This is my third post I've done about Color.com, the "company" into which mentally-challenged venture capitalists poured $41 million. Good luck on seeing any of that back, fellas.
In my first post, written eleven months ago, I introduced you to the firm and its, errr, product. In a follow-up post, I wrote about how the company – – which I guess found that no one wanted to use their crappy creation, $41 million in the bank notwithstanding – – repositioned themselves with a product that struck me as even less useful.
So why am I bothering with a third post? Two reasons, I guess. First is that I pass by their headquarters at least several times a week, and although one half of their huge office is completely empty, the other half is covered with butcher paper (for privacy? out of shame? Who knows). So I'm reminded of it.
The other reasons is that it really chafes my hide that I started a successful, profitable company for $3,000 (and sold for millions to the benefit of all our investors) and these kids get an enormous eight-figure check dropped in their laps for something which, in my opinion, is destined to produce a return of approximately negative 100%.
Data released today shows that Europe's Revised 2011 Fourth Quarter GDP declined into negative territory, as shown on the graph below…an area not visited since 2009. Today's figure confirms the prior Flash GDP number…will see if the Final GDP figure confirms (to be released in about 20 days).
It's obviously been a good morning so far. The most exciting part for me is that, in spite of being 40% in cash (regretable, but deliberate) my portfolio is UP more than the market is DOWN. Thus the power of well-selected shorts!
But as Colonel Kilgore said: "Some day, this war's gonna end." So the bulltards are probably already BTFD and aiming to push prices higher. Good. I want our bullish overlords to do just that, because I don't want to be adding shorts at these levels. Below is my wild-ass guess about the intermediate direction of the Russell.