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  • Five Stocks Traders Are Betting Against (With Good Reason) [View article]
    Whitehawk, I can see plenty of reasons why you might want to short GS (I tried to do so myself once in April), but shorting IBM at this point is just nutty. Why would you short a company with a PE of 11.25, strong dividends, historical EBITD margin over 20%, etc, etc?

    Your short recommendation in IBM is based on the assumption that because earnings are so high, they must come down, and that will make the company overvalued. But that hasn't happened yet!

    I'd prefer to wait for the earnings to come down first, THEN see how much they came down, THEN see if they actually fell enough to make it a short target.

    I'm a rampaging bear right now and I'm furiously buying ETFs and shorting everything I can. IBM is one of the few companies I'd actually consider BUYING in this insanely overbought market. Its earnings would have to come down tremendously to make it a good short target.


    On Mar 03 02:15 PM Whitehawk wrote:

    > I would add two names to a short list: GS and IBM. Not the most obvious,
    > but (a) GS will be under increasing pressure due to the influence
    > it posed in getting paid back on CDS contracts by AIG with gov't
    > money and (2) IBM's guidance and earnings are lofty and due for a
    > correction.
    May 17 11:13 am |Rating: +1 0 |Link to Comment
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