looks like a major up-trend today

better than yesterday anyway...

Dow +780

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This message has been edited. Last edited by: Sig209,

Anyone have a take on SWBI? Smith and Wesson.

Trying to figure this stock out.

^^^^^^^
That is likely to be a volatile stock not just dependent on sales, but politics and news events.

quote:

Originally posted by RAMIUS:
Anyone have a take on SWBI? Smith and Wesson.

Trying to figure this stock out.

Right now it is not following the market because gun sales are at another all time high. So from a company stand point they can carry the stock price near their 52 week high because they have the sales and profit of being able to sell just about everything they're capable of producing right now. I wouldn't buy it near the 52 week high.

As ZSmichael said, it's a very volatile stock as it has several factors that push it's stock price around. Being an election year, depending on who gets elected, it could drop like a dead fly or stay high. If gun sales drop to very little demand, and they do virtually overnight sometimes it can drop very quickly also. 6-12 months ago gun dealers were crying that there were virtually no sales, and then all of a sudden wham, with the virus and these non peaceful protests, demand increased incredibly overnight.

out of the gate Dow +830

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quote:

Originally posted by Hay2bale:
Am I the only one worried about a revival in the trade war with China?

There are lots of risks that are inconsistent with 10,000 for the NASDAQ.

China can’t win a “trade war” with the US unless they win it through politics. They can never win it through trade and they know it and, more importantly, they know that Trump knows it.

quote:

Originally posted by RAMIUS:
Anyone have a take on SWBI? Smith and Wesson.

Trying to figure this stock out.

I wouldn't. It's going up now because people are buying guns. As things settle down I would be worried about a dip again.

Firearms stocks can be very political driving also.

quote:

Originally posted by comet24:

quote:

Originally posted by RAMIUS:
Anyone have a take on SWBI? Smith and Wesson.

Trying to figure this stock out.

I wouldn't. It's going up now because people are buying guns. As things settle down I would be worried about a dip again.

Firearms stocks can be very political driving also.

I agree.

RGR trades defensive.

Oftentimes it trades up when “the markets” are down and vice versa.

anybody got any thoughts on EDP ??

Enterprise Products -- midstream gas and oil. Down a good bit. pays 9%. decent cash position.

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quote:

Originally posted by Sig209:
anybody got any thoughts on EDP ??

Enterprise Products -- midstream gas and oil. Down a good bit. pays 9%. decent cash position.

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The Chief Operating Officer bought 10,000 units on the open market yesterday.

http://archive.fast-edgar.com/...8292MZ237NVZ22SZP22/

I own other pipeline MLPs, but was not familiar with this one. It doesn't seem to have incentive distribution rights, which is very positive.

You get a K-1 which makes your tax return preparation more difficult, and there are limits to how much you can own in an IRA or 401(k) account.

quote:

Originally posted by Hay2bale:

You get a K-1 which makes your tax return preparation more difficult, and there are limits to how much you can own in an IRA or 401(k) account.

Too difficult for the average CPA? What's the limit?
If it is traded in an IRA I don't imagine taxes being an issue if I'm not collecting from it yet correct?

quote:

Originally posted by apprentice:

Too difficult for the average CPA? What's the limit?
If it is traded in an IRA I don't imagine taxes being an issue if I'm not collecting from it yet correct?

No, not too difficult for a CPA. But a PITA if you use Turbo Tax and the Form K-1 has 47 different reported items.

Second question:

"When you hold MLP shares within a retirement account, such as a Roth IRA, this income—if it totals $1,000 or more—is considered Unrelated Business Taxable Income, or UBTI. That makes it subject to immediate tax, unlike most other investments you might hold in an IRA, where your earnings are usually tax-deferred or, in the case of Roth IRAs, tax-free."
https://www.investopedia.com/a...-mlp-my-roth-ira.asp

"The IRS allows IRAs to have up to $1,000 worth of UBTI in them. More than that – and your IRA will owe the tax. The custodian of the account will file a special 990-T form and pay what is owed via assets from the savings vehicle. Typically, they’ll drain any cash holdings first, but if that isn’t sufficient, they will sell various stocks, mutual funds, ETFs and even the MLP itself in order to have the IRA pay the tax. Depending on how the custodian agreement is written, you may have little say on what they choose to sell.
Moreover, the tax rate here is currently at the highest rate of 37%"

Firtherlymore, the IRA custodian will (may) charge you a fee to prepare the IRS Form 990-T.

It doesn't matter if you withdraw funds from the IRA account - if the MLP puts over $1,000 of net income on the K-1, you have to file an IRS Form 990-T and pay tax at the highest current tax rate.

