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Rickthegeek

Rickthegeek
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  • "High above the Alps my Gnome is hearing a rumor that Apple will announce a stock split at tomorrow's shareholder meeting," tweets Doug Kass. The rumor has led Apple (AAPL +1%) shares to spike higher. Update (2:24 PM): Kass is using the post-rumor spike to sell part of his trading position in Apple. [View news story]
    Does it really matter? A broken company is still a broken company.
    Feb 26, 2013. 02:30 PM | 5 Likes Like |Link to Comment
  • January Nonfarm Payrolls: +157K vs. consensus +160K, 196K previous (revised from 155K). Unemployment rate 7.9% vs. consensus 7.8%, 7.8% previous. [View news story]
    Fantastic!! This is great news! The unemployment rate ticked up, more people out of work. Yes, the higher the unemployment rate, the better it is for the markets. Wall street loves this. This means we do not have to worry about the government turning the printing presses off any time soon.
    Feb 1, 2013. 09:28 AM | 4 Likes Like |Link to Comment
  • Apple (AAPL -0.9%) shares continue to have an autumn to forget - they're now trading at levels last seen in May. Credit Suisse suggested this morning bulls should consider selling a Jan. '13 options strangle involving strike prices of $525 and $600. Morgan Stanley's Katy Huberty provided another positive note: she claimed component supply constraints are "no longer an issue;" that component costs could drop in 1H13; and that the Chinese government could issue 4G licenses in 2H, something that would pave the way for a China Mobile (CHL) deal (previous). [View news story]
    The support level for Apple is 360. Look at the charts. It exploded in 2009, had another decent year in 2010. In 2011 had some good gains but not like the previous 2, then this year from January to April it went almost straight up. When a stock goes almost straight up it means to many new investors have gotten into the stock. The stock gets out of whack in regards to the price per share. That is why now you see selling. There has been a little bad news, the new iphone has had issues with it's map feature, the excitement level is not what it once was, blah, blah.

    Apple could fall to around 420, there is a little support there, but it looks like at around 360 it has some good strong support.
    Nov 15, 2012. 04:06 PM | 4 Likes Like |Link to Comment
  • What To Sell, What To Buy, And What To Stay Away From This May [View article]
    Nice article. I am right there with you on everything that you said here except for the buying the homebuilders. Simply, most all the homebuilders are over-bought. You also don't want to buy any of the homebuilders who have not participated in the rally, there is a reason for it. (companies who are struggling and will continue to do so)

    I don't think there will be a sell in May this year. Mainly for the reason you all stated here, no need to repeat the obvious.

    There is some real value right now in technology stocks. Some of them, not all of them. Most technology is under owned and unloved. This is what you should be looking for when buying stocks. QCOM is at a good buy point, so is AAPL. I also recently trashed AMZN, but it is the online retail leader and although their numbers were a little soft for profit, they still have strong revenue numbers. I will be starting a long position with AMZN, probably on Monday.

    Your recommendation for CLF is interesting, but would not buy it. I was just sitting here researching them before reading this article. They have a P/E ratio of 9.86 and a dividend of 3%. Looking at the charts, they are set for a rebound. But, they have way to much debt for me to be comfortable with.

    As far as Gold, Silver etc., right now, it is scary. As long as the printing presses are pumping out dollars, it is hard to own them right now. It is always good to keep some, but would not initiate any long positions now. The Federal Reserve has our back.
    May 5, 2013. 04:27 PM | 3 Likes Like |Link to Comment
  • It's tough to find any market pros to go on the record, says a fired-up Gary Kaminsky, but what they're telling clients is the election was bad news for stocks. The bull market from the 2009 lows was about stocks priced for Armageddon meeting massive central bank stimulus, he says, but that dynamic is played out, leaving the markets to deal with the reality of a weak economy and questionable leadership in D.C. [View news story]
    I agree with what you say. I will add that a huge issue is the defacing value of our dollar. Obama's goal is more debt, more spending, more debasing the value our currency. Nothing is going to change with this administration. It will be more of the same. Look forward to 20 trillion in debt, more than 45 million on food stamps, stagnant economic growth and a financial collapse. This is Obama's master plan, to make all American's dependent on the government. Even in his biography, the book he wrote, he references a 100% dependency on the government as a good thing.

    Obamacare was just the start of this government control. More and more is going to come. Now that he knows he has 4 more years, the destruction of America he seeks will come to pass. The only thing we can hope for is strength in the Republican party and for even ones in the Democrats to come to their senses about the actual goal this guy has planned for us.

