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Marco Island Monday

See the source imageGreetings from Marco Island.

I'm still on vacation with the family, heading home tomorrow afternoon but I'll do my best to keep up with the market as we start the new year.  It's only the other side of the state from where I live so we get sunsets at the beach instead of sunrises but it's just nice to be anywhere else for a few days as we approach a full year in quarantine.

This week will be dominated by the upcoming election in Georgia and good old President Trump is still trying to overturn the election, also in Georgia, where he's no in trouble for blatantly tampering in a recorded conversation with Georgia Election Officials which was, of course, full of lies and conspiracy theories.  Don't worry though, Trump fans – as we know, Trump never actually faces any consequences for anything he does – he's just too cute to prosecute!

Judges across the country, and a Supreme Court with a conservative majority, have rejected nearly 60 attempts by Mr. Trump and his allies to challenge the results.  “Look, they can do whatever they want,” said Senator Chuck Schumer of New York, the Democratic leader. “On Jan. 20, Joe Biden will be president and Kamala Harris will be vice president no matter what they try to do.  I think they are hurting themselves and hurting the democracy,” he added, “all to try to please somebody who has no fidelity to elections or even the truth.”

Bitcoin price dives to $27.7K to fill giant futures gap in biggest drop since $20KBitCoin finally stopped going up over the weekend, dropping from $34,000 all the way back to $27,7000 before settling in at $31,000.  I would point out that you can't realistically transact in a "currency" that swings 20% in a day but pointing out anything logical regarding BitCoin gets you in trouble these days so this is one I'm just watching from the sidelines. 

"If we want to see some support zones on Bitcoin and expecting where we're going to move from, the first area is around $29,600, second area is around $27,600," Bitcoin analyst, Michael van de Poppe, said just before the major losses took hold.  As Cointelegraph reported, statistician Willy Woo was unfazed on Sunday about a significant pullback, arguing that only a freak occurrence could take BTC/USD to $24,000 — the site of a "gap" in Bitcoin futures markets left from December.  $27,700, meanwhile, fills the gap created on CME Bitcoin futures markets over the weekend, a classic move that had been absent from previous weeks.

The Futures are, as usual, up this morning but not very much and we start getting earnings this week, mostly on Thursday from good-sized names like BBBY, CALM, CCL, CAG, HELE, FIZ, MU and WBA, who were our runner-up for Stock of the Year for 2021 – so we'll be very interested in that report.  

Earnings Season begins in earnest next week, when we hear from big names Thursday and Friday like BLK, C, DAL, FRC, JPM, PNC, SCHW, TSM and WFC so we'll see how that goes before we start placing our bets for the new year.

Fed Minutes are out on Wednesday and there's a lot of Fed Spin this week with 9 Fed speeches on the calendar.   This morning we get PMI and Construction Spending, ISM tomorrow, PMI and Factory Orders with the Fed Minutes on Wednesday with ISM again on Thursday and Non-Farm Payrolls on Friday.  Still, it's the Georgia Senate Elections tomorrow that decide the fate of the Nation for the next two years….

Other news:

 


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  1. Repeat of Fridays write up

