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Momentum Stock Bust Is Self-Reinforcing
- Quantitative Easing, low interest rates, and low revenue growth from major companies created the environment for excessive valuations for momentum stocks.
- Momentum stocks include social networking stocks (LNKD, FB), 3D Printing Stocks (DDD, SSYS), cloud computing stocks (CRM, WDAY), TSLA, and NFLX.
- These stocks exhibit high share-based compensation and high share issuance figures in support of growth. Examples from each industry are analyzed.
- Declines in share price or changes in the macroeconomic environment may result in self-reinforcing busts, where fundamental growth ability is damaged.
- Traditional Stock Analysis Will Not Work For Tesla Motors
- 3D Systems Corporation: The Boom Isn't Over
- Tesla Motors: Long Now, Short Later
- 3D Systems Corporation: Implications Of Stock Price Reflexivity
- The iShares Philippines ETF: Tapping One Of The Last Bull Markets
- The Buckle Is On Sale
- BNCCorp: A Cigar Butt That's Worth The Risk
- Why I Just Sold FactSet Data Systems
- Green Mountain Coffee Roasters: After The Bust, What Next?