Stock Market Consulting – March 2020 (Value Investing FM) – Investment Academy – Learn value investing from scratch

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

On this occasion, we discuss topics such as being affiliated with Admiral Markets, the effects of the coronavirus on the stock markets and the economy, the price of crude oil and low-cost producers, liquidity in funds, valuation of companies that do not generate profits, how to start to enter the market, invest in the stock market without training, invest with put and call financial options, the influence of the price of oil on uranium, how to know at what price funds buy, economic history books, how to sell the large shareholders of microcaps, the danger of a prolonged downtrend, the Benjamin Graham's valuation formula and analysis and assessment of the management team.

We also talk about listed companies such as Jastrzebska Spolka Weglowa, Paradox Interactive, Juneyao, RockRose Energy, Transocean, Valaris, Petrotal, Antero Resources, Repsol, Técnicas Reunidas, Zoom Video Communications, Babcock and Wilcox, CVR Partners, Atalaya Mining,  Kirkland Lake Gold, Volkswagen y Orezone Gold.

Tabla de contenido

  • Contact Form.

    General doubts of March 2020

    About being affiliated with Admiral Markets

    Hi! My name is Javier Sanz from the Admiral Markets broker. I am one of the managers of the affiliations department and we are looking for collaborators so that they can, on the one hand, make themselves known with us, conducting webinars, face-to-face seminars, etc ... with our database to promote their brand and, on the other hand, customers who enter the affiliate or collaborator receives financial compensation as a commission. For example, if the collaborator enters a client who opens an account with Admiral Markets with a deposit of 1.000 EUR, 600 USD is given to the collaborator, in addition, we will take care of the administrative work, so you will not have to worry about opening the accounts, or customer monitoring, etc ... just put the banner or your link so that your interested customers can enter with us. In addition, our Marketing department will allocate a budget to promote your brand with us.

    Admiral Markets is a broker registered with the CNMV, with a physical office in Madrid and with the best spreads. Could you be interested in joining our multinational? By the way, this has no cost to you.

    (Javier Sanz)

    On the effects of the coronavirus crisis on stock markets and the economy

    Hi!

    Very good video. Congratulations and thanks for sharing your knowledge with us.

    A couple of questions. You talk about becoming obsessed with the soil, but don't you think it will behave like other “crashes”, that is, there will be a first floor and a few months later?

    Second, you do not believe that the economic stoppage that results from the attempt to control the pandemic cannot result in a deterioration of economic fundamentals both at the country and company level that could cause a new crisis and that lengthens the period of stock market falls and Let's talk about months in recovery and not weeks?

    Thanks to both of you!! Greetings cracks !!

    (Javi Fern )ndez)

    On the price of crude oil and low cost producers

    I have read in the Financial Times that Aramco is prepared to maintain production at these levels for one year. If the price of crude remains at current prices for a long time, how would it affect IPCO, Rockrose and other oil companies? And which is the listed oil company that extracts crude at lower prices?

    (Moncho Martínez from Brno, Czech Republic)

    On liquidity in funds

    When the funds say they are liquid, they have it in some type of short-term bond or simply in the securities account waiting to invest. Do I say this in case they have a significant amount in the account and the broker goes bankrupt?

    (Iago de Viveiro)

    Valuation of companies that do not generate profits

    For example, a company that has not yet generated profits, or is listed at ap / fcf 40, per 40 .. but that is high growth and expectations are very high. A DCF could not be calculated, and by multiples, they are very high. How do you conclude that such a company can be cheap?

    (Lautaro Lacoste)

    On how to start entering the market

    Hello Paco and Adrián… congratulations for the podcast that I listened to all of you from # 0… Greetings from Santa Cruz - Bolivia.

    I have been with Value Investing for 2 years with an American school called Rule # 1 (Phill Town), I have read about 20 Value Investing books and I already have a strategy that combines with my way of being where I buy at 50% of the Intrinsic Value of an action with excellent Moats and Managements. My question is what do you think of some stocks that meet all of this but a possible market recession just around the corner makes me nervous. What would you do ... wait or enter with less capital? ... what do you think of entering and protecting myself as an Options Seller of the same shares that I would buy as a Value Investor?

    The actions I am talking about are: TXRH, MTY, AMZN, BABA, SKX, ATD.B, FB, ATHM, MOMO, BAD, IRBT among other actions that are very close to 50% of the Intrinsic value, below a Payback Time 8 years old and below the 10x Capital Rate.

    (Pedro Zeballos from Santa Cruz, Bolivia)

    About investing in the stock market without training

    Do you think that for a total novice it is a good idea to enter the stock market with some savings (10k) now with the decline caused by the coranivirus? Or better train and read first before doing anything crazy!

    (Daniel Martín Hernández)

    About investing with put and call financial options

    Is it advisable to invest in put and call financial options?

    (Peter)

    On the influence of the oil price on uranium

    Hello gallants of value.

    (A question for the next stock exchange consultancy. I don't know where to send it)

    How much can the bearish price of oil affect the uranium cycle?

    For buying cheap uranium and being able to make my own missiles and create the 4th world war

    You are big pussy, some incredible Galician whores, I wanted to go to the event but it was impossible.

    (Pablo Pedrajero)

    On how to know at what price the funds buy

    I have some questions. Although I have listened to you for a long time, I have no investments and before making them I try to train. Straight to the point. In ETFs or investment funds, you can see what stocks are based on in addition to the percentage they have of each company, but can you know at what time they bought the stock to know how much they bought it and thus better value it by shelling more information?

    (Peter)

    About economic history books

    Economic history book recommendations.

