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The Eight [Worst/Best] Stocks Of 2009?
Zero Hedge has compiled a list of the 8 worst/best [take your pick] stocks of 2009. The selection criteria include Russell 2000 stocks which have returned over 1,000% from their 52 week low, and which have a 10% or higher short interest. The last criteria is a function of our ongoing belief that this entire rally has been built on the backs of forced short covering action, in which those experiencing a squeeze are happy to lift any offers as long as they can get respective repo desks/margin call repo men off their backs. Another interesting observation is the 1 year growth in revenue and EBITDA. We use the term growth loosely as the median growth Year over Year for the universe of 8 has been -20% and -25% respectively: not exactly the stuff 1,000%+ rallies are made of. Lastly, of the eight companies, four have negative unlevered LTM free cash flows, which in this day and age of Fed sponsored moral hazard may in fact be a good thing.
For those who are [brave/stupid/risk tolerant/addicted to gambling] enough, one possible way to approach this grouping is to buy medium/long-term straddles on these names as there is likely no way in the world these 8 companies are priced to perfection assuming such a unique confluence of favorable technicals and adverse fundamentals. At some point, one of the two will win, and these stocks will either plummet or skyrocket (they still have substantial short interest). Buyer, of course, beware.
Source: CapIQ
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Where are the Seven Zombies??
Trick or Treat!!
The dollar is getting worthless which makes the NYSE look like a flea market to Europeans.
Goldman Sachs tells you where to invest next
please note their clients already were in these areas 4 months ago
(nah, its more of a top down view)
http://www.fundmymutualfund.com/2009/10/where-to-invest-story-brought-to...
There was a link to a story on ZH last week talking about how a Goldman strategist made a public appearance (CNBC I believe) to pump equities. The comment was made that this was GS signaling the near top of the market, trying to get the retail investors, who have yet to participate, to push the market just a little bit higher so that GS can sell their holdings without hurting prices.
This must have been their final memorandum to clients before the appearance.
TD, where is the supporting information in regards to short selling driving the market advance?
I've been long FarrowTech since March. up 600%
Check this out.
http://data.cnbc.com/quotes/WFC/tab/2
here's how you front run before a squeeze
edit...you have to go to the 1 day advanced, 3 minute candle...look at the scoop down to grab stops. they reached down almost a buck. hysterical.
The chart on WFC is a breakout upside. If there was good volume, a definite buy signal. I have no idea about the fundamentals but I certainly wouldn't short anything with a chart like that.
volumes a bit above average.
the fundamentals are easy...wfc is an insolvent piece of shit supported by a fantasy interpretation of FASB FAS 157 amendments.
the dump currently happening after hours is enough to clog a toilet.
warren buffet will be proven wrong about wfc.
disclosure....i have never owned wfc and have no position in them now.
All of the volume came late in the day after it broke 30. Was probably a lot of stops (or a big one) going off at first, then it was on the map. Not sure if this had any involvement:
http://pragcap.com/institutions-buy-call-options-on-the-banks-before-earnings
Some big money is moving into the XLF banking ETF before the banks begin reporting their earnings this week. 130,000 calls were purchased today with expectations of a greater than 7% rally in the shares. From the IB options desk:
they were aware of that 30 level...look at a 3 minute candle chart and what happened before blast off....one of the longer downward tails that i've seen; they took out all the shares around 29.50, 29.40 or so as i recall.
saw the xlf option stuff earlier today, thanks for posting. i don't know what to make of it anymore. i scratched my head as i thought about the huge put buying in wfc just a week or so ago....the trading action in equities is just silly. it is certainly entertaining to say the least.
who cares about "just silly", the idea is to make profitable trades. goog, bidu, and slv all have bullish charts. i love silver but that's irrelevant.
i care. there are plenty of sites to discuss stock trades and anyone can discern that specific trades are rarely discussed at ZH. The purpose of this site, at least for me, is that this place is one of the few that discuss issues that are of greater importance than flipping goog, bidu, or, if you have some dot bust history, shit like "eggs" and webvan, etc. I am concerned about my children's future in the USA....it used to be a great country. I still think there is hope, but we are at a serious inflection point in our history.
WFC has what percent of the option arm market in Cali? Was it 40-60-80%?
don't know the percent, but i think most of them came from the Golden West acquisition. wfc is a pos.
$50,000 invested at any time between Dec 2008 and March 2009 would now be worth $60,000,000.
Of course, it might have taken you a month to accumulate that many shares without spiking the price 100%!
What happened in Apr-May for the gap up? That's ridiculous...BUT good for anyone that got in...probably overcaffeinated at that time.
most likely coke....
Can't straddle this one.No options to trade.But as the first bad news rolls in, this one will tank like DRIV did today.
Where is the next 114 bagger stock to buy now ? :)
Yes I did the math on that a few weeks ago...Then promptly puked all over myself.
re: Beazer Homes
the irony is killing me...i'm currently read Larry McDonald's Lehmann implosion book and just finished the section where they realize that Beazer might be the greatest short in history, lol!
