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Archive for the ‘Comments from the Chit Chat room’ Category
Google Bears Get Last Laugh As Stock Plummets
Investors who have been bearish on Google, even as the stock has soared in recent months to new highs, appear to be getting the last laugh on Yahoo’s Message Boards. The sarcasm and venom is dripping from nearly every post. Some posters are saying things like, “are we going to hit $800 tomorrow?” or “I thought it was $1000 this week. We still have a few days left to hit it.”
And some are just downright gleeful like this post from my_toes_smell:
I implore all of you gentle readers to open your hearts and minds to the wisdom of ’shortsqeez’…..for it is he, and only he, who can expose the unequivocal beauty of a stock that is quickly spiraling downward, much like the soft and hot brown t*rds of my large Labrador Retriever.
Ah, the creativity of the chat boards.
Google has fallen over $100 a share from $747 to $632 as of Monday’s trading.
The Bears “told you so.”
Panic as Freeport Drops 10%
Shareholders of copper and gold miner Freeport McMoran (FCX) are panicking on the Yahoo Message Boards. Freeport has been hammered the last few sessions, including a 10% sell-off on Monday. The stock is down over 20% in the last week.
Some posters are just saying things like, “it’s scary” and others wondering if the stock is going to keep plunging to infinity and beyond. This poster, yourkillinme, has had enough of the panic:
MORONS OR SHEEP or are they SHEEP MORONS? (surely some sheep are dumber than others)
It really doesnt matter. Even if they’re lemmings they’re destined to die of stupidity.
Go on now and sell, before you die of a heart attack!
It’s all fine and good when the stock is going up, up, up. But investors don’t know what to do when a stock has a sharp sell-off. The same company has suddenly gone on sale- yet investors are loath to buy in when the selling gets hot.
It’s why very few investors are “great” investors. Their stomachs can’t handle going against the sheep and buying when everyone else is selling.
Can you?
Chinese Stocks: Day of Reckoning Coming Soon?
China Mobile, the largest mobile phone manufacturer in China, saw its stock price plunge 11% yesterday. The stock was near its all-time high at the time and had more than doubled in less than a year. Was it a “normal” correction or are worse things yet to come?
Many investors fear a day of reckoning for the crazy Shanghai market. For some, it has moved up far too fast- with no fear of a sell-off. This Yahoo Message Board poster, mytechteacher, explained the dangers rationally:
It’s not China Mobile that will bring down China Mobile. Everyone is stating how it is such a great company, large china market, and so on. Look at the 1929 crash and depression. The crash was caused by our own government and many great stocks suffered.
I agree China Mobile is a great company. I purchased at $18 and $20 a few years ago. Unfortunity, I sold most of my shares(about 80%) at $101 last week. I decided to excute even thought it hurt me at the time, because this stock rose to quickly. My plans where to hold for many years.
Again, China is a great county and will thrive over the next decade. But if you step back for a minute, you would agree, double and triple digit increases (stocks and china index’s) in a year or two period of time is going to cause a major correction and possibly a crash.
It might be tomorrow or it might be in two years.
I lost a lot of money during the tech boom. Sold and got back in few weeks before the correction. I just want everyone to be carefully, don’t let greed get the best of you.
Will you know when to get out? Or will the greed dull your senses? (As it did to many investors during the tech bubble- as he so aptly points out.)
These 10% one day corrections are hard to swallow. But pullbacks are normal, even in bull markets. What will happen when the real BIG sell-off occurs in Chinese stocks? The race to the door will not be a pleasant one. Someone will be left holding the bag.
First Solar Will Make Me Rich
Well- the stock is making someonerich over the last year. Forget Google. The real action has been in solar power. First Solar (FSLR) to be exact. The stock is up from $23 to nearly $180 in after hours trading yesterday.
Earnings to come out on Wednesday but the stock has been soaring. It’s trading at the “sane” valuation of 170 times earnings (sarcasm alert, sarcasm alert). But hey- what’s not to like, right? Solar power is where it’s at.
The company just announced $1 billion worth of new contracts and there are skeptics, like rydercup11, on the Yahoo Message Boards about how much of a profit the company will really see from them:
Yeah… here we go again.
Thye announce $1B in contracts that occur over a 5 year period, or about $200M increase in annual revenues.
And, the market cap of the Co. goes up by $800M in the AH?
Even if this Co could generate a 20% net after tax profit margin on these sales, and that would be a phenominal after tax profit margin, that only equates to $40M per year in increased profits. And to assume a 20% net after tax profit margin is very very difficult to achieve, for a manufacturing entity.
The absurdity continues….
Be careful in companies that are trading up without any worries about company valuation. Apparently, some posters think Rydercup is being too logical:
Rydercup,
Obviously, you are not making any money, in this type of the market go with the flow and ask questions later, you are thinking it way too much…your loss.
Yes- Rydercup dares to question valuation. Will investors never learn? Watch out for a hard landing in First Solar. I don’t know when- but it will happen. Trust me.
Clueless - Comments from the Chat Rooms
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It's earnings season and with ...
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Depression is the rule of ...
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It's hard for true believers ...
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Potash Corporation (POT) has seen ...
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First Solar (FSLR), one of ...
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