All things STOCKS

#15,282
#15,282
It’s really off the charts. $1.15 trillion market cap with sales of about $50 or $60 billion (but growing at close to 100%/year. So 20-25x sales multiple.

The stock price is factoring in expansion to meet the sales demand. They are the biggest name in AI. So if they ramp up to meet the priced in demand and AI is reevaluated as a smaller industry the stock will crash.

I’m torn. Maybe I need to set up my first ever trailing stop loss limit order. But it’s so volatile I don’t know where I’m comfortable setting it.
 
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#15,283
#15,283
Velo Vol said:
To justify the current price this would need to be sustained for 5-10 years.
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I don’t know if Cisco owned the router space to the degree that NVDA is running away from their competitors (if any exist) in their products. It would be interesting to see what a 1995 Intel would be trading at in this type of insane market.
 
#15,285
#15,285
Majors said:
You see a split coming next quarter? Or around Q2 2024 timeline ?
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Splits don’t seem to be very popular anymore. There are now fractional shares available on many listed company shares. Higher share prices are maybe a prestige thing nowadays. Also, don’t know if companies benefit at all by making 100 share lots affordable for retail investor participating in selling options.

I do think that they have authorized additional share buybacks.
 
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#15,286
#15,286
Thunder Good-Oil said:
Splits don’t seem to be very popular anymore. There are now fractional shares available on many listed company shares. Higher share prices are maybe a prestige thing nowadays. Also, don’t know if companies benefit at all by making 100 share lots affordable for retail investor participating in selling options.

I do think that they have authorized additional share buybacks.
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Believe 25B buybacks. I think it has a chance for one another split soon….at least that’s my hope.
 
#15,287
#15,287
I’m mostly paused until/unless there’s a quick rally and I can flip a couple of bigger positions that I was assigned after writing put contracts. I’m going to sit on some cash for a while rather than putting it to work just in case there’s yet another big pull back in the next quarter or two. However I did nibble on the biotech ETF (XBI) today.
 
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#15,289
#15,289
Jax_Vol said:
In the heyday, Cisco was a steady money making machine.

NVDA is currently a wild swinging, hard to judge, outfit.
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As long as AI is a thing, so will NVDA. BUT, the internet was never NOT a thing after the dot com bubble - however Nvidia isn’t making sock puppets or just adding .com to their name. The backlog is real. However the valuation indicates that there’s little tolerance built in for missteps.
 
#15,290
#15,290
Thunder Good-Oil said:
Splits don’t seem to be very popular anymore. There are now fractional shares available on many listed company shares. Higher share prices are maybe a prestige thing nowadays. Also, don’t know if companies benefit at all by making 100 share lots affordable for retail investor participating in selling options.

I do think that they have authorized additional share buybacks.
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They will always have splits, splits are good business.
 
#15,291
#15,291
Milehigh_Vol said:
They will always have splits, splits are good business.
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I’m only aware of 2 or 3 things that splits are good for. If writing put or call options, lower priced shares in multiples of 100 are affordable for more retail investors. If fractional shares aren’t available, then there is a better opportunity for retail investors with maybe a few hundred dollars to participate in share ownership. I’m not sure, but fractional share ownership might have fees which eat into returns. Then there’s the psychology of owning more shares. Otherwise it’s just basic math and probably costs companies more to administer than the value of benefits being generated.

So good business for firms and employees that manage the process, but not necessarily good for company bottom lines.
 
#15,292
#15,292
Thunder Good-Oil said:
I’m only aware of 2 or 3 things that splits are good for. If writing put or call options, lower priced shares in multiples of 100 are affordable for more retail investors. If fractional shares aren’t available, then there is a better opportunity for retail investors with maybe a few hundred dollars to participate in share ownership. I’m not sure, but fractional share ownership might have fees which eat into returns. Then there’s the psychology of owning more shares. Otherwise it’s just basic math and probably costs companies more to administer than the value of benefits being generated.

So good business for firms and employees that manage the process, but not necessarily good for company bottom lines.
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Wouldn't the shares owned by the company split so they have more to get rid of without losing a large % of ownership?
 
#15,293
#15,293
Milehigh_Vol said:
Wouldn't the shares owned by the company split so they have more to get rid of without losing a large % of ownership?
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Obviously yes, but nobody cares much. If you tip people with 1 dollar bills, you can tip more times with smaller amounts than you can with $5 bills. The people receiving the shares don't look at the number so much as they look at the dollars. But yes, obviously, it is what it is.

A five dollar bill and five one dollar bills are roughly equivalent.
 
#15,294
#15,294
Firebirdparts said:
Obviously yes, but nobody cares much. If you tip people with 1 dollar bills, you can tip more times with smaller amounts than you can with $5 bills. The people receiving the shares don't look at the number so much as they look at the dollars. But yes, obviously, it is what it is.

A five dollar bill and five one dollar bills are roughly equivalent.
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That's true but why sell 5 dollars when you only need 3... The fractional system has my old head spinning a bit
 
#15,295
#15,295
It is what it is. I'm not sure what else I can say.

It's a useful tradition to keep share prices somewhere between $1 and $100.
 
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#15,296
#15,296
In the vein of the share split discussion, I've read that Mueller Industries (MLI) is seeking to issue more shares in order to then perform a 2-for-1 split (if I understood correctly). Right now their financials appear to be sound, so what would be the logical reason for potentially rocking the boat, so to speak?
 
#15,297
#15,297
Thunder Good-Oil said:
As long as AI is a thing, so will NVDA. BUT, the internet was never NOT a thing after the dot com bubble - however Nvidia isn’t making sock puppets or just adding .com to their name. The backlog is real. However the valuation indicates that there’s little tolerance built in for missteps.
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Yeah, I don't know if AI is really a thing.

Was Meta a thing?

I think Buffet would say both of those are simply flavor of the month buzzwords.
 
#15,300
#15,300
tbh said:
In the vein of the share split discussion, I've read that Mueller Industries (MLI) is seeking to issue more shares in order to then perform a 2-for-1 split (if I understood correctly). Right now their financials appear to be sound, so what would be the logical reason for potentially rocking the boat, so to speak?
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I don't want to spend too much time on it, but it appears very boring. They just want to split, period. That's what it looks like.
 
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