... but is it doable in reality ?

Discussion in 'Trading' started by janbillian, Jun 6, 2020.

  1. Excerpt from an update (paid subscribers only) from Eagle Point Capital on International Game Technology,

    "IGT should generate around $1.9B of free cash flow over the next five years and pay down $2B of debt from the slot machine business transaction proceeds. I don’t know what valuation will trade at in five years so I use a range of 7-15% (a 6.7x – 14x multiple) to assess the impact of change in valuation multiple. As you can see, even in a scenario where we get no valuation multiple expansion, the returns are solid. If, once IGT is a pure-play lottery business and has demonstrated a year or two of clean financials, the market appreciates the value of the business model and assigns a multiple that is closer to fair value (10-15x), returns will likely exceed 20% per year."

    Dividend yield as of now around 4.5% .

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    #441     May 27, 2025
  2. I have purchased shares of SunRun (RUN, ISIN : US86771W1053). The share price dropped sharply after tax benefits for owners of solar panels have been drastically reduced.

    The share price lost 37% in a single day ... but yesterday (05/30/2025) gained 10%.

    Closing price 7.49 US$.

     
    #442     May 31, 2025
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    #443     May 31, 2025
  4. Jack Schwager in a 2025 interview, he's the author of the "Market wizards" book series :

     
    #444     Jun 4, 2025
  5. As a reminder, an update on my GoPro (GPRO) idea (page 43 of this thread) - I still consider this a buy candidate.

    Will it be lights out for GoPro (GPRO), there is a high probability that this company, now trading >99% below its ATH, won't be able to survive.

    BUT - the founder has ditched his salary, there are new promising board members and the products get good reviews on Amazon, though the chinese competitors beat GoPro on the value/$ spent metric .

    The founder & CEO Nick Woodman promises great new products and the goal is profitability.This is potential stock investment where you'll be wiped out or may multiply capital invested. I'd still be a buyer here, with no more than 10% of my assets max.Stocks all-time low was around 38 cents.Right now 80 cents.

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    Last edited: Jun 6, 2025
    #445     Jun 6, 2025
  6. #446     Jun 7, 2025
  7. SunRun with a strong rally, closing price friday June 13th, 2025 was 10 US$, I suggested it as a buying opportunity two weeks ago here in this thread, entry #442 .

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    #447     Jun 15, 2025
  8. #448     Jun 17, 2025
  9. ... new recordhigh in the Nasdaq futures contract pre-market opening.

    I stand by my 13% a year theory ... basically suggesting that the Nasdaq 100 will continue to outperform the S&P 500 and thus is the best index for wealth generation -> simply invest via low cost index fund as early as you can.

    It's a much smarter choice than daytrading, which will likely ruin you.

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  10. I suggested buying shares of Nike (NKE) on page 44, it seems the company has the worst behind it and the turnaround will gain trajection.

    Remember, the company went public in 1980 and when the share price fell below 2/3 of its all-time high -> you always had a great entry as a buyer.

    Shares almost 10% above their closing price yesterday (06/26/2025), 62.54 US$ in after hours trading after the news came out.

    https://www.cnbc.com/2025/06/26/nike-nke-q4-2025-earnings.html

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