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Should my 19-yr-old Son by more Stock in AMD

AMD is now $84.65 -- a little above the $79 entry point my son used to buy more shares. He has made some money on NIO (Chinese Tesla) and Cardano, African Cryptocurrency although they have taken hits in recent weeks. Hope he makes money, but if he doesn't the lessons learned will be very valuable.

Any losers? Everyone has losers too.
 
Any losers? Everyone has losers too.
Since we are talking chips here, I have some chips in the game. Brooks Automation manufactures computer chips and with a chip shortage, they've done quite well (not yesterday though, but the market was down 533 points).

But made money buying and selling a few times on BRKS. They are currently at a spot where I would buy again. It likes to run up to about $104 and then fall to low $90s lately. Then it's run up again. That's the pattern lately. Of course, if you had bought a year ago, you'd have really liked the results holding.

Edit: I should mention that almost all of the float is owned by institutional investors. So they pretty much hold for long periods and occasionally rotate into something new.
 
Since we are talking chips here, I have some chips in the game. Brooks Automation manufactures computer chips and with a chip shortage, they've done quite well (not yesterday though, but the market was down 533 points).

But made money buying and selling a few times on BRKS. They are currently at a spot where I would buy again. It likes to run up to about $104 and then fall to low $90s lately. Then it's run up again. That's the pattern lately. Of course, if you had bought a year ago, you'd have really liked the results holding.

Edit: I should mention that almost all of the float is owned by institutional investors. So they pretty much hold for long periods and occasionally rotate into something new.

I got my ass handed to me with Skyworks. Good earnings like but I guess institutional holders wanted blowout earnings. Went from 200ish to 170 after beating earnings. Should just bought options.
 
I got my ass handed to me with Skyworks. Good earnings like but I guess institutional holders wanted blowout earnings. Went from 200ish to 170 after beating earnings. Should just bought options.
I've noticed a lot of good companies getting punished with earnings reports that don't just beat estimates but blow them out. It's weird. I get buying the rumor and selling the news but this seems more than that. Seriously outstanding results is being met more and more with a sell off. Who knows sometimes?
 
I've noticed a lot of good companies getting punished with earnings reports that don't just beat estimates but blow them out. It's weird. I get buying the rumor and selling the news but this seems more than that. Seriously outstanding results is being met more and more with a sell off. Who knows sometimes?
Because valuations are based on expected future growth. If valuations are based on crazy-high future growth and earnings are just strong, the valuation is too high. The market corrects.

That’s why understanding fundamental analysis is so important.
 
Because valuations are based on expected future growth. If valuations are based on crazy-high future growth and earnings are just strong, the valuation is too high. The market corrects.

That’s why understanding fundamental analysis is so important.
Yes, the sum of present values of future income streams. I understand that. What I am pointing out is a bunch of analysts putting marks on the wall, a company crushing those estimates with strong future guidance, and then the stock dropping off.

The market doesn't entirely act as a measure of sum of future income streams anymore. It should be a scale, but some big players put their weight on the scale as well.

In many ways, it has become a casino whereby the house (big hedge funds) move prices to where they want them to make a profit. They know retail investors will flood into great results and guidance. Sometimes it seems that they take advantage of that, depressing prices for awhile, waiting until retail sells out of a lowered position, and then they come in and scoop up the shares that they want at the prices they want. They also leverage the media to move prices. I think coordination, collusion, and manipulation have been on the rise.

Take a listen to this.
 
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Yes, the sum of present values of future income streams. I understand that. What I am pointing out is a bunch of analysts putting marks on the wall, a company crushing those estimates with strong future guidance, and then the stock dropping off.

The market doesn't entirely act as a measure of sum of future income streams anymore. It should be a scale, but some big players put their weight on the scale as well.

In many ways, it has become a casino whereby the house (big hedge funds) move prices to where they want them to make a profit. They know retail investors will flood into great results and guidance. Sometimes it seems that they take advantage of that, depressing prices for awhile, waiting until retail sells out of a lowered position, and then they come in and scoop up the shares that they want at the prices they want. They also leverage the media to move prices. I think coordination, collusion, and manipulation have been on the rise.

Take a listen to this.

yes I believe this 100%. Institutions, sovereigns, and hedge funds can absolutely move markets if they want to. Through several hundred million at a stock and temporarily dry up liquidity. If they work together, it’s easy to squeeze retail investors. Retail folks only get access to a small fraction of the market. Exotic options and hedges through large securitizations, etc (MBS, CLO, CDS) commodities, futures, Eurobonds, etc etc. it is tough to win as a retail trader at times when you think you are a badass by messing with puts and calls. I’m one of them!!!
 
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