Billyspeed

Why XTO Energy Is Overvalued

You better leave the short selling to the pros. You sound like a typical amateur nervous short. Take a big risk for a tiny profit. Stick to a game you know which is obviously NOT selling short.


On Sep 30 02:49 PM Sean Hannon wrote:

> Today's price movement justifies my thesis. With a 5%+ move in oil
> (and natural gas higher on the week as well), XTO is slightly lower.
> I shorted the shares Monday morning at $41.85 so am currently sitting
> on a small profit. However, I will now be covering. Where XTO had
> refused to move lower with falling energy prices and was 2% overvalued
> versus my reserve value, I now see the shares 15% undervalued versus
> reserves given the large increase in energy prices. Having seen the
> market change, so will I and am currently covering my short position
> at market prices.

Why XTO Energy Is Overvalued

"As the market realizes this, XTO is sure to decline." Anyone who says that the market is "SURE" to do anything is a charlatan and not to be listened to!

As Car Dealerships Disappear, Auto Nation Pulls Through

Auto Nation might be a suvivor but that is hardly an investment recommendation. The business model is clearly broken and nobody can predict the dramatic consequences the bankruptcy of any or all of the (former) Big 3 will have on the dealership count. The number of dealers will continue to contract significantly and Auto Nation will gain share but it's only a temporary gain as the way we buy cars is quickly changing. The notion of a vast lot of cars visited by customers being financed by dealers and manufacturers is a quaint 20th century business model. It will disappear. Bottom line: Most of the dealer groups will be gone along with the business model.