Hey Nerds: Blockchain
- Thread starter zeke
- Start date
CH1
The Artist Formerly Known as chiggins.
ROKU crushed earnings again. The street is quickly realising it's a platform, not a hardware play.
Total net revenue of $250.1 million, up 59% YoY;
• Platform revenue of $167.7 million, up 86% YoY;
• Active Accounts of 30.5 million, a net addition of 1.4 million from last quarter;
• Streaming Hours increased 0.5 billion hours vs. Q1 to 9.4 billion, up 72% YoY;
Total net revenue of $250.1 million, up 59% YoY;
• Platform revenue of $167.7 million, up 86% YoY;
• Active Accounts of 30.5 million, a net addition of 1.4 million from last quarter;
• Streaming Hours increased 0.5 billion hours vs. Q1 to 9.4 billion, up 72% YoY;
MindzEye
Wayward Ditch Pig
Never heard of it until now, but just grabbed my snorkel and did a bit of a dive. Don't know if the returns (6.1% on their conservative plan, 8.4% on their balanced plan) outweigh the risk (5% of their B grade loans are in arrears or default, 6% of their C grade, 14.2 of their D, and 17% of their E). Keep in mind that these are numbers that exist in a pretty good Canadian economy. What happens to these numbers during a recession? If someone defaults on their loan here, do you get a fractional return based on money gained through bankruptcy auction? Or do you literally walk away with nothing?
If I was looking for this type of investing, I'd talk to a mortgage broker I trust and look into private mortgage lending. At least if there is a default, you have a house to sell so you can claw back a significant portion of your money. If there is a capped return, there shouldn't be this much risk imo. If I were you, I'd look into private mortgage lending, and a blue chip DRIP where you can get a 3.5-4% return on dividend alone.
Maybe I'm missing something here (I get that it's fractional, that you take on small pieces of lots of loans to spread the risk) but I see meh returns with a sneaky amount of risk.
Altair
Well-known member
From what I get there is a loan recovery process in place that is managed by lending loop itself but understandably would only get some of the principal back.
I was thinking a mixed portfolio with 10k in with a mixture of the mid grade loans could yield a return of 7-9 percent with a mix of 6-12 month loans.
It is economy dependent so I wouldn't want to go in long term, but I imagine if I notice a uptick of default or late payments I can simply let the loans expire and walk away before losing too much.
That said, I'll take a look into private mortgage lending
Altair
Well-known member
Talked to a few mortgage brokers, very secure investment, only downside is the money is locked into the investment pool for 24 months.
MindzEye
Wayward Ditch Pig
Which means that your liquidity needs to be managed accordingly, but it's probably a better bet than fractional loans to small businesses. I mean, they may have their own proprietary method of evaluating loan worthiness, but I can tell you from current personal experience (I'm in the process of starting a furniture and art import/online retail business), you have any sort of money backing you and strong credit (750 or better), banks are falling all over themselves to extend you cheap lines of credit and business loans at reasonable interest rates. So I'm wondering what type of borrower is attracted to a service like this and why. They're advertising 5.9% on their website (and up) and I've had no problem finding products as good or better recently. I'm a fairly attractive client, but I don't know how much lesser a client than I am that I'd feel comfortable borrowing to on a small business venture.
Maybe I need to hear more than the elevator pitch to get the point, but at first glance I'm not particularly interested. Smart concept for a business, don't know if I buy it as a decent investment though.
Maybe I need to hear more than the elevator pitch to get the point, but at first glance I'm not particularly interested. Smart concept for a business, don't know if I buy it as a decent investment though.
Altair
Well-known member
From what I can tell, they don't even lend to businesses that haven't been in operation for under a year and they still turn away many who don't pass their background check.
As for why people sign up with it when starting out, I have no idea beyond that they go beyond credit scores and take into account business performance when determing what rate to give.
I might still give it a try, toss 5k at it and see how it performs with the a+ to c- loans over a year, but definitely going to look more into the mortgage investing. Having talked to a few and doing some digging, I'm not going to argue with 8-9 percent average annual return after a managing fee, even if they hold my money for 24 months.
Not sure how I feel about a DRIP though. Either way, thanks for the tip
CH1
The Artist Formerly Known as chiggins.
I dumped it yesterday, at a slight loss. Portfolio has been doing well, so I was in prune mode. They seem undervalued but often I just defer to price action (and usually regret it when I dont) over fundamentals. With so many pot names showing life recently, I did not like how moribund SLNG was acting.
MindzEye
Wayward Ditch Pig
Yeah, I'm just giving my initial assessment based on their website's elevator pitch. I may not being seeing the crux of it that makes it a better idea than I think it is. Like I said, anyone with a relatively decent asset base (mortgage equity, some cash savings/investments, etc) and a good credit score isn't getting turned away for finance products. So I wonder where these guys fit.
When my money starts to migrate from cannabis to safer places over the next couple of years, it's one of the things I'm considering putting a big chunk in. Yeah 8-9% annual return with pretty limited downside. Even major housing corrections will see you out, worst case scenario, about 20-30%.
For someone in your age range, DRIP is a brilliant tactic if your time horizon is measured in decades. 100K put in an actively managed DRIP (active as in, keeping an eye on the market at large, the industry the stock is in, and the health of the companies selected...you're not staring at charts daily here, just keeping up with the news) over the last 30 years would be somewhere in the 1.3-1.4 million dollar range today (with no additional principle) assuming that the selection of companies just went up at the Dow average over that time, and it would be turning over 40-50K in dividend income annually.
Preston
MBow30 alt account
Felt it kind of picking up steam today but didn't really gain any traction. Lots of cheap paper in this one. Selling pressure looks relentless but the squeeze will be epic, whenever it happens. Who knows when that **** that is though. High risk.
Edit: ended up selling at 1.06 or 1.07.. was decent profit in the end, considering I went fairly heavy. Didn't like the way things looked though so decided to exit early.
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Preston
MBow30 alt account
MSOs showing absolutely zero signs of getting going. TRUL earnings Wednesday are expected to be essentially record breaking. Wonder if that's enough to get them and others going. At this point though, that momentum we saw a week or two ago is just about dead. Bear flag after bear flag. It's more than likely getting a lot worse before it gets better.
Happy with my averages though so **** it. Game plan consists of accumulating so I'll stick to that.
Happy with my averages though so **** it. Game plan consists of accumulating so I'll stick to that.
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Preston
MBow30 alt account
There's always talk. People predict it every year. Eventually they'll be right, but odds will always be against them.
It's all part of the natural economic cycle. One is coming. Assuming you know when is usually where people go wrong. Teeds has predicted one for the last 7 years. He'll be right one day and come here to brag.
lecoqsportif
Well-known member
No one knows for sure, especially in the this era of weapons-grade political stupidity, but if I were to watch one thing it’s US consumer spending. If US households start to hoard cash or reducing debt levels to fix balance sheets, we might start circling the drain.
Altair
Well-known member
Funny that saving money and reducing debt loans is a economy killer.
Usually that would be considered good financial management.
lecoqsportif
Well-known member
I’m not sure if this qualifies as a paradox, but that’s exactly it. Rationale individual self interest that leads to a bad collective outcome. If the outcome is bad enough, sometimes governments need to step in to break the cycle.