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Whither Market Leadership
The traditional market leaders, financials and tech, are nowhere to be seen, as sector rotation out of high beta names continues. Look for much more weakness ahead of fins, especially with market (and "free" world) proxy Goldman now actively taking on water.
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"Whither"???
What are you, Tom Keene now?
Move the ship out of the asteroid field
so we can send a clear transmission to
the emperor.
No kidding. I was just wondering if today was a market holiday and nobody put it on the calendar. IMO, clear conviction about the V. Either that or all the insiders have run out of stock to sell.
What about the one time powerhouse AAPL which recently sold five I-Phones in China. Is that also taking on water?
Funny...SRS also shot up with the market as the Bald Bearded Wise Man start moving his lips around 12:45.
The writing has been on the wall the last week, GS AAPL AMZN down even when everybody else is up, a likely bull trap in AMZN in the 140s that should unfold into 120s hopefully before the end of the week...
Well, with the striking divergeance between the price of physical gold and Crimex's pricing, Helicopter Ben has a bit of a problem on his hands.
If the precious metals dealers stage a full revolt against the Comex, then the wheels will come off the wagon completely. The dealers are already raising their premiums to reflect supply shortages in gold and silver American Eagle coins. So, they're increasingly moving toward actual supply-and-demand pricing.
The orginal "when i was working at GS or my rounding error hedge fund" may have top ticked AMZN last Teusday with the classic 1999 redux:
In other words, we have accelerating growth, probably higher than the projected 25% growth, and we will pay a higher multiple for it.
Now, keep in mind this kind of arithmetic -- you can give it twice the growth rate and still satisfy the parameters of growth mutual funds. I think the growth will be 30-plus. So give it a 60 multiple. I think the earnings will be close to $3.50 for next year (current estimate $3). So 60 times $3.50 gives you $210.
http://www.thestreet.com/p/rmoney/jimcramerblog/10636845.html?cm_ven=GOOGLEFI
Well GS tested and bounced off 164 which had been providing support the past few days. Twill be interesting to watch thatun for sure
HA, spoke too soon. Funk the squid.
And there goes Kimco, a leading provider of mezzanine debt and stock equity-diluting offerings, providing leadership into the 4th round (or more, I forget):
25,000,000 shares + 3,750,000 more... for another almost 10% dilution (who knows, with all the 'investors' taking stock divs instead of cash).
thanks for info...so far AH gamblers don't like it.
i'm looking forward to the day where those who have jumped on the reit, bank equity bandwagon do a collective "what the phuck was i thinking"
then again, amzn is trading at multiples of over 80.
just like the dot com all over again...i look forward to watching this movie play out again.
As I understand it, the investors aren't voluntarily taking dividends in the form of stock. A loophole allows REITs to pay a certain percent of divdends as stock (something like 90%) without permission from the shareholder. Someone correct this statement if it's wrong.
It's also unclear to me whether the stock used to pay dividends is "newly printed" or if it comes from the REIT's stash of its own stock (most companies hold a certain amount of their own stock). The former case represents dilution and it would be crazy if allowed.
It is currently voluntary, with the big names. I haven't looked at the bottom-barrel junk, like the hotel/motel zombies.