Stock Market Consulting – October 2019 (Value Investing FM) – Investment Academy – Learn value investing from scratch

Stock Exchange Consultation for October 2019

October 2019 stock exchange consultation in which Adrián Godás and Paco Lodeiro answer questions from listeners.

On this occasion, we deal with topics such as when to declare the benefits of the shares to the Treasury, invest in new sectors, Iban Wallet, how to measure the alignment of interests of the fund managers, the management of latent risks in investments, where to obtain information to the analysis, the Altia price or the sport we practice.

We also talk about sectors such as airlines, North Sea oil companies, aircraft manufacturers (Airbus and Boeing) and raw materials companies como Adriatic Metals, Altius Minerals, Trilogy Metals, Marathon Gold y Alexco Resources.

Tabla de contenido

  • Contact Form.

    You can attach your question in audio by recording it through Vocaroo and attaching the corresponding link.

    General Questions from the October Stock Exchange Consultation

    On when to declare the benefits of the shares to the Treasury

    How does the finance issue work? If you buy, but don't sell… When are the profits declared?


    On investing in new sectors

    Good morning, I am writing here to ask you a question for the next stock exchange consultancy.

    My question is the next:

    I am interested in investing in companies that are dedicated to new sectors. I find the subject of Graphene, the blockchain and hydrogen engines for ships. Do you know companies that are dedicated to these sectors? Are there any that are recent IPOs?

    Regards, and thank you very much!

    (Kiko DLR)

    About Ibanwallet

    Dear Paco, since I have heard you on the podcast talking about financial bars, I have a question that I would like to ask you: Have you heard or know anything about Iban Wallet?

    A friend has recommended it to me and, from what he tells me, it is an English fintech. They have offered it to me as it is a deposit that can reach up to 6%.

    This has aroused my suspicions, as interest rates are at zero or negative. Nor have I found anything that says that this company is a bank or that it is registered in Spain, so I imagine that they will not have the guarantee of € 100.000 either, in case the company goes bankrupt….

    Anyway, could you give me your opinion?, ... more than anything to comment on it to the colleague who offered it to me (and who is already inside ...). I certainly, for my part, don't even touch her….; D

    A greeting and thanks

    (Miguel Montes)

    On how to measure the alignment of interests of fund managers

    Question for the month of October, we are tired of hearing from advisers or in some cases fund managers that their interests are aligned with those of the participants because they have their savings in the fund, How can we know that by looking at the fund data? Because I am not able to find it and I think it is important to corroborate it.


    On managing latent risks in investments

    Hello boys. They make an interesting question at the beginning of this video and it is if we are willing to endure a 50% drop in the value of the shares. The issue is when that fall occurs, or if we win for a long time and suddenly it falls, I think it is not the same if it falls the day after the purchase. But I take the opportunity to consult them (from Argentina) how they handle their investments or their analysis of the companies in the face of latent threats (warfare on the brink, US-China trade war, etc.) that predict recession. Specifically, how even the unpredictable plays with analysis. From already thank you very much. I learn a lot with you

    (Jose Galoppo from Argentina)

    Where to get information for testing

    I'm just starting to study the stock market. I would like to know in which websites I can get the information to evaluate a company. Thank you so much.

    (Ricardo Concepcion)

    About the sport we practice

    Do you practice any sport on a regular basis?


    About Altia's listing

    Why do the charts of some companies (such as Altia) often show lines that are too straight? Are they not listed every day and therefore only partial data is available?

    (Miguel Gironés Cervera)

    Questions about companies and sectors of the October office

    About the airline sector

    I just heard the airline podcast that I loved like all the others you do. However, in this case I disagree on some things and I invite you to comment on the criticisms I make to you in the next office. I do believe that the airline industry is better now than before, for several reasons:

    - The fundamental, cost reduction (and consequently prices) that all, forced by the low cost, have applied. 20 years ago if you went on vacation the price of the plane ticket was equal to 50% of your expenses, now it is easy that it does not even reach 20%. That makes the demand more inelastic than before. Before, if a Madrid-Berlin cost you 180 euros with Luftansa and 60 euros with Ryanair, you went to the cheapest. Now with Luftansa it may cost you 75 euros and with Ryanair 25 euros and you still prefer to pay 50 euros more in exchange for being treated like a person.

    - The competition is not as fierce as it seems. There are many routes that are monopolies, and many others that are oligopolies, especially over long distances. For example, I recently went to Japan for work. The round-trip price with Iberia, the only direct flight there is, was 2500 euros, almost double the alternatives available in other companies with a stopover. And the flight is always almost full. It's like the competitive advantage of the only bar in a town, that if they opened another, neither of the two would be profitable.

    - I do not agree that it is as capital intensive as you say. Investment in airplanes has some weight, but it is not so different from many other sectors, such as oil exploration, mining, automotive, industrial in general.. It has the advantage over industrial companies, in addition, that CAPEX is quite flexible for two reasons: First, it is highly fragmentable. Each aircraft is a different CAPEX unit, which is, in general, small compared to the annual CAPEX of a large airline, so the amount of CAPEX can be adjusted year by year. Second, an airplane that is not enough can be sold and part of the investment recovered. All this without mentioning the added flexibility benefits that aircraft leasing offers. In that sense, I do not see a great cyclicality in CAPEX.

    - There is also no cyclicality in demand, which has been quite stable even in the biggest crises. The only cyclicality they have comes from oil costs. - Large companies have consolidated several airlines and have much more flexibility and determination than before to adapt to demand by quickly closing, for example, routes that are not profitable. - The system of prices that vary over time depending on demand allows them to optimize ticket income and aircraft capacity. With all this they seem like a good opportunity. Especially entering times of high oil price and leaving times of low oil price.

    Disclosure: I am a shareholder of IAG and I have been a shareholder of Ryanair.

    (Daniel from Madrid)

    About the North Sea oil companies

    Good morning, I have a question regarding the companies that are dedicated to the extraction of oil. Why are the companies that operate in the North Sea like rockrose or the like are literally making money while the rest of the oil companies in the rest of the world struggle to survive? As the cost of extraction is higher, I understand it much less.


    About aircraft manufacturers

    Hello! I loved the podcast. To continue in the same vein ... what do you think of the aircraft builders sector? Airbus, Boeing. A hug and thanks for the good time!

    (Pedro Barbero)

    About Airbus and the trade war

    Good morning to you both from Andorra, first of all congratulations on the program.

    I have the following question, how can companies like Airbus behave in the face of the tariff war promoted by the United States? A priori it seems like bad news for the French company but I do not stop seeing favorable news in terms of long-term valuations, Barclays example thank you very much greetings

    (David DR from Andorra)

    About Adriatic Metals

    ¿Cómo ve Lord Excavadora Adriatic Metals?

    (Jónatan Simón Renedo)

    About Altius Minerals

    Hello family, I would like a brief review of the Altius Minerals royalty company for the practice. Thank you eager to hear from you again from Castellón

    (Zeed from Castellón)

    About Trilogy Metals

    Hi, I'm Patricia from Castellón, I love your program, I'm a faithful follower !! hehe I am interested in knowing more about Trilogy metals, I added it to my portfolio at the beginning of August and I would like to know if "the great expert in mines" Godas sees potential. Thank you very much and congratulations for sharing so much !!

    (Patry from Castellón)

    About Marathon Gold and Alexco Resources

    Congratulations on the program. I listen to you every week from Almazora and my question for the office. I would like to know the expert opinion on Marathon Gold Corporation and Alexco Resources.

    (Esaul Gimeno from Almazora)