    (Hugo Alejandro Garien)

    On how large microcaps shareholders sell

    When I look at microcaps and midcpas, I see that almost all of them have high percentages of participation by funds (30-70% ...). I see that the shares are also not small logically and especially compared to the trading volume…. In a couple of cases, if any of the 50 largest owners wanted to get rid of their position, they would double the daily volume of the share at best. cases ... in the worst cases they would need the volume of 50 or 100 days ... the question ... How do you do to undo a position without dropping the price to the ground? If everyone wanted to sell ... a tremendous pifostium would be put together ... any of them can move the share price brutally I understand ...

    (Oea)

    On the danger of a prolonged downtrend

    I would like to ask you a question in which I am a bit hesitant:

    The downtrend you say is not a risk but I assume you mean the "short term" downtrend. But if the downward trend is 13 years like that of Banco Sabadell, is that a risk, right? Or how do we analyze that?

    (Francisco Javier Ibarrola Revuelta)

    On Benjamin Graham's valuation formula

    when you have already analyzed the financial statements of a company and you see that they are excellent and the company in question enjoys competitive advantages. Is Ben Graham's formula valid for calculating the intrinsic value of a stock = EPS (8.5 + 2G)?

    (Juan Antonio Molina)

    On the assessment of the management team

    And my other question is how can we know if the address of a company is adequate? Since if the direction is good or bad you cannot look at the financial statements of the same company, right?

    (Juan Antonio Molina)

    Doubts about companies and sectors

    Sobre Jastrzebska Spolka Weglowa

    First of all, thank you for the suggestion about watching the videos of the Zambian space plan. See these guys fucking. inside a barrel down a hill is priceless!

    This is a question for his eminence Lord Excavator: what opinion do you have of Jastrzebska Spolka Weglowa SA

    WSE: JSW? It is the largest producer of coke in the European Union and currently trades at a price of 1,9.

    See if the answer can be heard at the next trading office.

    (Daniel from the Canary Islands)

    About Paradox Interactive

    I would like to propose a question for the office about the videogames sector (I think it will be more for Adrián perhaps). When evaluating the investment in Paradox, one of the critical points of this type of investment is the goodwill that the company generates with its players, fostered by good business practices and good quality / price ratio of the games. If we take into account the latest releases (Imperator, for example where the reviews have not been good) and the company's own DLC policy I fear that the goodwill in Paradox will be eroded. The question would be summed up in whether in your consideration there is a "goodwill elasticity" in this company and how long it can hold.

    (Federico)

    About Juneyao

    Hello, how are you, I couldn't go to the Madrid event for work I hope to go to the next one, well a couple of questions, I know that China and airlines is an explosive mix but I saw an airline called Juneyao that may look good.

    (Alfonso Garcinuño)

    About various oil and drilling companies

    Hi guys, congratulations on your success !! A question for the March stock exchange:

    After the huge drops due to the Corona virus, you see a good opportunity to buy:

    – Rockrose energy

    – Transocean

    – Valaris

    - Petrotal

    (Roberto Garcia from Twitter)

    – Antero Resources

    (Dcd Kaiser)

    About Repsol and Técnicas Reunidas

    Even before this exceptional situation began, I was considering starting to invest in the stock market and are beginning to read articles looking for web brokers. But with the coronavirus, the stock market has plummeted and I see a good opportunity to invest in the long term as I see that the strategy that you follow with such good results. I was looking to invest in two consistent companies like Repsol or Técnicas Reunidas, which are quite low right now and I understand that the long-term forecast (I don't know how many months is long-term) because that value can be doubled. I understand that now the market is fried now but to the businessman that in the long term I think they will regain value close to what they have had. I don't know what it looks like to you. Thanks for the course and the advice.

    (José Luis Guillén)

    Sobre Zoom Video Communications

    I'm a follower of the podcasts that you and Adrián publish and I've already done the free course you offer.

    I wanted to ask you a question about the last podcast you did in which you talked about Zoom Video Communications.

    As a result, I have been attracted to investigate this company and among some of the data, I have calculated the PER and the result was too excessive, since it gave me a FOR In the current year of 1.095, it does not seem to have coherence, the result comes out of price / share € 120.88 and Bº per share of 0.11.

    I do not know if you have had the opportunity to analyze it, if so, could you correct me if I have made a mistake or confirm that this result is correct.

    (Damián Casal)

    Sobre Babcock and Wilcox y CVR partners

    What do you think of Babcock and Wilcox and CVR partners a greeting, thank you.

    (Alfonso Garcinuño)

    About Atalaya Mining

    Hello from lockdown!

    I was sending you a question for Digger Lord for the next podcast consultation. What do you think of Atalaya Mining? I've been looking at it, everything looks good and it has fallen in half! In addition, it is carried by some Spanish value funds such as Cobas or Magallanes.

    Greetings and thanks for the podcast that is milk!

    (Gustavo)

    Sobre Kirland Lake Gold

    A little boss mine! What do you think is due to the correction of Kirkland Lake Gold? I have seen that Adrián has talked about it several times but after buying Detour he has lost the uptrend and I do not understand why. Greetings, you are my favorite investment podcast for your peace of mind when speaking!

    (Anonymous)

    About Novolip

    Opinion on Novolip.

    (Mario)

    About Volkswagen

    Within the Automotive sector, how do you see the future of Volkswagen's share price?

    (Pedro Barros)

    About Orezone

    Adrián, what do you expect from the resource update that Orezone will release this year? He looks like he is fat, but how much?

    (Albert Mendoza of Barcelona)