Take one large yellow onion, dice, saute in pan with a little corn oil or butter. Toss to taste onto medium rare burgers for an unforgettable meal.
teamonfuego said...
hey guys - i gotta say that the more i'm looking around at these high fliers, the more nervous it makes me feel about holding anything. i think there is way too much speculation in the markets right now. look at the valuation on the following companies:
CRM: trades at 60 times free cash flow
OPEN: trades at 121 times FCF
NFLX: trades at 45 times FCF
FFIV: trades at 40 times FCF
The more I peel back the onion the more it stinks to me. I think there is way too much speculation in this market. What do you guys think?
[2nd_ave edit] Given a choice between a high flier and a discarded POS, I've never hesitated to pick up the POS. Mix in sauteed onions, and most people wouldn't know the difference.
TOF- I agree. Wouldn't touch those "stinkers" with a 10' butchers knife. My take is a rotation will take place to larger cap co.'s with growth/international exposure. For a list, I would check out 2nd's current positions.
[edit] A 10' butcher knife? Holy cow, man- I thought those were called guillotines.
For me, I'm happy with my positions. I'm way overweight BAC (9000 shares) compared to my total port, but I feel the other positions can balance that out.
I just did a random FINVIZ search of major US. co's forward/PE. No cherry picking...
ReplyDeleteGD-9.72
AA-12.09
CE-10.13
AAPL-14.62
RIG-9.87
CHK-8.81
V-14.03
AXP-12.45
DO-9.93
CSCO-10.77
INTC-11.24
BAC-8.91
COF-8.95
GS-9.32.
Mark - Yep, those are the ones that we should be investing in. I like CHK, BAC (still have some of this), and CSCO on that list up above. I also really really really like IBKC longer term. It's a small/mid-cap but will one day be a large cap.
ReplyDeleteTOF- Just to be fair, I just checked IBM which has been very strong. 11.24. I'm trying to find a spot I like in IBKC. Thanks for that one.
ReplyDeleteJust messing around as these pop into my empty head...
ReplyDeleteCVX-8.93
XOM-11.30
HIG- 6.85
ReplyDeleteDec 10 (Reuters) - Bank of America Corp restarted about 16,000 home foreclosure cases across the United States on
ReplyDeleteMonday, the Wall Street Journal said.
The bank had informed its foreclosure attorneys this week to prepare new affidavits in 7,800 cases where court approval is
required to foreclose on a home, the paper said.
In those states where court approval is not required for foreclose on a home, the bank has asked its attorneys to lift the hold
on 8,000 delayed foreclosure sales, according to the Journal.
"We are taking a deliberate and phased approach," Bank of America spokesman Dan Frahm told the Journal.
The majority of the reopened foreclosure cases are in Florida, California, Texas, Georgia and Michigan, the paper said.
It will take Bank of America six days to review and approve each newly prepared affidavit, a spokesman told the Journal.
Bank of America could not immediately be reached for comment by Reuters outside regular U.S. business hours.
Many banks including Bank of America, JPMorgan Chase & Co , Citigroup Inc and Ally Financial, had temporarily
suspended foreclosure process for sometime amid allegations that banks had used "robo-signers" to sign hundreds of
foreclosure documents a day without proper legal review. (Reporting by Sakthi Prasad in Bangalore; Editing by Kim Coghill)
Locally 2nd Ave's home appears to be speared from this early list.
You guys really didn't think this whole title/paper work bullshit would last did you??
Mark- I edited your main post, mainly for entertainment purposes.
ReplyDeletebtw, I'm on 'vaca' (I started hearing that term used about 6 months ago) until next Tuesday. But I'll be at home, catching up on reading, movies, and...yard work.
ReplyDeleteI'll feel a lot better (and so will Landry) once we break DJIA 11500 and it becomes 'support.'
ReplyDeleteMark - There are others I've found that look overvalued too, like TIF, BIDU, and even CAT and some industrial names. I guess I'm just getting nervous that there is too much froth in the market because whenever I see some of these high fliers have such lopsided positive returns versus others it makes me nervous. This comes from my memory of 1999/2000 and 2007 but maybe I'm just remembering only the bad times in the market.
ReplyDeletebought a bunch of DGP on the panic
ReplyDeleteGuess those 100.00 exercise pants with the logo (http://shop.lululemon.com/Challenge_Pant/pd/np/2090/p/2829.html) paid off bigtime for lululemon.
ReplyDeleteLululemon said third-quarter net income increased 82% to $25.7 million, or 36 cents a share, from $14.1 million, or 20 cents a share, the year before. Revenue jumped 56% to $175.8 million. The numbers exceeded analysts' expectations.
Lululemon shares were jumping by 8.4% to $60.36 in premarket trading.
Bought a little TYP at $24.64.
ReplyDeleteMore on market valuations, this whipper snapper actually draws, shares and explains his conclusion:
ReplyDelete"In conclusion the market is definitely not extremely over valued based on the above data. However, one can make the argument that the market is moderately overvalue, and just looking at Tobins Q it is very overvalued. With the exception of P/BV, P/E TTM all the indicators point to at least a slightly/moderately overvalued market.
However the historical data fails to take into account current record low interest rates. I know not many investors take issue with my inclusion of interest rates in the equation. However, I think that most investors look at the stock/bond alternative. Right now you can get some blue chip stocks with dividend yields close to the Ten year treasury yield. I think with taking into account interest rates the market is fairly valued."
http://seekingalpha.com/article/240456-stock-market-valuation-for-december-2010?source=yahoo
NFLX - Will join the S&P 500, I bet once that's done, so are NFLX longs.
ReplyDeleteDamn. I should have stayed in bed. This market is putting me to sleep.
ReplyDeleteYou guys seeing anything interesting?
