Tuesday, October 27, 2009

A couple of good reads for today:

Jeremy Grantham on the market's over-valuation and possibility of severe correction:


Karl Denninger rants on about AIG / Fed / NY Fed / Geithner / Paulson:


I recommend that you read both as you contemplate the silliness of AMZN at $124.

AMZN -- $124 = Crazy; Stupid Price


AMZN for some reason gets away with reporting a mythical Free Cash Flow number, that treats not paying its bills (carrying huge accounts payable for inventory) as Free Cash Flow.

This, of course, is ridiculous.

No matter how you slice it, even reporting good numbers and decent growth, AMZN has something like an 80 PE.

For a retailer !

It may be the bubble pump flavor of the day; but at $124, it is way too high.

Friday, October 9, 2009

BIDU -- what to look for

Here is what I am looking at w/ BIDU which obviously is very strong on an upgrade and infested w/ momo traders.

Looking for:

1. R2 to hold (about $424); and then

2. A break below the 20 min and 50 min MAs (red and green lines).

3. Some market weakness would help !