Overlords Investment Conclave [OIC] Recruitment Thread

[malchior]

Gotta buy NVDA here, right?!? RIGHT?!

Hell, I think ANY semiconductor company right now is probably a great pick. Currently holding AMAT and LRCX, but feeling tempted to get NVDA as well.

I have a lot of TSM so not looking into add much in the way of semis but I'm looking at GFS here. $45-50.

The highly "diversified" play here is KLAC IMO.

I did get 100 GFS under $45 but I'm kicking my self for not buying more.

I never bought NVDA "there", but in terms of semiconductors, still holding AMAT and LRCX, both down slightly from where I bought.

GFS is a pure semi play?

Yeah - they are a manufacturer of many different types of components. They've had a good story lately with all the price run ups and high demand.

I mentioned KLAC awhile back because they manufacture QA equipment and provide technical services to everyone in the sector - AMD, CSCO, GFS , INTC, AMD, MU, NVDA, etc. They tend to grow along with the whole industry.

[LawBeefaroni]

GFS is the #4 largest semi foundry. Behind TSM, Samsung, and UMC. It is the only one based in the US and with factories in the US and Europe. Interestingly, they spun off from AMD in the late aughts.

I sold a bit of TSM to buy it, figure it's geographical diversification in the sector. I'm also out of UMC.


This weekend I'm going to do some research on GPRO, starting to look interesting in the low $7s. Might buy a camera to see how well their cloud stuff works.

[LordMortis]

Even when I think I'm done, I'm not.

I'm finally out of my LLP investment for tax purposes! Yay!

But I had covered calls on T (ATT) which spun off a company merged into WBD (Warner Brothers Discovery). I didn't buy back those June calls and now they are stuck as NS and I either I can't buy them back now or no one will touch them. I bought enough shares in WBD to bring me up to 100 so I can sell covered calls. But it turns out the shares I owned before buying additional shares aren't mine until the T NS option goes away (in June?), so I paid too much for shares that instantly lost value for covered calls I can't sell until June or I somehow am allowed to buy back my "non standard" call.

Oh, the things you learn the hard way.

Aside from that I guess I'm thankful my positions have been pretty stable since the mid March bump. I hope they stay that way, even as food inflation (and scarcity) is nucking futz.

[LawBeefaroni]

Even when I think I'm done, I'm not.

I'm finally out of my LLP investment for tax purposes! Yay!

But I had covered calls on T (ATT) which spun off a company merged into WBD (Warner Brothers Discovery). I didn't buy back those June calls and now they are stuck as NS and I either I can't buy them back now or no one will touch them. I bought enough shares in WBD to bring me up to 100 so I can sell covered calls. But it turns out the shares I owned before buying additional shares aren't mine until the T NS option goes away (in June?), so I paid too much for shares that instantly lost value for covered calls I can't sell until June or I somehow am allowed to buy back my "non standard" call.

FWIW, the T shares didn't instantly lose value. They spun-off value.
BC

On the record date, each shareholder of AT&T will be entitled to receive 0.24 shares of WBD for every share of AT&T they own. For every 100 shares of AT&T, they get 24 shares of WBD.

By the way, one important point to be made here is the new dividend yield for AT&T shareholders. AT&T has announced it will pay an annual $1.11 dividend for AT&T post the spinoff of WBD. So, based on today's price of T WD at $18.10, the new dividend yield is $1.11/$18.10, or 6.13%.

At this point you might as well just wait for the option expiration and then reassess. You can always try to buy calls to close out but there's a chance you end up naked on something if you don't do it right.


Edit: quick math at this moment says T "lost" $425 per 100 shares but picked up $570 in WBD (24 shares * $23.75pps)

[LordMortis]

On the record date, each shareholder of AT&T will be entitled to receive 0.24 shares of WBD for every share of AT&T they own. For every 100 shares of AT&T, they get 24 shares of WBD.


At this point you might as well just wait for the option expiration and then reassess. You can always try but calls to close out but there's a chance you end up naked on something if you don't do it right.


Edit: quick math at this moment says T "lost" $425 per 100 shares but picked up $570 in WBD (24 shares * $23.75pps)

Yeah, I have to figure it out but if I knew what was going on Friday and weren't ignorant of the implications, I would have bought my calls back on Friday and let things settle this morning. Lesson learned, though not one I'm likely to worry about again as I have moved from buy and hold to look for selling opportunities.

TD protects me against naked calls because I intentionally did not set up my account with any sort of credit or ability to do margin trading. I learned that today when it rejected my attempt to sell a call for WBD after I bought enough shares to hit 100 (at a comparative premium this morning).

