Author Archives: Tim Knight

Hunky Dory

By -

I confess I was half-hoping for some kind of shocking news from Facebook and/or Apple, but the only “shock” was to the upside. I have received the usual tumbling-in of emails from people who have given up hope and are going to stop trading. Well, not me. I’m not going to let Tim Cook’s declaration that Apple’s stock is “undervalued” change my plans. Sorry, Mr. Cook. (more…)

One-Two Punch

By -

Well, after six “up” days, the bears finally got some relief on Wednesday……….only to be nuked again after the bell by two stocks: FB and (much, much more important) AAPL. The entire day’s drop on the NQ has been reversed, and then some, and we’re about to break the nice, neat series of “lower highs” that’s been in place for some time now. Bleah!

0423-nq

Oh Boy. Detroit.

By -

I have been seeing a lot of ads for the Cadillac ELR, which is Detroit’s answer to my beloved Tesla Model S. My Tesla can go about 265 miles on a single charge, and it’s purely electric. The Cadillac is a hybrid, and it can go a whopping 30 miles on a full charge. Worse yet, it features the same dry-heave-inducing design for which American cars have so long been know. The sad part is that they didn’t have a 7th grader do this design; it’s put together by a large team of very well-paid professionals. Make sure a bucket is handy and have a look: (more…)

Einhorn Calls a Spade a Spade

By -

No less a publication than the Wall Street Journal has this as their most-read story (on the same day the Dow Jones Composite made a new lifetime high, never-before-seen-in-the-universe closing value):

0422-wsj

Here’s a morsel:

We have repeatedly noted that it is dangerous to short stocks that have disconnected from traditional valuation methods. After all, twice a silly price is not twice as silly; it’s still just silly. This understanding limited our enthusiasm for shorting the handful of momentum stocks that dominated the headlines last year. Now there is a clear consensus that we are witnessing our second tech bubble in 15 years. What is uncertain is how much further the bubble can expand, and what might pop it.

In our view the current bubble is an echo of the previous tech bubble, but with fewer large capitalization stocks and much less public enthusiasm.

Some indications that we are pretty far along include:

+ The rejection of conventional valuation methods;

+ Short-sellers forced to cover due to intolerable mark-to-market losses; and

+ Huge first day IPO pops for companies that have done little more than use the right buzzwords and attract the right venture capital.