    yodi
    January 3rd, 2021 at 11:44 am | Permalink | Tweet thisIgnore this user
    I hope you all had a nice and safe new year entry, and hopefully followed the advice on corona restrictions. Obviously the French in one little town in France had 2500 people corona new year celebration, with no restrictions what so ever. I sincerely would like to know how many of the them pay the price of death. 
    For those in the mood here are some thought on trading. Actually the above remarks on CHL are very disturbing. However I do not wish to make any further vulgar remarks in respect to the departing clown.
    NOC a stock who made quite a swing between Feb 1. 20 at 385, Mar 23 about 270, and between Mar 20 and now a few swings between 352 and 288, now trading at 304.00. 
    It looks a bit like the moods of the clown. 
    The company operates through Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems segments. It designs, develops, integrates, and produces manned aircrafts, autonomous systems, spacecraft systems, high-energy laser systems etc.
    Noted the company is a profitable company with a positive cash flow, and for me on the lower side of the scale, with a potential of going back to its past heights. With a P.E. of 20.7 and a yield of 1.9% I feel for my liking, I would not buy the stock as a great div. payer. Even on the low side of the scale 304.00 $ would be a high amount of cash to put aside. 
    So I will start more conservative by buying the Jan 22 240 call for 72.40 and selling the May 21 300 call for 22.10. This will give me a cash investment of 50.30 against 304.00. ( The poor mans trade.)
    There are naturally various outcomes to this play. Say the stock climbs to 350, I can close my complete position with an outcome of 1026.00 or 20% in five Months on my 5030.00$ investment. Obviously I as well can roll up at a given time to avoid closing my play or assignment, and take another swing at it. 
    The best actually would be the stock would be around 300 in May and just sell another call with the same potential.
    Stays the stock at the same price as today in May, you looking at about 1420.00 or 28% in five Months.
    The break even in May is about 282.00 before losing money. 
    On the upside your max profit will hold itself in the range from 1000.00 to 900.00, by a stock value over 350$ and further up.
    All the above is naturally based on the buy and sell of 1 option play and can be increased as required, just don’t bet the form on it.!!!!!


  2. Green all around! We are going to need new lines…


  3. On the other hand:

    https://www.motherjones.com/kevin-drum/2021/01/is-the-stock-market-overvalued/

    Looks a bit toppy to me! Even if we get a 5% GDP print this year!


  4. There are but two parties now: traitors and patriots. And I want hereafter to be ranked with the latter and, I trust, the stronger party. - Ulysses S. Grant


  5. Phil hope you enjoy your vacation. had to consult Google map to understand your sun set. Well it figures you are on the WEST COAST of Florida. Like your option plays one always has to think about it!!!!!!!


  6. Good Morning.


  7. Phil,

     

    I have a BCS 2023 on CHL and getting worried about the coming delisting by the NYSE. Have you any suggestions about possible options?


  8. Phil, what's your favorite hedge at this point?  SQQQ?

    TZA would be nice, but I'm not convinced the RUT will pull back as badly in a downturn at this point. 


  9. Good morning!

    Indexes not off to a good start but, of course, all of last week's low-volume gains were BS so we'll see where we end up.

    Check out the Nikkei this morning:

    New Year's/Yodi – While there were certainly instances, I didn't think New Year's was as bad as feared in general.  I was in Fort Lauderdale for the fireworks and the streets weren't packed as they usually are – which is great progress for Florida.   NOC is a good stock but I don't think Biden will be as generous as Trump has been with the defense department.

    Still, your nice, conservative spread is the way to go.  ITA (defense ETF) is good to keep an eye on to see which way policy seems to be heading.

    Big Chart – Wow, still holding up. 

    Buffett Chart/StJ – Wow, still insane.

    Thinking/Yodi – Good to see you still have those problem-solving skills!  cool

    CHL/Horace – If you can't afford to sit on it for a year or two, I'd get out.  It's too uncertain and very likely not to be liquid going forward.


  10. CHL

     

    I have 10 Jan 2022 27.5 call options on CHL — I have rolled down already from 30.  They are uncovered as I was waiting for the recovery to sell calls.   Not sure what this will mean for my options.  Any advice is welcome.


  11. Phil / CHL. when you say wait a year, are you talking about a Biden – China reconciliation?  Kicking myself as I questioned the delisting rumors last month. Moral of the story, don't go full position when there are serious doubts. 


  12. CHL we discussed it just on Friday. Ye I as well have stock and option plays. However today is not the best day to worry about CHL. All sheep are just about jumping over the cliff. As mentioned Friday there must be still catchers going for the sheep meat!!! Just let the dust settle and we can see. 