So you are limited to small investments in MLPs in a retirement account.

Thank you for the info. Doesn't sound good for me.

I'm loading the wagon with wsbc Wesbanco bank stock.

quote:

Originally posted by doublesharp:
I'm loading the wagon with wsbc Wesbanco bank stock.

What's your rationale?

quote:

Originally posted by doublesharp:
I'm loading the wagon with wsbc Wesbanco bank stock.

You must be seeing something I am not. The dividend is not sustainable at 6.5%, and most analysts have it as a hold, while RayJay has it as an outperform. Price targets are anywhere from $22 to $26.50. Low projected EPS with an 11.5 P/E.
Key, Fifth Third and M&T all have higher 5 year EPS, slightly high PE, liquid capital, and market caps in the $10 to $15 BB sweet spot. I am not a fan of banks with market caps below $3 BB.

I have been eyeing some preferred shares that are paying north of 5% dividend.

I've been invested in one of their acquisitions since it's ipo in 1991 and have made a pile on it. Community bank shares, formerly New Albany First Federal Savings and Loan. Banking rules were relaxed in the 80s and S&Ls could become banks. Wesbanco bought cbin a litte over 2 years ago and that was a nice cash bonus, increased dividend and an equal share swap. I know the president and ceo of the old bank very well and I know the strong local people who are in heavy. Follow the winners and I like bank stocks. It's where the money is.

Just because div is over 6% doesn't mean it is unsustainable. When share price goes up div rate will come down.
In 2009 wsbc did cut dividend in half as did many bank stocks. They rapidly raised div back to old levels.

Raymond James upped wsbc from market perform to market outperform on June 17th, 2020

Forbes continues to rate Wesbanco as one of the world's best banks on June 14th, 2020.

I'm not touting but this is what I'm doing. Buy wsbc below $20. Early in this thread I pounded the table on Sysco @27 and it's doubled since then. ya pays yo money and ya takes yo chances.

copy and paste from TDA:

June 17, 2020
9:04 am ET
WesBanco upgraded to outperform from market perform at Raymond James
MarketWatch
8:43 am ET
WesBanco Raised to Outperform From Market Perform by Raymond James
Dow Jones
June 15, 2020
4:34 pm ET
*Wesbanco Filing Shows Offering For Mixed Securities Shelf Offering, No Terms Disclosed
Benzinga
4:15 pm ET
WesBanco Again Ranked by Forbes as a World's Best Bank
PR Newswire
June 01, 2020
9:00 am ET
Columbus CEO Magazine Again Names WesBanco A Winner of the Columbus Top Workplaces 2020 Award
PR Newswire
May 21, 2020
7:29 am ET
UPDATE: These bank stocks trade at discounts of up to 54% -- and Wall Street loves them
MarketWatch

quote:

Originally posted by doublesharp:

Just because div is over 6% doesn't mean it is unsustainable. When share price goes up div rate will come down.

Not arguing with you, but when the return on equity (profitability) rate is below the dividend yield, that is the definition of unsustainable. You can not pay out a yield on equity (dividend) that is higher than the rate of return you are earning. If so, you are borrowing money to pay a dividend. Their dividend yield is 6.45%, and has been north of their ROE (6.25%) for over 2 months. Clearly they have low debt, but that will change with their offering.

Again, I'm not touting. I do what I do and it's worked well for me. I don't buy to flip I buy to hold. I don't ask for stock advice on the internet but sometimes will give some and it's worth what it costs you.

Dogs of the dow is good theory for rookies. That's not me. My first stock purchase was when I was 14 years old in 1965. Broker at Merril Lynch gave me 2 stocks: Syntex, a pioneer in birth control and Ely Lilly, an Indiana drug company traded otc. I bought 8 shares of lly for $640. Today that 8 shares is now 1147 sh thanks to splits and div re-invest and sh price is around $160. I'm 69 now and have 4 or 5 times that much lly in TDA acct along with substantial holdings in sybt, tfc, jpm, prk for banks and kr,cag, syy, pzza, yum, gwph and gambling on Ford and GE. And about 20 more holdings. I can tell you why I own them all in less than 30 seconds each. No airlines, no cruise ships, no tesla, no alphabet for me. May be great for others but thanks just the same I'll dance with the ones that brung me.

First qtr was heavily influenced by wuflu. 2nd qtr will be too. Watch the 3rd and 4th. That's when I'll get paid. Or not.

This thread cooled off with the market, anyone making moves?

I got tired of watching Square rise since I missed my first chance with them so I bought in this week.

Doubled down on OKE and XOM since they're both down around my cost basis.

Still have some cash on the sidelines waiting to go to work.