I believe we saw Stevie Cohen at his finest. I have been reading up on how he allegedly trades. He sells short into market strength and then at an opportune time he will have his traders start selling the QQQQ short. All the Broker dealers he uses (who he pays full rate to) start doing the same thing because they know they want to be on the same side of the trade with Stevie. Today the Q's were hit with twenty million shares in fifteen minutes and for the first five minutes most of the high beta stocks in the Q's were shorted heavily starting the downtrend to make sure they followed the Q's. The rest of the day was spend clearing shorts and booking profits. The shorts who have appeared today are probably some of the lying thieves who work for him. Larry
Larry, You are way out of my league in terms of short term trading. Consequently, I would be really interested in your thoughts about what happened each "strange" day in the market. Maybe you could start a new topic some days with your thoughts on todays trading -just in general.
For the rest of you Garmin believers. I would like to hear your thoughts about other companies you really like. I know it is important to keep this as a Garmin board but some of my best and worst buys have come from people that for whatever perverse reason seem to look for the kinds of companys I look for. ( I know never end a sentance with a preposition)
Don't want to screw up this really informative board but if we could segregate the other stock ideas maybe it could work.
I don't know of any other companies like Garmin: high, nay, explosive growth, good margins, good management, somewhat of a moat, innovative, expanding market. If you find one let me know.
I do know of a few decent but undervalued companies.
Devon Energy, North American reserves of oil and gas make them worth around $100/share, and that's with oil at $60/bbl. Do you really think oil will stay below $60? Do you really think warm winters are a thing of the past? Do you think peace in the Middle East is upon us? If so, skip this one.
eBay, in transition from growth to value stock, deeply unpopular but has a wide moat and great free cash flow. Buyers go where the sellers are, and sellers go where the buyers are. It's called the network effect. I figure it is worth around $45/share, with a moderate growth rate in the next few years.
UPS, people are undervaluing its efficient distribution system and good returns on capital. All the transports are suffering now. Do you really think decent GNP growth is a thing of the past, and that we don't need to ship as many packages anymore? Sure, it's not growing like Fedex, but just compare their ROICs. Fedex's high growth rate is already factored into the stock price.