Investing

What did you buy? What might you buy??

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  • May 18th, 2022 3:00 am
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Deal Expert
Jan 27, 2006
19501 posts
12565 upvotes
Vancouver, BC
AndyB35 wrote: Peleton looks to be temporarily halting production due to slowing demand and controlling costs. Trading below its $29 IPO price Neutral Face

Peloton shares plunge 27% after report on production pause
PaddyM77101 wrote: #1 bet for getting purchased this year
Doubtful.

According to CNBC, they have warehouses full of products with more on the way stuck out in the Pacific and a US plant currently under construction due to be completed in 2023. Basically, there is zero market for the product right now in terms of new buyers as they have jacked the prices recently as well. I expect that they will declare chapter 11 sooner rather than later as the creditors realize that getting something is better than getting nothing... after all, according to their last filing, they lost $377 million last quarter and that's with sales of bikes and treadmills! They have $1.2 Billion in finished inventory with only $500 million in sales for the quarter ending Sept 30. I suspect that their sales numbers have dropped like a rock for the last quarter (which should be their strongest due to COVID and Christmas sales) for them to basically put a halt to fill their warehouses with stock. The post Christmas/New Year's Resolutions sales which typically weight loss and fitness products depend on probably tanked as well.
Deal Expert
Jan 27, 2006
19501 posts
12565 upvotes
Vancouver, BC
nathand wrote: Wow Netflix down AH with earnings.
They basically laid an egg in their projections and have finally stated what a lot of the streaming bears have been saying - competition is hurting them.
Deal Expert
Jan 27, 2006
19501 posts
12565 upvotes
Vancouver, BC
Bought SOFI yesterday.

With the bank charter, they can actually make more money than they did before so now it becomes a growth e-bank play rather than just another FINTECH play. Great value here with the bank charter but only OKAY value without given the current environment.
Member
Oct 5, 2009
264 posts
122 upvotes
jerryhung wrote: Day 3 of closing at the dead low's
NASDAQ was +2% to closed at -1.3%

PTON -20% after halting production intraday
NFLX -20% after-hours

Doesn't look good for sure
My 50% cash
What is this mean your 50% cash?
Deal Guru
Feb 9, 2009
12324 posts
11126 upvotes
craftsman wrote: Bought SOFI yesterday.

With the bank charter, they can actually make more money than they did before so now it becomes a growth e-bank play rather than just another FINTECH play. Great value here with the bank charter but only OKAY value without given the current environment.
Me thinks they get bought out by JP Morgan or Bank of America or something... Noto (the CEO) will cash in eventually.
Deal Expert
Jan 27, 2006
19501 posts
12565 upvotes
Vancouver, BC
Sanyo wrote: Me thinks they get bought out by JP Morgan or Bank of America or something... Noto (the CEO) will cash in eventually.
If any of the money center banks were smart, they would have done something like that just a few weeks ago and definitely before the bank charter was granted. Now, it's a much harder sell to the stock holders as well as the regulators as the bank charter changed the transaction from a simple 'buying a FINTECH front end for their services' to buying a much smaller bank. For some reason, the US system isn't big on big banks buying small banks as it almost never happens.
Deal Guru
Dec 5, 2006
11788 posts
6843 upvotes
Markham
Does this PTON and NFLX miss indicate that pandemic is over? Not from health and disease control point of view, but from consumers behaviour perspective. EG they back to pre covid behaviour such as restaurants, travel, movie theatre?
Deal Addict
Jul 13, 2007
1137 posts
628 upvotes
Toronto
craftsman wrote: For some reason, the US system isn't big on big banks buying small banks as it almost never happens.
Every year, there's 200-300 fewer banks in USA. From 8300 in 2000 to 4400 today. Most of it isn't by FDIC force, but regular M&A.

https://www.statista.com/statistics/184 ... titutions/

You won't have a 10000 branch bank buying a 2 branch bank, but that's normal. What you will have is a bunch of 1 branch banks slowly merging together that get bought out by a 20 branch bank, which merges with another 20 branch bank which gets bought by a 200 branch bank that gets bought out by a 2000 branch bank...

Been like that for decades: https://ilsr.org/number-banks-u-s-1966-2014/

The unusual thing about US banking is how fragmented it is, but the trend is going against that.
Deal Guru
User avatar
Sep 21, 2007
10621 posts
8616 upvotes
Winnipeg
MoneyHypeMike wrote: I wouldn't call buying those stocks investing Face With Tears Of Joy
sorry.. gambling hahah.
"An essential aspect of creativity is not being afraid to fail." -- Edward Land
Sr. Member
Jun 2, 2020
996 posts
1061 upvotes
V5y1v1
craftsman wrote: Doubtful.

