Last night I built an extensive buy list of companies whose share prices have been checked over the past month. I was surprised to see how extensive the damage was, considering we’re coming off new highs.
Over 250 stocks, with market caps over $1 billion, are down more than 20% this past month. Entire sectors, like shipping and coal, teeter on the edge of insolvency. The oil and gas space has been rocked to the point of absurdity. And the tech sector hasn’t been much fun either.
Let’s not forget, consumer dominated industries, like retail and restaurants, have been dead money for three years now.
Let’s make one thing abundantly clear: there isn’t a systemic problem in the economy, unless of course mass bankruptices amidst shipping and coal companies causes some sort of disruption. But we haven’t had a real dip in years and what better time than now, post QE, as the world fucks itself with ebola and war, etc., etc.
I need help, trust me I know.
The bottom line: LITB guided up and should run, like a devil chasing a priest, to $10. I like the ethanol space for a bounce, despite ethanol prices at 3 year lows. And, of course, I think energy should bounce, which in turn will help solar run a little. I haven’t sold TLT, ETR or EXC yet–because I am not motivated to do so.
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You still hold SOL or did I miss that sale? Thanks
love sol.
I made it a large holding the other day.
Mr. Fly what’s your take on DRYS? Looking 3 to 6 months out. Thank you sir.
DRYS is in the fag box, like so many others. If forced to choose, I say go with BALT.
Cleaner balance sheet.
I think SB may be a little better than BALT. They just signed a credit facility and should have no need for money anytime soon, but yeah you need to be looking longer term for even the healthy shippers.
They all suck
For solars, do you think the play is manufacturer/producer type (FSLR, SUNE) or the residential route (SCTY, SPWR)? OA has been talking about VSLR, and I’m thinking of hoping on that bandwagon. Impressive financials for an early stage solar company.
SCTY is so expensive.
$VSLR dude. Look into the company. Much further than SCTY was at this stage of the game.
Thanks for the insight guys, and all the hard work. Always appreciate you two and the entire iBankCoin team’s view; can’t be easy constantly putting yourselves out there.
Halloween is coming.
Hello Fly
I’m new and learning, but I’ve made two nice trades over the past three weeks. My husband says we should buy WLT, a coal stock. I told him it looks like its headed for insolvency as the chart is horrific. Do you have any opinion on undervalued coal stocks (WLT or otherwise) at this juncture or is the political climate such that they will never rise again? TY
I loved Walter Energy @ 120, @ 2 bucks?…not so much
Avoid WLT, unless you are gambling. Coal is dead and those companies are on the way out.
Bought the dip in spoos as all proper gentlemen are wont to do.
We run back to ATHs next week and trod along, kicking October in the face, until another dip occurs amidst fake concerns of trivial things like WWIII, Ebola Zombie Hordes, and Yellen’s lack of beard.
Things are as they always were, or better.
Holy shit! English people….where the hell did people learn to speak/write?
Eton College, 1845.
Energy sector is a screaming buy for the long-term.
Stocks like VNOM and CLR have been mangled.
Do you still think QIHU is cheap? You thought it was cheap at 77… Mobile gaming ain’t going away, even if BIDU spanks QIHU in search.
Shit, that stock is like a death trap. I keep thinking it will bottom and it keeps dropping.
YY is responsive to rallies, unlike QIHU
Grandmaster Capital might be selling QIHU short–10% of the float is short. Or other funds are dumping it b/c it no longer meets “mid-cap status” sub-10 billion dollar market cap.
Either way, I have no idea what the heck is going on. The 10% short float indicates that once the selling is done, the stock will snap back, but whether that will be at 70, 60, 50, who knows? Sigh.
What an asshole name: Grandmaster Capital
An offering to Le Fly: http://en.wikipedia.org/wiki/Patrick_Wolff
Any desire to add back ifon at $2
What do you think of bstar’s position of a deflationary spiral, if the economy is just Ok, could oil drop much more here?
Oil weak cuz dollar strong…dollar strong cuz JPN, EU etc are slowing…in a few months they will come out of slowing, dollar will adjust and so will oil, gold etc…its a bit macro-simplistic, but thats what i see…
Why is there a Mama and Baby bear on the IBC logo?
Is this a new contrarian signal?
Every employee at $JNS just became an enthusiastic stamp collector.