Mark - ENTR, MNKD, CIEN
ReplyDeleteIf there is a worse ETF than VXX (ok, maybe UNG) please let me know. Also, the next time it spikes more than say 25%, please remind me to short it.
ReplyDeleteDo financially sophisticated people actually read Zero Hedge?
ReplyDeleteIf so, I guess they read Yahoo message boards as well?
I doubt it, in both cases.
The truth is, although he makes numerous very good points, Ron Paul also has pushed many very strange and out of mainstream ideas. Ron Paul is considered an eccentric by many in the halls of Congress.
LONDON, Dec 10 (Reuters) - The premium investors demand to hold peripheral government bonds rather than benchmark German debt rose on Friday with investors keeping to the sidelines as European Central Bank bond buying slowed down to a trickle.
ReplyDelete"The ECB is only coming in to buy tiny scraps at the moment, official buying is very limited. They have been in the market in Portgual and Ireland today buying clips of 10 million across the curve," a trader said.
"There's only one driver that drives spreads tighter and that is ECB buying and it's not really there so we just drift wider."
ECB bond buying has been the only line of defence against widening peripheral spreads in the absence of co-ordinated political action, with traders saying it ramped up the programme at the end of last week.
The Portuguese/German 10-year bond yield spread rose to 342 basis points from around 328 bps at Thursday's settlement. The equivalent Spanish spread was up at 9 bps at 248 bps.
The cost of insuring government debt from the peripheral euro zone countries struggling with large debt burdens and banking sector problems also rose, according to prices from credit default swap monitor Markit.
Getting creamed. Anytime I try to hold onto anything, it collapses.
ReplyDeleteBought some RBY on the panic there, too.
Anything interesting? I'm watching GMO closely, today's the last day of the permit hearing.
ReplyDeleteAssuming GMO has in effect "satisfied" the last few remaining farmers, an announcement could be issued in the very near term.
I'm not holding my breath though...
Mark- Actually, I'm unable to type anything into the body of a 'lead post.' My access has either been restricted, or I've been hacked.
ReplyDeleteGMXR - (shark's pick) showing some movement
ReplyDeletei have a spidey sense feeling we drop hard into the close today.
ReplyDeleteto that end, I have added more TYP at $24.6.
ReplyDeleteI'm blogging away at the Toyota dealer again, and getting high on doppios.
ReplyDeletetof- No way, man. We ramp higher today.
ReplyDeleteI thought today would be all about the probability of the tax concession not making it smoothly through Congress, along with the unemployment extension?
ReplyDeleteOf course, the above comment was made under the influence of caffeine.
ReplyDeleteGMXR - Yeah, it looks good if it can close better than ~$5.08
ReplyDeleteChicken - I think those + the impending data from China will have a negative impact on the markets. Add in that everyone is bullish on CNBC and that bears have thrown in the towel and I suspect we get an unsuspecting pullback, albeit short and sharp.
ReplyDeleteSenate is moving forward on tax deal, but no vote till at earliest next week?
ReplyDeleteTOF - I wouldn't discount your scenario, that's what I've patiently been waiting for.
ReplyDeleteSCO turning??? OCLR continuation.
ReplyDeleteBill thinks we may test the late-April high of 1217 on any pullback, if you're looking for a pullback 'target.'
ReplyDeleteThe market NEVER moves according to expectations, at least in the ST. So we should expect the unexpected, and leave it at that.
ReplyDelete2nd - that would constitute a sharp, short pullback in my mind. Remember, the name of the game is to throw off as many of the correct people as possible before more in the direction those correct people thought it would move. I don't think the market has fully done that yet.
ReplyDeleteeww that was some broken english but you get my pt
ReplyDeletetof- My take is a little different. I see J6P starting to pay attention + feeling left behind. No way the train reverses nicely to allow them on board.
ReplyDeleteLet me post the above take on CC and note the responses (if any).
ReplyDeleteUnstoppable newSubmitted by 2nd_ave (5026 comments) on Fri, 12/10/2010 - 11:56 #75781
ReplyDeletehttp://www.youtube.com/watch?v=JA63glohLhg
Great film by Tony Scott, with spectacular shots of Pennsylvania.
What's J6P thinking now? I think a break to 11500/1250 catches their attention. A few of them have begun to mouse over the 'Buy' buttons, wondering if the market is getting away from them. Most likely, they're still in 'Chill out, plenty of time to jump out of the cab, throw the switch, and climb back in' mode. Do we pull back? I don't think so. No way the train reverses nicely to allow them to board- they get left behind. JMO.
Sold the DGP too early for $2000 profit
ReplyDeleteforgot I had bought DGP in 2 other accounts this am
ReplyDeletesold those for another $750 profit
now at $2750 for the day. still long RBY
2nd - you're probably right. my take on the market over the past week or so has been cloudy at best. i've basically broken even during this time largely because of NFLX puts...
ReplyDeleteAlright- I tweaked our set-up options a little, and I was able to compose a 'New Post.'
ReplyDeletetof- Have you closed the NFLX puts?
ReplyDeleteI'm pretty sure j6p has been looking for an entry, some of them are already in and waiting to add... ;)
ReplyDeleteOne thing I like about winter, even though he's got a heated blanket in his private box, this Chihuahua here always curls up in my warm lap.
ReplyDeleteThe house is vowing to reject the tax extension.
ReplyDeleteI bet they get the Arlington cemetery(Lee's Plantation) bill passed though...
I hear the TSA even searched Santa's sack the other day...
ReplyDeleteWho wants to bet the following price events won't occur prior to the Fourth of July 2011?
ReplyDeleteNYMEX light crude will break $100/bbl
COMEX gold will break $1570/oz
COMEX silver will break $36/oz
These are my targets.