This is going to be a slow walk up the path...there may be opportunities on the way, but I think TRMB may be a little bit more of a risk to short...but to each his own...
Go TRMB-Great earnings, and it sounds like they are spending thier cash wisely!!
I am just saying...I like the way it is acting....although I am not one of them, the moves that the stock is currenly making does not make sellers, but buyers...It will be interesting to see the impact of gov. on this one.....I am guessing if gov. spending goes down, private sector spending will go up..we shall see what mr market does;-)
Well, if you know that TRMB will be at $20 6 months from now you can make a nice chunk of money by shorting it these days. I am not arguing your point here except the website you listed. A bunch of people were yelling in September that IBM is way overvalued and tons of reasons why it's a great short. Well, it was around $125 at that time and now it's almost $150. Maybe now would be a better time to short? Who knows..
Trimble, now including Spectra Precision, is the government's largest manufacturer and supplier of surveying, leveling and grade control systems. The U.S. military chooses Trimble...
...that honey-pot is probably going to dry up soon as we stop wasting money building in Iraq & Afgan' anymore.
The world market rallied 2% today because the fed will fund the US deficit for the next 6 months. How long will that bubble float the market? Oil is up as a side effect and all other input costs rise too. That's not really good for earnings growth. The hang-over will come quickly.
TRMB and other tech stocks are predictable based on projected earnings growth. Government spending will be no growth. My only point is the "music" has stopped playing for government spending and TRMB relies on government contracts. When future earnings growth of TRMB is "adjusted" the valuation may very suddenly be closer to $20 since price is only really supported by such and inflated multiple now. Expectations are high. GRMN fell 8% yesterday with lowered guidance for next year. You really want to bet that TRMB will be immune to all this? The higher they fly the farther they fall.
6 months from now... 2+2=4 ...capiche?
No reason to be nervous right now if you're up so much.
Check out this article on valuation...
I'm just saying that government spending will have zero growth. It will be very hard to justify TRMB commanding such a high multiple under a lower or no growth scenario which is now upon us. "Upgrades" are often a pump signal while the stock is dumped at the high.
last thing, serious;-) It is not even spiking in huge volume...I do not think this is a wise play...this has a strong trend line, but maybe you are only looking for a couple buck pull back?
Do you have to hold a "short" position for 12 months to make it a "long term cap. gain?" Does it work just like a long position?