Lately Ackman hasn't exactly been money in the bank. Him going short could be a signal to buy (kidding). This is a company that trades at 16 times forward earnings, has 2 1/2 times the shareholder equity and the same amount of cash as Amazon, better margins, way better profitability by all metrics, and is valued at less than 40% of the market cap. PayPal is the premier web payment method and is moving off the net to compete with the likes of Visa, MC and AMEX. The marketplace is huge; they have StubHub and many other platforms and services. This does not seem like a smart stock to short.
Sentiment: Strong Buy
Amazing it is holding up as well as it is given the volume. I am buying more. All the news has been good, unless folks are trading on insider info, this is unjustified. And if they are trading on insider info, there are going to be some hellacious lawsuits.
Sentiment: Strong Buy
To me the question is: why is EBAY not up more. This company is not getting a lot of respect -- pretty good growth, low P/E, margins that blow Amazon away, and they own the future of payment in Pay Pal.
Sentiment: Strong Buy
Mylan has been a stellar performer the last few years, but the stock action has been a bit odd lately, with some general weakness and a spike down yesterday. Would be interested in any insights anyone has. Are the long term prospects still intact?
Bottom??? Based on what? I am long, but there is no change in action, no capitulation, just a steady bleed. Hope this is the bottom, and believe in the technology long term. Ultimately shorts will get burned big time, but right now this is just ugly.
Expiring patents is not new news. Drugs in pipeline are not new news either. Still Merck did 4 cents better than expected. That is a blowout earnings report... though a little light on revenues. This is classic market maker action, pushing the price down and taking out the week hands. Merck has a good (and for now) safe dividend. They make money -- and blew away last years third quarter. Don't get this earnings down argument. Earnings for 2014 are projected much better than '13. Maybe there are better drug stocks out there, but I for one would not go short on Merck. Good luck to all.
The problem with resisting technical is that (regardless of the underlying stock fundamentals) so many trade on them that they become a self-fulfilling prophecy. If enough people trade on chart patterns, it doesn't matter what the fundamentals are... at least in the short term. For Investing long term, it is all about fundamentals. Technicals are for Traders, not Investors.
Everyone wonders why Icahn isn't talking? Well, he's got two people on the board now and we are in a quiet period with earnings coming out. As a shareholder, he can talk all he wants about stock he owns (Apple, etc.), but when you are linked to management, you are smart to keep lips sealed
I agree. Market has become indiscriminate. CAT has missed multiple times now and yet stays in a trading range. Don't know if infrastructure spending will boost CAT as they are bigger into mining equipment, and so long as commodity prices stay low, companies will not invest in new equipment. This stock is being propped up by the market as a whole. Seemingly CAT has 9 lives.
Actually, CAT is pretty much back to where it started the week... so the run just came pre earnings. Look at VMW... hit it out of the park and has been down ever since (back to where it started the week). CAT is lucky it is not in the low 60s.
As a holder I'd like to agree. It just seems other forces are at work here and are determined to drag this lower.
Any chance RBS stops paying on the Preferreds again? Just seems that with government ownership, RBS is not going away, yet RBS preferreds pay a higher return than most other banks, implying a much higher perceived risk in these instruments.
If it is such a bad company, why would you buy it at any price. Say -- according to your scenario -- they miss selling two printer. Then revenues are flat and the company burns through cash and goes under. Then you lose all your money. I recommend you stick with DDD and not spread rumors and inaccurate info about XONE.
Strange that you would imply the company is simply "hype" and then talk about buying it.
Get your numbers straight. DDD trades for 9x next years sales, while XONE at 45+ trades at 8.7 times next years sales. Even using current year #s, XONE is trading At 13.3X current year earnings, which would give it another 25% downside to get to 10X, yielding a share price of around $34. DDD is actually trading at 11.2X this year's estimates. Give XONE the same multiple and it trades at 38 (still $7. below where it is now), but in no way reflects that XONE is projected to increase revenues 50+%/yr, while DDD's growth is estimated at 20%. At 1/10th the market cap as DDD and growing much quicker, XONE may have more risk, but you are getting in a lot earlier in the game.
Spoke to investor relations at RBS and they sound adamantly opposed to anything that compromises the Preferred shares. Obviously, the Preferreds rank above common in the capital structure, and there is no way around that without massive (and expensive) lawsuits, as well as destroying the bank's ability to raise capital in the future. The government had the opportunity to wipe out equity when the bank was on the verge of failing, but by taking a position in common, the put themselves behind the Preferreds in the equity/capital structure.
The bank representative says they will do all in their power to honor this commitment.
on this is insane. All the shares are turning over every 4 days. Short position is ~25%. If people stop selling, this will go through the roof. Playing with fire.