U.S. margin borrowing is in its history record high right now.
How many of you are on margin buying many of the high P/E value stocks such as NFLX, TSLA, AMZN, TWTR and so on. These people who buy in these high P/E company stocks with high debt are going to get slaughtered. Imagine these companies carrying such a high debt when the interest rate will be going up in June, how they will pay for their interest to the bank? Either by issuing more stocks to borrow more or the stock prices will go down big to justify its P/E ratio.
the jig is up.....MOMO is tanking, oil and energy are the only safe havens...... money rotation into real assets and real businesses.
Sell a streaming company with huge competition growing forward. The company has been gutted via stock compensation to the prinicpals in the scam. The remaining value...assets vs liabilities doesn't exist. These guys show 2 billion in intangible assets. That's trade secrets, copyrights, patents, trademarks. How can this be? Anyone with a server farm can stream video. Are you telling me house of cards has any residual value 2 years from now? NO.....ITS A HOUSE OF CARDS
book value is actually negative. Once the subscriptions start churning due to price competition and net margins get slammed this stock will have zero liquidation value. The bondholders won't even get anything.
I have to admit that I did buy on margin. I shorted AMZN, AAPL, TSLA, and NFLX yesterday near the close. I forced myself to buy them back today at much lower prices. Truth be told, I am kicking myself in the face right now for covering way too early. I covered NFLX when it was down $6, TSLA when it was down $4, AMZN at $6, and AAPL when it was down $3 and change. I did hold onto my short of the QQQ until about 30 minutes ago. I bought VXX, but haven't made nothing on it yet. I guess this isn't considered volatility.
I made the terrible decision to buy TWTR on the long end about 20 minutes ago for JULY OTM calls. The longs on all of these boards have been a good sign to short these MOMO's. They were so quiet for the last few months and now they are out in droves. It may get real ugly with TSLA reporting tomorrow.