Coronavirus and Stock Markets - Thoughts?

[engineer]

Good discussion about the importance of company fundamentals.

@Marsares

A prolonged delay in parts procurement not only would threaten corporate earnings, but could imperil companies’ ability to make debt payments.

@Marsares

Tech companies, apparel makers, and industrial-equipment manufacturers are likely to be hurt most

The value of doing research. We gotta invest time to do your bottom-up and top-down research.

@CTE

If supply chains remain disrupted for a prolonged period it could potentially turn into a systemic risk given the very high levels of corporate debt

Highly recommend to learn to calculate a company’s debt versus its readily available funds. Don’t invest in companies with lots of debt (think capital intensive industries like mining, oil and gas) unless you know what you’re doing. Don’t invest in companies that financed acquisitions with lots of debt unless you know what you’re doing.

Here’s an example of a company with large debt:

Disney - DIS - Share Chat

Iger did his job and left the stage on a high note. Disney borrowed very heavily to buy those assets. Anyone with the highest bid can be a successful at buying assets. WeWork managed to buy all the commercial property in the world with loans from third parties. Sooner or later, that debt has to be refinanced and/or repaid. Just looking at the annual report here, not the latest Q1 2020 report: Total long-term debt more than 2x at the end of fiscal year 2019. 2019 annual report: At Septemb…

Also:

If you’re day trading and don’t care about fundamentals, good luck - you might get run over (I have - it was fun):

Day-trade "scalping" techniques

GLHF! Traders’ quest for the slimmest sliver of advantage is as old as markets. In the 19th century, Reuters used carrier pigeons to speed the delivery of stock prices. More recently, Chicago pit traders donned platform shoes so they could see and be seen better on crowded trading floors. Today, getting an edge is all about the speed of light: 186,282 miles per second. – Bloomberg Businessweek I’d recommend buying Flash Boys by Michael Lewis instead. Investing in yourself is the best inve…