Investment Wisdom Of The Day
Investment Wisdom Of The Day
Investment Wisdom Of The Day
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What You Ought To Know About Shorting Facebook & Getting Rich
1/8/2016 – Another down day with the Dow Jones down 168 points (-1.02%) and the Nasdaq down 46 points (-0.98%)
I have to admit something. I hate Facebook with passion. First, it is a cesspool of pointless narcissistic activity. Not for everyone, but the % is high enough. Now, I have learned a long time ago not to make “emotional” investment decision. That is why it warms my heart to see Facebook (FB) at such dizzying valuation levels.
Here is why I believe short sellers should drool all over Facebook (FB)
When Twitter (TWTR) was selling at $48, I wrote this….Why Twitter (TWTR) Should Go On Your “Stocks To Short” List Less than a year later it is trading 60% lower. With that in mind, I continue to maintain that the worst is yet to come for the company. By the time upcoming bear market ends, Twitter should be below $10.
With that in mind, I believe Facebook (FB) presents us with even a better shorting opportunity. In fact, I continue to believe that Facebook is one of the best shorts out there.
And while most investors today will laugh at me when I suggest that Facebook (FB) will see $20 a share over the next 3 years, I will laugh back when it does. I promise. Here is why……
- As discussed over the last few days, Facebook is massively overpriced. At its $275 Billion market cap, the company is now worth more than GE. At 10th the revenue base and a P/E of 95. I guarantee you, investors in Facebook today will look back in 2-3 years and wonder “What the hell were we thinking?”.
- I am beginning to notice quite a bit of fraudulent activity on Facebook when it comes to likes, promotions, paid advertising, etc… That is firsthand knowledge, but you can Google the same and do your own research. That suggests the Facebook is running out of growth and its multiple is not justified. By a long shot. I wrote about it here Why Facebook Remains An Amazing Short Opportunity
- See those massive gaps all the way down to $20 a share? Yep, they will have to be closed at some point.
- We are on a verge of a multi-year substantial bear market. Click Here. When such bear markets develop, if past is any history, such overvalued and over hyped stocks tend to lose 80-90% of their value. Just as the gaps above suggest. I don’t know why this time would be any different.
- Short interest is low.
Finally, even at $20 a share, Facebook will be extremely overpriced. In other words, I just gave you a 80% gainer, but its up to you what you do with it. As always, TIMING is the key here.
Have a great weekend everyone.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2015-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2015-2017 will start (to the day) and its internal composition, please CLICK HERE.
(***Please Note: A bear market might have started already, I am simply not disclosing this information. Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update.January 8th, 2016 InvestWithAlex.com
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What You Ought To Know About Shorting Facebook & Getting Rich Google
Investment Wisdom Of The Day
Investment Grin Of The Day
Year End #3 – What You Ought To Know About This Shocking Carl Icahn Video
11/24/2015 – A mixed day with the Dow Jones up 19 points (+0.11%) and the Nasdaq flat at 0 points (+0.01%)
I don’t know about you, but I am absolutely fed up with the US Government and Media. It is nice to see someone of Carl Icahn’s statue to come out and put them on the spot. Directly. And wait till you hear what he has to say about our financial markets.
“God knows where this is going. It’s very dangerous and could be disastrous. It’s like a movie theater and somebody yells fire. There is only one little exit door. The exit door is fine when things are OK, but when they yell fire, they can’t get through the exit door…and there’s nobody to buy those junk bonds. Stocks are way overpriced.
I found myself agreeing with 95% of what he had to say and I command him for coming out and speaking his mind. If you participate in financial markets and/or care about what happens in the US, the video below is a MUST watch.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2015-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2015-2017 will start (to the day) and its internal composition, please CLICK HERE.
(***Please Note: A bear market might have started already, I am simply not disclosing this information. Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. November 28th, 2015 InvestWithAlex.com
Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!
Year End #3 – What You Ought To Know About This Shocking Carl Icahn Video Google
Year End #9 – Smart Money Is Still Distributing Apple (AAPL) To Fools
11/19/2015 – A flat day with the Dow Jones down 4 points (-0.02%) and the Nasdaq down 2 points (-0.03%)
The original post was published on May 21st, when Apple’s (AAPL) stock price was putting in an important all time high (double top). At that time I have suggested that smart money was distributing the stock. Apple’s stock price is down about 10% since then.
It appears nothing has changed. If anything, big guys are trying to unload at a faster pace. This Goldman Sachs analysis was released just a few days ago. Apple’s shares are going to soar 43% Sure, and I am nominated for a Nobel Prize in literature.
That is to say, don’t be a pawn in their game. My view on Apple hasn’t changed.
A few weeks ago Apple (AAPL) has reported yet another great quarter. Yet, despite the outperformance, Apple’s stock price is barely up. So much so that most investors, market pundits and money managers are dumbfounded by company’s recent decline. After all, it was not supposed to happen. Apple is the best performing company in the world (which is technically true) with like a zillion dollars in cash on their balance sheet.
What gives? I will simply repeat here what I first said on May 21st. When AAPL was putting in its top.
May 21st Update: Alert: Smart Money Is Trying To Distribute Apple (AAPL) To Fools
I firmly believe that the overall market and Apple (AAPL) will crack at the same time. Hence, overwhelmingly bullish coverage of the company and recent analyst upgrades should cause some concern. For instance…..
- CARL ICAHN: Apple is worth $240 per share
- Morgan Stanley says Apple shares could rise 50%
- Here’s the top stock pick from each of 50 biggest hedge funds – Quite a few of these hedge funds have a massive long Apple position.
There is another name for all of the above. Distribution. The smart money is trying to unload their massive positions to unsuspecting retail investors in an illiquid market. A game that is as old as the stock market itself.
Listen, I don’t have anything against Apple. It is one of the best performing companies out there. Yes, it is overvalued, but its valuation is not as bad as some of the junk floating in the market today.
I am merely pointing out that retail investors shouldn’t be sucked into a game that they cannot win. Make no mistake, once Icahn, Morgan Stanley and the rest of the big guys unload their long positions (if they are smart), Apple’s stock will fall like a brick. Just as the market will. That is to say, the opportunity with AAPL might be on the short side of the trade, not the long.
Year End #9 – Smart Money Is Still Distributing Apple (AAPL) To Fools Google