Which stocks are taking unreasonable poundings due to COVID19

Broxi

Literal Communist
Jul 24, 2012
9,561
9,520
I unashamedly sold out of everything yesterday, placing my order before markets even opened. I would consider myself very comfortable with volatility but the latest covid-19 news does seem to indicate we’ll be on a downtrend for some time. I’ll probably start drip-feeding money into some mutual funds once we’ve got some more clarity on how the next few months might look.

In terms of individual stocks, I’ve been keeping an eye on Cairn Energy, Oil exploration company trading at a 60% discount compared to a month ago. The double whammy of the coronavirus and oil price collapse mean it’s now trading at a P/E of 4. Still fairly speculative given the nature of its business but has a lot of upside potential.

Cinema chains are interesting with a well established and sound business model. Cineworld is trading at an 88% discount to one month prior, which seems to be entirely driven by Covid 19. I’m still expecting cinemas to be closed by the government in the near future, which should send the price significantly lower, but even now it’s a well established business, in a century old industry that isn’t going anywhere, trading at a P/E of 2. Madness.
I saw some mug on Motley Fool post an article claiming he was buying FTSE 100 stock today at a "bargain price", why the fuck would you do that when you can obviously buy it for less tomorrow and the next day?

All this "topping up" bullshit they like to hit out with, like they have this bottomless pit of cash sitting around and aren't up to their tits in falling stock portfolios.
 
Jun 23, 2017
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I saw some mug on Motley Fool post an article claiming he was buying FTSE 100 stock today at a "bargain price", why the fuck would you do that when you can obviously buy it for less tomorrow and the next day?

All this "topping up" bullshit they like to hit out with, like they have this bottomless pit of cash sitting around and aren't up to their tits in falling stock portfolios.
I think a lot of it is just conventional economic theory having to be thrown out the window for this, and that can be hard for people to do. Until last week I was still operating under the assumption that the sell-off would be fairly short lived, but that’s clearly not the case now. It isn’t just number on a screen here, real businesses will go under and unemployment will shoot up.

People are loss averse. They dislike losses more than they like gains of an equal size. It can be tempting to look to top up in companies where the fundamentals are still sound, but the market isn’t really reacting to fundamentals - it’s shitting itself. We’re basically out of ammo as far as monetary policy goes, and even if we weren’t, no amount of quantitative easing is going to get people back into work if they’re putting the health of their families at risk in doing so.
 

hazza

wasted chemist
Sep 2, 2013
5,511
1,489
Broadbeach, QLD
Huge amounts. Wish I had more experience and capital to take advantage but it surely will be one hell of a lesson though. I agree we haven't seen the bottom yet.
thats basically the trick.

if you've got money, but at the bottom, but be fairly confident it'll go up to where it was, could take years.
 
Jun 6, 2013
2,538
682
Socal
thats basically the trick.

if you've got money, but at the bottom, but be fairly confident it'll go up to where it was, could take years.
Yeah there's no telling how long it'll take to hit the levels before things took a turn. People might be out of cash for awhile, depending on how long this lasts.
 

hazza

wasted chemist
Sep 2, 2013
5,511
1,489
Broadbeach, QLD
Yeah there's no telling how long it'll take to hit the levels before things took a turn. People might be out of cash for awhile, depending on how long this lasts.
well as i predicted, our markets and the usa are taking huge hits, and the stimulus packages won't do anything.

it reminds me of apollo 13 where they shut the valves, the leak seems to pause for a few seconds and then plunges right back down again, to everyone's shock.

that's what's going on here.

this thing will run its course and there is fuck all anyone can do about it.
 
Jun 4, 2013
25,496
7,073
Futures already dropping hard. Get ready for another bloody week.
Get some cheap airline stock, AAL for example. When that stimulus package rolls out, you're going to be set, but immediately sell and don't be greedy. That's my plan at least. :lol:

My Moderna stock shit the bed, but I'm hearing that they're getting coverage on 60 minutes. It should skyrocket after, but there is word that Insiders are selling like crazy. Might not be good coverage :(.
 
Jun 6, 2013
2,538
682
Socal
Get some cheap airline stock, AAL for example. When that stimulus package rolls out, you're going to be set, but immediately sell and don't be greedy. That's my plan at least. :lol:

My Moderna stock shit the bed, but I'm hearing that they're getting coverage on 60 minutes. It should skyrocket after, but there is word that Insiders are selling like crazy. Might not be good coverage :(.
I don't really buy stock anymore, just options. If I'm looking towards long-term, I'm going to wait it out a bit. No telling what these next few months will bring.
 
Reactions: REDC and Mexi-Box
Jun 4, 2013
25,496
7,073
Get some cheap airline stock, AAL for example. When that stimulus package rolls out, you're going to be set, but immediately sell and don't be greedy. That's my plan at least. :lol:

My Moderna stock shit the bed, but I'm hearing that they're getting coverage on 60 minutes. It should skyrocket after, but there is word that Insiders are selling like crazy. Might not be good coverage :(.
This didn't age well. My stupid ass should've held. I could've made $30 profit off the 2 measly shares I bought. :patsch
Also sold WMT for a loss when I bought at 120. I could've sold at 130.
 
Jun 4, 2013
25,496
7,073
Have you guys seen Moderna? Stock is in free-fall after a few subjects had a bad reaction to the vaccine. I think they're a bit too ahead of their time. Multiplexing mRNA from a virus sounds really fucking risky. It's insanely cool because it'd be a dream to work for them. They're tying together machine learning and clinical practice. Still, I don't think we have the necessary data to produce a promising vaccine from machine learning yet. Need far more viruses to be cultured and tested in animal models before we can maneuver to this area, I'd imagine. This is the reason why we gave up on viruses. We just kept digging through the literature and not finding enough data to produce the models we wanted.
 
Jun 6, 2013
2,538
682
Socal
Found a script for volume that is something I've been wanting to have for awhile but had no way of creating it (because I don't know how to code). Figured there was something out there and finally came across one.
 
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Jun 4, 2013
25,496
7,073
Found a script for volume that is something I've been wanting to have for awhile but had no way of creating it (because I don't know how to code). Figured there was something out there and finally came across one.
Also, stockcharts.com and click accumulation/distribution or volume. Accumulation/distribution worked for when CHEK went from 0.5 all the way to 0.68. You could see it trending too. Was kind of cool.