The Official Stock Market Thread

[Josh611]

Originally Posted by jcardstore

Hopefully someone can explain this to me.

So I was doing some research on UPST and was amazed that they are actually profitable.... anyways. I was reading their 10Q and they have this paragraph



Does anyone know how this exactly changes their accounting standards? I assume there is more leniency on "growth" companies but not sure how that impacts their financial statements

I can't answer it but I'm pretty curious too. Never actually heard of that situation. Seems like something worth knowing about. Will check it out tonight if I ever get some time.

[JMarchand1981]

Originally Posted by jcardstore

Hopefully someone can explain this to me.

So I was doing some research on UPST and was amazed that they are actually profitable.... anyways. I was reading their 10Q and they have this paragraph



Does anyone know how this exactly changes their accounting standards? I assume there is more leniency on "growth" companies but not sure how that impacts their financial statements

The SEC puts the information out there:

https://www.sec.gov/smallbusiness/goingpublic/EGC
Emerging growth companies are permitted:

to include less extensive narrative disclosure than required of other reporting companies, particularly in the description of executive compensation

to provide audited financial statements for two fiscal years, in contrast to other reporting companies, which must provide audited financial statements for three fiscal years

not to provide an auditor attestation of internal control over financial reporting under Sarbanes-Oxley Act Section 404(b)

to defer complying with certain changes in accounting standards and

to use test-the-waters communications with qualified institutional buyers and institutional accredited investors

A little more from the SEC:
https://www.sec.gov/divisions/corpfi...-i-general.htm

Title I provides scaled disclosure provisions for emerging growth companies, including, among other things, two years of audited financial statements in the Securities Act registration statement for an initial public offering of common equity securities, the smaller reporting company version of Item 402 of Regulation S-K, and no requirement for Sarbanes-Oxley Act Section 404(b) auditor attestations of internal control over financial reporting. Title I also enables emerging growth companies to use test-the-waters communications with QIBs and institutional accredited investors and liberalizes the use of research reports on emerging growth companies.

And now from Big 4 firm, KPMG:

https://frv.kpmg.us/reference-librar...9-sec-egc.html

Key impacts
When an EGC that elected deferred adoption of new accounting standards loses its EGC status, it is normally required to comply with public company effective dates for the adoption of new or revised accounting standards

SEC staff stated that if an EGC adopts a new accounting standard before it loses EGC status on the last day of its fiscal year, the SEC will not expect the EGC to revise its adoption date

Using ASC 606 as an example, when calendar year-end EGCs that elected deferred adoption lose status on the last day of their fiscal year 2019 or later, the SEC will not object if those companies do not revise their January 1, 2019 adoption date. There are however other reporting considerations

A new registrant filing its initial registration statement that does not qualify as an EGC should adopt accounting standards as of the effective date for public companies

The SEC staff’s remarks do not change. Regulation S-X. Companies are encouraged to consult with the SEC staff on specific questions



Some of this is kinda jargon-y. If you understand the jargon and this reads more informative than stiff and authoritative then you will understand these differences and, more importantly, why they matter.

For me, the big one is the auditor attestation. So basically as long are the numbers are within reason and rubbery enough, they can be stated without support. Others will find different information within this post.

[Josh611]

Thanks for posting that^!

Honestly never realized that was a thing. Will certainly be more aware of it now. Of course just because a company is an EGC doesn't mean anything sketchy is going on but certainly gives more of a chance of fraud or bad/fudgy numbers.

[Josh611]

With what I just paid for brand new KitchenAid appliances I should buy some WHR.

Less growth there but should see value in buybacks and dividends.

[xbignick]

Could be worse...we could be Cathie Wood.

[JMarchand1981]

Originally Posted by xbignick

Could be worse...we could be Cathie Wood.

Bravo. This is solid.

We have rotated away from some tech names the past 2 weeks.

We have rotated in to several other places.

We opened in CROX today. We have a need for something that isn't going to get pounded when the Nasdaq does.

[JMarchand1981]

I am imploring many of our clients to take a glimpse into i bonds through treasury direct. They are inflationary bonds with a variable yield, currently paying 7.12%. Don’t fall in love with that number because it’s variable.

We won’t do it on managed money because we won’t make any money off the transaction, but I am pushing people to look that way for the time being with money that we don’t manage.

[jcardstore]

Originally Posted by jcardstore

I opened some puts on DKNG and AFRM today.

Lots more pain ahead in these names.

BNPL is a dumb concept and I'm surprised it got so hyped like it did.

I don't believe in DKNGs at all. The gambling market is super saturated with tons of competition and the impact of legalized gambling in US is way way overstated. Those who want to gamble already do and DraftKings is terrible at making money.

Revenue and FCF heading in the wrong direction. Should have never gone public.

Will look to close these today.

Probably more to the downside here, especially with AFRM but it's down 35% since I opened my puts and DKNG is down 20%.

I'll take some profits and probably look to rebuy on the next green day.

