This is the “pick and shovel” (gold miners) theory. Very practical. Works for the legal weed business also. Rather than invest in the weed market itself, invest in all of the equipment needed to grow and manufacture it.
For what it’s worth, Maersk is buying back shares as depicted on this site. The west coast is getting an uptick. This is rather normal before the holidays. Aside from the pandemic, people are still buying shit. East coast box cargo is quite busy from a very reliable source. Pick your poison. I made a choice or two, fingers crossed. The smart money is way ahead of me, hope to get a piece of it.
Maersk is way over priced for me. They are in bubble territory, but that’s the nature of them. Trade is WAY up as evidenced by the shortage of containers. From what I see this is pent up demand and the last effects of the stimulus. People are spending the money they have left plus that they have from the debt forbearance. Once all debt forbearance ends in a month or so people are going to either have to pony up money to pay for their mortgages, cars etc., or there is going to be a reckoning. I am betting on the reckoning. The incoming president is going to walk into a mess.
Every president walks into a mess according to their message to get elected. Nothing new here other than this horrible pandemic. The good news regarding vaccines was not released before the elections. A few weeks later, a “Miracle” happens. Again, pay your phone,internet and electric bills. As far as rent relief, don’t even go there. Put my fun money out there, we will see how it goes.
Well there go my $DAC profits. Thankfully I set a stop loss limit but now do I buy back in
Once you figure in short term gains taxes, probably not worth it in my opinion. I believe there will be good opportunities in the next few months for higher quality investments. Patience.
I hope you mean “trailing stop lose limit” meaning you sold at a set percentage under the 52 week high? If not, don’t buy anything if you didn’t make a profit from DAC. Set up an investment strategy & only buy & sell when your written out strategy tells you to. Don’t lose money. Don’t sell for a lose unless you absolutely need the money from the stock you are selling IMO. Time is your friend.
Also, In my opinion, don’t listen to any naysayers who say earning small amounts of money isn’t worth it because you have to pay short/long term capital gain taxes. That nuts! All profit is good even when you have to work for it & pay taxes on it. Chances are you weren’t doing any money making activities when investigating DAC & small profit from 30 minutes in front if your computer is better than what 99% of people make wasting time in front of their computers.
The turtle always passes the hare unless Aesop has come from the grave and changed the story. Patience is a good thing. At this point, am in no hurry. It is tough out there fellows, do your homework.
You can do a Trailing Stop Loss or a Trailing Stop Limit, and a Stop Loss or a Stop Limit, but there is no such thing as a Stop Loss Limit, trailing or otherwise. Stop orders and Limit orders are two different things. Loss becomes a market order, Limit becomes a limit order.
I almost always agree, except when I didn’t need the money I had in oil services stocks and now I get neither that time or money back
Definitely agree!! Thats like the guys who wouldnt work overtime because “it’ll put me in higher tax bracket and I’ll actually lose money” lol
I had a stop limit on it. I do trailing limits on blue chip stocks but shipping stocks jump around too much for that method IMHO.
If you make over 35% on the sale of a stock perhaps the short term capital gains tax rate is acceptable. My short term tax rate is over 35%. If you can get a return of over 35% in a year that is great. In my experience that is rare and if the return is that good why sell?
If you make any % periodically the short term cap gains rate should be acceptable.
If I can day-trade or swing-trade with $20,000 and make $1,000 on a trade on a volatile stock intra-day swing, that’s a 5% pre-tax gain per trade. You might pay $350 (35%) in cap gains tax, but thats still a $750 profit (3.75%). Repeat that only 10 times throughout the year and thats a 37% return on investment after taxes. Without the risk of holding a stock long-term that likely won’t see close to that gain.
Maybe short, but long seems risky to me. I don’t follow shipping companies closely enough to know if even profitable ones produce shareholder gains long term. In the history of the company they have not trended upwards long term.
But, their recent quarterly report was interesting. They bought two used smaller ships, they have good margins, increasing profits, solid backlog, good enough financials to perform a fairly significant share buy-back. What concerns me is their 52-week range…$2.50 - 15.95. Maybe Covid lows, but still concerning.
In the short term, consider the seasonal container shipment demand combined with (according to them) tightening market for available vessels in their size range. They said spot rates will likely increase due to the lack of availability of more vessels. So maybe play the dips through the holidays and current quarter?
Years ago I had a local dude doing my taxes. He became rather wealthy investing in the Outer Banks, even has a street named after him. I mentioned some gibberish about getting into a higher tax bracket. He chuckled and said “But you made money, who gives a shit”. Mr Cherry remained my accountant until his passing many years later.
Not me bro, the minimum I shoot for in short term profit is +5%. If I feel good about a stock I’ll put the sell order in at +7.5% more than what I paid for it or +10% for ones that I feel really confident about. Sometimes & get the +5% in 30 minutes, 2 hours, 2 days or 2 weeks. If people refused to play unless they made +35% not many people would be swing trading. But I bought $137 worth of CTRM, Castor Maritime & currently up 23% but because its such a small amount of money I’m going to cross my fingers & hope for a 1,000% return. $1.37 is still well below their 52 week high. If this thread is still open when it gets there or goes bankrupt I chime in & let everyone know how it goes.
Good luck, hope it pays off. I tried swing and day trading a long time ago. It was interesting but it required more attention than I cared to pay and tax time was annoying. I still gamble with about 10% of the money but gambling is a relative term for me as anything below a Baa1 Moody’s credit rating is what I consider gambling now.
Dang, @john sure knows how to pick’em. When he mentioned this shipping company less than 2 months ago it had closed at $10.80 the previous trading day & now up to $31.34. I’m up over 100% on CTRM which I mentioned on this thread but I had to sell it twice & buy back in once to get it. I’m currently out, waiting for it to fall to .21 to get back in. John’s was a better pick.
collectively we may know shipping businesses better than most but it’s all about knowing the market !! for sure don’t let your personal preferences dictate such , another reason why most people lose when investing in stocks.
I’m still in both CTRM (thanks to you!) and DAC.
I did even better on my PLTR trade because I made money I was the one up and shooting it on the way down.
Unfortunately it takes money to make money… and I don’t have very much invested.
Yep, if I would have held Castor Maritime & sold at .39 I would have tripled my investment instead of nearly doubling. Perhaps it will get back down or not. I started with $10k but now up to $50k in my discretionary portfolio. It doesn’t bother me that I’m a small time investor, making small trades with small profits. I think by starting small & keeping it real, it allowed me to grow with my swingtrade portfolio. If I started with $50k I would have made all kinds of mistakes that I would have probably regretted.
Do you see any other shipping companies on your horizon worth investigating?