Stock Market Consulting – April 2020 (Value Investing FM)

Stock exchange consultation for April 2020 in which Adrián Godás and Paco Lodeiro answer questions from listeners.

On this occasion, we discuss topics such as who are our leading management teams in Spain, where to invest in case of hyperinflation, how to choose an investment fund, valuation ratios, shares of the same company at different prices, how holdings make money, valuing good companies in a bad country, capital in the XNUMXst century, short term trading, investing in companies with debt, non-value books, sectors strengthened by the crisis, repaying debt, how oil production is cut, portfolio management applications, OPEC agreements and accounting for treasury shares.

We also talk about listed companies such as BlackRock, Banco Santander, Repsol, gold miners in the US and Canada, Wheaton Precious Metals, Airbus, Boeing, the best companies in the EuroStoxx, RockRose, Amedisys, Viscofán, Iberdrola, Enagás, Ferrovial, Harley Davidson, oil rigs and cruise ships such as Carnival or Royal Caribean.

Tabla de contenido

  • Contact Form.

    General questions for April 2020

    About our reference managers

    Hello,

    Greetings from Helsinki, the silicon valley of the cold.

    I have a question for you for the podcast. The question is: do you have an entrepreneur or business manager that you like? Something like an Elon Musk cañí, No Martin Varsavsky, Amancio or the owner of Barón de Ley does not serve me. I ask because after years in this investment I have come to the conclusion that it is full of speculators Misnamed businessmen, have I parked my interest in bull skin stocks for life and only consider values ​​from the Pyrenees upwards?

    Very good your podcast.

    (Justiniano Borrell Astaburuaga from Helsinki)

    On where to invest in case of hyperinflation

    I have a question for your podcast

    Where to invest if there is a scenario of hyperinflation worldwide?

    apart from stocks in a specific sector, I would like to know which countries would resist better

    Also if there is any other asset to be hedged or that can be revalued

    greetings and thank you very much for your program

    (David)

    On how to choose an investment fund

    In case of investing in an investment fund and being able to know which one to choose, how to analyze if the purchase is at a good price and is it a good option? Just noticing that the NAV has dropped and looking at the historical returns would not be very smart of me. I know the management team is important, but for example, for one that we say is not from the union, it would be difficult for me to choose only by names of the management team.

    (Maikel)

    About valuation ratios

    First of all thank you for the podcast, I am learning a lot. I would like to ask you what ratio you use when valuing companies.

    Thank you very much.

    (Ramotta desde Twiter)

    On shares of the same company at a different price

    I have gone to different pages on the internet, looking for brokers, seeing what they offer and as research work, and I realized that there were two brokers offering shares of the same company at different prices, is it possible or would it be a fake?

    (Luis Pérez Clavel)

    On how holding companies make money

    Thanks for the podcast

    For the next one. How does a holding company that has companies that do not pay dividends make money? Suppose Duracell does not pay out dividends (I don't know), what is the appeal to Berkshire of having such a company in its portfolio? Only the appreciation of its shares.

    On valuing good companies in a bad country

    Let's assume a quality company. Good management, no debt and cash. But in an unstable country (Argentina example). Is it correct to value it with low multiples (from 8 to 12 times profit) for the simple fact of being in an unstable country? Macroeconomics kills fundamental?

    (Lautaro Lacoste)

    About the capital of the XXI century

    What do you think of the book THE CAPITAL OF THE XNUMXST CENTURY

    (Martín Luna)

    Sobre trading intradía

    Even if you are Value investors, what do you think of day-to-day trading? There are traders who work for them, but whether the profits they have obtained are really due to chance or if they really can do daily trading.

    (Another Iker)

    About etoro and companies with debt

    Paco and Adrián, I have followed them since last year and I have listened to all their episodes. After so much I can only listen to this one to keep up with the podcast. I have learned a lot with you and I thank you from the bottom of my heart. But I really don't understand why they don't recommend the “Etoro” broker (which is the one I've been using since before I started listening to them) since it has 0 commissions if it is invested with x1 leverage. It is clear that if you invest with high leverage you can lose a lot of money or all your capital. But this can happen literally with any broker, not just Etoro. I think you have to be more objective with the things to criticize from each broker because used correctly it can be very useful due to its zero commissions.

    It is also registered with the CNMV, and lets you fund the account with a credit card, debit card, or PayPal. Ideal for those who are unbanked. And I also think they should clarify that DeGiro only works in very few countries.

    Once this is cleared up, the query:

    Do you consider bad that a company has a lot of debt? Because companies like Pepsi, Microsoft have a lot of debt but nevertheless they have been growing a lot and increasing their income year after year.

    Thank you for all the value you provide and I hope you can answer my questions.

    Greetings from Uruguay.

    (Nicolas Pilatti desde Uruguay)

    On gaining skills and books

    Hello value hunters

    In the current circumstances, if you could merge with one person to achieve his ability, what would it be, who would it be and why? Would the answers change a lot at another time?

    (It would be Nacho Vidal, he would have the ability to make things grow and this applied to companies would be magnificent hahahaha)

    Three books of no value or at least not fully, that have entertained and contributed to you

    A little fucking originality!

    I love them as much as my Colacao mañanero

    (Pablo Romo Martín of Old Castile)

    On strengthened sectors

    To congratulate you on the program. Listening to them from Bogotá. I would like to ask you two questions: In the midst of this pandemic, which sectors are strengthening and which are weakening? I wish you good health and success.

    (Jesús Anibal Gómez Ricalde from Bogotá)

    Over paying off debt or investing

    I currently have a mortgage of 55.000 euros pending payment. The conditions are good I think, because it was signed at the time with the Euribor plus 0,5. Normally every year I make contributions of € 7.000 to discount and amortize the term, in order to pay less interest and deduct the Treasury.

