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Monday, August 24, 2015

Today's winner -  Long term investors.


US stocks ??   i am not kidding...

Short Squeeze ,Great opportunity to Cost average Value Stocks


Right beneath all the Market turmoil and flash crashes,i see a great opportunity for buying the Value and Momentum players at a heavy discount..  I am not talking about Mall Discounts,i am talking about Outlet discounts and Costco discounts.  This market crash was caused by two unavoidable double edged sword of events

Friday - Massive option expiration in the middle of Rout

Monday  - Margin calls due to the Expiration of worthless options and issue of new covered calls.

Lets analyze today's crash at the peak levels ie. 1000 point DOW crash

FB -  Facebook was at one point trading at 72 $ and change.

The Momentum stock which not too long before valued at 110$ by leading market analysts,is now trading at 38$  discount. That is one hell of a discount for company that grows in the excess of 35% annually. One cumulative trade during opening selling was either buy or sell around 72$ and FB quickly bounced back to  82$ in 1 hour... That is 10 $ ride from lows...Looks like a huge market manipulation going or Short covering by hedge funds.Either way its enough heart attack for small investors like you and me.

AAPL - Apple plunges 6% and trading around April 2014 lows..

Apple the darling of Mutual fund owners was trading at the levels not seen since April2014.That is right before 4 quarters of earning surprise. For me that's a huge discount on earning multiples and zero premium on the earnings surprises we encountered past few quarters.Apple is a screaming buy at 95$.   The flash point trade around market around was 16 million shares with low price of 92$.. Lucky ones who got it.

Please never invest using Margin account.That will put u in peril.

More Analysis continues......................



Disclosure :   The author expresses  his/her own viewpoint on stock market and individual stocks.This is by no means a recommendation to buy/sell these stocks.Individuals are advised not take this as a recommendation whatsoever.  Invest your money at your own risk.




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