Oil, not trading on fundamentals, still holding up around that psychological barrier of $100, despite talk of OPEC upping output and increasing crude inventory builds in the US. Gold hasn't done much, and silver trading has been real choppy since it fell off a cliff at $50/ounce.
But if you sniff around there are a couple corners of the stock market where money can be made. Of course you gotta take on some risk.
First, Sino-Forest. Ticker TRE-tsx, 4 weeks ago this puppy was at 25$ and the company was worth almost $6B. Today its trading just over $5, with a mkt cap just over 1 B. What cause the drop was a short seller, analyst, last name Block, who works for Muddy Waters. They published a report alleging that Sino had been overstating the lumber yields or something I dont care. Moody'salways late to the party put the company under review for a debt downgrade. Bottom line here is that the company has strong earnings, has demonstrated decent growth, and present individuals with a great opportunity to buy a stock less than book value, trading a 3x earnings. Lots of upside. I picked up some shares at $4.52 yesterday.
Second, LinkedIn. Still the easiest short of my life. Here we are a couple weeks in and the stock continues to slide. After opening at $82 a share, trading up to $122, and closing at $104 on the first day, I was licking my chops. Stock closed down over 5% today at $72. Still trading at over 1000x earnings. Slowing growth, weak job data, things are not looking good here. Should see $50 by the end of the month. Easy short here.
Groupon. First, Mason values the company at 25B. The company hass lost 540M in three years, so yet to turn a profit. IPO getting rushed to market, one of these low floaters like LKND. Easy short.
RIMM, still a great company, slowing growth, under 20B mkt cap, potential take out target. Speculative buy. Dont own any RIMM, but im watching it closely. Just set a fresh 52 week low yesterday. keep it on your radar screen. Mid-low thirties great entry. Not trying to be a hero here, but seems compelling.
