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
20,991 Blog Posts

Follow the Fundamentals

I know most of you ignore 8k’s like the plague, mainly due to your misguided beliefs that fundamentals don’t matter. Quite the contrary.

There is an urban myth out there that says “technicals trump all.” The truth of the matter is, without fundamentals, all of you fancy break outs would fall flat on their faces. The root of all bull and bear markets are embedded in the core fundamentals of the economy. Take AAPL as an example. None of your retarded charts could foretell such outperfomance, over such a long period of time. I acknowledge the fact that technicals can point a novice in the right direction. However, for the most part, technical analysis are the childish pyramids at Giza, while fundamental analysis is Puma Punku.

Case in point: Analyst Bomber’s call in AMSC. None of your moronic charts pointed to this sort of collapse. The same could be said about my recent call on the refiners or Muddy Waters’ obsession with Chinese lottery scams. The point: pay attention to the fundies too, if you are interested in seeing the whole picture. In my opinion, technicals are just one side of the story. It keeps you disciplined, but blind to many moving parts in this market.

I am about to launch a series of new tools inside of The PPT that will give the user the ability to scan analyst estimates, high and low, as well as revenue. How can this be useful?

Well, take the refiners, as an example. Aside from low PEG ratios, nothing in the current numbers say “this is bullish.” However, if you were able to scan for projected EPS and revenue growth, then calculate a high end estimate FPE and PEG, you would be like “OMG, this is so awesome and amazing.”

In summary, “The Fly” is about to launch some pretty “awesome and amazing” shit, on these here internets, within hours. PPT members stay tuned.

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27 comments

  1. CRONKITE

    nice pyramid puma punku reference

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  2. flyaway18

    WINNING!

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  3. Swinging for the Fences
    Swinging for the Fences

    HT – Mrs Fly – “awesome and amazing”

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  4. checklist

    that is quite a “clown raping” that AMSC is recieving… dare I say “clown raped as fuck”? no cocaine for them.

    I agree. I can’t imagine that any chart was bullish in late February 2009, but holy hell did fundamental analysis make you sit there and just wonder “really, are they seriously selling this thing off this much?” about several companies

    dow
    ash
    ge ( i remember amazing terrifying headlines like “losses at GE Capital could reach $10B in a worst case”. ok, thats how many quarters of cash flow from the industrial side? 4? 5? whoopdy doo.)
    bz
    xl
    AND MORE. these literally had to multi bag if they lived, and the odds of them not living were zip. Well GE never got THAT sold off, but still.

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  5. checklist

    you know what? speculative puts on companies before earnings is the play right now for trading funny times.

    companies who miss even at all are getting corn cobs shoved deep in their ears, followed by drano enimas. its unreal some of the selloffs.

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  6. checklist

    i need to hire someone to simply sit and make lists of earnings that are coming up and try to identify potential “clown rape” candidates with “no cocaine” in their boardrooms as they ran out.

    oh, wait, I suppose my PPT subscription would get that done for me in like 10 minutes. I should actually learn how to use that thing one of these days, instead of just looking at the hybrid score once in awhile.

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  7. MOOBER

    Cock and balls. This one is dirtier than usual.

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  8. skogie1

    Hey Fly, got any reading recommendations for someone learning to invest on fundamentals?

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  9. Messy Givermore

    Companies never lie about their fundamentals.

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    • Cascadian

      A lot of that Chinese true stuff gets lost in the translations.

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  10. JTU

    AG up a whopping 81.37% since Feb 24, 2011!
    Feb 24 closing price $14.12
    Today’s closing price $25.61
    WOW!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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  11. No One

    Question is, Fly, are you ready for the forthcoming drop?

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  12. ivanhoff

    You make a good point regarding 8k-s, but AMSC is not the best example as it has been in a downtrend (below declining 50dma) since December.

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  13. checklist

    I am buying tokyo electric tomorrow, fuck it.

    the ADRs don’t have shit for trading volume… may take a few days.

    my logic: its 5x your money or -100%

    the real question, the only real question, is: will japan allow their biggest utility to go bk or be nationalized, thereby “clown hammering” every pension fund in the country?

    its politics baby, all politics

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  14. Cascadian

    <>

    Timmy Geithner can clue them in about what to do.

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  15. Trading Nymph

    On the other post…Steel Makers got a rally pop over the darn Govt getting in my way today. Senators sent a letter to the chairman of the U.S. International Trade Commission in advance of an April 6 hearing regarding whether hot-rolled steel imports from Brazil, Japan, and Russia are having a negative impact on the domestic hot rolled steel industry….For India the Ore starts rolling April 20.

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  16. Analyst Bomber

    Thank you, sir!

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  17. Cascadian

    Dirty deeds…

    http://www.youtube.com/watch?v=hvTRGOTkw7A&feature=related

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  18. A Frog with an Axe to Grind
    A Frog with an Axe to Grind

    On a political note, Obama is a dick….and a loser. Good night.

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  19. Hawaiifive0

    Very cool idea, but we’re gonna need someone who can teach us this fundy stuff.

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  20. Mr_max

    Thx Mr. Fly!

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  21. Geoduck

    The cool thing about investing in fundies is you can use your investment capital for good. Backing fundamentally sound corporations is what capital formation in capital markets is all about. It’s just as easy to make money that way as it is to follow arcane chart action. The conference calls are most telling.

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  22. Memonbhaa

    Cant get through to the comments,
    What up!
    Am i banned,

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  23. PositvePsych

    “Hey, that looks like a penis!”

    That’s what she said!

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