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SPX Index EBITDA <Go>

Tyler Durden's picture




 

Investors are shocked at the current sell-off as hope/hype growth expectations fade rapidly, momentum junkies question their guru-ness, and earnings all of a sudden matter. In the hopes of shining a little light on that "reality" we suspect the the following chart - ahead of Q1 earnings data - will clarify just how much hope is out there.

 

 

Chart: Bloomberg

 

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Mon, 04/07/2014 - 18:10 | 4633736 HedgeAccordingly
HedgeAccordingly's picture

I thought HFT improves EBITAHHH http://hedge.ly/1h3W6kd

Mon, 04/07/2014 - 18:29 | 4633818 qqqqtrader
qqqqtrader's picture

sheesh, anyone can line up a chart to make data look bad (or good). I'm not saying S&P is over-valued or under-valued... just saying. I could probably make a chart that shows Obama is black, that is when he's not acting white.

Mon, 04/07/2014 - 18:36 | 4633841 Dr. Engali
Dr. Engali's picture

Obama is black? GTF out!?

Mon, 04/07/2014 - 18:42 | 4633862 derek_vineyard
derek_vineyard's picture

zirp + pomo = ebitda

Mon, 04/07/2014 - 19:08 | 4633944 Say What Again
Say What Again's picture

Based on that chart, I would say we have another 12 to 18 months of non-stop, mindless momentum generated ramp-up days in the SP500

 

Mon, 04/07/2014 - 20:20 | 4634171 Slave
Slave's picture

Ammo prices are down right now, BTFD.

Tue, 04/08/2014 - 06:52 | 4634999 new game
new game's picture

fill the gap or void or empty shelf...

thousands of possibilties:)

Mon, 04/07/2014 - 19:22 | 4633982 BigTwinDaddy2002
BigTwinDaddy2002's picture

Its about time we see a menaingful correction!  We need at least what we had in February PLUS some...  They tried to revive the SPX around 3pm but were met with serious selling into the close.  Give me another 100 pts on the SPX and maybe Id think about getting back in...  maybe...

Mon, 04/07/2014 - 18:11 | 4633742 NOTaREALmerican
NOTaREALmerican's picture

Is EBITDA a different way of spelling BTFD?

Mon, 04/07/2014 - 18:27 | 4633815 CrashisOptimistic
CrashisOptimistic's picture

No, it's a different way of spelling E B I T D A B A S B B

Earnings Before Interest Taxes Depreciation Amortization But After Share Buy Backs.

Mon, 04/07/2014 - 18:14 | 4633755 Boston
Boston's picture

Is that EBITDA an aggregate dollar figure or a per share figure?

Mon, 04/07/2014 - 18:15 | 4633765 mtndds
mtndds's picture

The shit needs to drop a good 20 percent or so then my pants will start to feel tight!!

Mon, 04/07/2014 - 18:18 | 4633777 buzzsaw99
buzzsaw99's picture

EBITDA has a credibility GAAP

Mon, 04/07/2014 - 18:27 | 4633813 disabledvet
disabledvet's picture

But does it have a Fulda Gap?

Talk about "perfect timing." I really do wonder if Putin gave the order to go into Ukraine. Can't argue with the vote though...only one nay.

"They say the Great Russian General of WWII only survived the purges because he had been banished to Siberia."

Mon, 04/07/2014 - 18:24 | 4633796 LetThemEatRand
LetThemEatRand's picture

If a guy stop paying his mortgage, his car payment, his tax bills, and his credit cards, and he is allowed to state his financial health based upon income versus paid expenses, his balance sheet looks great.  Before long, he has no house, no car, no credit, and he's in jail.   But just before that....

That's EBITDA in three sentences.

Mon, 04/07/2014 - 18:32 | 4633828 aVileRat
aVileRat's picture

So true.

Everything except the cash flow ex-interest and sector charges is pure speculative bullshit. You can't even trust PP&E anymore given how cornball the DD&A rules are to accomodate all the new "blue chip" app corps.

 

Mon, 04/07/2014 - 18:44 | 4633866 logicalman
logicalman's picture

But, and it's a big one, that doesn't apply to some.