  13. Good advice Yodi, thank you!


  14. On the other side of the coin NIO up 5$ today 

    7-Aug-20 NIO Initial Stock Purchase strike trade market $0.00 

    Current Price $53.96 Chinese Electric Car

    3-Jan-19 $13.30 NIO220121P7 21-Jan-22 7 -2 PUT 2.7 0.325 88%

    28-Aug-20 $19.82 NIO220121P10 21-Jan-22 10 -2 PUT 3.5 0.635 82%

    2-Dec-20 $45.36 NIO220121P25 21-Jan-22 25 -2 PUT 5.5 4.325 21%

    10-Dec-20 $44.03 NIO230120C30 20-Jan-23 30 10 CALL 26.7344 29.225 10%

    NIO230120C45 20-Jan-23 45 -10 CALL 22.7122 23.9 -6%

    NIO210115C50 15-Jan-21 50 -2 CALL 4.8 4 17%

    NIO210219C55 19-Feb-21 55 -1 CALL 6.05 5.5 9%

    11-Dec-20 $44.02 NIO230120P30 20-Jan-23 30 -1 PUT 11.4 9.85 14%

    NIO230120P25 20-Jan-23 25 -3 PUT 8.3

    0 0%

    Cash in Hand #DIV/0! p/l stk $0.00 295580% $2,955.80 


  15. Phil what do you expect after 10,000 puzzles 


  16. Phil/Anyone:

    Not to beat a 'dead horse' but is anyone seeing that on the Put sale of CHL ($30 Put Jan 2023 @ $6.20 in my case), the brokerage firm is showing an ask of $105 thus allocating over 3x the potential loss on the Put sale should CHL go to zero?  This is increasing the margin requirement 3.5x causing the option buying power to go negative?


  17. New year, same problems




  18. Worse Than Treason



  19. hicket As you can see from my port copy the put has changed enormous I think people buy put for a ridicules price. Possible will change in a few days. It has not changed my PM margin with TOS

    0 0.00%

    28-Aug-20 $35.00 CHL210319P35 19-Mar-21 35 -3 PUT 2.2 8.2 -272.73%

    19-Oct-20 $32.12 cl CHL201218C35 18-Dec-20 35 -7 CALL 0.4 0 exp

    20-Oct-20 $32.46 cl CHL201218C35 18-Dec-20 35 -1 CALL 0.45 0 exp

    22-Oct-20 $32.00 CHL230120P30 20-Jan-23 30 -2 PUT 4.85 55.85 -947.19%

    10-Nov-20 $33.34 cl CHL201218C35 18-Dec-20 35 -2 CALL 0.55 0 exp

    26-Nov-20 $30.00 CHL230120P30 20-Jan-23 30 -1 PUT 6.3 55.85 -947.19%

    8-Dec-20 $29.33 CHL230120C30 20-Jan-23 30 -5 CALL 3.62 3.475 4.01%

    CHL230120P30 20-Jan-23 30 -3 PUT 5.3333 55.85 -947.19%

    14-Dec-20 $28.53 CHL210319C30 19-Mar-21 30 -2 CALL 1.25 1.25 0.00%


  20. Just to cool things a bit more for the CHL holders my P/L day indicator on TOS changes from minus 45K to 21k so this just indicates there are a lot of crazy sheep jumping, how ever there must be already buyers on the bloody street!!!!!


  21. imagine thinking bitcoin is a currency. That's hilarious


  22. Boy the /ES is really going down today -75


  23. CHL/Jeff – Sorry but there are too many unknowns.  Options to buy what, where?  We don't know so what are the options actually worth?  They are still $3.20 – you might just want to take it off the table.

    CHL/Jeddah – Same thing, it's probably overblown and I'm not looking to shut down an inconsequential position but if it's a big deal to you – it's way too much of a risk.

    LOL Yodi.

    CHL/Hicket – They are trying to flush everyone out of the position, I think.

