Mish, why your comparison of stocks like GNSS and AKLM is all wrong.
I proved this before about you that your research is at times extremely sloppy. It is your very worst quality on SI that you speak with such authority, yet you fail to do your homework.
Let's look at GNSS.
The company had a PE of over 100 at one point and was in an industry where businesses had been buying like crazy, even though the economy and IT spending were slowing down and where dangers from new competition were coming.
AKLM is in the gaming sector that is growing by 20% so far Y-O-Y, and analysts are predicting a strong holiday season.
Here's the kicker, though: (READ THIS TWICE) --- Even if AKLM misses their EPS consensus this fiscal year by 50% (yes, a 50% miss), they will still have a PE of 6 based on the current price.
CONCLUSION:
Why I think AKLM is a very good R/R
** The forward PE is 3.4, not like GNSS with a PE of over 100, when it was an obvious short candidate.
** The short position on AKLM has come down by 3.5M and the days to cover are nearer to historic lows.
** PE/G = .22
** Price to Sales = .74
** The Gaming sector is one of the hottest and not one tied to IT spending.
** Institutions own 53% and have increased their net inflow by +9M shares at last report.
So, very low PE, PEG and PTS, hot sector, short interest decreasing, and institutions have been increasing their positions.
Of course fundamentals can change, so go ahead and short AKLM if you want. I am just discussing MY LOGIC for liking AKLM based on MY research. I don't mind if you disagree, but just get your facts straight and make your comparisons valid, OK? |
