Here’s the transcript from this week’s Trading With Cody Live Q&A Chat.
Q. Should I be concerned that if Biden becomes President, he would backtrack some of the policies set in place by Trump’s administration to bring back rare earth mining to the US?
A. I don’t think so. I don’t think it’s necessary for the President to issue statements and orders and propaganda about rare earth needing to come back to the US asap. I think the market forces are all in place for it anyway.
Q. Cody, questions on SpaceX, 1) What would be the appropriate price range to get into SpaceX (SPACE) pre-IPO at this time? 2) Would you suggest any mgmt. companies offering SpaceX pre-IPO? 3) Would you suggest your investors to get into this or you think the SpaceX will be over hyped before it becomes public?
A. If you have the capital and the connections to get into some SpaceX, I think I would try to do so. I don’t expect that Elon will ever take SpaceX public, but he will spin off Starlink and other SpaceX businesses into public companies along the way in future years. Investors in SpaceX would get shares in all those businesses pre-IPO by way of holding SpaceX equity.
Q. Wouldn’t a Biden admin have other priorities than Space Revolution like alt energy and/or Infrastructure?
A. Like with rare earths, I don’t think it’s necessary for the President to issue statements and orders and propaganda about the Space Revolution needing to ramp in the US asap. I think the market forces are all in place for it anyway.
Q. Cody – Any concern with FB and TWTR with regards to the news yesterday on censoring?
A. I tweeted out yesterday night: “If you’re not using social media to understand how people get brainwashed then you’re probably getting brainwashed? Asking for a friend. Lots and lots of friends.” I also did a poll: “Before FB and TWTR started blocking the so-called right-leaning NY Post today, you thought that social media was: 1) Keeping you informed 2) Almost controlling your thoughts 3) Already controlling your thoughts 4) Other (Please comment)” Surprisingly or not, a vast majority of the folks answering acknowledge that they fall somewhere in the #2 or #3 camp. But how many of those people have stopped using social media even though they know it’s controlling them? More on this topic in a long article soon. As for FB and TWTR the stocks and the fundamentals, none of this matters, as usual.
Q. I am on the same page about Cody putting out, “I got a new name stayed tuned.” My question for Cody has been for years, “by when?” In a week, a month? Maybe next year? Timing is everything and I am patient, yet as a long time subscriber, I come to expect there will be a follow through… but nothing to be waiting for, it will be delivered or forgotten. I have appreciated Cody’s timing with delivering his new names and very often it is rewarded. And reflects the current market conditions! AND Q. Cody has done a great job at providing us a lot of info for a great value. Looking back at his posts, he provides plenty of instruction on how to proceed in the current market. When he does make a move, he lets us know. For now I am waiting till he makes a move. Seems like he knows what he’s doing. AND Q. Well put. Please trust Cody. AND Q. Yep guys + gals, He’s our chief stock picker his ticker is ‘CODY’. Glad to have him on my exchange! AND Q. Cody is best! Thank you very much for your guidance.
A. First off, thanks for all the kind words. The fact is that I put a lot of pressure on myself when I finally pull the trigger on a new name and I researched FVAC for weeks on end before finally pulling the trigger. Doesn’t mean I’ll be right on this one, but I feel comfortable that I understand the risk/reward and that it’s quite favorable for a small investment.
Q. I’m not trading on this but sentiment-wise logic tells me that when folks are clamoring for more picks to get long with we might be getting close to a near-term top. (the opposite of when the market has been tanking and many are looking for short ideas).
A. Yes, that plus all the love around here on TWC chat right now (which is greatly appreciated of course, but I’m analyzing everything all the time, including the love around here on TWC’s chat) are other potential contrarian indicators of at least a possible short-term top.
Q. Sentiment can be difficult to measure.
A. Yes, it’s more of an art than a science, like a lot of things on Wall Street.
Q. Do you expect a selloff before or after election?
A. Read this article I wrote about the markets earlier this week in which I outline my whole answer to this question in a much more detailed way than I can in chat.
