It’s always a good morning to see equity bulls get torched. We’re only an hour into the day, but so far, so good – – -the only good bull is a disappointed one, so watching the ES plunge from a huge green open to slipping swiftly puts a smile on my face and a stride in my step. I won’t be fully happy until the Dow is at 6,000 again. Bring on the red, Fred.
Anyway, it won’t really matter until and unless the ES breaks 2100. It’s as simple as that. We’ve broken the key trendline weeks ago, which is great, but as it is now, the Powers That Be are trying desperately to prop things up for President Wide Load, so we probably won’t see real price discovery until she wins on November 8th.
So this is a sign that companies are value-priced, right?
Allow me to offer a gentle reminder of how awesome things went last time Time Warner did a mega-merger with another firm…………synergies galore, baby!
Let me make plain at the outset that the title of this post is sarcastic. Even as a college boy, I avoided ordering Domino’s Pizza, because everyone knew it was just awful. But for some reason, this company has become the most ass-kicking, foot-stomping, money-making, short-killing stock on the planet. Just look at this (it has a P/E of 44, by the way!):
I guess there’s no excuse for being surprised anymore……..
After a long trading week, for no particular reason on Friday afternoon I decided to take a look at the Theranos home page. This “smoldering wreckage” of a company (as Fortune eloquently put it) is based in my beloved Palo Alto, and I like to check in from time to time based on some morbid curiosity.
What struck me immediately was the sentence they put front and center on the home page. The geniuses at the firm decided it would be a great idea to slap these words on top of a photograph that also happened to have a lot of lines on it, yielding an appearance of – – how shall one say? – – pig crap.
Lots of folks piled into Twitter thinking that the likes of Disney and Apple would fall all over themselves for a company with no profits and no good business model. Turns out this isn’t the case, so it’s falling back to reality-ville at the moment. Here’s Exhibit A for gullibility: