More October trades – Nokia disappoints big time

Zoom continued down to its next support level so I bought another 150 in the real world at 63.90. Mentioned to an ex client with landed estates – he already uses Zoom to videoconference what is happening on his farms and woodlands, while his day job might see him in London, New York, or any other major centre for the arts.

As for Nokia, a huge disappointment as earlier guidance withdrawn, dividend suspended – that’s a 100% cut while new guidance for 2020 looks like 40% down. That sounds like the ADR is headed for USD3 or thereabouts – Travis on Stock Gumshoe sold his at 3.90 and I followed him the next day at 3.79. To me the whole spectacle of a telecoms equipment company losing its way reminds me of GEC in the U.K., a company built over many years by Lord Weinstock only to be trashed by new management during the internet boom around 1999/2000.

Good news that Microsoft has been awarded the Pentagon contract. $10 billion over 10 years will not make a huge amount of difference to earnings, but is a great advertisement for their cloud business, second only to Amazon at the present time. And if we are worried about Green New Deal then Microsoft sits well given Bill Gates’ philanthropic interests.

Another Roku trade

The target for my recent addition to Roku was the 115 to 120 range. So when the stock price jumped into this range at the close 9th October a sale was imminent . The following opening took the price just North of 120 so I took my profit at 120.56.

This gave me the opportunity to sell in the real world subject to capital gains tax – the purchases of the two lots of 50 shares were in the tax free world of ISA and SIPP.
My rationale was that sooner or later the stock price may be much higher, and I do not wish to have my profits diminished by tax. As things stand this is not the case, as I have a few losses that I can take to bring gains inside the annual tax free allowance in the UK where the tax year ends 5th April.

Thanks for this trade must go to Knox Ridley, a very smart chartist who predicted the rally.

Recent trades

At the end of September Roku dipped below $100 and two lots of 50 shares were purchased at 98.90 and 99.13. The intention was to trade 100 shares out on a rally, so perhaps a sale will follow soon.

My Zoom holding was also doubled buying 150 at 74.97. While Zoom has a long runway and very high valuation, it would be a shame to miss out on the disruption of the video conferencing space worldwide.

You may remember that Snap provided a profitable trade over the last quarterly figures. Now analysts are becoming a bit more bullish, yet the share price is weak again.
So I bought 1000 @ 14.31 early October. Not sure whether this is another trading opportunity or a longish term holding. Can’t make head or tail of their Snapchat app but apparently it has appeal to millennials and might start making money soon.