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
23,445 Blog Posts

Priced for Perfection

High beta stocks fuel speculation. It’s what keeps you coming to the market place day in and day out. However, from time to time, the caprices of speculators gets them tangled in a web of lies and deceit, leading to grandiose losses–as is the case with DMND this morning.

I’m a big fan of high growth, high multiple stocks, as they tend to make it worth my while when investing. For good or for worse, they offer excitement and vigor. But sometimes they make me want to slap the shit out of people with hot slices of pizza. The following list, stolen from the archives of The PPT, are names with extraordinarily high PE’s and excessive year to date returns aka “priced for perfection.”

On a good earnings miss, anyone of those stocks could fall 20% in a minute and no one would bat an eyelash in surprise over it. They’d be discarded like weak babies in ancient Spartan times. People on the StockTwits would make fun of longs, lending to the fervor and ultimate demise of the shareholder base, leading to even greater losses. In many respects, the entirety of America is in this position.

We have lots of debt and a great deal of gusto. Hell, we fight wars in perpetuity and promise to fight more, even bigger ones, in order to stop others from acquiring science. Our tanks move fast and our airplanes drop heavy munitions on backward people. But our treasury is depleted and our government is stupid. Everything is going to be all right, however, because Clint Eastwood said so. He is a great cowboy of a man and doesn’t like to compromise, especially with bad guys.

Over in Europe, they have bombastic plans to bail themselves out, even though from a mathematical viewpoint, it makes no sense whatsoever. But, as a whole, we’ve forgotten about the short comings over in Greece, Portugal, Ireland and Italy–because it is so 2011. The debt doesn’t have to be paid and the banks don’t have to honor CDS contracts and they don’t even need to recognize their losses. We can just make believe none of this ever happened, whilst watching cartoons and sloppily eating cereal with excessive quantities of milk.

As for me, a mere spectator of the market, servant to the readers of top shelf financial commentary, I humbly wait in the balance for an opportunity to buy margin liquidations.

That is all.

[youtube:http://www.youtube.com/watch?v=fEWnthbLmBY&list=UULqZIDVSLzotsQGp3jWYVJw&index=53&feature=plcp 603 500] If you enjoy the content at iBankCoin, please follow us on Twitter

60 comments

  1. drummerboy

    clint eastwood bitchezzzz

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  2. drummerboy

    my dmnd nuts have turned into blue balls

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  3. riggedgame

    You call it “priced to perfection”. I call it a RIGGED GAME, as in the case of Netflix,
    GMCR, APPL, CMGR, and a host of other “hots”.

    The insider brokers know which stocks are being pumped and dumped. They bought in early, and they own the appropriate options.

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  4. TraderCaddy

    AAPL is holding up the NDX 100 like a 3 leg stool.
    Divergence is at ridiculous levels and sell/short the news that has been built into the Greek crap is about as obvious as I have ever seen.

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  5. alf44

    nice post, Sir !

    .

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  6. miles to go...

    Top shelf financial commentary indeud.
    http://www.youtube.com/watch?v=_VrFV5r8cs0

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  7. Bravo

    “whilst watching cartoons and sloppily eating cereal with excessive quantities of milk.”

    LOFL

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  8. Anton

    “…discarded like weak babies in Sparta…”

    Nice.

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  9. Bravo

    Dick Bove is a man of great honor….Great honor…

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  10. moolahheaven

    brilliant brilliant brilliant! I am off now to play ‘Pac-Man’, stare at the wall, waste money on my fiance and do NOTHING until I am prepared to re-enter this fray called Wall st; I’ll let the suckers pile in…

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  11. Septic Tanker

    “As for me, a mere spectator of the market, servant to the readers of top shelf financial commentary, I humbly wait in the balance for an opportunity to buy margin liquidations.

    That is all.”

    Hahahahahah, You’re the man Fly!

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  12. mhass33

    “Hell, we fight wars in perpetuity and promise to fight more, even bigger ones, in order to stop others from acquiring science. ”

    Yeah, and Hitler was just fixing Germany’s economy.

    I expect better from you, Fly.

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    • The Fly

      You expect perversion!

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    • The Fly

      Everyone is Hitler these days. Nabobs

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      • mhass33

        The facts speak for themselves. Iran is run by nut jobs. They have supported terrorist groups for years. To think they would suddenly stop upon acquiring nuclear technology is absurd.

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        • Carlo Zamboni

          We’ll justify an attack on Iran (by either us or Israel) by saying “they’re crazy, they want to destroy Israel”. But the fact is Iran needs Israel. They need to be able to point to an external enemy to distract their citizens from the crappy job they’re doing at running the country. It doesn’t work on the urban Iranians, but it does work on the bumpkins, who happen to be Imadinnerjacket’s base. So when our leaders rattle sabers against Iran, what do you think they’re trying to distract us from?

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          • wilmer

            Iran doesn’t need Israel. They would love to see Israel extinguished. Now that Saddam is out and Iraq is no longer a threat, who besides the Israelis’, has the military and economic force to contain Iran in the region? No one. Israel is the one obstacle left in Iran’s quest to be the dominant power in the Middle East.

