It’s very possible we see this stock on sale for $1 by the end of the year (or shortly thereafter). That means, 1 share of MUX, 1 small coke, 1 hamburger all on the dollar menu…
quote:
Originally posted by skinneejquote:Tall joke?
Originally posted by Richard Beer FrothIs it possible for you to short a stock…
RBF
Yeppers
RBF
All jokes aside, MUX values their own assets at $443M (looking at their balance sheet), not counting any earnings, so maybe there is some kind of floor around that. If I do my math correctly, that would be around $1.45 per share. If you factor in their earnings, then the ~$2 mark is probably “fair” based on a generic (non-industry specific) multiple 10x.
quote:
Originally posted by skinneejIt’s very possible we see this stock on sale for $1 by the end of the year (or shortly thereafter). That means, 1 share of MUX, 1 small coke, 1 hamburger all on the dollar menu…
No sales tax on MUX, so it’ll be cheaper than the dollar menu…
I haven’t researched, but this Co. must have a pretty low contribution margin with current prices compared to peers…
I’ll pass for now and wait until it goes below the golden arches dollar menu price point…
RBF
Assets on a balance sheet have almost zero to do with a Stock’s price. Ditto for earnings.But you already know that. Tell me about these lessons you learnt from shorting stocks. I’m all about learning lessons without having to get hit in the groin.
Y’all are going to be in trouble when school’s out gets back in here
quote:
Originally posted by PeaPodAssets on a balance sheet have almost zero to do with a Stock’s price. Ditto for earnings.But you already know that. Tell me about these lessons you learnt from shorting stocks. I’m all about learning lessons without having to get hit in the groin.
Y’all are going to be in trouble when school’s out gets back in here
Well the first thing is first… If you short a stock and it goes to $0, your MAX return is 100%. On the flip side, that stock could go infinitely higher which means your losses could be infinite… I’m talking “naked shorts” here not “options”.
That being said, during the big crash, I was shorting me some Countrywide. I was convinced that the stock was going to $0 and that I would have that nice fat return. Then Bank of America announced that they were going to buy Countrywide, which made the stock shoot upwards. I went from money to -$12,000 in the blink of an eye. Do you know what I have to show for it now? Just this story. That’s it… Didn’t even get a t-shirt out of the deal.
I know how naked shorts work. I was looking for a lesson. I already know how to lose $ fast. nasdaq futures in the opening minutes of the day session.
I am drawn to shorting and buying puts. the down bars tend to be much faster and longer than most upbars.
PeePal did you short MUX today? It’s going up…
RBF
quote:That was my lesson... Don't short... :smiley:
Originally posted by PeaPodI know how naked shorts work. I was looking for a lesson. I already know how to lose $ fast. nasdaq futures in the opening minutes of the day session.
There are much more fun things to do naked…
As far as options, as you know, they expire, so unless you are a good market timer (which I am not), then the odds are stacked against you. I can find a good premise once in a while, but I am usually like a year off (or more) on timing.
My last 2 purchases were YUMC and UNH.
I’m going to wait and see what /Schoolsout says before making any moves.
After being released, a lot of fish die, but a lot of them live also.
quote:All I hear is crickets.
Originally posted by CaptFritzI’m going to wait and see what /Schoolsout says before making any moves.
After being released, a lot of fish die, but a lot of them live also.
SJ and PP,
How about GE right now? Personally waiting for it to hopefully go lower, and start my entry point…
RBF
quote:
Originally posted by Richard Beer FrothSJ and PP,
How about GE right now? Personally waiting for it to hopefully go lower, and start my entry point…
RBF
http://financials.morningstar.com/valuation/price-ratio.html?t=GE
quote:
Originally posted by skinneejquote:
Originally posted by Richard Beer FrothSJ and PP,
How about GE right now? Personally waiting for it to hopefully go lower, and start my entry point…
RBF
http://financials.morningstar.com/valuation/price-ratio.html?t=GE
C’mon… Got to have an opinion beyond statistics…
RBF
quote:*DISCLAIMER: This is not financial advice. This is an opinion from a stranger on the internet.
Originally posted by Richard Beer Frothquote:
Originally posted by skinneejquote:
Originally posted by Richard Beer FrothSJ and PP,
How about GE right now? Personally waiting for it to hopefully go lower, and start my entry point…
RBF
http://financials.morningstar.com/valuation/price-ratio.html?t=GE
C’mon… Got to have an opinion beyond statistics…
RBF
With a big stalwart like GE, you are never going to see explosive growth, so typically one is thinking about dividends or capital preservation. Thus, “value investing” is probably what you are looking at here. A yield of 3.75% is probably considered “pretty good”, but I don’t know anything about their history of paying\raising.
But, as a company, how do you know if the stock is “cheap”, “expensive”, or “fairly priced”? For a stalwart like GE, I tend to draw my attention to the HISTORICAL P/E as compared with the CURRENT P/E. If the current P/E is much higher than historic, then either 2 things: 1) People are expecting a lot of sudden growth (which is doubtful for a company this large), or 2) Company is overpriced.
Right now, the P/E is 29.6 If I look back at the past decade, I notice 2 things:
- From 2007 to 2014, this number was around 15-17
- In 2015 it was 61 and has been dropping. Is this because of hi
Here is the impetus for growth and my reason for putting on the watch list…
GE doesn’t exactly turn and burn CEO’s, so it may be a while before an organizational change at the top happens again…
RBF
while you two are fiddling over PE’s and CEO’s. Schoolsout just sent me this.
29 trades. 29 wins. luck, coincidence? i think not
quote:
Originally posted by PeaPodwhile you two are fiddling over PE’s and CEO’s. Schoolsout just sent me this.
29 trades. 29 wins. luck, coincidence? i think not
Can’t give away all my secrets…
RBF
With the VIX trade, RBF has enough bank to afford some of that discounted fancy white braid from GM…
RBF