Trading the stockmarket (NO Referrals)

Mark M said:
Friend of mine (real friend :p) is looking to purchase some shares, £500 or so each month, and asked me if I could recommend which online broker to use. I haven't a clue so thought I would ask here. Hes likely to keep hold of them rather than trading with the stocks if that makes any difference?
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I haven't used many and I'm biased as a customer but I'd recommend HL and an S&S ISA for regular savings; you can set up a Direct Debit to automatically invest in funds or stocks. Funds have ongoing % charges but not a flat fee for the trade like shares (£10ish usually) which would work better for monthly investments. If he's not that interested in researching a lot then the UBS S&P 500 would be worth a look with a 0.09% net ongoing charge. It's available for regular savings with a minimum of £25.
 
PAz said:
Nice AMD movement yesterday, let's hope it continues today if the TSLA rumors are true.
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I'm just waiting for my TD Ameritade account to be opened then I shall buy 10k or so as I think it will surely rise in the next 12 months.

In my eyes major chipmakers like AMD with large resources at their disposal, despite playing second fiddle to Intel, will continue to be valuable and I think are now very under-utilized. The moment they get the right technologies and expertise and can start getting big contracts in upcoming industries will be the time that their stock rises sharply.

If you think AMD stock is now $14, Intel is $37 and Nvidia is a whopping $180 then clearly there is a lot of headroom for AMD if it can deliver the goods and get in on the AI game.

In addition to AI in general, just think how many MILLIONS of self-driving cars are going to made over the next decade or so... whoever gets in on that game now is going to be raking in big money.
 
Glaucus said:
Sorry, I thought you had been posting in here a while.
Get on YouTube and find a video explaining all the numbers.
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Trust me, I'm reading up daily (of course during my work breaks, ahem) but still need to learn how to find the info I need easily using the best resources. I only started a couple of weeks ago though and am making reasonably quick progress with the terminology and important stats etc. It's actually pretty fun to learn things like this when you know your potential success with earning moolah depends on it. :)
 
I used Google finance, but you can find out on all major financial websites. Market capitalisation is what the market thinks the company is worth, based on the current share price multiplied by the number of shares outstanding. Nvidia was/is worth $110bn in the eyes of the market.

I'll explain more later, but if you look at the balance sheet of the company, you'll find that the latest figure for equity in Nvidia is about $6bn. That's basically how much money you could get out of the company if you owned and sold it today (property, cash, etc). Things are a little more complicated when it comes to valuing patents and intellectual property, of which Nvidia will have quite a bit, but that's the basics.

So in buying shares currently, you're effectively paying $110bn for a $6bn company. This isn't the only metric on which to assess a stock's value, the P/E ratio is another (price to earnings). This is the share price, divided by the company's profit per share.

A very rough average P/E ratio for fairly priced companies in average market conditions (i.e. so not a strong bull/bear market) is 16. This means that theoretically, if profits could be realised, it would take you 16 years to earn your investment back. Another way of looking at it is that you're investing 16 dollars, for 1 dollar of earnings (profit)/year.

P/E is a broad measure, and tech stocks are often quite a bit higher than 16. Sometimes this is justified, sometimes not. A growing company with good prospects can be worth more. I haven't done extensive analysis on Nvidia, but a P/E ratio of 53 sounds very high, especially combined with the excessive price to book value (market cap vs equity).

Had a very quick look at your other firms, and AMD are losing money. Intel had a P/E of 14, which looks much better, but I'd have to delve in further to analyse, which I'll do later.

Very happy to help with any stock analysis, pointers and opinions :)
 
Selling AMD this morning would appear to have been a good short term move. I'll buy back when it dips again.

I love the company, but the stock is just so difficult.
 
PAz said:
Selling AMD this morning would appear to have been a good short term move. I'll buy back when it dips again.

I love the company, but the stock is just so difficult.
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AMD just made a deal with Tesla... will be interesting to see what comes of it.
 
Richdog said:
AMD just made a deal with Tesla... will be interesting to see what comes of it.
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I'd suggest looking into it/waiting a bit more. Apparently Globalfoundries have denied it (https://www.streetinsider.com/Momen...umor+Made+in+Speculator+Heaven?/13316935.html), hence the sell off today. Luckily been trading AMD for a while now so shorted at 12:50am last night and set a buy price of $14. Was filled at exactly 9am as it actually opened lower! Everything in hindsight though and didn't want to push my luck if it continued the move up.

Also the reason AMD is that much lower is a big point of they still don't actually make money. A lot of people are waiting for their Q3 results as Epyc, Ryzen, Vega etc will have been out for long enough that if they were going to turn a profit Q3 should be the one to show it. They did better than expected on their Q2 results by quite a bit which caused the stock to surge and then nose dive again within 2 days.
 
Richeh said:
I'd suggest looking into it/waiting a bit more. Apparently Globalfoundries have denied it (https://www.streetinsider.com/Momentum+Movers/AMDTesla+-+A+Fake+Rumor+Made+in+Speculator+Heaven?/13316935.html), hence the sell off today. Luckily been trading AMD for a while now so shorted at 12:50am last night and set a buy price of $14. Was filled at exactly 9am as it actually opened lower! Everything in hindsight though and didn't want to push my luck if it continued the move up.
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i don't see why so many have put so much faith on globalfoundries statement, they aren't amd they are just a manufacturer of chips. It doesnt mean Tesla and amd aren't working together, they probably aren't even close to manufacturing yet. That's not to say amd is a partner, but its pretty clear tesla is looking to make their own system.
 
Glaucus said:
i don't see why so many have put so much faith on globalfoundries statement, they aren't amd they are just a manufacturer of chips. It doesnt mean Tesla and amd aren't working together, they probably aren't even close to manufacturing yet. That's not to say amd is a partner, but its pretty clear tesla is looking to make their own system.
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I think people just want actual confirmation from AMD/Tesla otherwise it's just a rumour.
 
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