Excellent selection. Although there is a big difference between mail order and contractual.
Depends on the shark, otter or whale. It is that diverse of a universe Andy. Big time although we are in agreement on the http:findu1 action.
I'm sure you guys/gals could appreciate this half-breed:
http://www.youtube.com/watch?v=4aEW_Z5Va5s
but I think these peeps have more intensity and emotion:
http://3.bp.blogspot.com/_dp5qvLW1QVA/SkKaegvs-MI/AAAAAAAADoM/BrhlEx5BLPU/s800/dolce-gabbana-fw09-winter-2009-ad-campaign-mens-3.jpg
CW - Excellent!
I cannot but help think the current action, exemplified by the 8 best/worst is a cycle of .. games. Cheers.
http://www.youtube.com/watch?v=-oaHHrNQVrg
Or, for us space monkey's.. Cake n cookie time on the trade
http://www.youtube.com/watch?v=4B4YaNGIaoQ
haha thanks. i forgot all about that video. what a classic. directed by a great photographer, herb ritts.
http://www.youtube.com/watch?v=3K4JYjzO6Us
you are clearly a wonderful man Andy! (i never made it back to that thread).
i was kinda expecting the old "hey, wanna see a naked pic of your wife?" joke lol!
Napoleon Dynamite's brother, Kip, bought a time machine online. I gonna get one.
Re: $60M
I think your math is incorrect....
It's about time we got a MASSIVE IMPLOSION somewhere.
I posted this before, but is worth posting again in this forum.
A rising stock market is not inconsistent with a failing economy, just as hyperinflation is not inconsistent with a failing currency.
Some of this should sound familiar to what is happening in the USA today.
http://www.guardian.co.uk/business/2006/apr/25/Zimbabwenews.internationa...
Thanks for the link ghostface, and right on.
I should add, we all know what currency they are using in Zimbabwe today.
http://www.guardian.co.uk/world/video/2009/feb/11/zimbabwe-gold-panning-...
Robert Prechter better start learning how to pan for Gold...
Predictably, the Nobel economics prize went down the shitter too:
http://www.nytimes.com/2009/10/13/business/economy/13nobel.html?_r=1&ref=business
Quote from the article:
UTTER NONSENSE
The prose I can get nowhere else.
Thanks Tyler.
VRMLQ owns all - 165,000%!!!
Huh, and I thought VEN.TO was the one.
Goldman out today again feeding charles gasbag that it might increase its charitable giving to offset some bad p.r. about the bonus matter.
LB... i didn't see anything today about paying off the 22 billion that is backstopped by the american people. you said you didn't and don't need government help, yet you still have 22 billion out on our dime.
you're a hypocrite.
your PR problem is not going to go away. it just isn't. just a matter of time until americans go over the tipping point. remember, the personification of this entire wall street and banking mess is Goldman Sachs. certainly you don't deserve all of the blame, but....well, life isn't fair.
p.s. charlie, don't use that napkin that murdoch's boy did, okay?
Well said deadhead.
It's about time we got a MASSIVE IMPLOSION somewhere.
I think your statement above is even more well said!
there will be a massive implosion, or perhaps implosions in the plural is better.
these guys like bernanke et. al. keep forgetting about what happens when you keep stretching the rubber band.
no matter how hard he may have tried, Isaac Newton could not get the phuckin apple to drop upwards.
DH - The biggest 501(c)3 attempting to say they are Santa because they are making a show of tossing the crumbs. I am sure you remember my quote on the laws of gravity & decay so... cheers.
Yes, Miles.
I'm all for the 501s and hope they rake it in. HOWEVER, tossing a few alms does not make the past and present sins go away as you know.
Confessing wrongdoings, telling the truth, providing full disclosure is the way to start the process of doing the right thing. I don't expect that to happen for a minute, it will have to be forced by the American people who are getting their pooch screwed.
True enough. Enjoy my enfeebled attempt at a Robo.. Up thread.
You really have a linear thought process. To keep with your eloquent example of the rubber band.
"these guys like bernanke et. al. keep forgetting about what happens when you keep stretching the rubber band."
Bernanke et. al. keep replacing it with a new, larger, better engineered rubber band and only stretch it within the tolerances prescribed by the Fin-engineers.
thanks for pointing that out.
in order to take care of the action, reaction matter, i'll be curious to see what the new, larger, better engineered US dollar looks like. And, I would like to see how the newly engineered American public reacts.
Be careful with the advice you get from the author of this blog, a guy banned from working in the brokerage business for insider trading (http://nymag.com/guides/money/2009/59457/).
Please provide an example of "advice" that Tyler or any member of the ZH staff have provided here at ZH. That is if a consumer of super market tabloid "journalism" such as yourself understands the term. Please try to remember, we at ZH are about the research not the window dressing or the swank. So, please provide your charts, graphs, assessments and links so we can make up our minds about what kind of they say it so it must be true kind of decision maker you are.