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        • MCPJ

          That is the EXACT same argument that was used against IRAQ in 2002-2003… History repeats itself!

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  13. JTU

    I can’t find the actual earnings release date for SOL but it must be around Feb.23, does anyone know for sure? It looks like SOL wants to continue going up into earnings. It’s up over 39% in 7 days!

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  14. Yabollox

    People who didn’t make their mortgage payments are going to get paid by the brave Attorney Generals who are bending over the very banks who did not get their payments and extracting cash from them to give to the poor deadbeats. What a great country!

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    • TraderCaddy

      Congratulations to the assholes who refied (and there are millions), pulled out cash (to remodel, buy 2nd homes,cars,boats and take vacations) when the home values were rising and were encouraged to do so by Greenspan.
      Everybody else: you are suckers.
      Especially you morons who have paid off your mortgage the last 5-8 years by working hard and in many cases working a 2d job and or overtime.

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  15. razorsedge

    yet agin we bail out the banks, but on the other hand should b good for bac stock

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  16. Anton

    Regarding iBC icon Rick Ross:
    http://nyr.kr/weNjsT

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  17. thorium

    Chinese spammers in the blogger network again.

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  18. Older Than Dirt

    Just in case ya dinna know:

    LNG – Tankers is not the professional name, but LNG Carriers, just like Car Carriers are not dry cargo ships etc.

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  19. BullRun

    AAPL is up 22.5% YTD just FYI

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  20. Belly of the Beast
    Belly of the Beast

    Check into XPO, you might want to wait until they make some acquistions.

    DMND – Now you know how Paulie Walnuts got his name.

    Edited for National Television:

    http://youtu.be/xp4QVYNAFcQ

    .

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  21. noodleboy

    quick! will crude close above 95 today?!?!?!?!?!?!?!??!?!?!?

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    • drummerboy

      why not,they pushed the rbob back to 3 bucks again for uncle sugar

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  22. MightyDog

    I am curious as to why you do not take short positions, Mssr The_Real_Fly?

    It would seem prudent given the times to consider short – why only play one side? You play to be one of the Robber Barons – Jay Gould perhaps. He played short and made killings – which then is used to buy firesales.

    Thank you for entertaining my lowly post,
    The inquisitive MightyDog.

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    • BullRun

      That was prior to the Naked Shorting that has been outlawed now.

      They can force you to cover your shares at the top of the market and say the law says so.

      Scottrade is relentless in this tactic and seems to help the market not be able to crash like it used to. As soon as we start heading down people start selling their longs and the brokers start calling shorts because now their naked.

      Rigged game.

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  23. 4fl3x

    Thanks Master Fly.

    IPSU up 50% today, pretty sure you recommended it as a squeeze candidate.

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  24. JTU

    Everything solar is up big today!

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  25. MightyDog

    ?? That’s not naked shorting? Naked shorting is only possible by MMs, not retail. I’ve never had a margin call on a short position unless the damned thing goes green against me and I need to make up the margin requirement difference.

    Naked shorting means: I am not borrowing existing shares, I am just selling shares. There is no underlying. Shorting is borrowing the stock and selling it open market with the intent to buy it back lower and return the shares. Those shares are managed by the brokerage.

    That said, if all long’s sell their positions, those short positions would be called to cover the sale, which means they would be bought at the price the long is selling at.

    Shorting is not Naked Sorting. Naked Shorting has been illegal for time immemorial. It was ludicrous they made ANOTHER law for it. The SEC just wasn’t doing it’s job. Plain and simple.

    IDK – maybe I misunderstand what you are trying to say?

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    • Yabollox

      If the owner of the shares you borrowed decides to sell his shares, you have to find replacement shares or ? You would in essence be naked short. Not initially, but by virtue of the owner hitting the sell button.

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    • drummerboy

      yea, tell that to jagoff’s who are naked shorting the hell out of dndn in thousands upon thousands of shares while the sec turns away

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    • BullRun

      You must not be using Scottrade…

      Because you will get called to cover your short before you want and without running into any margin requirements.

      Just to see how tight there rules were I tried a tiny amount to see if I would be forced to sell, like 10 shares short the qqq which was less than a 1,000 dollars worth and they called me to cover it after about two weeks.

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      • MightyDog

        True BullRun – I was using ThinkOrSwim which went to Ameritrade and now OptionsHouse exclusively for options trading…

        Sorry to hear re: Scottrade. In a word: fuckem.

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  26. MightyDog

    I buy long dated puts now anyway, esp with VIX so low. But, that’s obviously not been workin out for me. :/

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  27. London

    Greece… solved!
    Mortgages… solved!
    Jobless claims .. down!

    Market today – dead flat. XIV down. Don’t need to guess what the near-term holds. Fly’s about to get paid for waiting while being right. Again.

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    • hillary climtoon

      LNKD is not on the list either…we’re enjoying AH on that one too…

      Fly’s GSVC doing another secondary..
      is he still in TEA by the way?

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  28. hillary climtoon

    No, that is not all. AAPL is not on the list.
    That’s why everybody owns it. La creme rises to the top. always. Cheers!

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