iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,463 Blog Posts

STOP GAMBLING

Shares of DMND are getting eviscerated, following the revelation that there really is a walnut mafia and the company is wholly criminal. Having said that, I am happy to report that I sold said shares in the mid-30’s a few weeks ago–all happily and merrily reported here at the time of trade. GRPN and EA are getting clocked too, while AKAM springboards higher.

If you are new to the market and playing the earnings guillotine game, just know you are gambling, not investing in anyway whatsoever. After such a huge run up, shares of companies who disappoint will be annihilated. If I were you, thank heavens I am not, I would avoid all earnings plays, unless the position is so small it is immaterial to your position, similar to my CPST position.

Of course I did not like to see CPST down today; but it’s been up over the past few days, hasn’t it? Ahead of earnings, weak hands will sell; but that has nothing to do with inside knowledge of what to expect from CPST. If the stock went straight to zero tomorrow, I would lose 5% of my assets under management, entirely immaterial to my position.

As you scurry about looking for a roulette table to gamble your small fortunes on, “The Fly” waits in the tall grass, moonstruck by the meal ahead.

http://www.youtube.com/watch?v=57FG5vBLKvc

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60 comments

  1. No One

    DMND is getting teabagged.

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  2. Indeud

    indeud !
    fig

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  3. jose mann

    I am officially diamonded …

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  4. Bobby Boucher

    “If I were you, thank heavens I am not, I would…”

    Nice ‘Wall Street’ reference, Senor. I hope you paid Oliver a royalty for using that line lol

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  5. asteroids

    Fly is right. There is “no edge” in this market.

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  6. mrkcbill

    $DMND Bought @33.40 rode down to $26 and sold at $37 all within like a week. I just threw up a little in sympathy.

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  7. der kommissar

    I missed that, but I think CNBC was telling me how many rolls of toliet paper were used during the Super Bowl at the time…
    http://revolutionarypolitics.tv/video/viewVideo.php?video_id=17684&title=legendary-investor-jim-rogers–only-ron-paul-has-a-clue-i-support-him

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  8. Carlo Zamboni

    Anybody buying DMND tomorrow? For GRPN, what price would make anyone here a buyer?

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    • NC DJ

      I expect Implied VOL to explode on DMND. I would seel put spreads, and buy covered calls … The stock is going back up to 35.

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  9. fifty2weekhi

    DMND chart looked good as of today, aside from the large red volume. This market is full of land mines. As for CPST, I have it in my IRA so I’ll sit on it. But earnings plays are casino plays however you slice it. http://goo.gl/QdMd5

    What time does CPST earnings come out anyway?!

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  10. OG

    Advice I never seem to follow.

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  11. Anton

    Great and perfect clip.

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  12. gambling?

    what you guys need to do is go 100% long NBG tomorrow.

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  13. xxxHuggieBearxxx

    I love how the motherfucking market goes up everyday, banks especially.

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  14. razorsedge

    ese, + 5.9, since 2/6.

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  15. Blind Read Ant

    At risk of ban:

    Fly: “If I were you, thank heavens I am not, I would avoid all earnings plays, unless the position is so small it is immaterial to your position, similar to my CPST position.”

    Fly, you wouldn’t consider NJ realty for $ 3.2 if you’re seriously ready to “own.”

    Seriously. fucker.

    p.d. For that. Get into RealVille near Santa Barbara.

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  16. Colonel von Ryan

    We need to outsource our military to China. Anyone willing to die just to look macho will win any war they fight.

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    • Rome

      Outsourcing to the barbarians and expecting them to protect us against the barbarians is just how Rome became a crappy city in the EU. Western Civ 101

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      • Old Salt

        Insightful and to the point. Now what is the current equivalent of bread and circuses?

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      • Colonel von Ryan

        Ok so knock the rust off of your M4, take a little target practice and go to Afghanistan and win the hearts and minds of the wonderful people there.

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    • William The Conqueror
      William The Conqueror

      Colonel, you assume the grenade is real. In the second round close up, look where the grenade is dropped and then the location of the explosion.

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  17. jg

    EA CFO departure. Was +8% off stupid earnings report.

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  18. Yabollox

    I threw a little gambling money at DMND after hours. They still got nuts, and Pringles.

    Stock market investing is a type of gambling. But if you pick good companies in good situations, as best you can, the house advantage swings a little bit into your direction. imo anyways

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  19. JTU

    What does the restated earnings really mean for DMND? What are the consequences?
    Meanwhile MOTR and SOL are gathering momentum!

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    • Bullish

      It means NO Pringles deal.

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    • JTU

      I realize now that P&G will probably reconsider their sale of the Pringles brand to DMND and firing the CEO and CFO can’t be good news. Class action law suits are sure to follow.

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  20. Victor Merciless

    Fly,

    I’ve been holding AKAM for a long time now. I originally purchased it after evaluating all the stocks on a screen you ran for large cap stocks down over 30%.

    I bought it at $36, it ran to $41, and I held it through it’s plummet to $18, purchasing additional shares at $22. Despite the after hours surge, I still think there is room to run in 2012.

    Thoughts?

