Shares of TransDigm (TDG) continued their slide Wednesday as research firm Cowen cut the aerospace components maker to neutral, arguing that headline risk should limit near-term upside given yesterday’s news of a request for an investigation into the company’s business practices. BACKGROUND: On January 20, Citron issued a short report on TransDigm, writing that “everyone in the aerospace industry knows that one company stands out when it comes to egregious price increases foisted on the government: TransDigm.” Following Citron’s allegations and the subsequent fall in TransDigm shares, analysts from Credit Suisse,...
Despite financial headlines proclaiming the largest market drop since the U.S. presidential election, many market segments posted improved momentum scores and price gains over the past week. World market ETFs made significant relative-strength advances by taking advantage of weakness in the U.S. dollar and domestic stock price declines. Sectors: A slight majority of the Sector Benchmark ETFs posted momentum gains this week, most notably among the downtrodden and defensive sectors. The three sectors in the red are prime examples. Telecom and Real Estate each posted an 11-point momentum gain. It wasn’t enough to bring them out of the red, ...
Despite financial headlines proclaiming the largest market drop since the U.S. presidential election, many market segments posted improved momentum scores and price gains over the past week. World market ETFs made significant relative-strength advances by taking advantage of weakness in the U.S. dollar and domestic stock price declines. Sectors: A slight majority of the Sector Benchmark ETFs posted momentum gains this week, most notably among the downtrodden and defensive sectors. The three sectors in the red are prime examples. Telecom and Real Estate each posted an 11-point momentum gain. It wasn’t enough to bring them out of the red, ...
Yesterday, Ally Financial warned that profits would underperform expectations. Now, they dd not say that profits would fall or that they were taking credit writedowns. Neverthless, the warning is an important marker and should be of grave concern. Here’s why. Three weeks ago I wrote about consumer demand, questioning whether it would continue to hold. And I talked specifically about an inventory problem in the auto sector. First of all, the last report I saw showed 85 days’ sales inventory on used car lots. That is a huge amount of inventory. And carmakers are now cutting back on production. But now, the NADA, the car dealer’s associ...
Yesterday, Ally Financial warned that profits would underperform expectations. Now, they dd not say that profits would fall or that they were taking credit writedowns. Neverthless, the warning is an important marker and should be of grave concern. Here’s why. Three weeks ago I wrote about consumer demand, questioning whether it would continue to hold. And I talked specifically about an inventory problem in the auto sector. First of all, the last report I saw showed 85 days’ sales inventory on used car lots. That is a huge amount of inventory. And carmakers are now cutting back on production. But now, the NADA, the car dealer’s associ...
Gartman did it again – as we warned pre-open – Which means one thing: both Goldman and Gartman are now short stocks, and expecting further selling – perhaps just the catalyst bulls were waiting for to step in and BTFD… The machines were working over time to keep stocks up today to prove confidence in Trump and the economic hope remains… But by the close, they failed to hold The Dow green…Nasdaq surged (AAPL helped) NOTE the massive pairs trade unwind at the open (blue rectangle) – buying back Utes and Selling Financials… And the media worked hard too… Video length:00:00:20 No big bo...
Gartman did it again – as we warned pre-open – Which means one thing: both Goldman and Gartman are now short stocks, and expecting further selling – perhaps just the catalyst bulls were waiting for to step in and BTFD… The machines were working over time to keep stocks up today to prove confidence in Trump and the economic hope remains… But by the close, they failed to hold The Dow green…Nasdaq surged (AAPL helped) NOTE the massive pairs trade unwind at the open (blue rectangle) – buying back Utes and Selling Financials… And the media worked hard too… Video length:00:00:20 No big bo...
“When the modern corporation acquires power over markets, power in the community, power over the state and power over belief, it is a political instrument, different in degree but not in kind from the state itself. To hold otherwise — to deny the political character of the modern corporation — is not merely to avoid the reality. It is to disguise the reality. The victims of that disguise are those we instruct in error.” John Kenneth Galbraith And now, secure in their monopolies and key positions with regard to reform and the law, the corporations are further acquiring access to the protections of the rights of individuals as w...
“When the modern corporation acquires power over markets, power in the community, power over the state and power over belief, it is a political instrument, different in degree but not in kind from the state itself. To hold otherwise — to deny the political character of the modern corporation — is not merely to avoid the reality. It is to disguise the reality. The victims of that disguise are those we instruct in error.” John Kenneth Galbraith And now, secure in their monopolies and key positions with regard to reform and the law, the corporations are further acquiring access to the protections of the rights of individuals as w...