Story hasn't changed with either of these names and still looking at lots of pain ahead

[elny43]

MSFT near $70bn deal to buy ATVI. What a good time for MSFT to pounce given the negative sentiment and how beat up the stock has been

[NeedChapmans]

Inflation!
We're gonna raise interest rates, we swear
SELL!
Money floods into commodities
Inflation!
We're gonna raise interest rates, we swear

And so on. Good stuff.

[jcardstore]

Maybe my portfolio will stop bleeding now? I buy calls on every down day. Besides yesterday I bought more shares instead... too bad

Still going to be a pretty green day

[monkeymcgee]

Originally Posted by elny43

MSFT near $70bn deal to buy ATVI. What a good time for MSFT to pounce given the negative sentiment and how beat up the stock has been

Indeed--very smart and opportunistic move by Microsoft

[monkeymcgee]

Originally Posted by jcardstore

Maybe my portfolio will stop bleeding now? I buy calls on every down day. Besides yesterday I bought more shares instead... too bad

Still going to be a pretty green day

Very nice--I didn't see how much it had jumped until now

[finfangfan]

Will be interesting to see where SOFI ends up settling. It actually dropped 8% to low $12’s yesterday before the news. Mid day today it is about $13.60 after spiking as high as $14.39 after open.

My dollar cost average is still high at like $19.75 so I have a way to go for this one to be green for me.

[jcardstore]

Sold most of my calls at open so timing was good there. Will reload calls on another red day and let the rest ride

[finfangfan]

Some crazy volume for SOFI today. From https://finance.yahoo.com/quote/SOFI/history?p=SOFI

Date Open High Low Close* Adj Close** Volume
Jan 19, 2022 14.37 14.39 13.37 13.71 13.71 182,946,200
Jan 18, 2022 12.80 13.11 12.02 12.06 12.06 50,314,700
Jan 14, 2022 12.95 13.32 12.66 13.20 13.20 32,329,300
Jan 13, 2022 14.00 14.04 13.06 13.09 13.09 29,900,800
Jan 12, 2022 14.30 14.42 13.75 13.86 13.86 24,842,400
Jan 11, 2022 13.30 14.14 13.25 13.94 13.94 24,517,400
Jan 10, 2022 13.45 13.49 12.82 13.37 13.37 37,040,300
Jan 07, 2022 13.82 14.40 13.62 13.74 13.74 28,579,900
Jan 06, 2022 14.02 14.27 13.01 13.78 13.78 46,269,400
Jan 05, 2022 14.88 15.23 14.04 14.10 14.10 35,103,100
Jan 04, 2022 15.61 15.86 14.59 15.05 15.05 34,175,900
Jan 03, 2022 16.10 16.13 15.45 15.68 15.68 27,500,900
Dec 31, 2021 15.93 16.49 15.74 15.81 15.81 30,798,200

[finfangfan]

SOFI continuing its strong surge (up another 11% to $15.30) on high volume (62 million through first hour).

[swerve]

Originally Posted by finfangfan

SOFI continuing its strong surge (up another 11% to $15.30) on high volume (62 million through first hour).

https://www.marketwatch.com/story/so...me-11642633189

[JoeAdam]

I don't add much in this thread. I'd recommend taking a look at Portillo's (PTLO). They went public a couple months ago and it went a little crazy at first, but now it's settled down. I think the food is decent, but it's the appeal that sells this company. Every time friends come to Chicago they want to go to Portillo's. I drive by 3 each day and lines are always long.

They've announced plans to start expanding outside of the couple markets (mainly Chicago) that they are in. I think as they open up restaurants they will see strong sales from people who "have to try it".

I could see them easily becoming a $3-5B company in the next couple years. I think the current stock price is the floor, just based on continued performance.

[JMarchand1981]

Pton halted/unhalted/halted again

[JMarchand1981]

Originally Posted by JMarchand1981

Pton halted/unhalted/halted again

Imagine owning this stock at the $150 mark. Wow.

[NCtheBBcradle]

Well, their execs pulled out tons of $ via stock sales over the past few months, but no way it could hold up with Covid re-opening killing the demand for product.

[jcardstore]

Originally Posted by JoeAdam

I don't add much in this thread. I'd recommend taking a look at Portillo's (PTLO). They went public a couple months ago and it went a little crazy at first, but now it's settled down. I think the food is decent, but it's the appeal that sells this company. Every time friends come to Chicago they want to go to Portillo's. I drive by 3 each day and lines are always long.

They've announced plans to start expanding outside of the couple markets (mainly Chicago) that they are in. I think as they open up restaurants they will see strong sales from people who "have to try it".

I could see them easily becoming a $3-5B company in the next couple years. I think the current stock price is the floor, just based on continued performance.

456x earnings for a burger chain? Yea... no thanks

[Josh611]

Originally Posted by JMarchand1981

Imagine owning this stock at the $150 mark. Wow.

What a dumpster fire that has turned into.

[finfangfan]

Wow… I was killing it this morning and now I am barely green. Crazy day!