A Novel Idea: Revenues & Profits

Published on
November 27th, 2019
Duration
20 minutes


A Novel Idea: Revenues & Profits

Trade Ideas ·
Featuring Jeff Meyers

Published on: November 27th, 2019 • Duration: 20 minutes

Jeff Meyers of Cobia Capital seems to have found an anomaly in the modern stock market, a company that is growing its revenues without sacrificing its profits. In this interview with Max Wiethe, Meyers makes the case for owning Digital Turbine, a fast-growing software company that has carved out their own niche in the smart phone industry. Meyers breaks down the APPS business model, gives his outlook for the future of the company, and addresses the potential risks. Filmed on November 20, 2019 in New York.

Comments

Transcript

  • TD
    Tim D.
    4 January 2020 @ 13:58
    Sounds like spyware
  • RK
    Roger K.
    3 December 2019 @ 21:08
    Max, Could you please add the summary at the end , like every others do!!!! - thanks
    • MW
      Max W. | Real Vision
      4 December 2019 @ 18:25
      Hi Roger, Thanks for the feedback we'll make sure they have them moving forward. Are you referring to the voice over, or text at the end of some other videos. I felt they were a bit superfluous so I'm curious how you use the summary?
    • RK
      Roger K.
      7 December 2019 @ 10:11
      Hi Max, thank you for the reply; I meant that the test at the end.
    • RK
      Roger K.
      7 December 2019 @ 10:11
      text at the end
  • SB
    Stewart B.
    4 December 2019 @ 11:36
    Nice one. I'm always interested to see the reaction in price when a media outlet plugs an illiquid stock :) All good though. Thank you!
  • MT
    Mike T.
    27 November 2019 @ 10:17
    I have absolutely no reason to doubt Mr Myers thesis, so best of luck to anyone that goes with this one. However for me personally there is an issue, over time I know if I resort to taking positions in Stocks with illiquid Options over time statistically such positions have come back to bite me in the backside e.g. $0.50 wide spreads, $2.5 wide strikes and 2/3rds of the available OTM strikes have no BIDs at all, minimal open interest, etc. Not paying close attention to liquidity is a very bad habit.
    • AA
      Aymman A.
      29 November 2019 @ 16:44
      Good point! I never looked at Options liquidity to evaluate liquidity of the underlying. Makes sense what you say. Question: is this point your experience (which itself can be very valuable) or did you do a statistical analysis. Would appreciate some details if you have.
    • MT
      Mike T.
      30 November 2019 @ 15:14
      Aymman, personal experience is the short answer. Firstly with one exception, which I'll comment on later, I rarely buy or short stocks outright because trading any underlying (UL) directly is an inefficient way to deploy capital, even if using Margin accounts with 2:1 leverage for Stocks. Irrespective of long, short or neutral bias on a stock I nearly always want to be able to establish positions in whatever the Market Conditions might be using Options for their capital efficiency….. but only if the Options are liquid. Ever since going back more than 9 years ago when I first decided to stop paying fees to others, and starting managing my investments and trading myself I have kept records, firstly using self-made spreadsheets, or freebies found on the internet, then I moved onto https://trading-journal-spreadsheet.com/ but manual entry was all so time consuming. Even using the aforementioned spreadsheet approach I would tag each record with a liquidity rating, ( and a variety of other metrics) which would provide the ability to review historical trades based on entry metrics of choice e.g. Liquidity. When, much later on, I decided to immerse myself in the World of Options, quickly I became persuaded of how results over time are much more mathematically reliable and rigorous using the law of big numbers principle e.g. today I trade many thousands of 'small' Options positions each year and the most efficient way I've found to record such large numbers of 'occurrences' is https://wingmantracker.com/ My own records tell me over the long term that my success rate in instruments with poor liquidity is under 50% and overall I'm down money in those collective positions. Ref my earlier point, the exception to the rule of not buying Stocks outright. Option Markets are only open during the UL's regular market hours and if I have an open Option position and the UL Stock is moving in Pre-Market hours in a big way in the wrong direction for my Option trade I will often buy or short the Stock itself in the pre-market to hedge the position until the market opens.
  • VS
    Victor S. | Contributor
    28 November 2019 @ 16:35
    Well done -great interview thank you
  • Ar
    Ajay r.
    27 November 2019 @ 07:22
    smart in many ways. thanks
    • tr
      tom r.
      27 November 2019 @ 22:58
      Great interview with Jeff Myers. Need more of this where you actually get greats equity tips.
  • OC
    Otto C.
    27 November 2019 @ 18:18
    Real Vision is, hands down, the essential investment media!!!
  • JD
    John D.
    27 November 2019 @ 15:54
    I think it's great that RV can get Kevin Spacey on here talking stocks. I don't see any other financial media outlets putting out this kind content. Bravo.