Tag Archive for BIDU

5 Stocks Cramer Says to Sell

       While many investors and fund managers bash Jim Cramer, and many times he gets behind speculative, overvalued stocks, “Mad Money” offers great entertainment value and can teach investors a thing or two because Cramer is a solid top down investor with decades of experience. Sometimes Cramer speaks of value and yield while other times, he delves into the macro picture and the technical aspects of trading stocks and commodity markets.

       In an era where most financial experts have become highly specialized, it is refreshing to hear thoughts from someone who is more of a generalist in his approach to trading markets. While many in the hedge fund and mutual fund industry focus on specific industry groups or geographic localities, Cramer has a knack for being an all-terrain and all-weather guy.

       Most investors and traders would expect Cramer to remain bullish in the midst of a profoundly negative tape, but Cramer tends to cut his losses, and in a recent segment suggested avoiding the falling knife in the gold and silver markets.

Read the rest of this article at Seeking Alpha:

http://seekingalpha.com/article/315724-5-stocks-cramer-says-to-sell

Hedgephone Turns 1 Yrs. Old…

Happy to celebrate the birth of this blog, which now has amassed 700 posts (basically everything that randomly came to the top of my head over the past year) countless spam comments, a number of threats, volumes of hate mail, a few squandered leads, and a whole lot of fun for me in my spare time. While things are slow going here, we had fun breaking “Siga Gate” dissing Netflix and calling it Scamflix, shorting the market in late July, telling people to stick with Gold, dissing Yoku, NFLX, OPEN, CRM, SINA, LNKD, and many other high flyers and helping readers make a fortune, and most of all giving readers sound frames of reasoning in their stock market endeavors.

CRM Still Shortable, Bidu and Sina Implode…

The momentum names Hedgephone has recommended as shorts have blown up badly… Opentable, Bidu, Sina, NFLX, GMCR, PEET, CROX and many others have imploded to a great degree.

While Cramer is still positive on Amazon, we feel an opportunity still exists to short AMZN, CMG, and CRM. While we could be wrong, these names look to be good hedge positions for long positions in KO, BRK-A, PBR, HES, GLD, GILD, JNJ, HAST, ACMR, BG, ADM, etc… etc…

Many stocks look dirt cheap, but the markets have a tendency to only rally on Quantitative Easing. The carrot and the stick QE rallies are really what drove the “bull” market of the past two years off of the March 2009 lows. It’s time now to play defense, but if we do eventually get more QE it will be a huge opportunity to buy stocks (as well as Gold and Silver). Our national debt load is so high and the economy is so depressed that I feel QE is likely if deflationary drops in stocks and commodities continue.

Look to play special situation investments from the long side and to hedge with short calls or bear call spreads on index funds or on select overvalued high flyers.

New Article on Shortselling

       Selling a stock short is controversial and is also a tough way to make money for the most part — betting against a company that investors are enthusiastic about is never easy, but in a market that looks to be in a one-time stimulus created bubble, short selling overvalued pump-job growth names that Wall Street cheerleaders love may be the only way the common investor can hedge their portfolios against permanent capital loss.;

In my interview with business psychologist Iris McLister, we discussed short selling in detail.

“Many Americans feel that shorting is cynical, that the act of short-selling is synonymous with withdrawing support. I don’t think it’s an uncommon standpoint for Americans to have, right? As if short-sales are somehow un-patriotic, akin to going against some perceived civil duty. You’re not a villain and you’re not taking advantage because you are capitalizing on a system that is inherently flawed. You can’t exploit something that’s built on unsustainable tenets. I just can’t find fault in your playing the system because the only thing you can do to profit is what you are doing. You are making sure the system is working for you. If you sat back and were idle and worrying about your loyalty to this country, you wouldn’t be getting anywhere at all. It’s not in our control right now.”
http://seekingalpha.com/article/288492-8-potentially-overvalued-stocks-to-sell?source=yahoo

SINA, BIDU, OPEN Tanked Today

Hedgephone readers banked while these momo pumps tanked… TZOO was also lower today as was scamazon… Look for IWM to continue lower but keep in mind that the market will get a POMO bounce at some point and they may try to gas the futures up tonight for a snapback rally…

Here is the link to my post on SINA, BIDU, OPEN and AMZN: http://hedgephone.com/?p=865

All in all, the markets are looking weak, but i don’t trust gap downs or gap up days… Gaps often get filled…

Stay with a hedged stance but try not to get too cute with your investments here… Looking for cheap names and shorting the IWM as a hedge seems like a good way to play the market but make sure to cover on significant selloff days and to buy some of your favorite cheapies when there is blood in the street…

Larry Summers: Yeah There Is a Tech Bubble — Confidence (Bubble) Is Back!

I personally feel there is a “Confidence Bubble” as well, but Summers was quite keen this morning on stating that the latest tech rally was indicitave of speculative excess and a 1999  style tech bubble!

Just one day after Linkedin’s 100% debut rally, Larry Summers comes out stating that technology stocks are once again in a bubble and how amazing that is considering that just two years ago you couldn’t find anyone willing to invest any money at all in tech (proof that there are a billion suckers willing to buy high and sell low)…

It was funny to see at least one well respected businessperson/central banking type that is actually critical of the AMZN rise from $40 to $198 (good short here pretty soon possibly with $200 stop)… and NFLX quadrupling in just a year…

The Linkedin IPO is further proof that investors are willing to value companies based on how “cool” they are and are willing to pay to play “farmville” with their actual savings in their Ameritrade accounts…

Those of us who have been in finance long enough know how these events usually end: heartache, losses, credit collapse, dispair, anger, denial, and increased sales of Ben and Jerry’s and Generic Whisky!