It has got a huge ride from the low 100's to 400 in a very short period of time
based on "investors" going for the "revenue-growth" story. Well, as 2013
ends, and revenues at AMZN start taking a breather, EPS comes to focus..
now combine Negative EPS with slowing revenue growth and u got a
very toxic combo.... bears / shorts should ride this one to UNDER $ 50 within 12-15
Lot of stocks BETTER than SCTY to short and hold..
PCLN, CMG, ISRG, FIVE, ULTA, CLVS, RAX, LULU, AMZN, NFLX, TSLA,
SFUN, AND ON AND ON .....
Actualy SCTY is one of the stocks u may want to go long.. she may see the
hey days of FSLR at $ 300 ++.....
200 dma is at $10.... stock has come too far too fast... unsustainable move
fairvalue despite all the good fundamentals is $ 12.50 .... may want to cash out
and re-enter later...
U may want to buy some 120 calls to protect ur short then when it cools off u can
swap out... unfortunately momentum stocks know NO logic... check PCLN.. $1,000
for a travel agency !!!...
486 million in inventory for this company ... also product gets stale in a few months so it
is perishable.... I suspect inventory writedown a la BBRY is around the corner..
stay warned.. stay alert.
Be careful here if u are short.. she is entering Breakout territory and upside is often
irrationally high... target is set at $ 32... so has long ways to go.... be very careful here
she can run to 20-25 within days...
this is a "special billionaires" stock.. if you know what I mean. In either scenario..
they will run the stock UP significantly.. squeeze the shorts out.. then in case of
bad news she collapses .. in case of good to neutral news she holds steady.. I see
$ 95 ++ in the works over the next few weeks..
Just in case u forgot.. wallstreet axiom is Buy the rumors.. Sell the news.. any govt
settlement will result in market sell off.. also no agreement will also sell off the market
so no matter what.. market sells off next week big time.. the last two days was a dead cat
bounce... also revenues WILL be negatively impacted big time... so caution..
Sit out the next week... take NO action.. let the stocks run their course and then
at the opportune moment u act... for eg they WILL carry GOOG to 1250 and CMG to 595
by year end.. then the steam runs out since this is AS GOOD AS it gets.. mathematically
impossible to get BETTER ( PE of 60-100 and 150 times BOOK !!) ... buy out of the money
PUTS for the Jan - MAR cycle and see them bloom.. just like GOOG 1000 Oct Calls
bloomed from 10c to $ 12 !!! Good Luck. Hold ur horses and SIT IT OUT...
that is only 30 % move up from here... there are umpteen better candidates out
there that offer this kind of a move up with much LESS risk.. esp in the cloud
space.. EGAN , VMW, MONT, SAP ..also with Christmas around the corner
some retailers are poised for a good move up... take a look at OUTR and ACAD
and CAM and SBUX.
nike has revenues approaching 35 billion... i.e. about half of AMZN... so by the
same metric that AMZN is valued at... shouldn't NIKE be priced at around $ 180
per share ?? AND NKE makes tonnes of PROFITS AND FREE CASH FLOW !!!
why not dump AMZN and BUY BUY BUY NIKE ???
she will still make less than 24c EPS... too high a PE ratio to support just
a 10% growth... she tests 17.50 soon... sell now and re-enter then..imo