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50 years of Mercury Cougar 1967/2017
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The Ukranie 737 was, ( my opinion), struck by the rockets fired by iran at the american base in iraq.
 

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Basically, it's "less" blood money. ?
Sorry, you lost me there. Never heard of World War 2 ?? Mcdonnell Douglass merger with Boeing in 1997 ??? You can justify it any way you want, but the fact remains that Boeing is just as bloody as any other "defense" contractor. Our American Troops who protect the security of this country are thankful every time a Fairchild ( AKA Northrop Grumman ) A10 Thunderbolt 2 rips through a convoy of enemy insurgents with its "General Electric" GAU-8/A Avenger 30mm Autocannon. :cool::cool::cool::cool::cool::cool:

The Ukranie 737 was, ( my opinion), struck by the rockets fired by iran at the american base in iraq.
What are the ODDS … that a missle fired at the American base in Iraq happened to be directly in line at that exact moment in space / time for it to strike an airplane ? No it was "hours later" .. speculate all you want, doesn't mean anything. :rolleyes: :rolleyes: :rolleyes: :rolleyes: :rolleyes: :rolleyes:
 

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Pfft, that aircraft didn't accidentally find a rocket. The rocket deliberately found the aircraft. There is another video that was shown on the news tonight that shows the moment the rocket hit the jet. I won't get into the politics of it all except to say I'm very sorry for the victims and their families that they got caught up in this mess.

Yes, Rockwell NA (1996*), McDonnell Douglas (1997*), Boeing was a HUGE supplier of aircraft during WWII (and I'm thankful for their contribution to the fight). As has been mentioned, they still produces some aircraft for US defense today. They are also half of the global aviation duopoly, the other half being Airbus. But they are NOT exclusively a defense manufacturer like most of the other listed companies.

*Date of merger with or acquisition by Boeing

As for the other Defense contractors listed:
  • Boeing (BA)
  • Lockheed Martin (LMT)
  • Northrop Grumman (NOC)
  • General Dynamics (GD)
  • Raytheon (RTN)
  • BAE Systems (LON:BA)
  • BAE Systems (BAESY)
Yes, I understand there's a LOT of money to be made in the defense sector because so much of our GDP goes towards defense. Again, another political topic that I won't get into because I'd be writing all night.

I have looked at these companies in the past. Hell, my brother even worked for Harris Corp. once upon a time - before they merged with L3 (Which I didn't even know they had done until I just looked them up).

I'm not going to debate or debase anyone who chooses to invest in these companies. I'm just saying that I, personally, choose not to invest in them as well as any of the arms manufactures for the reason I mentioned previously.
  • Winchester (OLN)
  • American Outdoor Brands (AOBC)
  • Strum, Ruger (RGR)
  • Olin (OLN)
  • etc.
I prefer the sin ETF's ;)
  • Market Vectors Gaming ETF (BJK)
  • Constellation Brands Inc. (STZ)
  • etc.
 

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TSLA up over $46 a share today to $524 !!

I hope some of you jumped in on this winner when I first mentioned it. I won’t make recommendations where I don’t have skin in the game too.
 

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Discussion Starter #126
I wanted to, but it was above my price range already when you mentioned it.

I'm going to stick it out with Boeing for now. Hopefully the MAX plane thing will work itself out by summer, or at most, the end of the year.

I also saw a thing where Valero (VLO) is going to start doing 4.05% dividend. It kinda makes me want to drop my Boeing and pick up some VLO in it's place. Based on the number of shares I'd pick up, I'd do better with VLO vs BA on the dividend side of things. But that "pop" with BA though.....ugh!!!

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I
TSLA up over $46 a share today to $524 !!

I hope some of you jumped in on this winner when I first mentioned it. I won’t make recommendations where I don’t have skin in the game too.
I got in on TSLA at $185. I see no justification for $524 but at <$200, I believe the carcass was worth more.

Fitbit @ $3.25. The offer from GOOG was @ $7.35 and its trading at $6.65 now. I'm debating if I keep or roll the dice and hope the deal isn't blown up by regulators. Shareholders already approved.

SYNA @ $26.40

My bet on the marijuana market with YOLO has taken a pounding. My cost is like $20 and its at $12/share now. Whoops. Can't win them all.
 

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Discussion Starter #128
It's a bit risky because the industry has been in a downfall, but a cannabis company I've been following for a while is one called MedMen. I started following them when they were ~$2.20/share. Today they closed at $0.57/share. I'm considering dropping $100 on them as I feel they may have reached absolute bottom. That, and $100 isn't going to be a terrible loss if they end up in smoke.

Anyway, these last few days the readings I've seen from the company seem promising as they have been consolidating their poor performing stores and at the same time expanding / creating new partnerships with other companies here in California as well as Nevada, areas where they are well established. They don't pay out dividends though, which wouldn't be a reason to purchase for the long term. My strategy with this company, should I purchase some shares and If it turns around, would be to establish stop loss rules at certain points.
 

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It's a bit risky because the industry has been in a downfall, but a cannabis company I've been following for a while is one called MedMen. I started following them when they were ~$2.20/share. Today they closed at $0.57/share. I'm considering dropping $100 on them as I feel they may have reached absolute bottom. That, and $100 isn't going to be a terrible loss if they end up in smoke.

