If I were long, the question is "Do I hold on in hopes it goes back up to $116 or at least to my purchase price, or do I sell now and take the loss or the gain, depending on my entry?" "The market's looking weaker and more volatile but earnings are still strong and the numbers aren't that bad. However, the economy is getting worse in China and Russia is a wildcard. Corporate revenues have been declining for the past couple years. But the Fed is committed to keeping interest rates at historical lows and keeping unemployment below 6%. I don't know what to do."
Unlikely. Just like retail investors buy when stocks are overvalued, companies historically purchase companies out of fear when prices and valuations are rising not when prices and valuations are dropping.
What impact will rising health insurance premiums and rising interest rates have on LZB?
Good or bad, the markets live and die but the Fed, Wall St and the news outlets. Now that all three already pumped the markets to new highs, they're done singing the bullish tune and within two weeks have turned bearish. Time to stay alert.
Cloudera is yet one more competitor in an ever increasingly crowded market. Nothing attracts competition like money. Nothing compresses margins faster than competition. When all the data analytics companies have similar offerings and the software they're working with is open source - Apache Hadoop - and a buyer pits half a dozen companies against one another, the first thing sales reps do is drop their price.
Quite remarkable how much goes on behind the scenes in the short run. Fortunately, in the long run reality trumps all. With the markets near 5 year highs, time now favors the shorts.
Legendary value investor David Dreman's report card on FNP:
MARKET CAP: [FAIL]
EARNINGS TREND: [PASS]
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: [FAIL]
P/E RATIO: [FAIL]
PRICE/CASH FLOW (P/CF) RATIO: [FAIL]
PRICE/BOOK (P/B) VALUE: [FAIL]
PRICE/DIVIDEND (P/D) RATIO: [FAIL]
CURRENT RATIO: [FAIL]
PAYOUT RATIO: [PASS]
RETURN ON EQUITY: [FAIL]
PRE-TAX PROFIT MARGINS: [PASS]
LOOK AT THE TOTAL DEBT/EQUITY: [FAIL]
to lowest level since 2009. This is a cause for concern for the viability of commodities and construction as China's once hot economy continues to slow and the Chinese gov't seems reluctant to bolster the economy via QE.