    And what Yodi said!

    Wow, no support at 30,000 – that's crazy.  

    3,700 wasn't any help either. 


  24. Hey there is always good news somewhere.  WBA is up and over $40


  25. WBA earnings coming up Jan 7. Not sure about it being positive but who knows?



  26. Maybe my short is OK then. 


  27. I have reported on BHP before. The company, operating out of Australia shows us in some way a widow of the China market. A so called a canary in the cool mine.

    Ultimately, just about every country in the world is affected by China’s critical role in the global supply chain.” Since BHP supplies China with iron ore, copper, petroleum, and coal, it would be among the first to feel any changes in demand for those essential building blocks of China’s industrial sector.

    Here my progress in my option play originally started at Nov. 20 at a stock price of 55.12

    24-Nov-20 BHP Initial Stock Purchase strike trade market $0.00 

    Current Price $67.74 Broken Hill PtL

    BHP220121C50 21-Jan-22 50 2 CALL 9.3 18.6 104%

    24-Nov-20 $55.12 BHP220121C50 21-Jan-22 50 2 CALL 8.7 18.6 104%

    30-Dec-20 $65.94 BHP210521P60 21-May-21 60 -3 PUT 2.95 2.7 8%

    4-Jan-21 $67.74 BHP210521C70 21-May-21 70 -3 CALL 3.76 3.55 6%

    0 0%

    Cash in Hand #DIV/0! p/l stk $0.00 278901% $2,789.01 


  28. Now we're back to 30,000.

    WBA/Pirate – All about 6 months of vaccine business to come.

    BHP/Yodi – We bought them during the last crisis.  Good company. 