[Hamlet3145]

With today's announcement of the Consumer Price Index now at 8.5% (worst since 1981), I'm glad I maxed out my 2021 and 2022 I-Bonds.

https://finance.yahoo.com/news/consumer ... 02319.html

[Zaxxon]

With today's announcement of the Consumer Price Index now at 8.5% (worst since 1981), I'm glad I maxed out my 2021 and 2022 I-Bonds.

https://finance.yahoo.com/news/consumer ... 02319.html

Same!

[Hamlet3145]

With today's announcement of the Consumer Price Index now at 8.5% (worst since 1981), I'm glad I maxed out my 2021 and 2022 I-Bonds.

https://finance.yahoo.com/news/consumer ... 02319.html

Same!

The new rate will be out at the beginning of May. With the way things are going it's going to be over 8%. Probably will be my best investment this year.

Edit: Actually, the Wall Street Journal is saying 9.6%.

https://www.wsj.com/articles/the-safe-i ... 1649769505

[LordMortis]

With today's announcement of the Consumer Price Index now at 8.5% (worst since 1981), I'm glad I maxed out my 2021 and 2022 I-Bonds.

https://finance.yahoo.com/news/consumer ... 02319.html

Same!

Glad I learned about them in November and jumped at them. I told everyone I knew (including OIC) the day I learned about them.

[Isgrimnur]

https://www.treasurydirect.gov/indiv/re ... htm#myself

[LordMortis]

https://www.treasurydirect.gov/indiv/re ... htm#myself

But I don't get $5000 or much of anything really back from the federal government. Too bad.

[Carpet_pissr]

Are these TIPs or is that a different thing?

[malchior]

Are these TIPs or is that a different thing?

Different.

TIPS have variable terms and a minimum hold period of 45 days. You are taxed annually on the interest earned and increase in principal (adjusted with inflation).

I Bonds have a 30-year term. You hold them a minimum of a year. If you sell before 5 years, you give up your interest earned for the 3-months prior to that sell date. I Bonds are taxed on the increase in value at redemption (once total).

[Carpet_pissr]

Thanks. Guess I could have Googled!

[LordMortis]

You can get details and buy (the non=tax return ones I guess) here

https://www.treasurydirect.gov/indiv/re ... s_ibuy.htm

There is some diligence you'll want to do.

[Hamlet3145]

Are these TIPs or is that a different thing?

I Bonds are taxed on the increase in value at redemption (once total).

One interesting tidbit here is that they don't trigger state taxes for interest, just federal:

Is savings bond interest taxable?
The interest that your savings bonds earn is subject to federal income tax, but not to state or local income tax

https://www.treasurydirect.gov/indiv/re ... nsider.htm

[Isgrimnur]

Once you start to report the interest every year (for example, for a child in the child's Social Security Number), you must continue to do so every year after that for all your savings bonds (or, for example, the child's bonds) and any you acquire (or, the child acquires) in the future.

Fuck. That.

[Carpet_pissr]

Fuck. That.

Why? I assume that's automated via some IRS tax doc you will get, and automated by whatever tax prep software or pro you use?

Surely you don't have to keep like manual records of the interest, etc.

[pr0ner]

NFLX has dropped 25% after hours on news that they *lost* subscribers last quarter. A loss of 200k when they were expected to add over 2.5M. The company has lost almost half it's value from it's all time high in November.

[malchior]

I saw that it would have been +500K but lost 700K when the service shutdown in Russia. Still they were aiming for +2.5M. They also lost 600K in US and Canada to the recent price hike.

[Carpet_pissr]

I think this had to be known by Netflix. They aren’t exactly an incompetent company.

They know there’s a price ceiling, and they know that if they keep nudging the price up that customers will drop. They know that when customers drop their share price usually drops accordingly (and vice versa).

I suspect they knew all of this and went ahead with the price increase anyway, looking down the road at the additional revenue provided by the price increase.

The sp drop is probably temporary, and they probably know this.

Point is: they did the math before pulling the trigger on price increase, so I doubt any of this is a surprise to them.

[pr0ner]

The other thing with NFLX will be what kind of a hit (or gain?) they take when they finally crack down on password sharing.

[malchior]

The other thing with NFLX will be what kind of a hit (or gain?) they take when they finally crack down on password sharing.

I am curious to see if they can even do this. They risk pissing off customers who *aren't* sharing passwords if they get too heavy handed. This is a surprisingly tricky problem.

[LawBeefaroni]

I see their main problem the same as most of the other streaming services. People will binge on one for a month, cancel, and move on to the next one. There is no reason to keep a sub, no stickiness.

