Yesterday's strength in STX & WDC was driven by Morgan Stanley's upgrade of WDC to out perform
Well Katy, I guess better late than never?
What about the other morons at the I banks who are still neutral or negative?
Forgot to include the those beloved members of the thundering herd, 22 of which were neutral or negative on STX as it ran to record highs this year. Also, 16 neutral or negative on WDC. They couldn't find their rear end in a well lite room.
Once again many strong contenders for the Turkey of the Year Award
1. Jim, I'm always a little early, Chanos for touting the drive stocks as a short six months ago.
2. Short-only Hedge funds, which are down an average of 13% this year.
3. The flashphiles, grease ball I bankers, and shill Analysts who touted solid state storage stocks. YTD-FIO down 58%, OCZ down 91%, and Violin Memory down 51%. STEC was down 32% before the WDC deal. STX up 53% YTD and WDC up 80%. LOL!
4. The vulture_is_here and the other bashers who polluted this board.
5. Anyone who bought LED equipment manufacturer stocks
6. Cartel kingpin SAC and all their sleaze ball buds, RIH!
7. Those who could only #$%$ and moan about me and ignored numerous posts urging them to get invested.
....and the winner is?
Kind of a slow week for the crooks on the Street as they head out to Vermont and St Lucia for the Thanksgiving break:
From the WSJ:
1. JP Morgan agreed to a $13 BILLION settlement related to their part in mortgage backed securities fraud that helped pushed the nation into recession.
BTW, just pocket change for JPM and of course no one goes to jail.
2. A former stock Analyst turned government cooperator detailed the inner workings of a network of Analysts that funneled inside information to Michael Steinberg, the portfolio manager at cartel king pin SAC.
How do you think SAC was able to produce such high returns?
3. Ex Credit Suisse Banker, Kareem Serageldin, was sentenced to 2 1/2 years in prison for his role in a CONSPIRACY to falsify records related to inflating the values of mortgage bonds held by his firm during the financial crisis.
OMG, somebody actually going to jail? PTL!
"It gives you a real insight about the type of people who use these boards, when after telling everyone to load up early this year all I get are two responses from a ranting lunatic now under investigation for felony assault and a loser right wing nut case"
Well at least neither disputes my characterization of them!
Hey runt your track record remains in tact.
Nothing but years of shilling on these boards for right wing nut case causes without a single investment idea.
Is that why WDC banned your John Gault posts?
Keep up the good work, loser!
"I meant to say that even those who use the term bubble (like Barron's yesterday) usually concede that US equities as a whole are not overvalued, let alone bubbly"
I believe that was the primary thesis of my first post.
PS-Over the years, I have lost just about all my respect I once held for Barrons and rank them even below CNBC. IMHO, the WSJ, Bloomberg, and IBD remain at the top of my list with regard to financial journalism.
You can always find areas of froth in the market. The big MO stocks such as Amazon, Netflix, and biotechs were pricey, but they recently corrected. Overall, the market remains well below bubble levels. Even Dr Bubble, Robert Shiller, admitted in a recent WSJ interview that stocks were not near bubble levels.
Quite frankly, it's just something the talking heads and grease balls on CNBC like to babble about along with some hedge fund parasites dreaming about the bad old days and under performing buysiders hoping for a major pull back.
The FED is in our corner. The old bogey men that killed the market for years, inflation and rising energy costs are tame and IMHO will remain so, population demographics are a plus, and US equities are the only show in town.
So once again, let's party likes it's 1984!
Any guesses what month in 2014 the Dow hits 18,000 and the SP 500 goes through 1,800?
I'll say by April.
Interesting point, but even without that the demand for data storage will grow 35% annually.
Certainly, the Bronco Obummer team dropped the ball badly and their critics are naturally having a field day.
The problem is the two greatest threats we face as a country are the crooks on Wall Street and the dysfunctional, greedy health care system. I have heard far too many horror stories about the crooked insurance companies dropping coverage of very sick people or families going bankrupt due to medical bills. I remember testimony on TV to a Congressional committee by an ex claim examiner from a major insurance firm. Her instructions from her employer was to give those making large claims the run around. Shameless, the last thing you need to deal with is to get hassled when you have a serious medical problem.
BTW, if Obamacare is going to destroy the health care system why has Aetna's share price doubled over the past two years?
Health care costs rose 120% from 2000-09 and were expected to rise more this decade. So that would put the cost for a policy for a family of 4 around $40,000, versus the median U.S. family income of $52,000. So many of the cake eaters who now have insurance will be left out in the cold. Maybe they would change their tune then.
