That is not why they do it. They make money when clients TRADE. So the key is to take them out if they are long (a trade) and then get them back in after when the stock is going higher (another trade). they will do it all the way up to record highs year after year, quarter after quarter. This is how Wall Street works and makes money.
If you were a broker the ONLY way you put food on the table is to make a trade with a client. You need your analysts to help you because if you as a broker don't make money they don't have a job either. The game is simple. Wall Street brokerages are not in business to make you money. They are in business to make themselves money by taking some of your money
Nothing has changed with KORS in the last month other than the stock price. the company is fine. Revenue and profit growth are all fine. We'll see another strong report and raise. Shorts will be smoked. Longs will be rewarded. KORS reports early august. I'm long and remain unconcerned about the price action other than using it as an opportunity to add to my position
No. Probably over 30%. 24% is conservative. Plenty of runway left for Kors over the next decade. Much bigger markets too then Coach ever operated in (clothes, accessories, shoes, etc)
All we need to know is how brokerages make money. They need u to buy and to sell. Get in. Get out. Get back in. Get out. Repeat over and over
KORS is fine. Only thing on sale is the stock thanks to the Wall Street machine in sell mode soon to be followed by buy mode
Don't worry. Soon enough reality overtakes perception. Kors headed to $120 to $150 which is simply conservative fair value based on 2015 estimates. For the moment day traders, technical traders, algobots all playing around. It doesn't last long so get ahead of them before the runup. They chased it down and they will all be chasing it back up. Stock is a double in 12 to 18 months from here.
Naaah...you are 100% wrong. Stock is going to 120 before the end of the year. Earnings for 2015 will be $4.00 to $5.00 range. Kors growing over 30% per year. 30 multiple on 4 gets you 120/share. 30 multiple on $5.00 will be $150/share.
You may want to cover your short or you are about to lose 100% of your investment. Sorry.
Stocks don't need news to move up or down. Day traders. Algo traders. Chart traders. Stocks will waffle under, at or over fair value. With a forward PE of 18 and a growth rate well north of 30% KORS is by any metric trading under its value. Over the short term traders and algos don't care about any of this. They only care about where the stock is in 2 minutes or a day. This is why it is easy to make money in the market. You can take advantage of this dislocation. Eventually values catch up. Witness Apple under 400 and now almost 700 split adjusted. It was a matter of time.
Kors should be trading about $120/share just to be at fair value. It will get there and the short termers will jump on the train once it starts headed in that direction and help to push it there and possibly well beyond.
Very dangerous to be short in ISRG. A buyout could indeed happen from JNJ and a few others. One morning they wake up and the bid is in and it's all over for them. No getting out
Dont' worry. Nobody is listening to him or this board. This board is lucky to see 100 bodies a day
Brokerage firms make money off of trading volume. If this is a cash deal the brokers get nothing. They know this so better to get something and try to force their clients to trade OUT of LO and trade yet again INTO something else. 2 trades. $$$$. Cash buyout means NO $$$
Today Chipotle has roughly 1/6th of McDonalds market capitalization. However they only have 6% of the EBITDA that McDonald's has. In other words roughly 1/6th the market cap but 1/17th the profit!
This tells me the market has either way overvalued Chipotle here or way undervalued Mcdonalds or a combo of both. Something WILL get corrected and quite dramatically. I suspect CMG is looking at about a 50% haircut at some point when the momentum stops.
Looks like chipotle will hit $1000 pretty soon and then 10 for 1 split at least. Maybe 20 for 1. Then back to 100. No stopping this burrito. It is the best company in the world. They have limitless growth potential. 2 more restaurant concepts up and coming with another 10,000 store potential. Chipotle will be bigger than Mcdonald's, Panera, Burger King and Wendy's combined.
Growth rate is half of the forward PE. STock is overvalued by 100% today. Stock will get cut in half sometime when the music stops. Right now its riding on analyst estimates beat. This is a game where if you beat estimates your stock can go up even if the discounted cash flow makes zero sense. You could have zero growth and go up for years simply if analysts keep estimating under what you report at. Again at some point this game ends.
Adobe is a company that trades on technicals and analysts beat and lower game. Time to take profits and look elsewhere
Just random algo trading. Nothing more. Forward PE is now under 20. Amazing considering the revenue and earnings growth for KORS and how they are taking COH and everyone else out to the woodshed. KORS will be a $200 stock within 3 years even if growth slows considerably from here although that is not likely. KORS just raised numbers again
LOL. 20 for a burrito. Not anytime in the next decade.
CMG PE is about 2X where it should be. One bad quarter of comps and the enthusiasm and sentiment will turn and the stock will see the high 300's to low 400's and then it will be at a typical fair PEG 1.0 type valuation based on DCF. In the end cash flow is what matters and CMG traders/investors buying today at these prices are paying about 100% more for shares than they are worth. It will get corrected in time.
The valuation is not justified. Fair value based on DCF is around 400/share right now but you could plus or minus 50 on that too. That said many stocks often trade at a large premium or discount to their actual fair value based on investor emotion/sentiment. These things ALWAYS correct themselves. Sometimes it takes months and sometimes years. CMG will likely have a bad quarter with low single digit comps in the next year or two. When it does the 2X PEG valuation won't be awarded and the stock should lose 1/3 to 1/2 its value.
Best way to play it is to write short puts in the mid to low 400's. Take the premium from writing them. Write them with a far out strike date. If the stock plummets you may get put the stock but it will be at levels that represent a fair value. If you don't get put the stock keep the premium for 100% profit.