I should also also say i am not a financial advisor. This is not financial advice. I was actually professor for about 10 years and i worked in hollywood, so i know education and entertainment and i hope you are educated and entertained so um. Let me share my screen. We have a couple bits of news that are really interesting to talk about um and let me just pull this up: oh crap, the heck. What the heck i say, what the heck, because uh viacom shares, are halted. Um they’ve been halted all day to the downside, but this might be halted to the up. Perhaps who know i don’t know what’s going on with the shares it’s possible to halt it on the upside, but uh viacom shares have been crashing all day. As you can see this look at this. This is crazy down 35 on the day, but looks like it might be. Returning uh. The bottom here was ‘.8 i’m, assuming it’s halted on the way up. I guess i don’t know who’s buying this it’s possible. Um it’s been halted on the way down a few times today, it’s been just a really nutso day with viacom um, and this is just a great lesson of uh. You know when a stock goes down. Do you sell? You can see that’s that’s really far down and in fact, on the week uh it’s been down quite a lot. This was just um. You know 3 22.
Today on the 26th uh was that 22 should be monday, so that was just just a few days ago. It was up in the hundreds and uh you know down all the way like 60 down right, so that’s just crazy. I don’t see this very often, and you know you look at the yearly. This daily chart um. They were 10 back march of last year. All the way up to 100 and now they’re distincting – and you know one of the things that you want to know about the stock market. Is things can change right? So if you bought it last year – and you went up to now – you’re – like oh, my god – i’m 10xing, my money it’s going to 10x again – and this is a great lesson of you – know – be careful when you, when you buy things that that are like this Is is it at the top? You know, obviously you want to buy a low, sell. High um always be careful that and it was interesting. I watched uh an interview with the ceo of vicom when they’re asking about this stock price, and he was on cnbc saying that he thought the stock price was too high, which is pretty ridiculous. Uh don’t say that on tv, uh it’s, so ludicrous, but it turned out to be right, um and, and why? Why is the stock price? Dropping well has to do we’ll. Just look at the news.
Real quick here: viacom cbs stock closes down 20 as wall street. Expresses doubt about the streaming execution, so what we’re talking about here is streaming content and you may or may not know. I certainly didn’t know there’s now a paramount plus right, very original they’re, certainly copying disney plus in terms of their naming, and if you look at their content, they say live sports breaking news. The mountain of entertainment, um. Well, i don’t know is it and this is what they got so they’re saying: okay, our top show is, is uh trevor no with the daily show, but i can watch that for free on youtube, so that’s a tough sell, uh spongebob that’s for kids. I don’t know if it’s that popular these days, i’m, not sure – and i honestly i don’t know who that is – i don’t know um. I don’t know who that is either, but i have a guess: it’s, just this tv show – and you know none of these shows you would necessarily buy paramount plus just for this uh. In my opinion, this was a big flop for them to stand um. I didn’t see it, but i heard it was it. I heard it wasn’t very good and maybe you would get it for sports. I don’t think you’d get it just for 60 minutes, um their children’s content, doesn’t, look bad uh dora, spongebob blue peppa pig! These are, these, are, you know popular shows, but the problem is you’re in a competitive environment and if you’re a parent out there – and you say you know sally and mary, which show do you want to get mary’s like uh? Well, i like spongebob and and the mom’s like.
Well, you can only choose one and she’s like okay, i choose disney and frozen. I want to oh i’m frozen. I want moana. I want one division right, you know disney is the clear favorite over paramount and if you disagree, you know right in the comments. I’D be curious what your opinion on, but in my you know my opinion. If you’re talking about children’s programming, i think nobody beats. You know the mouse uh and disney, i think it’s tough to beat them and when talking about streaming i think it’s, tough, to beat netflix right so already paramount is is already at least second place for for overall content also for children’s content, so it’s a tough Market um, you know you also have hbo max and the justice league they’re they’re in the game hulu’s in the game. They also have amazon and they got streaming stuff in the game. There’S, just too many competitors and paramount just doesn’t have the content a lot of their content. You may not know this. Uh abc is for children. Uh nbc tends to be for kind of young hip people and cbs is for old people that’s the kind of programming that they have it’s been traditionally for old people. What that means is they put on shows that are separate episodes, they’re serializing each each episode has a different story: it’s not connected to the rest, opposed to something like on a netflix like a stranger things and it’s.
