Latest Posts
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EC Industry Disruption Is Creating A Minefield Of Value Traps For Investors
A growing group of technology companies, including Amazon, Alphabet, and Uber, are creating large waves of disruption in multiple industries The market thus far continues to reward these companies and discount the valuations of incumbent firms within the industries being disrupted, creating what appear to be a number of deep-value opportunities Most of these investments are value traps, and investments in these firms often reflect a misunderstanding of how much more rapidly technological disruption is occurring than before dimitrisvetsikas1969 / Pixabay The term “disruption” has become a popular expression to describe a specific t... -
Finance 0
5 Toxic Stocks To Offload Or Play Short For Profit
Investing success largely depends on precise identification of overpriced stocks. However, overblown toxic stocks and the correctly priced stocks are intertwined in the market place in such a way that it is indeed tough to spot them. Investors who can figure out the bubble stocks and abandon them at the right time are the ones who are likely to benefit. Toxic stocks are generally susceptible to external shocks and burdened with huge debts. In fact, the irrationally high price of the toxic stocks is short-lived as the intrinsic value of these stocks lags their current price. So, quite obviously, if you own such toxic stocks for aninordinate pe... -
Finance 0
Sharing Wisdom
Tadas Viskanta from Abnormal Returns runs a blogger wisdom series when he goes on vacation and he asked me to participate this year. He asked several questions for everyone to weigh in on and I took a stab at the following four. What do you know with a high degree of confidence about investing that does not require any statistical support? The stock market goes up most of the time and every so often it goes down a lot and scares the hell out of a lot of people because it is somehow “different” than other past declines. The circumstances for the declines are different but not the market process for handling declines. It goes down a lot, p... -
Finance 0
This Is Going To Sting
Well, some mixed emotions this morning. A lousy jobs report has gold soaring, the dollar crumbling, and the rally in equities zeroed out (for now). As I am typing the ES remains green, just barely, but there’s a lot of action elsewhere. I’ve got 48 short positions and am about 180% margined, so it could be a good day for the bears. Crude oil in particular — almost always our friend – – has resumed its hard slide, and on an intraday basis, you can see that it’s not exactly looking great for our OPEC buddies: The “sting” part is that I got stopped out of QID, DRIP, and FAZ yesterday. The QID isn’t a big deal, since it looks li... -
Finance 0
This Is Going To Sting
Well, some mixed emotions this morning. A lousy jobs report has gold soaring, the dollar crumbling, and the rally in equities zeroed out (for now). As I am typing the ES remains green, just barely, but there’s a lot of action elsewhere. I’ve got 48 short positions and am about 180% margined, so it could be a good day for the bears. Crude oil in particular — almost always our friend – – has resumed its hard slide, and on an intraday basis, you can see that it’s not exactly looking great for our OPEC buddies: The “sting” part is that I got stopped out of QID, DRIP, and FAZ yesterday. The QID isn’t a big deal, since it looks li... -
Finance 0
Huge Miss: Only 138K Jobs Added In May; April Revised Much Lower As Wages Disappoint
As previewed last night, the jobs “whisper” risk was to the downside, and in what was a very disappointing print released moments ago by the BLS, the whisper was spot on with only 138K jobs added in May, far below the 185K estimate, and below the lowest estimate of 140K. This was the second lowest print going back all the way to last October. Additionally, April’s big beat of 211K was revised substantially lower to only 174K, suggesting that any expectation the Fed may have had of “evidence” the recent economic slowdown was transitory was just crushed. The change in total payrolls for March was revised down from ... -
Finance 0
Strong Finish To India Market Week; Pharma Stocks Rally For Second Consecutive Day
Indian share markets continued to trade in green during the afternoon session amid firm international markets. At the closing bell, the BSE Sensex stood higher by 136 points, while the NSE Nifty finished up by 37 points. Meanwhile, the S&P BSE Mid Cap and the S&P BSE Small Cap finished up by 0.7% and 0.5% respectively. Gains were largely seen in realty stocks, pharma stocks and consumer durables’ stocks. Metal stocks and oil & gas stocks witnessed selling pressure. The month of May was witness to a rollercoaster ride for the Indian stock markets. The benchmark indices after making a sluggish start gained momentum to surge to... -
Finance 0
Wayfair Upgraded To Outperform From Perform At Oppenheimer
Oppenheimer analyst Brian Nagel upgraded Wayfair (W) to Outperform with an $80 price target. The online home goods retailer closed yesterday up $3.56 to $66.48. The company’s sales growth has been reaccelerating lately and its “inventory-light” business model is both powerful and underappreciated, Nagel tells investors in a research note. He views the stock’s valuation as “compelling.” ... -
Finance 0
Household Debt: Myth Vs Reality
Consumer Credit Card default rates have “surged” to 4 year highs. Capital One reported its largest write off since 2011 due to credit card delinquencies. Discover Card loan loss provisions in the 1st quarter 2017 rose a whopping 38% to $586 Million. Sounds like the alarm bells have rung! Myth or Reality? Alarming headlines are not always tethered to reality, seeking to grab your attention and “go viral”. The next chart is identical to the chart above with a broader time perspective. Wake us up when default rates rise into the 4 to 5% neighborhood! If the economy improves we would expect default rates to rise as consumers take on m... -
Finance 0
Ethereum Elliott Wave View Showing Path For Bitcoin
Ethereum is an open-source blockchain-based distributed computing platform featuring smart contract functionality. It provides a decentralized Turing-complete virtual machine, the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes. Ethereum also provides a crypto-currency token called “ether”, which can be transferred between accounts and used to compensate participant nodes for computations performed. Ethereum went live in 2015, it quickly gained attraction in the digital world and it’s currently the second largest Crypto-Currency with 20 Billion Dollar in market cap surpassing R...
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