optionfarmers

optionfarmers

Deep value means cheap and cheap can lead to opportunity. De risked or beat up is why we consider cheap stocks that are already depressed, the financial storm has already hit the stock price. Sometimes stocks get so beat up its unreasonable and doesn't make sense. Jaresh Holdings (JRSH) might fit in this category. Its trading below tangible book value and...

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Google earnings revealed some disappointment in search ad revenue, causing some selling in shares. The market is looking for an excuse to sell and take profits, this could be it. Apple, Google, and Microsoft have performed poorly this week and are the largest stocks in the large cap indices. These are the leaders. The Generals. Could they be signaling slower...

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While we still dont know the future of China and all its risks, these bargain stocks keep tempting us investors who follow valuations. IQ (iqiyi) is a online video streamer subscription model and also offers a live streaming platform in china. Used to be a part of Baidu, but is no publicly traded on its own. "iQIYI is currently one of the largest online video...

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Stock prices alone dont tell the entire story. stock prices just represent the equity portion of ownership. Debt holders are also a form of owners who can collect at liquidation before shareholders in the worst case scenario. The opposite of debt liabilities is excess cash on the balance sheet. While debt would make a balance sheet look worse, cash does the...

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CME housing index futures track real estate country wide and in metro areas. Real estate is a large portion of the economy and these futures are an easy way to keep an eye on the market. Could these indexes be topping out and consolidating? It already looks like San Francisco ( chart on the right side) could already be weaker than the rest of country in relative...

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adding together the indices to create this index combo chart of naz spx and russell to get a nice big picture view. can the economy support high growth to justify this implied stock growth premium? momentum in indicators could be waning.

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Tangible book value is the total of all physical assets minus liabilities. Its useful as a potential support level because this value is shows whats on the accounting books and implies what the liquidation value of a company might be if all things go sour. Its not a perfect value for liquidation because the market price of assets may actually vary from what the...

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Chinese stock prices are pricing stocks as if both depression and war are on the horizon or currently happening. US stocks are pricing multi year growth and safety with low volatility. How can this be? China was only recently the manufacturing growth engine of the world, hand in hand with the financial and consumer support of Americans. Is this no longer the...

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Rusell 2000 maybe leading the rest of the market to the downside. Russell has exposure to financial and energy, more so than nasdaq and large cap sp500. MMFI- is the percentage of stocks over the 50 day moving average. Useful in indicating how broadly bullish or bearish the market is, how the crowd is leaning in sentiment. VIX- is volatility index which...

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Potential Narratives: 1. The Fed truly pauses and starts to ease, creating easier money conditions, money printing 2. Election year may be bullish for assets, metals have lagged 3. De-dollarizing theme globally is favorable for metals 4. More global conflicts potentially could cause more US debt, which favors metals 5. Weakness in the economy can cause metals to...

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Things will slow down likely this year end as it usually does. liquidity and volatility tend to slow down as holiday volumes and activity slow down. Given where the equity indexes are, Im happy taking some bear call spreads on against some of the long bargains I hold. Theres a good chance we pull back and retest support. Crude oil and gasoline have been...

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Silver has been underwhelming during these times of inflation and money excess. It could be setting up for a breakout higher after its consolidated for so long since 2020 spike near 30 dollars per ounce. Historically, high rates have hurt and dampened metals as rates pull away capital from commodities. But with the effects of higher prices and costs, will higher...

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Paypal is expected to earn 4.95 eps this year 2023 and yet the stock is lagging the sp500. If risk avoidance returns in the sp500, it is possible that paypal underperforms further if the paypal downtrend continues. However, wouldnt that be a value buying opportunity? if paypal reaches the 50 level and paypal continues to grow its earnings power (as analysts...

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Ever since 2008, the world shifted more to the world of collateral and distrust, after the world of unsecured collapsed. Treasuries are dollars are in the future. As long as uncertainty remains high (or increases) there will be a place for government loans. Treasuries yielding near 5% on most maturities is "good enough" when compared to the historical 7% ish...

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watching cart post IPO. came out at 30, hit 40s, and fizzled. Now CART sports a new 5% earnings yield, and so does the sp500. CART is expecting 15% growth, while sp only hints 10% (best case). here are analyst earnings expectations. 2023 2028 eps 1.24 1.56 1.91 2.27 2.62 2.95 if 2028 eps of 2.95 per share comes true, what...

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Upwork is at fair value now, cheap for next year, and potential could grow to a 50-100$ stock over 5 years. Upwork is a freelancer marketplace and recently partnered with Open ai (chat GPT) to provide enterprises access to ai freelance experts and learning. Better value then megacaps: Upwork roughly has a earnings yield of 3% plus for this year 2023, which is...

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ARM made .54 eps in 2022 and .51 eps in 2023. at 51 cents eps, its 124 PE. Revenue per share current is 2.60 revenue per share, giving a price to sales over 20 PS. Its unclear if ARM is growing sales and earnings at a rate that justifies the current premium. Possible multiples examples: if pe goes to: 20pe x .51 = 10.20 30pe x .51 =15.30 40pe x .51= 20.40 so...

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Found another potential deep value play trading below balance sheet tangible book value. When the market is relatively unattractive, I like to look for deep value stocks now while I wait for better value in growth stocks and/or wait for bear spreads to work ;-) . Deep value, or cigar butts, or net net stocks, or balance sheet plays are companies that have...