According to CNBC, they have warehouses full of products with more on the way stuck out in the Pacific and a US plant currently under construction due to be completed in 2023. Basically, there is zero market for the product right now in terms of new buyers as they have jacked the prices recently as well. I expect that they will declare chapter 11 sooner rather than later as the creditors realize that getting something is better than getting nothing... after all, according to their last filing, they lost $377 million last quarter and that's with sales of bikes and treadmills! They have $1.2 Billion in finished inventory with only $500 million in sales for the quarter ending Sept 30. I suspect that their sales numbers have dropped like a rock for the last quarter (which should be their strongest due to COVID and Christmas sales) for them to basically put a halt to fill their warehouses with stock. The post Christmas/New Year's Resolutions sales which typically weight loss and fitness products depend on probably tanked as well.
Certainly a possibility too. They have a product that though doesn’t have a large moat is much lauded with the people that use it. I know a dozen couples that swear by the bikes and the app. I think they have a really strong brand and that the management has done a terrible job (with costs as well as the gaff with the treadmill). Nike, Apple or some other fitness company would be a good fit.

I’ll amend my prediction - #1 pick for a NYSE listed company that won’t exist next year.
Deal Expert
User avatar
Dec 12, 2009
23601 posts
12788 upvotes
Toronto
notenoughsleep wrote: Wow PTON, free fall almost back to IPO price
If people were not stuck at home due to a pandemic, who would pay a subscription fee to operate an exercise machine in their basement? How many have abandoned exercise machines at home from the past?
Koodo $40/6GB
Public Mobile 2016 fall promo, $23/1GB, $38/5GB
Fido $0.00/4GB+tablet
Tangerine Bank, EQ Bank, Simplii
Deal Addict
Apr 27, 2015
2729 posts
1357 upvotes
Mississauga
craftsman wrote: They basically laid an egg in their projections and have finally stated what a lot of the streaming bears have been saying - competition is hurting them.
No doubt! Currently there are a lot of free streaming services with same shows that Netflix (as well as Amazon Prime and Apple TV) has ... and not only original, but also with subtitles/translation in different languages...
The only reason we have Netflix, because our daughter watches it from time to time
"All animals are equal but some animals are more equal than others" George Orwell
Deal Guru
Feb 9, 2009
12324 posts
11126 upvotes
notenoughsleep wrote: I liked 2021 better than 2022 Crying Face
I love 2022.

We need to pop some of these stupid bubbles.

Plus im invested in boring (CDN banks, CNR, BCE, Enbridge) and ive enjoyed so far :)
Deal Guru
Feb 9, 2009
12324 posts
11126 upvotes
will888 wrote: If people were not stuck at home due to a pandemic, who would pay a subscription fee to operate an exercise machine in their basement? How many have abandoned exercise machines at home from the past?
The executives already cashed out $500 mil of stonks.

Bagholders left

This company is going to chapter 11.
Deal Addict
User avatar
Oct 26, 2007
2461 posts
1770 upvotes
YYZ
the mania we saw in 2020/2021 was caused by the massive liquidty provided by the FED. the asset bubble we are currently in just isn't sustainable and now that the fed has gone hawkish the market is showing it. executives have cashed out, you know whos bag holding? the retail investors to "buy the dip". I still constantly see the "apes" who want to buy the dip on GME and AMC which i genuinely have a worry for. We've already seen 50% corrections from some stocks such as: DOCU, PTON, ARKK, GME, AMC, ZM, MTTR and more. Now we are seeing some big names such as NFLX starting to show signs of weakness as well. What happens with APPL MSFT, TSLA report earnings that miss estimates next week? Watch out below. I mean i literally read an article about APPL saying iPhone demand is slowing, and yet we hit a 3T market cap (mind you for a short time).
Anyways I don't want to sound too bearish i wish everyone luck with their trades.
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Deal Addict
Jul 23, 2007
4679 posts
3596 upvotes
notenoughsleep wrote: I liked 2021 better than 2022 Crying Face
I liked 2020 better than 2021. Higher dividend yields right here in Canada. That was a great year to be a buyer of Canadian dividend equities. That's all I was purchasing for the taxable account, then and now.
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User avatar
Dec 16, 2015
3247 posts
2893 upvotes
Toronto
Stryker wrote: I liked 2020 better than 2021. Higher dividend yields right here in Canada. That was a great year to be a buyer of Canadian dividend equities. That's all I was purchasing for the taxable account, then and now.
I liked 2023 better than 2020
To the moon

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