Shares of JC Penney (JCP) dropped nearly 15% Wednesday, after analysts warned of the company’s risk of bankruptcy. Any JCP longs who read Slope and heeded Tim’s warnings (e.g., this one) were out long before Wednesday’s slide, but for those who decided to stay long, I posted a way to hedge JCP last month (“Getting Paid To Hedge Bill Ackman’s Riskiest Investment”). In this post we’ll look at how that hedge would have softened the blow for JCP longs on Wednesday. (more…)
Slope of Hope Blog Posts
Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
The use of correlation has been used in speculation for 100’s of years, no matter if its horse racing, bird racing or the stock market. While it is working it has the speculators attention. (more…)
A couple of my “long” ideas have been doing well today. One of them, mentioned repeatedly, is ANW, shown below. Another – which I’m not going to bother charting, since it’s being bought out – is MAKO, which is up about 90% today alone. Funny how this bearish blog’s best picks have been on the long side………. (more…)