[Carpet_pissr]

I see their main problem the same as most of the other streaming services. People will binge on one for a month, cancel, and move on to the next one. There is no reason to keep a sub, no stickiness.

Tell that to parents with teenagers. Ai caramba do they love their Netflix.

[LawBeefaroni]

I see their main problem the same as most of the other streaming services. People will binge on one for a month, cancel, and move on to the next one. There is no reason to keep a sub, no stickiness.

Tell that to parents with teenagers. Ai caramba do they live their Netflix.

Yeah, our household "needs" NFLX, D+, Peacock, Prime, and YTTV 12 months a year. But I'm hearing a lot from the 25-40 set that they do the rotation thing.

[malchior]

I see their main problem the same as most of the other streaming services. People will binge on one for a month, cancel, and move on to the next one. There is no reason to keep a sub, no stickiness.

Tell that to parents with teenagers. Ai caramba do they live their Netflix.

Yeah, our household "needs" NFLX, D+, Peacock, Prime, and YTTV 12 months a year. But I'm hearing a lot from the 25-40 set that they do the rotation thing.

I've known folks who have but I have to wonder how many bother to do it. It's not hard but it is a chore. Also a lot of folks like to be on top of watching trends. This requires queuing up viewing that'll be out of turn with their peers potentially. Still I can't believe the news here is the sky is falling for Netflix when they have 200M+ subscriber accounts. It's doing ok.

[LawBeefaroni]

I see their main problem the same as most of the other streaming services. People will binge on one for a month, cancel, and move on to the next one. There is no reason to keep a sub, no stickiness.

Tell that to parents with teenagers. Ai caramba do they live their Netflix.

Yeah, our household "needs" NFLX, D+, Peacock, Prime, and YTTV 12 months a year. But I'm hearing a lot from the 25-40 set that they do the rotation thing.

I've known folks who have but I have to wonder how many bother to do it. It's not hard but it is a chore. Also a lot of folks like to be on top of watching trends. This requires queuing up viewing that'll be out of turn with their peers potentially. Still I can't believe the news here is the sky is falling for Netflix when they have 200M+ subscriber accounts. It's doing ok.

Their biggest problem is the content battle and content spend. They have a lot of money sunk counting on ever increasing subs..

[LawBeefaroni]

Oh, and they also still have a DVD rental business. It's not a big drag but it is certainly an unnecessary legacy product.

[LordMortis]

Said I was out... but then I did something dumb today. I picked up 100 shares of VTWO at $79.60 and sold a June $85 call for $.94. Not sure what possessed me, probably just the growing and growing of cash and seeing VTWO down from the nearly $90 it was at when I was feeling FOMO but (mostly) sticking to my guns. I think the supply chain woes should start ease up, which should do wonders for the smaller caps. I also think the expiration of free money should start making employment a bit easier. I have no idea how "the Fed" will play out on things though. Probably not the wisest plan when I am one paycheck away from unemployment.

This really does seem like a good opportunity to look at books and get in but because I'm not smart enough to look at books in this economy I got dumb and just bought an entire portion of the market.

I wanted to increase my TROW to 100 shares for similar reasons but I didn't want to be that stupid.

[LordMortis]

I was too early. I just pulled a bunch of my growing cash from dividends/covered calls/maturing CDs and dumped into my bank account to keep me from being tempted again. I can resist anything, except temptation.

[Carpet_pissr]

Hold on to your butts. AMZN just posted a surprise LOSS in Q1.

Down 12% AH. That’s going to spook the broader market I suspect.

[malchior]

Hold on to your butts. AMZN just posted a surprise LOSS in Q1.

Down 12% AH. That’s going to spook the broader market I suspect.

I just had that stomach dropping moment where I was thinking we were seeing hard evidence of a recession. Then I read the details saw they posted a ~$8B loss just in their investment in Rivian. Otherwise they would have posted a small miss on profit. They actually grew faster than expected in some areas elsewhere. We'll see if the market sees a one-time impairment or broader weakness in it.

[Carpet_pissr]

I think it’s fair to assume we’re heading toward recession. I mean, it’s part of the normal cycle, right?

[malchior]

I think it’s fair to assume we’re heading toward recession. I mean, it’s part of the normal cycle, right?

It's really debatable. There hasn't been a normal business cycle for some time. Whatever happens is going to be pretty atypical and could have cascading effects considering all the issues facing economies across the world.

[Zaxxon]

Economists have predicted 13 of the past 4 recessions.

[Carpet_pissr]

Economists have predicted 13 of the past 4 recessions.

[malchior]

Economists have predicted 13 of the past 4 recessions.

Calling Peter Schiff an economist is a stretch.