Q. Hi Cody, You sent us a table for the stock that contains “Price I’d Nibble” in the email “Where I Might Start Nibbling More Of Each Of Our Longs” on 09/03. And then on 10/06, there is an email “The NFL And The Stock Market…” We have not seen the prices coming down to the level you had in your table. With this 10/06 email, you’re expecting the bubble will keep growing. So the question is, assuming we are already holding the positions from your table, shall we continue adding a little bit when the stock drops 2-3% value or we should actually wait for the “Price I’d Nibble” from the table?
A. Again, there’s more art than science when it comes to trying to answer your question. I’m not expecting that the markets crash and longer-term I like all of our longs although most of them seem like they could pull back along with the markets whenever the markets pull back. I usually suggest nibbling and starting a position with 1/5 or 1/3 as much as you want to own and then slowly scale into more in coming days and weeks, trying to take advantage anytime the markets get really nasty and/or you see me suggest buying.
Q. Hi Cody, I just heard about this. This Graphene being able to create clean unlimited energy might be something to keep an eye on as it could revolutionize the household battery world.
A. The idea for a machine and/or a material that creates clean, limitless energy comes originally from none other than Nikola Tesla who probably would have developed and delivered such a technology if he’d had the funding to do so (or if he hadn’t agreed to let Westinghouse screw him out of his due royalties). Anyway, since Tesla’s writings that such is possible, many people and companies have supposedly created such a technology (ever heard of the Methernitha Testatica free energy machine? Methernitha Testatica FREE ENERGY machine) but somehow it’s never come to market. I’m not holding my breath that graphene’s going to deliver free clean energy either. But I do believe free clean energy on Earth is possible, just not anytime soon.
Q. If George Church’s company, Rejuvenate Bio, can actually show aging reversal or extreme life extension in FDA clinical trials in humans, what would a company like that be worth? Thanks.
A. I was worried this was going to be a penny stock. But it’s a private company. I’m doubtful they have a viable market solution but if it were to happen, it’d be worth tens of billions, I suppose.
Q. Is capitalism failed and/or unfair if someone has a lot of money, does that give him an unfair advantage over someone that doesn’t?
A. What capitalism are you talking about? I don’t see anywhere. I see a Republican and Democrat Socialist Regime that Trump took over and continued from Obama and nobody ever talks about eliminating all the subsidies, loopholes, welfare, and protections of giant corporations. And the US is supposedly more capitalist than other countries, which I suppose is true. But anyway, whatever this corrupted system of economic rules and laws that we have in this country right now is indeed failed.
Q. Do you think AI and facial recognition should be used in policing to predict where crime will occur?
A. I just ordered a book called “Weapons of Math Destruction” that will inform my answer better later, but the short answer in the meantime is “NO!”
Q. What do you rate FVAC on 1-10 scale?
A. Maybe about a 7+ right now and it’d be an 8 below $12 if it gets there.
Q. Cody. While rare earth materials are critical for national security, when do you think MP Material will be profitable? I am just trying to wrap my arms around the business model for MP Material.
A. Charpath says FVAC/MP Materials should kick off a quarter billion dollars of EBITDA in 2023.
Q. FVAC will produce RE in the US but many of the company’s customers would be in China, Japan, Korea, etc. So will the US mandate Tesla and others’ products must be US-sourced RE? Hope this works but there seems to be some unknowns. Have a small position and hoping for the best.
A. I don’t see it that way at all. Government support and help for the rare earth industry and/or this company is not a part of my thesis for a small investment in this stock.
Q. Cody. Do you have the info on FVAC/WS warrants? When is the exercise date?
A. I just stick with the common FVAC, not the warrants. I didn’t research enough on the contracts around the warrants.
A. Not really. It’s pretty highly valued, great company.
Thanks all and have a great weekend. I leave you with a couple pics of our now 1.5 year old Bernice The Great Pyrenees.
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Disclosure: I am/we are long SPACEX, FVAC, FB, TWTR. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: Positions can change at any time and without notice.