then all this other nonsense about their platform, yada yada (I don't care about that.) basically they have so much money that they are doing a buyback for almost like 40% of their entire float. A large percentage of homeowners (> 50%) are refinancing WITHOUT respect to interest rates, they are doing home improvements etc, CEO said that 70% of homeowners can still refinance and save $100/month Will be interested to see what he has to say.Įdit: Well it was a plug but a good one. RKT CEO is going to be on Mad Money today. But I think the company itself will trade between 19-23 for the next few months, and it won't make any bigger moves unless there is a market-wide catalyst (nuclear bomb goes off in Canada, aliens land in Maryland, COVID just disappears one day and never to be found again, things like that.īoys and girls, I think we found a great wheeling and income-generating stock. The company would REALLY have to dog and go to 15-17 for me to rethink that plan. My plan, going forward, is to write weekly calls to make 0.3-0.5 / contract. If all of my11/13 options expire worthless.my CB now goes to 20.10. Right now I own 400 shares with a CB of about 20.90. A P/E of 17.75 doesn't really scream growth though (see TSLA, SNOW, ZM, SQ, for example). The question now becomes.how does that P/E of 17.75 compare to similar mortgage companies? I don't know. Given a stock price of 21.50, that puts the P/E at 17.75. I think what this does is shield the stock from a big downside move over the next several months.īasically what we are looking at is a (diluted) EPS of 1.21/share. RKT simply needs time to build up kudos points with investors.I thought this was a very good earnings report. Quicken Loans has been operating for decades. This is not a new company, it’s only new to Wall Street. Time will be the judge and investors should be patient with it. In due time, I bet they will raise these numbers. Their average price target according to Yahoo finance is just $2 above current price. Most of the analysts who cover it are in a holding pattern on it. There isn’t a lot to say other than Wall Street might be wrong about this RKT stock. It’s Not Rocket Science Yet They Got it Wrong I like taking calculated risks, and this method is the definition of it. And if the drop doesn’t happen, then I would have created income out of thin air. This could award me shares at a deep discount. In this situation, I prefer selling puts much lower instead of buying shares outright. The process will take more than a year maybe but Wall Street prices in bad news months in advance.
No, it will not end abruptly, but the taper is the beginning of the end. We are still near all-time highs and investors are so far ignoring the end of the QE. There is extrinsic risk from the stock markets in general. Investors looking to add positions can do so but not all in at once. This is not the same as selling naked calls, which is extremely dangerous. This would be like creating synthetic dividends, so they are worth investigating. Options are an important tool for the modern investors. Along the way I would also consider selling covered calls against them. If I already own shares, I would be patient for the long haul. We saw similar action from other ones like Clover (NASDAQ: CLOV). Meme stocks in general have also fallen out of favor, so it may be struggling in sympathy. 7 Infrastructure Stocks to Buy as the $1 Trillion Flows Inįor the last two months, Rocket has been hovering close to its all-time lows.The caveat being is that the indices don’t crash this fall. Therefore, my conclusion today is that it’s time to rinse and repeat. Since then, price has reverted to the that May starting zone. Three months ago I emphatically suggested that RKT stock was a bargain at $16.50 per share. Here comes the spoiler alert: I like it down here. I say bring the Dramamine and your helmets because it’s going to get bumpy. Investors who brave it need to have strong stomachs.
During the three months prior, it seesawed seven times more than 20% each.Ĭlearly this one is also a momentum stock that moves fast and violently. In March it memed 130% higher in a week, then lost more than half its value in three weeks.
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