SpaceX.

    - - - Updated - - -

    Do you guys trade often? I own some publicly traded bundles of oil royalties and litigation claims and pretty much just wait for them to pay out. I'm not jumping in and out or looking at techincals.
    You must be one the one percenters. ;)

    I have some long term holdings but I have fun trading shorter term options. Well, hasn't been as fun recently, but last year was amazing.
     
    Last edited:

    Tak!

    Senior Member
    Jun 23, 2011
    3,703
    Regarding stocks to recommend. I am, like I posted awhile ago, really new to this. Anyway.
    I love my Garmin watch so I bought some stocks a while ago. I won't be selling them until I decide I don't enjoy their products anymore. But that's a stock that has risen quite steadily for me. At this moment it's my best investment. I acquired Nvidia about the same time, also a long term purchase. Could also recommend it.
    I don't like Ford, Tesla will eventually die. So I went for Volkswagen instead. It's stock is declining but I won't be selling for a few years so it's ok.
    I love playing video games. Haven't played any these recent years but will start doing it again when I have more time. So I went for Blizzard, EA and when I have cash I will enter Take-Two as well.
    I really like Sonos, so I went into them to, but it's been going sideways. But again, almost all purchases I've made the recent months have been long term.
    I can also add that I have fairly small investments but in a large variety of companies. I am trying to spread over a lot of industries to reduce my exposure. My largest exposure is in Nvidia because it was so expensive before its split. The rest of my investments is made in Nordic companies. But I will in the future look to add something somewhere else as I want more geographical exposure. What I really lack is stocks in food/drinks, travel and travel related industry.
    I should also add that about 1/3 of my investments is various funds. Like I wrote earlier, these are all very small investments. I don't expect to gain a lot but neither loose a lot. I only have two high risk investments, one in a startupish named Mantex and one in Fragbite. My investment in the latter is about 100 dollars. Same goes for most of my other investments.
    So if you are risk aversive like me, spread your capital on funds or a large variety of stocks.

    Sent from my Samsung via Tapatalk
     

    campionesidd

    Senior Member
    Mar 16, 2013
    15,262
    @Tak! Volkswagen is a really good stock and reasonable valued for this market atm.

    Maybe some good plays:
    Regeneron (still not overvalued)
    Micron Technology
    Not sure about the last one. Unlike the semiconductor industry at large, which has seen tremendous increase in demand and is supply constrained, the memory market, in particular the 3D NAND market, is saturated and is in a supply glut.
     

    Tak!

    Senior Member
    Jun 23, 2011
    3,703
    Regeneron was expensive as heck. Will take some time until I can afford one. Overall, coming as newbie by first entering Nordic stock market and then to America. Holy moly how expensive US stocks are. Less dividend too, it seems like. But again, I am probably wrong, still too new to this.

    But if they're running into supply issues, isn't that accounted for in the current price? Or is based on the assumption that no more issues will arise?

    Sent from my Samsung via Tapatalk
     

    Tak!

    Senior Member
    Jun 23, 2011
    3,703
    Had no idea that Sonos were in a dispute with Google. Got fortunate this time. My lack of interest to dig in on my investments has bitten me a few times.

    Sent from my Samsung via Tapatalk
     

    Tak!

    Senior Member
    Jun 23, 2011
    3,703
    Yea but unfortunately you can't buy ARK ETF in Yurop :sad:

    looking into it
    It was just my first hunch based on Russia's interest in the region. The oil is in the north, right? I assume either China or Russia will tap into it. Unless the US has already made a deal with "the new government". But again, there is no facts or analysis behind it, just a hunch. It's always about oil so...
     

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