    • The three major U.S. stock averages extend their declines during midday trading in New York, with real estate and industrial sectors dropping the most.
    • Nasdaq falls 2.5%; the S&P 500 declines 2.4%; Dow loses 2.3%.
    • Investors shift away from risk. 10-year Treasury yield slips a basis point to 0.91%. Gold gains 2.4% to $1,940.60 per ounce and silver rises 2.8% to $27.14 per ounce.
    • Among investors' worries — the outcome of runoff elections for the two Georgia senators, which will determine which party controls the U.S. senate, and a surge in COVID-19 cases that's likely to keep the economic recovery constrained until a good portion of the U.S. population gets vaccinated.
    • U.S. dollar index edges down 0.1% to 89.87.
    • Airline stocks are lower even after the Transportation Security Administration screened over 1.3M passengers on Sunday to mark the most activity in the sector since the pandemic started.
    • Despite the strong demand around the holidays, booking trends are expected to be weak for the next two months.
    • UBS explains why there is cautious sentiment in the sector as the new year begins.
    • "We would expect trends to pullback until the vaccines roll out in the next few months before we see a more sustained recovery beginning into March/April. Important to note is this data represents gross bookings data and does not capture cancellation activity, potentially suggesting actual trends could be slightly worse than what we are seeing. Importantly, the uptick in December trends was driven primarily by leisure travel," updates UBS.
    • Decliners on the day include Allegiant Travel (ALGT -6.4%), Mesa Air (MESA -4.9%), Alaska Air Group (ALK -4.8%), Southwest Airlines (LUV -3.5%), American Airlines (AAL -3.5%), JetBlue (JBLU -3.2%), Delta Air Lines (DAL -2.5%), Hawaiian Holdings (HA -2.5%) and United Airlines (UAL -2.4%).
    • In a positive sign for the sector, Delta says it is aiming to be cash flow positive by the spring.
    • NICS firearm background checks rose 34.1%% Y/Y in December to 3,937,066 on an unadjusted basis, according to data released by the FBI.
    • The number of background checks for the month was the highest of the year, just edging the June tally.
    • On an adjusted basis, background checks were up 22.7% to decelerate from the year-over-year growth seen over the last three months.
    • Background checks for the full year were up 40% from 2019's tally to 39,695,315.
    • Sector watch: Sturm Ruger (RGR +1.5%), Smith & Wesson Brands (SWBI +0.6%), Sportsman's Warehouse (SPWH +0.7%), Olin Corporation (OLN -1.2%) and Vista Outdoor (VSTO +0.4%).
    • Firearm stocks made the Seeking Alpha Catalyst Watch list for the week.
    • The officials of Operation Warp Speed are in discussion with the FDA and Moderna (MRNA +6.3%) to explore the possibility of halving the company’s COVID-19 shot to some individuals in the U.S. as the country attempts to accelerate the vaccine rollout.
    • On CBS’ “Face the Nation”, Moncef Slaoui, the head of Operation Warp Speed said that giving half the dose for people between the ages of 18 to 55 could achieve “identical immune response” to the one hundred microgram dose tested in Phase 3 clinical trial run by the company.
    • Calling the initiative as a ‘way to speed up immunizations against Covid-19,’ he, however, cautioned that a decision not supported by trial data will be a mistake, adding “Ultimately it will be an FDA decision.”
    • With a similar view, White House health advisor, Dr. Anthony Fauci has highlighted the importance of expediting the vaccination drive. Dr. Fauci termed the plan as ‘the right solution to the wrong problem,’ arguing that not having enough vaccines was not the issue at hand.
    • Meanwhile, facing a surge in infections, the health authorities in the U.K. have tweaked the COVID-19 vaccine guidelines, raising concerns among health experts.
    • Boeing (BA -5.4%) is today's biggest Dow Jones loser after Bernstein downgrades shares to Underperform from Market Perform with a $199 price target, trimmed from $221, saying the company still faces a long recovery even after the return of the 737 MAX.
    • Boeing has problems with the 787, which the market may not fully appreciate, Bernstein analyst Douglas Harned says.
    • "Q4 was supposed to be a big quarter for 787 deliveries, as inspections for manufacturing defects were to be completed and stored aircraft delivered, [but] this did not happen," Harned writes, as Boeing saw one delivery in December and none in November, and he believes "non-conformities related to the fuselage are more extensive than originally thought."
    • "787 issues could significantly hurt free cash flow through cost of repairs, compensation to customers, timing of engine cash payments, and less operating leverage," Harned says.
    • "What remains to be seen now is whether Boeing will actually have to announce a reach-forward loss for the program… the ingredients for it are there," Dhierin Bechai writes in a new analysis posted on Seeking Alpha.
    • Billionaire Carl Icahn (NASDAQ:IEP) is "pretty hedged'' right now, CNCB's Scott Wapner said after an interview with the fund manager.
    • "In my day I've seen a lot of wild rallies with a lot of mispriced stocks, but there is one thing they all have in common. Eventually they hit a wall and go into a major painful correction. Nobody can predict whether it will happen, but when it does happen, look out below.''
    • Icahn declined to say exactly what his position is
    • Yesterday, WSJ reported that Icahn sold half his Herbalife (NYSE:HLF) position
    • Strong deliveries reports from Li Auto, Nio, XPeng and Tesla (TSLA +3.9%) over the holiday weekend have investors in the electric vehicles sector scrambling on high-volatility moves. Notably, Tesla's report included it effectively hitting its 500K deliveries target for 2020.
    • Gainers in the sector include Li Auto (NASDAQ:LI) +13.15%, Nio (NYSE:NIO) +9.62%, XPeng (NYSE:XPEV) +8.31%, Electrameccanica Vehicles (NASDAQ:SOLO) +7.11%, BYD Group (OTCPK:BYDDF) +6.44%, Kandi Technologies (NASDAQ:KNDI) +5.80%, Niu Technologies (NASDAQ:NIU) +4.55%, Workhorse Group (NASDAQ:WKHS) +2.95% and GreenPower Motor Company (NASDAQ:GP) +2.05%.
    • The optimism is largely tied to raised expectations on China demand, according to Wedbush Securities. "China remains a greenfield EV market opportunity as we believe overall EV sales can potentially double in the region over the next few years given the pent-up demand for EV vehicles across all price points," notes analyst Dan Ives.
    • "We believe China (coming off what looks like a robust November/December) could see eye popping demand into 2021 and 2022 across the board with Tesla's flagship Giga 3 footprint a major competitive advantage, as domestic players such as BYD, Nio, Xpeng, and Li also are also firing on all cylinders and just scratching the surface of the overall TAM in China," he adds.
    • Not all EV stocks are motoring higher. Decliners in the EV space on the first day of trading of the year include QuantumScape (NYSE:QS) -37.56%, XL Fleet (NYSE:XL) -15.30%, Canoo (NASDAQ:GOEV) -11.25% and Romeo Power (NYSE:RMO) -11.17%. All those EV names have been volatile on a daily basis.
    • Deliveries reports and updates from manufacturers on U.S. sales pushed the auto sector front and center in Seeking Alpha's Stocks to Watch for the week.