Anyway, these last few days the readings I've seen from the company seem promising as they have been consolidating their poor performing stores and at the same time expanding / creating new partnerships with other companies here in California as well as Nevada, areas where they are well established. They don't pay out dividends though, which wouldn't be a reason to purchase for the long term. My strategy with this company, should I purchase some shares and If it turns around, would be to establish stop loss rules at certain points.
I'm not 100% sold that Medmen will become a dominant retailer which seems to be their primary focus. Too many mom-and-pops and the market is fragmented. Long term, i think the companies focused on production (like the Canadian firms) will do better as they establish brand names. Sure, someone will become the next Starbucks but it might be easier to pick the right producer who will go multinational before you pick the right retailer.
 

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Discussion Starter #130
Now that tax time is imminently upon us, I have a question in regards to earnings.

How are taxes you owe on any earnings determined? Is it only when you sell a stock that has provided earnings? I know that there are two tax brackets for short term (12mo or less) and long term (1yr or more), but the question still applies nonetheless.

If you have any losses (which basically all of mine have been), how does that affect your taxes, if at all?
 

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Yes. Only when you sell. You can deduct your initial investment. Claim the difference between purchase and sale price.

Short term gains (Stocks bought and sold in less than a year) are taxed at a higher rate than Long term gains (Stocks bought and sold more than a year later). Trade dates are important. Keep track of which trades are short term and which ones are long term.

You also have to claim the dividend income, but, thanks to the 1%ers writing the rules to benefit themselves, dividend income is taxed at a lower rate than earned income (Money that you're paid for your job.)

Check with your accountant or tax preparer for all the details. Make sure you give them all the numbers for all your holdings and trades. There are 1099 dividend tax forms for dividend income that you'll need to collect. There are end of year statements you can get from your brokerage for your trades.

Get your taxes done right. Don't go to the kiosk at Wal-Mart (WMT) and expect it to be done right!
 

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Discussion Starter #132
I have a CPA firm I go through to get my taxes done. I don't know squat about getting taxes done and the couple times I tried it myself (back when I had no kids, no home, just a W-2), I didn't know nothing so I stopped midway through and went somewhere.

Anyway, 2018 bumped up my "income" because I got lucky on Tilray (TLRY). This affected my repayment schedule on my student loans for most of 2019, lol. That's a whole different story though. 2019 I had nothing but losses in all my picks. Some of those stocks though have already been held for more than a year. How would these losses affect my taxes?

Good to know about dividend tax favorability! So in an ideal situation, we want to have so much stock that we have our income based solely on stock dividends, right?

As for taxes on selling stocks, that's only for the act of selling not necessarily cashing out, is that right?

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Cashing out is selling. If you cash out at a loss losses can be written off but there's an annual limit. I think it's 2 grand a year or something like that. The rest can be carried forward into following years. I don't think there's a limit as to how many years you can carry losses forward.

Losses can also be applied against gains. Check with your accountant for all the nitty gritty details.
 
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Discussion Starter #135
There's news of Frontier planning on filing for bankruptcy. What does that mean as far as their stocks go? I know they haven't been making their dividend payments for some time already.

Separately, the whole Hewlett Packard (HPE) / Xerox (XRX) merger thing. HP didn't want to do a merger so now Xerox is wanting to do a full on takeover. Would it be a good time to buy either company stock? It looks like HP pays $0.18/share dividends and Xerox pays $0.25/share. If Xerox would do a full takeover of HP, will that mean that HP shares are then (eventually) converted into Xerox shares? If that's the case, it would be a wise choice to buy HPE shares and get that bump up when (if?) the shares convert over to Xerox. How would that strategy work?
 

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Cashing out is selling. If you cash out at a loss losses can be written off but there's an annual limit. I think it's 2 grand a year or something like that. The rest can be carried forward into following years. I don't think there's a limit as to how many years you can carry losses forward.

Losses can also be applied against gains. Check with your accountant for all the nitty gritty details.
I'm not an accountant or a FCP but I have dealt with similar situations and to my knowledge, what TM says is correct.
1) I'm surprised that if you already paid for an accountant if all you had previously was W2 income (and I suspect the occasional 1099INT from interest bearing accts). Most of these can be dealt with using a 1040EZ and any cheap/free filing SW.

2) Adding stock purchases/sales does complicate things (ESPP/ISO/RSUs even more) but they are still managable once you understand how it works.

The basic gist is that capital losses (buy high, sell lower) can offset capital gains BUT if you don't have enough capital gains to offset these losses, you can take up to $3K off your income AND then carry over the capital losses into the next year.
In other words, let's say you dumped a stock for a $10K loss (sales price minus purchase price minus brokerage fees).
1) If you sold another stock for a $15K gain (sales price minus purchase price minus brokerage fees), you'd only pay taxes on $15K - $10K = $5K instead of the full $15K

2) If you didn't have any losses, then you would be able to take $3K of the $10K loss and apply that to your regular W2 income (so if you made $100K, you'd only pay taxes on $97K). The remaining $10K can be carried over into the next year in case you have any capital gains OR take another $3K off your income.

