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
23,447 Blog Posts

The New Trader Handbook

Does RARE ever go down? I was gonna take a stab when it broke the magical $100 plane, just to see what would happen. Now look at it: a buck thirty and climbing higher.

The banks are where you want your long term capital. Super regional names like BOFI and SBNY are my favorites.

Avoid basic materials like the plague. We are enduring a period of deflation. Let’s be clear about this salient point. Oil is a trading vehicle, not an investment.

Biotech is hot for two reasons.

1. Big pharma is flush with cash and they need new drugs to fuel their growth. So instead of hiring talent and discovering treatments via R & D, they’re buying other companies at crazy valuations.

2. Biotech investors are living the dream and aren’t hamstrung by revenue or earnings growth metrics. Investors are dreaming of FDA approvals, subsequent billion dollar drugs and mega deals with big pharma. As a result, sky is the limit.

And of course there is a AAPL. If you’re going to be invested in U.S. equities, you must own the company with $190 billion in cash. You’d be foolish not to.

Then there’s the Internet security software names, all growing fast, but mostly losing money. These are high beta/risk/return plays.

Retail stocks are being dismantled by the AMZN juggernaut. The only online store that is growing faster, believe it or not, is M. The only aspect of retail that hasn’t been crushed by online vendors is footware, which is why FL, NKE and SKX are crushing it so well. Consider FINL for a long term turn around.

Lastly, we have China. Those maniacs should never be taken seriously, since their companies can’t be trusted. Trade them small and fast and don’t look back.

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10 comments

  1. vandamme

    Nonsense. China can print money and has throngs of people who want to consume. Which other superpower does that remind you of and how has their market done over the decades?

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    • Dr. Fly

      Good luck trying to figure out which Chinese companies abide and practice standard accounting.

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      • vandamme

        Yeah but that’s precisely how markets trade up – sift out the bad from the good. It means Chinese markets are maturing that we’re even pondering that. Oh and the answer is Vips and Jd among others.

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      • czechmate

        FASB 157 has been suspended (on ice) for years now. You can’t possibly be suggesting that US corporations aren’t cooking their books as well, no?

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  2. biffer

    ACAD is immolating the shorts.If it breaks 52 should be another ramp.

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  3. teslawasright

    Fly – Le Fly – shall we consider the IMF meeting in Peru in October to suggest a Yuan addition to the reserve currency list and a large USD sell?

    Hmm – juice_the_green

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  4. boyaj

    Awesome post all around. One thing I’d like to throw in for the cyber security plays is that VDSI has displayed consistent revenue and earnings growth, but they currently cater to mostly financial institutions. These are my favorite types of posts.

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  5. bankindamonkey

    FLY, what do you think of PACW? or are they not big enough

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  6. bonobo smores

    $SBIO biotech innovation, strong start going nowhere but up

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