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  21. alf44

    … well, apparently “Sani-torium” is NOW going to tap dance his way … all the way to the Republican Convention !

    BWAHAHAHAHA !!!

    You couldn’t make this shit up if you tried !!!

    .

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  22. dave

    The market wants to take your money.

    http://www.youtube.com/watch?v=ewRjZoRtu0Y&ob=av2e

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  23. JTU

    Diamond Foods: Shorts Cheer Its Demise

    http://blogs.wsj.com/marketbeat/2012/02/08/diamond-foods-shorts-cheer-its-demise/?mod=WSJ_markets_stocks

    If the short interest in DMND was 10.5 million shares and 7,863,703 were traded after hours, does that mean that over 63% of the shorts may have already been covered? Does anyone think there is any value for DMND at 41% off today’s closing price? The low in after hours was $20.50.
    Think again! If you the 60 million and 20 million dollar costs that were booked in the wrong period back into 2011 and 2010 earnings then it looks like earnings were close to zero for the last 2 years! It looks like they tried to defraud P&G by boosting their earnings! They were planning on paying P&G in DMND shares for the aquisition of the Pringles brand.
    Does not look good!

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    • JTU

      Think again! If you add the 60 million…
      A Fucking game!

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      • drummerboy

        yea,but the whole idea was for p&g to take 57% share of the company as a whole.in essence p&g would be the owner of said nuts. the story is a little more complicated than anyone cares to delve into. maybe P&g didnt want to have anything to do with the 3 main shareholders/customers,ie: walmart/sams club/costco.and, if the numbers are real,in the 10k,along with dumping those 2 clowns could put it back to range.oh, deloite,douche bag should have caught everything back several q’s ago.how do they “not” fit in…….fuck this,this an oppurtuniteee for the patient

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    • DaveJ

      I am sure many who were short covered, and many who were long sold, so no telling regarding your 63% question. I would expect some sort of a short squeeze on this one at some point. If you are brave enough, sell put spreads and buy covered-calls. I am going to take a look at the Implied Volatility on options tomorrow.

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  24. Stringmusic24

    LMAO. Sold DMND this afternoon at 36.50, for plus 11%. Wow, that was close.

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  25. JTU

    Parker: S&P target of 1167 by year end
    http://www.bloomberg.com/video/85956154/

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  26. The_Real_Hmmm

    What’s interesting is that I saw this is the second time The Fly decreed “stop gambling.” The first time was on October 21, 2009 when the Dow was up 45% and the Naz 75% from The Devil’s Low. Interestingly it was just about the top for the banks and they had one more run and then waffled for the next two years, making one last attempt at the highs at the beginning of 2011. After that post the Naz continued higher tacking on 13%, followed by a 10% pullback, and then galloped 20% higher without batting an eye. MSFT made a monster run at that time; leadership rotated.

    While everything feels like we are about to pull back (don’t get me started on these fucking biotech companies), a gaze into the past can elucidate the humility of waiting with our hands upright against the fronts of our faces and curled around our brows, pressed against the cold window. Aghast with bewilderment we watch; our breath fogging the view with each exhale. The fat fucks at the trading desks within the warm confines of unequivocal reciprocity punch in orders for 52-wk highs, no matter the stock, and bellow thunderbolts of laughter as their greasy hands spin the squeaky Lazy Susan of analyst recommendations and sliced gabagool slathered in turkey gravy. A flick of the wrist and cured meats are callously thrown at the curmudgeons in risk management. One trader looks at his junior assistant while picking up a single grape from the spread, points to the window where the solemn man stands outside and exclaims, “hey pal, you see that fuckin value investor standing out there likah some kinda fuckin gavone? Well here’s an investment for them guys!” The grape smacks the glass and splatters in front of the man’s face as his head abruptly pulls away from the glass. “There’s a glass ah wiiiiiine, pal. Give it a year tah age.”

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  27. Goldie

    It all gambling.. Some bets are just crazier than others.. I’m about to bet on MCP myself.. It be going up

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  28. JTU

    Corporate insiders are now selling their companies’ stock at a rate not seen since late last July.

    http://www.marketwatch.com/story/the-insiders-are-selling-heavily-2012-02-09?link=MW_latest_news

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  29. TeahouseOnTheTracks

    OEW Recap:

    “The market opened flat today, and rallied to a new uptrend high at SPX 1351. Then had its third nine point pullback in the past five days to SPX 1342, before rallying for the rest of the day.”

    “We will need to see more than just 9 points on the downside before considering Minute wave iii, of Minor wave 5, concluded. For now, this small wave from SPX 1307 continues to extend.”

    “Short term support remains at SPX 1347, 1333 and then 1321. Overhead resistance remains at the 1363, 1372, and 1386 pivots.”

    “The short term OEW charts remain positive from around 1310, with support around 1333. Over the past four trading days the entire range of the SPX has been about 1%: 1335 (friday) to 1351 (today).”

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  30. locobbb

    SharesPost Financial Corporation completed its auction of 150,000 shares of the Class B Common Stock of Facebook, Inc. on February 8, 2012. A clearing price of $44.00 per share was established at the auction.

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