idris'  Instablog

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I am a private investor with interest in technology stocks. I have a degree in Economics and Mathematics. I have been trading mostly on the long side, but have been short on down market times. I try to trade based on mass human behavior since market is made with behavior of traders. It's very... More
  • Big Correction Is On The Way, Maybe 0 comments
    Dec 26, 2012 1:38 AM | about stocks: LNKD, WDAY, AMZN, CRM

    There has always been speculations about bubbles and corrections. The only problem with them is you don't know when the bubble might burst. There is a great possiblity that we might have a housing market kind of crash in the future with certain stocks. I would have to issue my problems with SALESFORCE, LINKEDIN, AMAZON, WORKDAY. These stocks are highly overvalued. They are nothing but paper value. You can make money in the short term. But for the long term you will be taking a large risk. You just don't know when they might collapse. They might not. After all, stock valuation is all based on blessing of the wall st. Even wall st might not be able to save them if worst surfaces. When Apple was trading around 700, I felt like there was some correction on the way. Let's not forget Apple is a very healthy company with great profit margin. With 700$ per stock, PE was roughly 14. Then we had the correction. But CRM, LNKD, AMZN, WDAY, these stocks don't make any money, they are not near the PE of 50. They do have the blessing of the wall st but you have to remember, they are house of cards. They seem like a great speculative stocks, but the risk you are taking is ALL OR NOTHING. When the storm comes, it will come hard and there will be little time to react.

    Stocks: LNKD, WDAY, AMZN, CRM
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