Truman,
I got to listen to parts of yesterday's and today's show. Interesting stuff. I absolutely loved the Cymer caller!!! One phenominon I have never been able to figure out is why investors, particularly new inexperienced investors, seem to be so engaged with stocks they have never heard of, have no idea what the company's business plan is, yet are so enamoured with, solely because the stock(s) is moving up out of control. I guess some people would rather be the last person on the train than not on the train at all...funny thing about Wall Street though: like the subways, if you miss one train, there's sure to be another within minutes. Why do people always feel the train they're looking at is the last train leaving the station? Show them a stock whose earnings are growing at 25%+ over the foreseeable future, yet it trades at a PE of 10-1, and they're not interested. On the contrary, show them a stock that has *NO* PE, will not have one in the foreseeable future, yet has gone up 50% in the last month, and they can't wait to get in...never have been able to figure that one out.
Bob is a true gentleman. I was amazed at his patience with a few callers today. How about the guy who couldn't figure out the stock split deal on Harley Davidson? Bob kept trying to tell him, in a very polite way, that there was no way you could buy 100 shares of HDI at $56 and get shortchanged when they actually split the stock. Yet, this caller seemed to think there was some way where, if you bought the stock after the record date but before the split date, you'd get shortchanged. Here was a guy who was clueless enough to be a candidate for nothing but mutual funds (due to his lack of market knowledge), yet he felt he could secure "an edge" over the pros by buying a stock before it went ex-dividend before the split. There were a couple of other callers who demonstrated the same lack of knowledge to where you were thinking, "What the hell are you doing in the market???" As if there was a way that these pinheads could whip out a slide rule and figure out how to outsmart the sharpest traders on the NYSE. Now that, in my opinion, is a sign of frothy-ness in the market. The fact that Bob demonstrates so much patience with these people makes him a better person than I. How 'bout the guy from my stomping grounds (New Orleans) trying to convince Bob that, since KO was going into India and China, that Bob was wrong and that the stock was undervalued. Bob has the correct read on the KO situation, yet guys like the caller don't even have the 3rd grade education required to understand a simple principle like projected earnings growth. Yet, this caller is trying to convince Bob that he's wrong on his KO call...unbelievable...if I was Bob, I'd want to say, "Joe, can you even point India or China out on a map? I doubt it, so what in the world are you, "Mr. Analyst," trying to tell me that the fact that KO may be entering these markets deserves a 40 multiple on the stock?!!!"
I absolutely loved Bob's reverence towards the analysts he respects. He is right. The analysts at the SF firms (i.e. HamQuist, Robbie Stephens and Montgomery) are, by far, the best at what they do. He mentioned the semi-equipment analyst who worked for INTC before going to Montgomery. Most of their biotech analysts are M.D.'s. That's strong! They don't get enough credit in mainstream financial media because the average Joe has never heard of their boutique firms. Yet, they could run circles around anything the analysts at the wirehouses produce for research.
On the subject of the possible return of the "Goddess" :
>>>There is little question that more than a few of us
would prefer to spend our weekends in the gentle embrace,
by comparison, of the Spanish Inquisition than to endure the
sing-song gibberish cum sales spiel issuing from the ponderous
mind of the Goddess of Money on any given Saturday or Sunday
afternoon. Oh, the horror...the horror.<<<
Boy, you said a mouthful there! To paraphrase the movie Wall Street, "(she'd) have the shortest (radio) career since that Pope that got poisoned."
BTW, thanks for the compliment on that ANEN. Back in my analyst glory days two years ago, it was my #1 stock pick. I bought all I could at $5 a share, and was written up on Dow Jones News for my initiating coverage--I was the only analyst on the 'street who followed it. I knew the stock would work, I just didn't think it would take two years. However, seeing it go from $ 6 to $ 26 this year has been a very personally rewarding experience. I'm told that the same San Fran firms that BB mentioned on today's show are the same one's who are moving ANEN up now--you feel pretty good when you can front run those guys!
Gary |