  29. Not a great start to the year but I'd be very happy if the market got more realistic for 2021.


  30. Hicket, Have you called the brokerage?  What is the plan of action?

    Phil// What is your suggestion for CHL?  Thanks.


  31. GILD trading off $5 after market, any idea why?


  32. Etrade will only allow closing trades on CHL as of this afternoon.  In the morning they were allowing opening trades but there was no option volume on most strikes.  Bid / Ask of 0's.


  33. CHL filed a Form 6-K today in case anyone is interested: https://sec.report/Document/0001564590-21-000032/

    Apparently the NYSE has yet to notify CHL about the delisting, which is… interesting.


  34. CHL/Rookie – The brokers don't know either so I'm saying don't risk anything you mind losing.  

    GILD/Swolf – That was strange.  Still a bargain at $60.

    CHL/Kinki – That was my premise, that they are able to comply and, ultimately, will not be delisted.  Still, no guarantees, obviously.


  35. NYSE reverses course, says it won't delist 3 Chinese telecoms

    Provided by Dow Jones

    Jan 4, 2021 11:01 PM EST

    By Mike Murphy

    Move against China Mobile, China Telecom and China Unicom had been announced New Year's Eve

    In a major reversal, the New York Stock Exchange said it no longer intends to delist three Chinese telecom companies that had been targeted by an executive order from President Donald Trump.

    In a statement late Monday, the NYSE took back its intent to delist China Mobile Ltd. (0941.HK), China Telecom Corp. Ltd. (0728.HK) and China Unicom (Hong Kong) Ltd. (0762.HK) , which it had announced late on New Year's Eve (link).

    American depository receipts of all three companies had fallen sharply in Monday trading. All three companies are also listed in Hong Kong, where shares of China Mobile , China Telecom and China Unicom shot up in Tuesday trading after the announcement.

    The NYSE said the reversal comes "in light of further consultation with relevant regulatory authorities."

    The exchange, which is owned by Intercontinental Exchange Inc. (ICE), did not further explain its decision, other than to say: "At this time, the Issuers will continue to be listed and traded on the NYSE. NYSE Regulation will continue to evaluate the applicability of Executive Order 13959 to these Issuers and their continued listing status."

    Trading in the companies was to have been suspended as soon as Jan. 7.

    The delisting announcement last week came in compliance with an executive order by President Donald Trump (link) banning Americans from investing in a handful of Chinese companies that the U.S. claim support or supply the Chinese military.

    China had accused the U.S. of "viciously slandering" the companies, and had threatened to retaliate.

    The executive order may become a moot point in another two weeks, once Trump leaves office, if incoming President Joe Biden overturns it. The order is set to take effect Jan. 11, a little more than a week before Biden's inauguration.

