GOGO/Palotay – They don't make any money with a $1.5Bn valuation and $500M in revenues so, even if they begin to drop 10% to the bottom line while doubling revenues over the next 3 years, at $18, they'd still have a p/e of 15 but they aren't growing at 33% and they are still throwing off losses so your bet is really that people will ignore this for 3 years and, in fact, embrace the loss and grace them with MoMo valuations. That being said, I DO like them long-term as they seem to have this WiFi thing on planes locked up for now so I don't mind selling Nov $15 puts for $2.50 and buying the Nov $15/20 bull call spread for $2 for a net .50 credit, so your worst case is owning them for net $14.50 and your best case is a $5.50 gain at $22.
AAPL/Albo – Like I said, they are establishing credit. It's like a kid with his first credit card – gotta make those payments, then they up your rating and more offers come in.
Good article Diamond, thanks for finding it. Seems like the ratings agencies let their opinion of a company's future prospects influence their view of the current finances a bit too much.
Play/Diamond – Yes, CASH!!! Makes me worry about EGLE.
Oil/Albo – Good call, dropped hard and fast from $103.95 to $103 for a nice winner (again)!
Pay/Shadow – Hopefully that's a sign that we'll get some wage inflation soon. That's really all I want to see to get bullish on the economy again.
NFLX/Jabob – Interesting plan. Seems like VOD is hoping to stick it to their clients with data costs (I know I want to strangle the kids when the download movies in the car).
April 17th, 2014 at 1:21 pm
Ports/Living – Very useful info, thanks! The drop in the BDI tells that story well enough – back below 1,000 again is the worst since last spring and much worse than 2011. As with the Beige Book – it's simply not the kind of data that justifies all-time market highs.
AAPL/Albo – Like I said, they are establishing credit. It's like a kid with his first credit card – gotta make those payments, then they up your rating and more offers come in.
Good article Diamond, thanks for finding it. Seems like the ratings agencies let their opinion of a company's future prospects influence their view of the current finances a bit too much.
Play/Diamond – Yes, CASH!!! Makes me worry about EGLE.
Pay/Shadow – Hopefully that's a sign that we'll get some wage inflation soon. That's really all I want to see to get bullish on the economy again.
NFLX/Jabob – Interesting plan. Seems like VOD is hoping to stick it to their clients with data costs (I know I want to strangle the kids when the download movies in the car).
May Futures/Wombat – You CAN but you SHOULDN'T.