Over the past ten months, in steps almost too small to be noticed by the mass media, Apple has shed over two hundred billion dollars in value. That’s nearly one quarter of a trillion dollars in wealth which would have fed shareholder dreams of new houses, new boats, new jewelry, and mink coats, but……….it’s gone.
The thing is, I think the slide is far, far from over. I wrote a piece earlier this year (which got picked up by some of the mainstream press) predicting that Apple would fall to the mid-70s. We’re already heading into the low 90s, so my goofy prediction is seeming a little less insane.
This is a follow-up on something I posted two Septembers ago which, over the long haul, was a fantastic short, but there’s no doubt I was too early!
I had suggested shorting Rent-A-Center in this post, and I predicted it would eventually look like the destroyed chart of one of the for-profit education companies. The Rent-A-Center chart was about $30 at the time, which I’ve marked with an arrow. Here’s where we are at now:
So suggesting shorting a stock at nearly $30 that’s in the single digits was pretty brilliant, eh? Well, yes and no, because you’d have endured some nasty pain beforehand, and I’m the first to admit I wouldn’t have stuck with this short since it pushed about 20% higher before the plunge began.
All the same, it’s nice to see such an exploitative sector get nuked. Oh, and I was spot-on about what the chart would look like. Take a look at the post I mentioned, and you’ll see.
Well, I can hardly believe my eyes, but only 13 trading days into the year, and my Slope Plus Glengarry Leads post has thrown off over $200,000 in profits.
In other words, I offered up 125 ideas, 124 of which are profitable now with an average gain of over 16% (again, this is in just over a couple of weeks). The hypothetical portfolio was $10,000 per symbol. I wish I could tell you I was short all 125, but I am not!
This has seriously got to stop at some point, though. Unlike interest rates, stocks can’t go below zero. In any case, congratulations to my beloved Slope Plus subscribers.
Well, we aren’t even two weeks into the new year, and here’s how the 125 Slope Plus ideas I offered up to my subscribers are doing right now
As you can see, there are only 3 losers out of 125 ideas offered up on January 1st, and only one of those three is a meaningful loss (the symbol was FIVE). We’ve got a profit of 10.56% as of this writing, and a profit of over $130,000 based on $10,000 put into each idea equally.
I wonder how Cramer is doing?