A bunch of homosexual firms started coverage on YELP today with price targets ranging from $23 to $28. The lead underwriter, Goldman Ballsachs, started them with a neutral and a price target of $26. In other words, they are playing the game. Despite YELP’s crazy price/sales valuation, they weren’t thrown under the bus by Wall Street’s brightest and best because social networking is the new telecom. In other words, they are all competing for lucrative investment banking deals and rather not fuck up their credibility with prospective clients than make ballsy valuation calls on one of the industries key names. With Twitter, Foursquare, Pinterest and others, at some point, scheduled to come public, these dicksuckers (brokerage firms) are clamoring for deals. Hence, you will not find any big bracket firm overly negative on any social media company.
Just my two cents.
Futures are sharply higher, as concerns in Europe eased a bit. Yields tightened and their fucking markets ripped higher; hence, we are following suit–buoyed by robust earnings at AA. The tone and tenor of this morning’s tape is good. However, I am not going to jump to conclusions and suggest the coast is clear. What we witnessed over the past week was likely a garden variety correction, something completely normal in any tape. The specter of Europe delving back into a liquidity crisis is too unbelievable, like a sick, twisted Alfred Hitchcock movie. I can’t deal with end of days trading scenarios; it’s too much to bear.
Gold and silver stocks are both extremely attractive to me. But with 107% of my capital invested, I don’t have room for another investment. Clearly, commodity related stocks have been beaten to a pulp. The lion-share of the losses have been in precious metals and oil stocks. It’s as if the expensive and lucrative prices of the underlying commodities were meaningless. Eventually, something has to give. Either raw commodity prices are coming way down or the stocks are going way up. There is no middle ground.
Will I lighten up if we rally hard today?
Frankly, it all depends on what stocks run the most. If I get a few 5-7% runners, I might sell them in order to make room for something of higher quality that has sold off recently. Or I may eat a sandwich and take an afternoon nap, happy to make back some of my lost treasures.
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CENX, ANR, WLT and those silver and gold miners are all prime
glad to hear the Fly is of saner mind and mood this morn… oil is of great interest.. stocks have indeud not kept up with crude over the 100 roll and with continued gouging at the pumps, oil companies are surely going to kill earnings call…
Yeah! Go higher! I got jealous of your CPST cuz I was all out. For the first time in a while I am actually buying pre-market. Thinking about doing the same on YELP, but that money may go to MCP.
I’d wait to see how people respond to analyst notes on YELP.
Buy dips if possible.
this is the only finance blog i read. excellent writing
thank you.
Me too. Only one worth reading.
good shomping these days fly. been busy the last few days,good to see you’re rippin faces off.
Wooly Bully
While I agree with the FLY on yelp, I do see this move up as a giant head fake. Corrections last longer than 2 days and this is just some dip buyin and short covering before we move lower at least 5-10%.
There has been a very rhythmic push and pull with the market and most of the major corrections dont last 1 or 2 days but more like a month or so.
Kinda feels like hitch hiking …
http://youtu.be/17u01_sWjRE
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The price action over the last 6 trading sessions including today has the looks of a selling stampede. The stampede likely began on 4/4. Typically there is a 2 to 3 day rally in the early part before the selling begins again in earnest.
Selling stampedes usually reach trough prices on trading session 19 (5/5 if the count starts on 4/4) and end with a strong 2-day rally that usually begins on trading session 22 (5/9 if the count starts on 4/4).
I think you have the right idea…This smells like a massive short covering rally. The market has been moving in cycles with fear creeping in then the fed/low intrust rates/good news brings investors back into the fold. Most these moves are months in length.
I think we are entering the fear stage and the next rally will be in the summer or later.
Coeure Sucks. Now I feel better. Watch the Eur/JPY fall apart now. I so dislike Central Banks.
You so crazy!!!
“Hence, you will not find any big bracket firm overly negative on any social media company.”
Great insight. Thank you.
Didn’t Congress pass some laws to make research objective and separate from investment banking activities?
Anyone catch the Liesman smackdown of Santelli this morning. Funny shit.
forgot the link http://video.cnbc.com/gallery/?video=3000083541&play=1
I didn’t see any big “smackdown” there.
Everyone waiting for The Bernanke.
I get “Bearded” but why is Bernanke referred to as “The Bearded Clam”?
I know the answer is probably obvious but my inquiring mind would like to know.
Try googling it… not at work.
From a certain part of the Chesapeake Bay, comes a clam that has stringy like hair growing from the shell and it makes the clam look “bearded” but also makes the clam very delicious. Maybe someone who lives nearby, can post a photo of these delicacies so all can see a “bearded” clam.
I heard these geniuses on CNBC say that the Yelp insiders have to sell because the insiders do not know what Pres. Romney will do to the CAP gains tax rate. Would they really give up millions of dollars of future appreciation to lock in a 15 % Cap gains rate vs 20%?
I hope they are smarter than that.
Everyone’s capital situation is different. I know Romney is curious in curing our economy; aka, Romney-Economy.
T. Boone got off a “shit!” on CNBC. Right at the end he wanted to make one final point, couldn’t think of it so out came: “Shit!” their beeper did not work.