Trading at 311x next year's earnings??? Wtf??!
Quote:
Originally Posted by
midas360
Took a Peek... and ... Not Doing So Well Since Your Recommendation!
You are on a ROLL, ROSIE from m
ASSachusetts
Attachment 1682
SAEX
Down to $12.21 or 16%
Can I ask why we are talking about SAEX? I realize that from time to time we discuss other stocks besides SIRI, like GPRO and DIS and such, but jeez man, we are really lowering our standards with the likes of SAEX. Took a quick look myself and wow.....again, I realize there are "investors" here like Muscle who like to take the long view and there are also "traders" here - myself included - who enjoy the excitement of a shorter term trade, but only a fool would jump into a pool of this excrement.
Can we move on? I'm certainly open to considering any legitimate stock ideas.
How Low Can it Go (or Stay)?
Been keeping an eye on the VIX and can't believe how low it is. If you just popped in from a time warp machine from say, oh anytime since they began keeping track, and looked at the VIX sitting here at under 12 , I think you'd be forgiven for assuming that the economy must be humming along and all was right with the world. Probably you wouldn't think that most of the central banks around the globe were at negative interest, or that U.S. GDP would be lucky to reach 2% in the current year or even the next year.....In fact, at 11.55, one could argue that the VIX is "priced" (in quotation marks because you can't actually "buy" the VIX itself - it's an index) for perfection.....hence the least little hiccup could send it skyrocketing...or at least wake it from it's slumber. Today's issue of Barrons has an interesting article entitled "Call Buyers See a Market Plunge in September" Regardless of if you ultimately agree with this thesis or not, I'd urge folks here to go check it out. Here are a few excerpts;
"Some investors have started buying CBOE Volatility Index calls, betting that the stock market will suffer an extraordinary decline by late September’s expiration"
"the activity in VIX options reflects an emerging view that the equity market’s summer melt-up may give way to a cacophonous fall and winter. Trading desk chatter is increasingly focusing on three key factors that could roil stocks: an event-heavy calendar, seasonality, and the fundamental nature of volatility"
"Speculation is rampant that the U.S. central bank will raise rates later this year. Second-quarter earnings reports were decent, and economic reports are generally positive, arguably creating a solid foundation for a data-driven bank to raise rates. Hence, anything Yellen says has the potential to be a major piece of the rate puzzle"
"the third quarter tends to be the time of year when bad juju happens to good stocks"
"volatility behaves like a rubber band.....When VIX drops to excruciatingly low levels–it was recently just under 12–it tends to ferociously snap back and reset at higher levels. VIX’s long-term average is around 19, sharply higher than it is now"
“The big story,” says Rocky Fishman, a Deutsche Bank derivatives strategist, “is that we haven’t been able to stay in these low-vol environments for long.” That brings to mind an old trader’s saw: When VIX is low, it’s time to go. When VIX is high, it’s time to buy."
Good reading and good luck to all.
Hey SI, 38 this morning with 12 putts!
Sign Me Up For The Senior Tour!
