JP Morgan came out yesterday with a reiteration of a hold call, with a $23 price target......$23!! What do they know? This is all about the hedge funds trying to play catch up. The entire market, but esp. the energy names have been parabolic now for two months. I don't know when, but at some point this will probably end badly.
Andrew Left has been correct on his calls. His timing is not always precise, i.e. his calls are early sometimes, but they're accurate. I bet with Bill Ackman months ago when Citron first wrote about Valeant. I got out in time without too much damage, but the stock was crushed. I've read your thesis as you're long the stock, but you're not factoring in competition, a big issue. Left's analysis makes sense, and more importantly after this 2 month counter trend run, it looks like the stock will fall now and retest somewhere in the $32.50 range, or even lower if Citron's thesis proves correct.
It's beyond silly. CLR's stock has been literally parabolic for about 8 weeks, up over 125% during that time. At some point it will be unsustainable, I just don't know when. As soon as it pulls back slightly on the intraday chart, more buyers jump in.....They call it "momentum" trading. I call it insanity...By the way, the entire market has been parabolic since mid Feb.
The CFO leaves, the stock tanks, the Nasdaq tanks, and the market FINALLY starts it's descent.
Never, EVER bet against Andrew Left. I did, and it cost me thousands. Not any more...His thesis on MBLY is correct, and his side of the trade is the correct side.
Vince, it's beyond belief. If you look at the weekly charts for CLR and other E&P names, it has been a parabolic move with virtually no pullback or consolidation. And if you notice, every single day an analyst for CLR tries to play catch up, and they raise the price target quite a bit. No research mind you, just a price target raise based on how the stock has been performing.
As for the Fed, it's the same old song for the past 7 years. Circumvent the normal business cycle, talk the markets up, they play good guy Fed speak and bad guy speak, all in an effort to create the illusion that the economy is great. And of course it's an election year, and the Feds are all Democrats, so they have to make it look like the economy is doing well by inflating the markets.
They couldn't start a downtrend yesterday after the failed summit meeting, I don't know when they will.
And people think the political primaries are fixed. This has been going on for years. As for JPM, the headline is "profit falls 7%; costs to cover bad loans, revenue declines." Oh wait, they beat the lowered expectations and the stock is up. This exactly supports you theory...for now.
This makes no sense to me, other than a technical move, meaning the smart money knows something that I don't know.
Last week the crude stocks inventory went up much more than expected, and CLR went up. Today the draw was less, and CLR and the other oil names are up yet again. This is just silly; the fundamental picture is a disaster, there's no faith in an output freeze, which even if there was one, would not change the glut issue. Technically, CLR is grossly overbought and hasn't had anything close to a Fibonacci retracement.
So on April 1, five days ago, Stifel reiterated a buy on CLR. Today, they downgraded the stock to hold. What did they learn in the past few days that caused them to now turn bearish?
This is significant, because the analyst was from Stiefel. This was an analyst who was bullish on the stock, now he's not.
So I can't help but feel that CLR is a proxy for all the manipulation out there in the oil market, and in oil stocks in particular. Analysts are raising price targets at a major resistance level, after a long short covering rally. The truth is, CLR's fundamentals do not support this price at all, and yet the analysts seem to weigh in every other day. My theory? Continental has no cash, and an enormous amount of debt....so the analysts think CLR will tap the capital markets soon to borrow money, and if that's the case, they want to be the investment bank of choice.
Chad, if main st. USA knew or cared about the truth, you would see a revolt greater than any in our generation. The Fed has circumvented the normal business cycle now for about 7 years. And of course now they have to create the illusion that the economy is doing well, right up to the election, so Obama looks good going out, and Clinton gets elected. And people wonder why Trump has so many supporters.
this will be a great short opportunity after the initial gap up in the am.(assuming that's when it opens). I think the smart money may fade the gap, because the analysts will weigh in with uncertainty regarding the final approval and launch.
It's hard to believe this stock is still rallying, given the parabolic move from about $18 to $31 in four weeks. It makes no sense.
If I were to bet on an approval and spike in stock price from here, based solely on the chart I would say there will be an issue with the FDA, i.e. no full approval. But with biotechs, it could certainly go either way. It just doesn't look like the street was expecting a full approval. Yesterday was short covering ahead of the announcement, in my opinion. So my bet is the FDA will seek more information, and the stock will fall back to the $16 range or lower.
It's so easy to blame the dollar for weak revenue. But the consumer discretionary space is not the place to be right now, as consumers are once again tightening their belts....that is if they can afford the belt. Nike is a proxy for the consumer, and it looks like this grossly overbought market (not just NKE) is poised to drop. I was going to say $60 in a week or so, but it's trading at $60 in after hours!