Since I am sure you will not, happy trails.
Even assuming Tyler is who they say he is and further assuming that he is infact providing "advice", I WILL STILL TAKE HIS ADVICE ANY DAY over any of our "respectable" "leaders" such as Benny, Obama, Timmy, Larry, etc.
Indeed. Troll fluffer trying to play that weak game around here. Add the so called respectable "leaders" of "private" industry to the list GG. All of 'em make me sick to my stomach. As a graduate of the Ranger/Airborne courses and combat veteran I can say with certainty that Wall Street and Washington are lacking leadership and commitment to their responsibilities as citizens. They have betrayed their public trust. Rant over. For the moment.
GG, at DOJ we had a way of id'ing Anon. We called folks like that "053".
Totally agree. Cockroaches is what they are.
Time to warehouse them
Miles, I dunno man ... I'am really all about swank!
Me too, in the animate unlike electroplate Anon. You have been on a roll Bear. Been enjoying it and will continue to. Besides, folks like Anon never actually serve their nation. They expect the nation to serve them. That is the difference between You, I and Anon Bear.
All The Best
Thank You Anon for pointing me to this great stuff:
'Zero Hedge, a no-frills site full of arcane analysis decipherable only by finance professionals'
I am now a financial professional … but I am still da Bear
'His readership of angry traders and anti-government malcontents celebrated'
Angry … What's wrong with that … 'anti-government' … no I'm really pro-government! A government 'Of the people, by the People, and for the People' … notice the emphasis … The People!
'Sites like Naked Capitalism, Seeking Alpha, the Big Picture, Infectious Greed, Angry Bear, Calculated Risk, and Zero Hedge have hatched communities based on discontent and disbelief, forming a kind of ragtag insurgency against the financial Establishment and what they view as its feckless lackeys in the government and media. found power. '
Yah! Duh!
'Zero Hedge as a guerrilla force battling the big firm'
I hope so … if we don't who will?
'Zero Hedge’s popularity metastasized with its increasingly paranoid focus'
Only to match an equally zealous and strident Washington/Wall Street cabal ... Newton's Third Law, baby!
This is the greatest article ever. After reading it, I only have one question … who is Joe Hagan? … GS Apologist?… Bear will do research and report back in this Post in next few days.
Thank You Anon97009 for pointing me to this great stuff:
'Zero Hedge, a no-frills site full of arcane analysis decipherable only by finance professionals'
I am now a financial professional … but I am still da Bear
'His readership of angry traders and anti-government malcontents celebrated'
Angry … What's wrong with that … 'anti-government' … no I'm really pro-government! A government 'Of the people, by the People, and for the People' … notice the emphasis … The People!
'Sites like Naked Capitalism, Seeking Alpha, the Big Picture, Infectious Greed, Angry Bear, Calculated Risk, and Zero Hedge have hatched communities based on discontent and disbelief, forming a kind of ragtag insurgency against the financial Establishment and what they view as its feckless lackeys in the government and media. found power. '
Yah! Duh!
'Zero Hedge as a guerrilla force battling the big firm'
I hope so … if we don't who will?
'Zero Hedge’s popularity metastasized with its increasingly paranoid focus'
Only to match an equally zealous and strident Washington/Wall Street cabal ... Newton's Third Law, baby!
This is the greatest article ever. After reading it, I only have one question … who is Joe Hagan? … GS Apologist?… Bear will do research and report back in this Post in next few days.
Miles, I am only an anti-government malcontent, financial professional ... so I looked up Troll Fluffer in Google and guess who came up first ... Barney Frank ... got to respect those guys at GOOG
Ya, and I only committed my entire professional life to military service and the DOJ before my service connected disabilities forced me into retirement. How on earth does one get "investment professional" from that I have absolutely no idea. I am just an old disabled knuckle dragger who was advised to learn about new things to keep my brain active for medical reasons.
In Boston calling someone a "Barney" can cause problems. But ya, on that one I have to go with that goog thingie too.
MK ... Thanks for your service!! DOJ must be different these days with AG 'place' Holder? But I digress into politics and I am really only an anti-government malcontent financial professional
Mr. Durden. You have exposed a great weakness of HFT in this post. Winners never quit but losers are sure to pull the plug. Especially when the losers run the casino.
That DTG stock on the list Tyler is just crazy. I have been wondering about that one for some time. I have a family memeber that works there and I have been warning them of bankruptcy for 2 years. Earlier this year when I thought for sure they going tits up she looked at me and said insiders would never let it happen. I think this company needs some kind of investigtation into the trading activity. They are levered to the hill and their industry sucks, yet they have returned that kind of %???
I don't buy it. I have oftend posted the message on here and other trading boards if anyone can explain this ridiculous rally on thier stock.
$50,000 invested would now be worth ~$6MM.
I'm putting these into a play portfolio @ todays close... 100 shares of each, minimal risk... I'll let you know weekly how they fare...
What about GRMN, ISRG and the like companies