    The monthly receipt is € 235 and approximately 20 euros of that amount are interest.

    I am thinking of not delivering so much annual amount and allocating that "credit" to other financial operations as for which I am training.

    I would like to know your opinion, thank you.

    (Camilo)

    On how oil production is cut

    Good afternoon, I have a rookie question regarding oil. It does not stop appearing on the news that if in the OPEC meeting such a country is going to reduce the production of oil barrels this month and things like that. Do they force a country, and then that country forces the companies that operate in their country to reduce it? Would I have to interpret that boris johnson calls the president of Rockrose to stop taking out barrels of oil? I'm messed with this issue and how it really works

    (Anonymous)

    About portfolio management applications

    Hi! Question for the practice: can you advise any tool or platform to efficiently and productively manage our portfolio or investment portfolio as private investors? Thank you very much and greetings from Tenerife.

    (Efraín-84 from Tenerife)

    About the OPEC agreements

    What do you think of the agreements reached at OPEC? Do you think they are enough?

    (Anonymous)

    On how to account for treasury shares

    Hello, I ask you a question that is interesting to me, how are own shares accounted for in a company's portfolio?

    I love your program, big hug from Argentina

    (Franco Vattimo from Argentina)

    Doubts about companies and sectors April 2020

    About BlackRock

    What do you think of BlackRock? How do you see it against Berkshire? Apart from the management of our gurus Buffett and Munger!

    Thanks and congratulations on the program!

    (Dani Heras)

    About Banco Santander and Repsol

    Good morning Paco. Do you see an opportunity to currently invest in companies in the banking sector such as Santander? And what do you think about investing in repsol? Any suggestions?

    (José)

    About gold mines in the USA / Canada

    Congratulations on the podcast that I always listen to and I was also at the Grand Event in Madrid, impeccable!

    Question for Adrian for the next consultation: what do you think of the 3 strongest gold miners with the best prospects in the USA / Canada?

    Thanks and a hug for both of you.

    (Mauricio from Buenos Aires, Argentina)

    About Wheaton

    Thank you for your work, very educational in a very enjoyable way.

    Adrian could you quickly comment on how you see Wheaton Precious Metals (WPM). Thank you

    (JM LB)

    About Airbus and Boeing

    Good afternoon, I write from Melilla and my name is Rosa.

    Thinking about the duopoly that exists in the manufacture of airplanes of the companies Airbus and Boeing, I wondered if it would not be a bad idea to enter one of those companies taking advantage of the large drops they have had, and having the certainty that in the future to come Whether near or not, airplanes will still be needed. Are you shareholders of any of those companies? What would have to be the main data when analyzing them that would make me launch myself to buy it or flee from them?

    (Rosa from Melilla)

    About best Eurostoxx companies

    Question for the office: if you had to say which is the highest quality company belonging to the eurostoxx50, which one would you say?

    (Anonymous)

    About Rockrose

    Good evening, simple question regarding ROSE. Do you see possible that they do a management buyout? Do you see it probable?

    (Anonymous)

    About Amedisys

    Hello, I have been looking at a Sanitary company in the USA, I love its fundamentals, but it was too expensive for my taste, the company is called Amedisys. I think it is a good company and I really don't know how to assess its intrinsic value. I would like to know your opinion for the long term, not about the rise it will have in this very special situation.

    (Anonymous)

    About certain IBEX companies

    Thank you for being there at the foot of the canyon, you are a breath of fresh air for those of us who are starting in the world of investment. Thanks to your recommendations, I have not invested in the automotive sector, despite having heard from the Spanish "gurus" that the Renault, Cie, Gestamp were nothing short of a bargain. I think you are not very friends with the IBEX 35, but what do you think of companies that have not dropped as much as others (some were even at highs ago); Viscofán, Iberdrola, Enagás, Ferrovial ... A big hug free of COVID-19 😉

    (Anonymous)

    About Harley Davidson

    Hello Paco.

    Could you assess the situation of Harley Davidson for the next podcast? Thank you.

    a greeting

    (H Saul García)

    About companies in a zombie apocalypse

    I have loved this program. One of the best that I remember. Taking advantage of the sales that have occurred in the markets, I have entered the companies Airbus and Carnival. I have been based on the confidence that in a few years normality will return to the world, and airplanes will continue to be necessary to fly from one place to another. I also believe that the tourism sector will recover (I believe that in a few years the people who have survived the apocalypse (or the zombies that have replaced humans) will want to take vacations to visit other places, and cruises will continue to be a very valid option. The choice of Airbus and not Boeing has been mainly for having a more solid balance sheet. The choice of Carnival has been for balance and for being the largest cruise company in the world. My serious question is, do you have any of those companies in your portfolio? ? Can you comment something about them? Troll question: In case the coronavirus is the apocalypse and we end up turning into zombies. What sector or company would be the right one to take advantage of the zombie cycle? Greetings, Daniel from the Canary Islands

    (Daniel from the Canary Islands)

    About oil rig companies

    Hello you two:

    What do you think about oil rig companies? A month ago at the annual Azvalor conference there was very good talk about Ensco Rowan PLC (Valaris) and they saw a target price of between $ 18 and $ 60 per share. When they made the presentation, the stock was trading at 2,9, when they presented it at 1,5 and today at 0,32 (although right now in pre-opening it is doing +15%). I would not be surprised if when you answer this question the stock is at 0,1 or 4, or at any other price. Anyway, how do you see the sector and this company in particular?

    I hope you continue helping people like this. Many thanks for your work.

    (Robert)

    About cruises

    What do you think of carnival and royal caribean ??? They look like they can break !!!!!!!!

    (Jose Carlos Lopez Garcia)