 

Mon, 04/07/2014 - 18:35 | 4633824 the 300000000th...
the 300000000th percent's picture

Nope I'm sorry but full retard is still in play here. We will probably see dow by the end of the year @ 17,500 and "unemployment" @ 5.5% They fixed everything didn't you hear???? BTFD is still the game. It will be the game up until the point where president escapes the whitehouse in Marine One and the hoards decend onto the front lawn with molitov cocktails. And then it might even continue after that.

Mon, 04/07/2014 - 18:36 | 4633838 CrashisOptimistic
CrashisOptimistic's picture

Two things are different now.

Oil stuck above $100.  That is not meaningless when it defines all of civilization.

HFT prosecution threats/risks.  Those guys are going to be shutting down -- at least until there is some huge market drop, and then the SEC will declare there's no legal problem with HFT.

Mon, 04/07/2014 - 18:45 | 4633867 logicalman
logicalman's picture

The White House is only white to hide the last time it was burned.

Tue, 04/08/2014 - 11:17 | 4635648 Kobe Beef
Kobe Beef's picture

Happy August 24th! Celebrate the 200 year anniversary in 2014!

Mon, 04/07/2014 - 19:09 | 4633946 LooseLee
LooseLee's picture

Only PINKO COMMIE conformists have thoughts (and dreams) such as yours. Go to N. Korea with your Fascist BULLSHIT

Mon, 04/07/2014 - 18:40 | 4633836 Dr. Engali
Dr. Engali's picture

EBITDA....... LOL. Sure companies can't make any money, but if you add interest, taxes, depreciation, and amortization back into the revenues then companies are making money hand over fist. BTFD and if you missed that then BTFATH. The way things are going they will be adding back in the cost of labor to make it appear like they are making money. Oops never mind globalization took care of that for them. It's hard to believe people swallow this shit.

Mon, 04/07/2014 - 18:46 | 4633874 logicalman
logicalman's picture

Baffle 'em with bullshit.

 

Mon, 04/07/2014 - 19:06 | 4633933 cossack55
cossack55's picture

I'm not sure that one can consider labor a cost any longer.

Mon, 04/07/2014 - 18:52 | 4633888 Grouchy Marx
Grouchy Marx's picture

I am shocked. I thought profits always followed hype: AMZN, FB, Barry, Ben, Yellen.

To infinity...and beyond! 

Mon, 04/07/2014 - 19:20 | 4633971 HaroldWang
HaroldWang's picture

Uh - oh, Dennis Gartman who was incredibly bullish of stocks last week is now all cash. He says he's "scared". That should pretty much mark a short term bottom and quick rise to the stratosphere.

Mon, 04/07/2014 - 19:40 | 4634053 Poor Grogman
Poor Grogman's picture

Aren't the markets just numbers and squiggly lines?

What's the value in all this other stuff you speak of?

Mon, 04/07/2014 - 23:12 | 4634609 Benzass Miphist
Benzass Miphist's picture

Scales were adjusted to make it look like there is some  longer term uptrend we are oscillating around creating the false impression of a value proposition in this policy tool of a centrally planned and rigged market.

Tue, 04/08/2014 - 00:01 | 4634681 highwaytoserfdom
highwaytoserfdom's picture

Buzz    "EBITDA has a credibility GAAP and non-gaap)  Hey learned during CMGI days... Now the Suckerberg shuffle... Heck the whole 20 year old Silicon Alley shuffle..      

  • Employees receive stock options INSTEAD OF cash compensation for various raises, bonuses, etc.
  •  takes the DIFFERENCE in stock value that they gave to their employees (an expense under GAAP and IFRS) verses what it WOULD HAVE COST in cash and books THAT DEFERRED COST as actual cash flow.  Viola! Magical cash flow appears!
  • THEN they add the “saved cash flow” (deferred cost, i.e. Expense) to non-GAAP earnings as “profit” thereby doing a complete Enron to convert an expense into profit.

SHUSH don't talk about carried interest, Cayman and Cook islands, Double Irish with dutch sandwich (not only IP but everything not nailed down), how about paper record and data storage REITS

Don't get me started on FED printing reserves for the TBTF (TBTE) Gets you kinda rooting for anything but IMF. 

George Carlin has it about right https://www.youtube.com/watch?v=3RhIxxvYtRE

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