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When you sell stocks, it's important to take tax effects into account as well (esp for you since you live in CA -- remember that CA taxes both ordinarty income and capital gains at the same rate). In my situation, I needed to raise some money last year so in addition to selling stocks that would have some pretty substantial capital gains, I also liquidated some ESPP shares from my wife's company which were underwater. Her company's stock has been in doldrums for the past 3-4 yrs. If I believed it would have risen back to where it was before (40% off its peak), I would have kept them but we still have plenty of shares. Cash is cash so selling those ESPP shares got me the liquidity I needed. However, those capital losses benefited me by offseting the capital gains I was realizing when I was cashing out the positions I knew I wanted to liquidate from a timing perspective (they were at what I believed to be their peak).
 

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I"m pretty sure Frontier's stock will be delisted. Bankruptcy = 0 value. I don't remember how GM's bankruptcy was handled but they're still on the market. I'm pretty sure they go to zero and get delisted. They may be listed again after emerging from bankruptcy. S4gunn may have a better idea. Thank God I don't have any experience with a holding going bankrupt.

I don't know about about HPE, the consensus is to outperform with a $17 to $20 price target:


A hostile takeover is unlikely IMHO. HP is by far the stronger name. NXPI had a similar run when they were a takeover target by Qualcomm, anyway, it went from $81 to $125 February 2018 before falling back to $70 to $71 in December of 2018. It's rebounded to $131 today.
 

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There's news of Frontier planning on filing for bankruptcy. What does that mean as far as their stocks go? I know they haven't been making their dividend payments for some time already.

Separately, the whole Hewlett Packard (HPE) / Xerox (XRX) merger thing. HP didn't want to do a merger so now Xerox is wanting to do a full on takeover. Would it be a good time to buy either company stock? It looks like HP pays $0.18/share dividends and Xerox pays $0.25/share. If Xerox would do a full takeover of HP, will that mean that HP shares are then (eventually) converted into Xerox shares? If that's the case, it would be a wise choice to buy HPE shares and get that bump up when (if?) the shares convert over to Xerox. How would that strategy work?
1) XRX is looking to buy HPQ not HPE.
HPE is the enterprise business. HPQ is the PC and printer biz.

2) XRX vs HPQ.
What you get all depends on the offer.
It seems like the XRX's offer in Nov was all cash @ $22/share.
Had this gone through, 100 shares of HPQ would just magically turn into $2,200 in cash on the settlement date and your tax implications would be calculated from that date.
This was rejected in Nov.
Right now, the market values HPQ at $21.59 so if XRX really wants to buy HPQ, they would need to up thier offer.

3) It should be noted HOW XRX plans to buy HPQ (a much bigger company at $24B vs $8B). They are planning to sell off pieces and take on debt to buy out the bigger company.
Im not a finance guy but I fail to see how XRX can do a better job merged with HPQ than they could by themselves. Its not like Avago buying BRCM which allowed them to use different accounting rules (Avago was based in Singapore) and therefore look more profitable. IMO, this is one old, mature company trying to grab onto another one and hoping that the combined mess will be too big to flush down the toilet.
 

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I"m pretty sure Frontier's stock will be delisted. Bankruptcy = 0 value. I don't remember how GM's bankruptcy was handled but they're still on the market. I'm pretty sure they go to zero and get delisted. They may be listed again after emerging from bankruptcy. S4gunn may have a better idea. Thank God I don't have any experience with a holding going bankrupt.
A contractor friend just brought up the idea with me of buying into PG&E, the monster utility in CA that has been the culprit of lots of deaths and property damage b/c of deferred maintenance. THe idea is that you'd buy them now in the dark days and then be happy when they've recovered. RIght now, they are trading at $14 off an alltime high of ~$70 in 2017.
I told him the idea terrified me because there's no guarantee that the shareholders won't get a haircut like what happened with GM. They have too many outstanding obligations and breakup is a very real threat.

The GM that's on the stock market now is "the new GM". Back in 2009, under bankruptcy, the old GM's good assets were sold/transferred off to a new entity (New GM). IIRC, All the debt, including the employee pensions, were left with the old carcass. Some of the debtholders got shares in the new GM but it was a significant haircut. Any common shareholder (aka you and me) of the old GM found themselves holding worthless paper.

Do what you want but my belief in buying distressed stocks is fairly simple:
Q: Is the value of carcass -- less debt/lawsuits/other liabities worth more than the market cap? If yes, take a longer look. If not, run away.
 

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I agree, personally, I would not buy PG&E (PCG); take it from someone who works in the sector. Nextera (NEE), Entergy (ETR) or Duke (DUK) are much better utility stocks to own. Personally, I have a large holding in (DUK).

PCG could rebound to ~$40 but who knows how long that might take. PG&E has so many troubles I woudn't be surprised if they went the way of Enron. (Remember the crooked E!)

PG&E also has a long history of being a sh!t utility. (Remember Erin Brokovich?). I'm a bottom feeder but IMHO, PG&E is downright toxic.
 
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