This has been a great week.. CNBC is already poking fun in the morning of the 'analysts' that upgraded stocks like BYND, PUMA, etc.trading at 80 and above, and waiting until they get to 5 or $0.25 the price of a bazooka bubble gum. P/E's were a joke.. Its unbelievable how many stocks were upgraded, price targets raised when all the while, the companies were very hard pressed to keep up the charade. Multiple were rising into triple digits, while at the same time inventory was building up, sales were down, expenses were up, companies were staggering under the burden of BEATING ESTIMATES and substantiating the glowing reports of the analysts. PUMA at $100, VNTR at $243, BRCD at $135, RBAK at $200.. its like the inflation level of Albania.
So now LU comes down from 82 to $12 a share? and TUTS trading at $116. NTIQ at $110, TIBX at $110? PMCS at $246.. I was balking today at paying $40 and not likely to pay more than $32 for GLW which traded at $113
Someone has been led down the garden path.. and we said it back in September. WE said in during the Internet craze.. and we say it again. If this happpens again.. savvy shorters will take advantage.. while disgruntled longs or just those bystanders who sat in the bleachers watching shorters short are now realizing they missed out big time by being lulled into apathy of "things will get better" and missing great short potential. The boat was missed by some and its too bad.. we were quite vociferous in our opinions that P/E's were expanding while earnings were contracting.
Yes, if there is a long side we will take it. Most of my colleagues and fellow traders are flat or slightly long.. and will know to take advantage while those who let short opportunity drift by because of fear, panic, disbelief or lack of the will to learn shorting techniques, will question, whine.. or whatever it is they do instead of taking their financial future into their own hands instead of leaving them with those whose only objective is to see their "account" statistics grow and increase their client roster. These account managers are not selling automobiles or insurance policies.. they are supposed to be selling financial expertise, reams and reams of research into company fundamentals, but basically they ARE giving it the dilligence of those selling cars. Their job is done when the contract is signed and the stock portfolios get filled with probably the stocks they are forced to regurgitate by their management to fill some sort of quota. |