My son just got "good news" from his employer, his health care costs are "only" going up 17% this year.
I read in Ted Cruz' district a significant portion of his supporters are either too poor or too dumb to have health care. Should they dictate how this country deals with the problem?
Obviously, Obamacare is a poor solution, but unless a better one is proposed, it's the only one we have. We need solutions, not a dysfunctional government where the primary goal of each party is to undermind the other party.
Blondie the grossly over rated YHOO CEO won't let you post exceed 400 characters, so I would like to follow on the previous post about labor in China. The Chinese workers have become very aggressive in their labor demands. BTW, who can blame them when Foxconn has to install nets to prevent their workers from jumping to their deaths?
Since 2003 the cost advantage of manufacturing in China versus the US has shrunk from 18% to 7% and is likely to go lower as the Chinese population ages and Chinese energy costs rise versus the U.S.
So let's add up the balance sheet to help all the bubble brains out there:
1. By numerous historical measures, we are no where near a bubble.
2. Inflation will remain low
3. Even after the Fed tapers, interest rates will still be modest compared to historical norms
4. Jobs will open up as the baby boom retires
5. The advantage to manufacture in China is disappearing.
6. The U.S. will become an energy exporter
7. With gold in the doldrums, rising rates driving bond prices lower, Europe still is recovering from life support, where are you going to put your money?
8. Most of the retail crowd still has not joined the party.
9. The stock market rise coupled with rising home values has restored a lot of the wealth lost during the recession.
So think about it Buffy, let's party like its 1984 all over again!
As we wait for the SP to clear 1800, the DJIA going through 16000, and the NAS breaking out over 4000, a couple of reflections.
It gives you a real insight about the type of people who use these boards, when after telling everyone to load up early this year all I get are two responses from a ranting lunatic now under investigation for felony assault and a loser right wing nut case.
C'est la vie mes amies!
While the hedge fund parasites and the buy side losers who missed this rally are now whining about a bubble, LOL!
Based on the consensus SP earnings for 2014 of $123, and using an average P/E of 15 you get a 1860 target. The trailing P/E based on the last 12 months is 15.8 versus an average of 16.9 since 1999. For those wringing their clammy hands about the four year bull run lifting the DJIA by a a factor of 2.6, consider this:
The 1982-2000 secular bull market saw the DJIA go from 800 to 11,000! The SP500 traded at a multiple of over 20 for several years before the 2000 bubble burst.
Now what is the reason for this irrational exuberance?
1. 73% of the firms beat their September estimates
2. Interest rates and inflation both remain low and there are several reasons why they won't go through the roof after the Fed tapers: a 4% increase in 10 year T bills causes the debt to rise over $500 billion, US energy costs going down in the long term, population demographics-Baby boomers will save rather than spend,
Speaking of the baby boomers, as they retire jobs will open up. China is faced with the same problem, the Chinese labor force is expected to lose 67 million workers between 2010-30 which will pressure wages.
"Where was the SEC and is it blind to it all"
FINRA actually woke up about a year ago after two Analysts published questionable inventory data, which the drive firms and some other Analysts disputed. That didn't matter though the short cartel (SAC, CC, etc) knocked 30% off the price of STX in one month. The shares recovered a few months later, but the traders made a killing on the round trip. Luczo called out this scam in a Barrons interview where he claimed certain Analysts at large investment banks were publishing FUD to create trading volatility in the shares which benefitted their firms.
This scam has been going on for years. Earlier this year, only 3 Analysts had a buy on STX, out of 25, before it ran to an all time high, 16 were neutral or negative on WDC.
The track record of many of the Analysts is both laughable and highly questionable. Craig Hallum, the latest firm with egg on its face after recently downgrading the stocks only to watch STX & WDC go to all time highs.
More than 60,000 tech workers can seek monetary damages from Apple, Intel, Google, and Adobe Systems because of a federal judge's ruling in a suit claiming that former Apple CEO Steve Jobs conspired with other local executives to limit worker's pay by barring them from moving from one company to another. Judge Lucy Koh cited what she termed "considerable compelling common proof" that the Silicon Valley companies engaged in antitrust behavior by agreeing not to try to lure each others employees away.
In July of this year Pixar, Lucasfilm, and Intuit reached a preliminary settlement on charges they conspired to restrict employee pay by agreeing not to poach each other's workers.
The strategy in the disk drive world is to legally harass employees going to a competitor.
These practices are not just confined to the Valley. In Minnesota, similar claims have been made.
Gee, with CEO pay now 307 times medium rank and file pay, up from 120 times in 1992, seems like capitalism is working just fine for the boss.