30 years in the market, never saw a stock growing revenue at 40% quarter over quarter trading at 21 PE for next year's earnings. Mr. Market has outdone itself with this piece of brilliant manipulation.
Takes and iron set, I doubled my position.
Exactly. Being long BABA is like playing US Open golf. The course just wears you out, little by little until you crack. The whole bounce to $94 happened so quickly and was completely manufactured to induce another slow, death bleed to wear out the resolve of shareholders. They can't bring it much below $80 so they throttled it and death bleed it. I mean, the company is growing revenue at 40% yoy, yet they have a 22 forward PE. It's crazy but it's also safe to own at these prices. They can't bring it lower than $80 so load up.
Money in the market is earned through grit and will. It always has been, always will be.
Reminds me of Apple in 2006-2008. The writing was on the wall about the growth in front of it and the street absolutely tortured the longs for two years. Difference here is the forward PE of 22. They can on;y play the game for so long and with the 40% growth in revenue, quarter after quarter, it will end sooner than what they did in Apple.
I'm just going to keep buying dips, nibbling away, taking advantage of the game being played with low prices and a reward that's coming down the road.
Don't forget Paypal, ebay, online banking, mobile/wireless and all the investment in India. This will be the first trillion dollar company and all the worry about china being unsafe for investment? Alibaba is too big to fail or be messed with.
Mr. Market will have to get in gear come August earnings when they deliver another 40-50% revenue increase...going to be fun.
In fact, the is may already be done in terms of finding a buyer. The stock traded somewhere around 15 million shares on Tuesday.
Careful shorts, the second the market realizes their is no opportunity to suppress and force the sale lower, it will squeeze.
Yes, it will kill upward momentum short term but it has no impact on the fundamentals or the outlook. The second it's reported he has completed the sale, the stock will pop back up. Might be over by tomorrow.
This is not a momentum stock. This whole rise was created because the short float was more than 30% in the $40's. With no options to hedge the positions and a small float, they were sitting ducks. With lock up expiration months away, there was nothing to fear in running the stock up and destroying shorts. They did, now lock up looms and it's being walked back down.
Anyone holding long is going to lose their money.
That's an interesting way of looking at it. Here's the deal, the low volume is bad for longs, it mans no one is stepping in to stop the decline because no one thinks it's a good value here.
You know why? Because not only isn't it a good value, it may be the worst value of any publicly traded company in the world!
The rise was a short squeeze, plain and simple. The decline is about getting the stock priced right so Danny Meyer and all the other insiders will be allowed to redeem their shares come July 29th into a market that feels the price is a good value.
What is that price? $25-$40 and that's still awfully high. It could be below $20.
Very good quarter. I didn't realize just how good a CEO we got when LP was hired. He's going to take LULU to another level and am really looking forward to the 9am call to hear all about the progress of the company.
Again, if you're short, cover before the call. No one pumps it like LP.
Yes, a LOT more guys wear LULU than last year. Do I think it will account for blow out sales? No. But it mitigates weather and port issues, for sure.
I've been following this company very closely since piling into a monster position last June, below $40. There's not a thing I see that worries me heading into tomorrow. At worst they meet expectations, at best they beat by three cents. But one thing I LOVE about LULU earnings calls is the CEO's ability to pump the company. Among the best in the world, imo.
I would not want to be short heading into that call.
Guys wearing LULU all over Manhattan, on golf courses and at the beach. I've been amazed at the numbers although I recently talked to a sales rep who came from the south and she said they didn't sell much there.
Should be interesting tomorrow.
I bought more today, as I do on all dips. This is a great brand with a lot of growth in front of it.
This stock going up requires big players stepping up and buying. Gets riskier and riskier as lock up expiration gets closer and other big players look to cash out.
I do look forward to seeing what SHAK's real valuation ends up being. It's a great concept and should grow for years.
Look at the volume. She's out of gas. Take your money and run because this is going to get ugly fast. 3/4 of the people who own this stock own it as a momentum play. Guess what they become when the momentum goes against them? Sellers.
If you think this valuation will hold up over the next three months, you're going to be sadly disappointed. Bubble valuations can last a long time with internet stocks but not brick and mortar. With tech, they turn on the switch and there is no barrier to the customer, everyone has instant access. With shake, it's going to take ten years to get the number of stores up and running to support this valuation.
Great restaurant, horrible investment here. I'm a buyer at $22.
You guys don't like burgerfi. Sounds like you feel you get less for more money. You're a value consumer with your burgers. But the beef is better at Burgerfi, so for a health conscious consumer, who is aware of their weight and likes a little bit more atmosphere, the choice might be completely different.
Another point, you already have three choices. What happens when Habit, Fat, Smash, Bobby's and all the others come to town? OR will some avoid Ft Lauderdale after the first two jump in? SHak is in a real estate race and with 10 planned next year, it sure doesn't seem like they're going to win.
I have no doubt the Shak will grow. But this isn't an internet company, it cost a lot of money to expand, it takes a lot of time and other chains are moving in, everywhere. Generally, a high valuation for a no brainer, brick and mortar grower is 60-90 pe ratio. This is at 500.
It's a short squeeze. If you like Shak as a long term investment, wait until the 7 million additional shares are dumped on the market and options open. You'll be picking up shares for $33.
Careful. This is a $5 billion market cap in a country with over a billion people. Priceline is a $60 billion company in a country with 300 million people. Valuation isn't relevant, all that matters is will it become the plane of china and the market, right now, believes it will.
Burger Fi is a great burger and a better atmosphere, with the music. They completely ripped of the branding of Shak but it came out a better version. Same all natural burger, some will choose shake, some will choose FI.
in the end, this is about a land grab for prime real estate, across the country. Every city has numerous local competitors, regional competitors, national competitors looking to get in, all the fast food places, all the pubs and restaurants serving burgers....it's not Chipoltle. The differentiation between Shak, Habit, Bobby's, Fi..etc..very small.