    The three companies dominate China's mobile business. China Mobile is China's largest telecom company, and has a market cap of about $116 billion. It has been listed on the NYSE since its blockbuster, $4.2 billion IPO (link) in 1997. China Telecom has been listed on the NYSE since 2002 (link), and has a market cap of about $22.5 billion. China Unicom has been listed by the NYSE since 2000 (link), with a current market cap of about $18 billion.


  36. CHL: OMG WTF is going on with this clusterf*ck of an Administration?  


  37. CHL / NYSE – This is the true administration  at his WORST – the CEO of NYSE  / ( married to Kelly Loeffler) has to be behind this, they did the classic trim bullshit, announced late after close on holiday week or the delist, then went dark…. ….  I hope the SEC goes after these Assholes prosecutes  to the fullest.   ….  lots of people lost money today…. I was on the brink of selling out my shares ( held since '16) but waiting / hoping for more info… Had actually decided to sell in the AM – now will wait…   Trump is out of control the next 17 days will be the most dangerous days for out country – his cronies are out calling for people to be killed and shot,  riot in the streets, and this evening even predicting a civil war….. this is nuts…..  I'm embarrassed every time I talk with a foreigner and am asked about the clown show 


  38. CHL looking at my comments of yesterday and looking at my holdings on CHL this morning it is up 6K on the stock alone not be able to calculate the option plays before market openings. Hope you were not one of the cliff jumpers, for whom I warned yesterday. 


  39. CHL – As we thought, it was a flush.  They forced as many people to fold as possible before letting it rise again.  You can see how hard it is to hold on during something like this – no matter how much you believe in your position.  What a fantastic way for manipulators to make Billions of dollars, forcing massive blue-chip stocks to go on sale like that!

    Back to $30 already.

    Submitted on 2020/11/30 at 1:45 pm

    CHL/Jeddah – I don't think the largest company in China is going to have a problem passing a US audit.  Maybe that will be a huge advantage as other Chinese companies do get delisted and ETFs are forced to buy more CHL to make up for what's missing?  You're speculating about the effect of a rule that is speculative itself yet making decision based on all that extrapolation with no evidence.  That's why CHL is such a good deal now.

    Submitted on 2020/12/11 at 12:02 pm

    CHL/Rookie – Everyone thinks they are being delisted and also money is rightly being pulled out of China ETFs so CHL is getting dumped along with all the other stocks.  Since there is very little bullish demand for CHL to offset it (volume just 3.2M per day vs 9.4M for T) – the bulls get swamped and the stock goes down.  

    70M/Yodi – It's a systemic religious and secular education program in this country designed to raise generations of weak-minded people who crave strong authority figures.  The people who questioned the concept of "Make America Great Again" were branded as unpatriotic.  Anyone to the left of center is a "Socialist" and "Socialism" is as bad to most Americans as Communism – even though most of them don't understand what either one actually means.  

    This is an Oligarchy – exactly what George Carlin said it was, a Society that simply wants semi-educated consumer/workers to exploit.  One that builds a bigger and bigger moat around the privileged 0.01% and now we elect them as leaders – even though they are COMPLETELY against the self-interest of the average voter.  

    And that 0.01% are paying less taxes and no longer paying inheritance taxes so their positions become permanent for themselves and their families.  Trumps, Waltons, Kochs, are the future (and current) ruling families of America and, unfortunately, the only people powerful enough to stop them like Buffett and Gates – keep giving away their fortunes – mostly to help those who've been destroyed by the greed of the rulers.  But then how are things going to change?  Perhaps that's part of the Oligarch's plan – keep conditions bad enough that those who would oppose them are constantly distracted trying to save the people the Oligarchs are harming.  Clever…. 

    CHL/John – Well, as you say, it's Trump's list, not Biden's.  I don't think you can buy HK CHL.

