Reddit Posts
Hold or Sell....When Is It Best to Sell and Cut Your Losses
Mentions
NVEC wasn’t included either.
I got into NTAP at $115. Cool, now I'm up \~$2k on that investment. A good little boost; will be selling off slowly over the next few weeks now that it's popped to over 170 post-earnings. I did some research to get comfortable that NTAP would have earnings and valuation tailwinds for their 5/28 quarterly earnings, but also got lucky, and, as with all my speculative bets, kept position size small at \~$4k, or \~5% of my total money in the market (limiting both upside and downside). And this was one of very few speculative bets in May (also NVEC and ICLN); everything else is in fixed income, broad market indices, blue chips, or dividend cash cows. I might end up make a similarly researched but ultimately speculative bet on a new name in June that then gets absolutely killed and loses me money. Who knows? The gain and loss porn you see here is from people not afraid to lose it all (until they do lose it all, then they realize what they should have been more afraid of). Leverage, options, etc. - all ways to turn perfectly good money into a zero (or a very big number!) very quickly. Play around, do research to form an informed perspective on what companies you think are good bets, and just know that even with this effort you'll probably still do worse than if you just chucked it all into index funds -- but regardless, keep your exposure limited to the underlying stocks and bonds themselves; that way even if the price goes down you still have something of value that you can liquidate if necessary as opposed to basically setting money on fire via short-dated options or buying volatile names on margin, then getting margin called. The best way to win the game is to survive long enough to keep playing. Finally, the people who successfully use options and margin to win more often than they lose are generally industry professionals or trading algorithms that make their money off of naive retail losers like us.
At the time I thought they would be good investments. I didn't take into account the dividends so actually for NVEC and PFE because of the dividends I am ahead. For INTC even with the dividends I am still at a major loss.
Personally, I would sell INTC and hold PFE. I'm not familiar with NVEC.
PFE and NVEC have really high dividends. Are you sure you aren't up on them if you factor those in? INTC is a mess.
1) THRY. 2) NVEC. 3) Table Trac (nanocap but profitable) Scalable, repeatable, sticky, well-run, unknown, boring businesses with moats. I'm in 1) and 2) for cheaper than they are now, but they're both reasonably priced IMO. Looking really, really hard at 3).
You summed the risks well, except trailing PE is 15 not 30. Net cash it's 12 PE. The valuation is reasonable but not cheap. But yes growth is the question. There are 3 reasons for flat growth IMO. 1. Not enough applications for their tech. 2. Harder to land design wins as a smaller company. 3. Poor capital allocation. My thesis is that hurdles 1 and 2 will dissipate with 5G, IoT, wearable medical devices, electrification, and EVs. NVEC produces sensors that send more bits per second, bits per watt, bits per sensor size, and bits per dollar than anything else on the market. Going long on the stock is a bet that, eventually, that will matter. IoT and wearable devices in particular. 3 is my concern. I hate their dividend and want them to spend the money courting manufacturers. They've been talking about their TAM in earnings reports for 10 years without growth to show. It's nice that they're shareholder friendly but I want the company to spend the money to accelerate growth. So I'll hold the stock for 4 or 5 years, collect 8.3% yield, and look for growth or progress. If they can't grow then I'll sell into strength and find something else. If they do grow... it's a 10x at least. Heads I win, tails I don't lose much.
I'm going with NVEC. Super under the radar. Looking for explosive growth with IoT. It's my 100x pick going forward. The world's needs are catching up with its tech. Just hoping they can dominate that market.
I'm gonna mention one that absolutely nobody knows about. NVEC. It's the most interesting company I've ever seen. Look at those margins... holy shit this company could be an absolute monster.
Fair enough. I did some DD on a quantum semiconductor business $NVEC. You might like to check it out. They're profitable selling spintronic hardware (but I passed on them because they suck at allocating capital IMO). Point is, I do think quantum is getting there. At least one business is making a profit from it.
Just one question … I see some of those names have real high debt which to me makes it kind of risky when interest rates will increase , and also a couple of ETFs that use covered calls but expense ratio is 0.60 …. Wouldn’t be better using that strategy with companies that pay a good dividend but have low or no debt so dividends are secure ? I did something similar with part of my portfolio but using names like $PETS $PSXP $GHM $NVEC $MIXT $HCSG $AGX $NHI $PAHC …. I do agree with you on $TWO … it’s part of my strategy too
Are people jumping into NVEC? I noticed massive green on a random stock I was holding.