Hi everyone:
I lost plenty of money being long LU today. I blew out of the stock because I believe its short and medium term prospects are terrible. I believe that there will now be a series of downgrades, occurring over the course of weeks. This will be like owning MOT in the last quarter--nothing but agony followed by more agony. And, the non e commerce types will see what happened today and selloff more tomorrow. I have never shorted a stock, but am thinking of buying puts tomorrow morning. The rise at the close was short covering, IMHO.
These guys are in the sweet spot of all business, not just tech. They had THE brand name and lead. All their competiitors are soaring multifold. They, meanwhile, in the sweet spot, announce declining growth and declining earnings, coming off a quarter in which they warned. remember today was a great day for the market overall.
I say they've demonstrated that they're a bunch of dead old white men in a young man's game. And the female CFO showed her mettle today--don't get the troops to perform, just lower the hurdle and expectations and screw the shareholders. They have no vision and are running scared--as am I. Shoulda bought NT, CSCO, JDSU, SDLI, or any random infrastructure play--this is virtually the only barking biting rabid dying dog. Somebody should shoot it and put it out of its misery. |