Like 10 episodes, you can binge watch it. Uh old people prefer this kind of programming because they don’t have to remember anything, and you know sometimes old people forget things and so that’s why this kind of shows are good for them, but to think that all these old people are going to want the streaming Content, i know many old people that can’t use email. I know old people that can’t figure out how to use a tv controller, so uh i’m pretty sure they won’t figure out how to use this streaming content at all. I could be wrong if you know old people who are hip to uh, you know doing remote controls and i guess naked people um. Let me know uh anyway, so basically, the stock is tumbling, because wall street was nervous about their streaming content and more particularly let’s, see if it’s trading again so is it still telling what to do? Is it coming back up a little bit? Okay, it’s making a little bounce, so we might have hit the bottom at ‘. Maybe some of you brave souls out there are buying this up right now, as it’s going up right, we’re talking about taking a dive, but maybe you’re one of the people that are like. Oh, my god, if i come to steal at 45 um and it could be um, i wouldn’t touch this with a template. Pull me personally. I just i wouldn’t touch it. I don’t this looks bad to me um, but you never know uh it’s, not crazy.
If something goes down 30 that it could jump up 15, the next day, that’s, not crazy uh, it would be a dead count. Bounce but it’s, not crazy. That could certainly happen um or people who have lost a bunch of money they’re. Just trying to you know, uh dollar cost average, which is, i guess you know why not um but anyway. So one of the things i want to talk about is, or just one thing i just keep saying – is that when you invest in a company believe in their business model and keep an eye on on what they’re doing, even though they’re successful one period, you know Suddenly, it’s all the competition, all the revenues now from streaming and you look at okay, do you think viacom uh has come to be competitive in streaming? If your answer is no, then you should have sold when it. You know reached 100 at the top because you don’t believe in their model anymore sure the price went up, but then you’re like you know, i don’t believe it that’s why people are selling off uh in particular, though um why people are selling today. Today, though, a lot is this is just hourly show this is the daily chart is goldman. Sachs is dumping uh, like 25 million shares on the market, which is really driving the price down? So, if you’re curious now the reason why i want to talk about things dropping today so today, i’m down because neo is down um neo is actually at 34, which is a very good, buy point entry point uh.
It may go down a little more, but if you can get it here, this is a great time to enter neo, which is, which is a you know, good future stock and the reason why neo is down is they’re having a chip shortage and so neo had To close their factory for five days – and this is a great example of again sometimes something happens in the news and the stock takes a dive, but even though neo is down, i still believe in the fundamental business model of neo, and so you know i would Hold on to this, whereas say the fundamental model of viacom competing with netflix, et cetera, et cetera, i don’t believe it okay um going over to here. Also right. We have a blockage in the suez canal and so that’s could affect caterpillar stock ikea doesn’t have stock, etc, but either ikea or caterpillar. I would still believe in their business models. Okay, so i hope i hope you understand the lesson here. The lesson that i want to say is when a stock goes down, if you believe in the company, if you believe in the business you’re going to have diamond hands, you’re going to hold on to it, because you know it’s going to come back up. If you don’t you’re going to sell for a loss, however, if you don’t believe in the company well one you should invested in the first place, but let’s say you let’s say you one time you did, it went up great, but it doesn’t mean that’s always going To be like that, right simple example is a company could change ceos and suddenly the business direction of the company is different, uh, the business you know the the products are going to make the things they’re going to do and you don’t believe it anymore then certainly Sell the stock you don’t believe in it anymore, and so you know always think about that when you’re saying you know chris should i sell, should i keep and the question i’d always ask you is: do you believe in the company? Do you believe what they’re doing do you believe they’re going to be successful? If the answer is yes, then you hold on to it.
If the answer is no, then yeah sure dump it because uh that’s what people do we buy and sell stocks all the time? Um, so the other thing too, that is always worth reiterating, is and and i’ll just you know, go back to watching uh watching this again um when you have a when you have like stocks to go down like with, say neo or you have a stock like You know buy a comment, although it’s coming up now, but you can see it’s down for most of the day is. This is a good reminder of you need to have portfolio diversification, even if the stock made you you know 10 times in a year which is spectacular, um. You know, if you put all your money into that and expected that to do that forever and suddenly, one day like this today, it drops 30 that could really sync your portfolio and you’d lose a lot of money. So this is why, and i get it believe me, i get it. You see stocks going up, be like okay, i’m, just gon na pull my money in one stock, but you always want to protect your downside, protect your risk. You want to take a little risk as possible. This is you know the investing stock market it’s all about managing risk. It’S always you know high risk high reward, low risk low reward, but you got to manage that and so in your portfolio.
You always want things that are not going to be as risky, and you want maybe things that can be risky because they have a lot of upside, so i’m. Sure you probably already know that. But it’s always good to reiterate, because when i as i watch viacom stock fall, i just think it’s a good reminder that nothing is safe. I did not expect this at all. Actually i didn’t, i didn’t, invest in it, but i didn’t expect this at all um. So anyway, i hope you’re well, i hope you’re safe, and i hope this was useful for you and we’ll see you next time.