Haha nah don't worry about it. I think today's spike is because global stock markets all rose today.
marty, that news article was posted in mid January. why would that cause a spike today?
Take a look at AZO.
Accounts payable is huge and increasing. Book value is negative. Operating working capital is negative, which could be a good thing, they are running one hell of an efficient operation, effectively financing their growth off of the credit extended to them by their suppliers. However, long-term debt is also big, which they have been issuing more and more of to buy back stock. Look at cash flow statement, they are buying back more than $1B of stock every year.
Interest expense is low relative to earnings, so i think they can keep it propped up for a while, but it's gotta give sometime....
what do you think?
But when does all this debt come due? Also, why are accounts payable so high and consistently growing?
unfortunately, i was burned out, threw in too much too early. But at this rate, i may actually make some money on my 43-41 VXX put spread!
edado, can you explain this in a little more detail? I'm a little confused how doing the LIFO/FIFO reduces their COGS? Wouldn't the net effect over time end up being 0?
net income over $7B. Regular income was much less, but the company got to keep a lot of the $ that the government gave it for paying out damage compensation.
That's a lot of margin....hope you sold those calls in the past couple of days and not about 2 weeks ago before this huge spike.
king, relax brotha. You yank everyone else's chain but you're taking it too seriously when it's done back to you brotha haha.
Yes, we all know being short is the way to go with these instruments; it's mathematical certainty for leveraged funds that are subject to roll yields/contango. Holding a real short (as long as the broker doesn't force you to randomly cover) is probably the best risk/reward on this thing; I can't fathom any event in the market that would EVER hurt people have been short UVXY/VXX since 2 reverse splits+ ago. You can continually keep averaging down on the short, and it's the gift that keeps on givin'
That being said, too many people get wiped out with puts on this short-term, and the longer-term OTM ones have huge premiums where unless this thing drops super fast, even if it goes below your put strike price by expiration, you paid such a high premium that your gain won't be much, if anything at all. I know several people here who have had that happen to them. And I know my broker never really has any short shares available anymore, so I've been sucked into puts more often than I'd prefer.
King, you've also questioned fiddling when he bought longer dates puts, asking why he's paying so much in time premium.
So which is it? Weeklies or 'longer term'? lol.