[LordMortis]

Can I assume this will work itself out?

I had to pay $5.13 in dividends today, This is the report of TD so far on position and the dividend of $.0208 paid.

5/17/2022 17:34:37 QUALIFIED DIVIDEND (NOK) 8.33 0.00 0.00
05/17/2022 17:34:37 ADR FEE (NOK) -0.70 0.00 0.00
05/17/2022 17:34:37 FOREIGN TAX WITHHELD (NOK) -2.50 0.00 0.00
05/17/2022 18:24:04 QUALIFIED DIVIDEND (NOK) 8.33 0.00 0.00
05/17/2022 18:24:04 ADR FEE (NOK) -0.70 0.00 0.00
05/17/2022 18:24:04 FOREIGN TAX WITHHELD (NOK) -2.50 0.00 0.00
05/18/2022 10:54:12 Foreign Tax Withheld~NOK 2.50 0.00 0.00
05/18/2022 10:54:12 Qualified Dividend~NOK -8.33 0.00 0.00
05/18/2022 10:54:12 ADR Fees~NOK 0.70 0.00 0.00
05/18/2022 11:55:14 Qualified Dividend~NOK 8.33 0.00 0.00
05/18/2022 11:55:14 ADR Fees~NOK -0.70 0.00 0.00
05/18/2022 11:55:14 Foreign Tax Withheld~NOK -2.50 0.00 0.00
05/18/2022 12:51:52 Foreign Tax Withheld~NOK 2.50 0.00 0.00
05/18/2022 12:51:56 Qualified Dividend~NOK -8.33 0.00 0.00
05/18/2022 12:51:56 ADR Fees~NOK 0.70 0.00 0.00

I'd been selling covered calls on 400 shares for couple of years but if I have to pay more for the privilege of getting a dividend than the new found dividend pays, then it's time to get out.

And while I'm here, it appears that if you don't run up the price of TSLA you are an outrageous scammer.

https://www.bloomberg.com/news/articles ... -exclusion

I am so over Musk. Ironically, his vision of absolute freedom of speech is beginning to appeal to me, in that I want him culled from my news sources. It's the first thing CNBC talks about in the morning and then they give his rants and 4Chan troll updates all day long every day. He is such a Trump and the media love that about him.

[LawBeefaroni]

Can I assume this will work itself out?

I had to pay $5.13 in dividends today, This is the report of TD so far on position and the dividend of $.0208 paid.

5/17/2022 17:34:37 QUALIFIED DIVIDEND (NOK) 8.33 0.00 0.00
05/17/2022 17:34:37 ADR FEE (NOK) -0.70 0.00 0.00
05/17/2022 17:34:37 FOREIGN TAX WITHHELD (NOK) -2.50 0.00 0.00
05/17/2022 18:24:04 QUALIFIED DIVIDEND (NOK) 8.33 0.00 0.00
05/17/2022 18:24:04 ADR FEE (NOK) -0.70 0.00 0.00
05/17/2022 18:24:04 FOREIGN TAX WITHHELD (NOK) -2.50 0.00 0.00
05/18/2022 10:54:12 Foreign Tax Withheld~NOK 2.50 0.00 0.00
05/18/2022 10:54:12 Qualified Dividend~NOK -8.33 0.00 0.00
05/18/2022 10:54:12 ADR Fees~NOK 0.70 0.00 0.00
05/18/2022 11:55:14 Qualified Dividend~NOK 8.33 0.00 0.00
05/18/2022 11:55:14 ADR Fees~NOK -0.70 0.00 0.00
05/18/2022 11:55:14 Foreign Tax Withheld~NOK -2.50 0.00 0.00
05/18/2022 12:51:52 Foreign Tax Withheld~NOK 2.50 0.00 0.00
05/18/2022 12:51:56 Qualified Dividend~NOK -8.33 0.00 0.00
05/18/2022 12:51:56 ADR Fees~NOK 0.70 0.00 0.00

I'd been selling covered calls on 400 shares for couple of years but if I have to pay more for the privilege of getting a dividend than the new found dividend pays, then it's time to get out.

And while I'm here, it appears that if you don't run up the price of TSLA you are an outrageous scammer.

https://www.bloomberg.com/news/articles ... -exclusion

I am so over Musk. Ironically, his vision of absolute freedom of speech is beginning to appeal to me, in that I want him culled from my news sources. It's the first thing CNBC talks about in the morning and then they give his rants and 4Chan troll updates all day long every day. He is such a Trump and the media love that about him.

I think you can claim the withheld foreign tax in your own taxes. Can't remember the details, it's been a while since I did my own taxes but I remember claiming it.