Naked Short Selling
The market is in a major down turn.
Normally I write my blog at night after the market close but today I am at my desk at 11:30 am. As you see, I too am a hard worker : )
The Dow just fell over 400 points during the last few days.
There is blood in the street.
But I think the market is oversold in the short run. Technically, we should see the bounce next week (give people a weekend to come to senses). Unless there is major international crisis (which is always a possibility), we should see the market going up next week. So why such a negative sentiment in the market you ask? Let me give you few reasons:
1. North Koreans are firing (testing) long range missiles (bad)
2. Iran is developing Nuclear Weapons (they are not going to stop)
3. India just had a terrorist attack killing few hundread citizens (real bad)
4. Iraq is in the middle of civil war (very messy)
5. Israel is fighting with two countries (this is serious)
6. Nigeria is having oil supply problem (fire, what else?)
President Bush is in Russia to discuss above problems with fellow G8 members (wooo!). So what is the bottom line? Actually, this is playing out exactly as I thought. It's just that it came a bit too soon. All this will end in the third quarter. We just have to be strong for a few months. Let me offer you my predictions for your amusement sake (this is expensive stuff):
1. North Koreans have nothing (no big deal)
2. Iran will have to scale down (economic sanctions maybe?)
3. India's stock market went up after the bombing (terrorist? so?)
4. Iraq is going through a natural growing pain (freedom is new to them)
5. Israel will cease fire soon (if they want - they can kick some ass)
6. Oil problem is actually a supply/demand issue (price will head up)
All in all, no major disaster. I am looking forward to the 4th quarter.
Get your fire power (money) ready and start buying as prices fall. In a year or two, you are going to look pretty smart. RICK - my largest holding looks quite healthy. The next earnings report will blow away estimates. If you do not own yet, it is not too late - buy now.
You can also buy IGLD & EXPEZ cheaper than I did. IGLD is based in Israel - now you know why you get the chance to buy this on the cheap.
Finally I would like for you to understand how naked short selling works (it should be illegal). This is very educational and intelligently made - please forward it to your other friends for review as well. The link is as follows: http://www.businessjive.com/nss/darkside...
Have a beautiful weekend...
P.S: Those who are familier with the stock market and warrants I have one challenge for you. Expedia (EXPE) is now at $13.50/sh. EXPEW is at $1.7 (ask) and EXPEZ is at $4.3 (ask). Which is a better deal? Why did I buy EXPEZ instead of EXPEW? Can you explain the difference? I welcome the answers in the comment section.
Normally I write my blog at night after the market close but today I am at my desk at 11:30 am. As you see, I too am a hard worker : )
The Dow just fell over 400 points during the last few days.
There is blood in the street.
But I think the market is oversold in the short run. Technically, we should see the bounce next week (give people a weekend to come to senses). Unless there is major international crisis (which is always a possibility), we should see the market going up next week. So why such a negative sentiment in the market you ask? Let me give you few reasons:
1. North Koreans are firing (testing) long range missiles (bad)
2. Iran is developing Nuclear Weapons (they are not going to stop)
3. India just had a terrorist attack killing few hundread citizens (real bad)
4. Iraq is in the middle of civil war (very messy)
5. Israel is fighting with two countries (this is serious)
6. Nigeria is having oil supply problem (fire, what else?)
President Bush is in Russia to discuss above problems with fellow G8 members (wooo!). So what is the bottom line? Actually, this is playing out exactly as I thought. It's just that it came a bit too soon. All this will end in the third quarter. We just have to be strong for a few months. Let me offer you my predictions for your amusement sake (this is expensive stuff):
1. North Koreans have nothing (no big deal)
2. Iran will have to scale down (economic sanctions maybe?)
3. India's stock market went up after the bombing (terrorist? so?)
4. Iraq is going through a natural growing pain (freedom is new to them)
5. Israel will cease fire soon (if they want - they can kick some ass)
6. Oil problem is actually a supply/demand issue (price will head up)
All in all, no major disaster. I am looking forward to the 4th quarter.
Get your fire power (money) ready and start buying as prices fall. In a year or two, you are going to look pretty smart. RICK - my largest holding looks quite healthy. The next earnings report will blow away estimates. If you do not own yet, it is not too late - buy now.
You can also buy IGLD & EXPEZ cheaper than I did. IGLD is based in Israel - now you know why you get the chance to buy this on the cheap.
Finally I would like for you to understand how naked short selling works (it should be illegal). This is very educational and intelligently made - please forward it to your other friends for review as well. The link is as follows: http://www.businessjive.com/nss/darkside...
Have a beautiful weekend...
P.S: Those who are familier with the stock market and warrants I have one challenge for you. Expedia (EXPE) is now at $13.50/sh. EXPEW is at $1.7 (ask) and EXPEZ is at $4.3 (ask). Which is a better deal? Why did I buy EXPEZ instead of EXPEW? Can you explain the difference? I welcome the answers in the comment section.
posted by Jaewoo | 11:49 AM
3 Comments:
Wow, never thought that comment of a few days of weakness in IGLD would haunt me for a few posts:) But in case I think it is a fantastic pick and I agree it seems undervalued considering its growth potential. That being said, I will probably pick up some because it has beaten into the oversold area and the fundamentals look fantasitc.
The pick I love is RICK. You nailed that one amazingly well. I manged to get in at 6.90 (a little late I know) but the company does seem to be picking up new fancy strip clubs and growing at a pretty rapid pace. It really looks like they want to be the Starbucks of Adult Entertainment and I can see the stock flying far higher than it last did. Kudos on the pick.
In any case, get some rest and take care of yourself. You are right, health is important.
rjeev:
So, it was you who had the comment on IGLD. I have no idea if we have hit the bottom yet in IGLD. I hope not! My real wish is for it to go to say $2.00/sh? This is when as Kramer says "back up the truck". One does not get such fortune easily - at least we have a fishing rod in the pond waiting...
Thanks for your interest.
Yea it looks really oversold and beaten up right at this moment. I hope it turns around but the escalation in violence in the mideast could raise jitters again next week pushing stocks lower. The great thing, and I really believe this, is that the jitters will make for great oppurtunities in buying.
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