    The order would bar U.S. investors from owning companies the Defense Department deems to be a “Communist Chinese military company”—as well as funds that own them. The Defense Department’s list includes companies such as like China Mobile (ticker: CHL) and China Telecom (CHA), as well as Hangzhou Hikvision Digital Technology (2415.China).

    The order, which gives investors until next November to divest from these companies, raises questions about implementation. China Mobile and China Telecom, for example, are both part of the MSCI Emerging Markets index and part of myriad funds that track that benchmark, including the $24.2 billion iShares MSCI Emerging Markets exchange traded fund (EEM).

    Details on whether the order applies only within the U.S. or also prohibits U.S. citizens from investing in these companies in China or through offshore financial centers were still unclear.

    Notice TikToc is still around.  If they can't get rid of TikToc – how are they going to get rid of CHL?

    Regardless, the financial impact could be small. U.S. investors hold only about 2% of the total China stock market capitalization, with just a fraction of publicly listed Chinese companies associated with China’s military-industrial complex—a reason U.S. investments in Chinese stocks might not provide Washington with much political or economic leverage, Andy Rothman, investment strategist at Matthews Asia, said.

    CHL/Sagaro – Yes, I think it's an over-reaction.  Especially for something that doesn't happen until next year.

    Submitted on 2020/12/17 at 6:11 pm

    CHL/SK, Batman - What a fantastic way to force selling and drive a stock down.  

    Submitted on 2021/01/04 at 10:23 am

    CHL/Horace – If you can't afford to sit on it for a year or two, I'd get out.  It's too uncertain and very likely not to be liquid going forward.

    CHL/Jeff – Sorry but there are too many unknowns.  Options to buy what, where?  We don't know so what are the options actually worth?  They are still $3.20 – you might just want to take it off the table.

    CHL/Jeddah – Same thing, it's probably overblown and I'm not looking to shut down an inconsequential position but if it's a big deal to you – it's way too much of a risk.

    LOL Yodi.

    CHL/Hicket – They are trying to flush everyone out of the position, I think.

    And what Yodi said!

    CHL/Rookie – The brokers don't know either so I'm saying don't risk anything you mind losing.  

    CHL/Kinki – That was my premise, that they are able to comply and, ultimately, will not be delisted.  Still, no guarantees, obviously.


  40. By the way, check out yesterday's CHL volume:

    Date Open High Low Close* Adj Close** Volume
    Jan 04, 2021 27.18 27.64 26.56 26.86 26.86 21,127,500
    Dec 31, 2020 28.39 28.68 28.31 28.54 28.54 1,975,500
    Dec 30, 2020 28.25 28.38 28.01 28.29 28.29 5,905,700
    Dec 29, 2020 28.95 29.01 28.34 28.37 28.37 3,551,100
    Dec 28, 2020 29.14 29.45 29.10 29.42 29.42 2,344,100
    Dec 24, 2020 28.48 28.61 28.46 28.54 28.54 1,202,300
    Dec 23, 2020 28.30 28.31 28.12 28.21 28.21 1,488,000
    Dec 22, 2020 28.05 28.27 28.01 28.21 28.21 2,404,200
    Dec 21, 2020 28.24 28.30 28.00 28.17 28.17 4,201,200
    Dec 18, 2020 29.06 29.27 29.00 29.15 29.15 2,830,700
    Dec 17, 2020 28.36 28.40 28.10 28.31 28.31 4,714,900
    Dec 16, 2020 28.50 28.64 28.25 28.36 28.36 4,813,300
    Dec 15, 2020 28.60 28.66 28.38 28.45 28.45 2,473,300

  41. CHL – WOW!!  Phil And Yodi, you are why this group is amazing. You helped me and I'm sure others to take a breath and not  be a sheeple jumping off the cliff. Damn Yodi, it was just yesterday you said to chill. It seriously stinks as Batman highlights with deep ties to this grifter administration, but nice to see the clouds finally part. Between CHL,INTC, WBA, it's been quite a ride.