    If you want to see how this can play out go to http://bit.ly/NatKWI, I saw it last night and is a real eye opener.

    Please don't respond to this blog with statements that Obama is good for this country. You will never convince me.

    Nov 15, 2012. 02:22 PM | 3 Likes Like |Link to Comment
  • October 2010: I've Got a Bad Feeling About This [View article]
    You are right. You can not prop up our economy with QE2 with 2 trillion dollars of additional stimulus. We are already a bankrupt country. We have IOU's of 14 Trillion on the books now for the next 10 years. How can our government afford to even do QE2 based on where we are now? This market run is based on an assumption that QE2 will take place. It has not even been voted on yet. The people in GOLD and SILVER already know this. That is why GOLD and SILVER are going to the moon, price wise. I would not be surprised if it hit 2000 by the end of this year.
    Oct 10, 2010. 04:59 PM | 3 Likes Like |Link to Comment
  • Sell The Caterpillar Rally [View article]
    CAT's revenue year over year is off by -10.4%. Stock jumps 7%.
    Jan 27, 2014. 10:47 AM | 2 Likes Like |Link to Comment
  • Herbalife -13% as U.S. senator calls for investigation [View news story]
    Big surprise? I went to a job interview about 20 years ago with Herbalife and that is exactly what it is, a pyramid scheme. I responded to an ad in the newspaper, the ad was misleading. They made it sound like a great business opportunity you could not pass up.

    Once I go to the interview, they were very vague about the realities of the job. They asked me questions that were geared to how many people I could get to sell their products and create an income stream. Then of course they wanted me to buy their product right on the spot. After everything was done, I told them I had to do some more research about their company and I had to think about it. They acted offended by that. That was the last time I had anything to do with them.

    Your job is to recruit others who use their product. Then, you profit from any downstream sales. This is the same way Amway works. These are pyramid schemes. Does it take our genius government decades to realize what most people have known for decades?
    Jan 23, 2014. 03:53 PM | 2 Likes Like |Link to Comment
  • Mortgage REIT (REM +4.1%) rallies are accelerating as the day draws to a close. Sector giants Annaly (NLY +4.7%), American Capital Agency (AGNC +4.2%) are closing in on 5% gains, while CYS Investment (CYS +6.2%) and Western Mortgage (WMC +7.1%) are threatening 7%. Did everybody realize all at once that higher long end rates combined with ZIRP should allow mREIT managers to invest at very profitable spreads? [View news story]
    I have one finger on the buy button the other is on the sell button. Just recently I have had to start monitoring this market to closely. Would rather not.
    Jun 13, 2013. 06:03 PM | 2 Likes Like |Link to Comment
  • Shares of Tesla Motors (TSLA) move up 2.3% premarket as last week's earning report euphoria doesn't show any early signs of fading. Pacific Crest may have seen enough of the momentum/short squeeze run, warning that over the long term the automaker needs to ramp up gross margins to 25% from 5% and demonstrate sustainable demand. [View news story]
    Did anyone else see the news report over the weekend that TSLA counted sales for this past quarter of cars that have not even been closed on yet? They counted cars as sales that had deposits on them, but had not yet been delivered or actually closed the deal and collected the money.

    Classic cooking the books. You should not count it as sold until the unit is delivered and paid for. Whether it was paid by cash or financed.
    May 13, 2013. 08:17 AM | 2 Likes Like |Link to Comment
  • Facebook Shares Should Come With A 'Dislike' Button [View article]
    This stock is well over valued, no thanks. Today's P/E says 562.65. There is no way you should own this stock.
    May 6, 2013. 06:35 PM | 2 Likes Like |Link to Comment
  • Sell Your Gold And Silver Now [View article]
    Nice article and need to elaborate on the ending badly for the markets. Once the money printing comes to the end, the market will take a nose dive. For now, many are enjoying the ride.

    The market has been and is going through an artificial stimulation, propped up by money printing by the Fed. The "true value" of the stock market at this point is an unknown value. This is actually a dangerous market for investors because since values are artificial, we do not know the fair value of the market and certain stocks. Of course there are some exceptions.

    Never before in the short history of the United States has this much "money printing" and liquidity by the Fed entered into the markets. This is an experiment we are all watching unfold on a daily basis, the outcome is also an unknown but there have been some discussions of what road we are heading down and what we could possibly expect:

    1. Devalue of the dollar.
    2. The dollar loses it's reserve currency status.
    3. Inflation.

    The US Dollar is the worlds reserve currency. If we lose that, we will lose the way of life we are use to. The stock markets rise is due directly to money printing. This will continue to make the dollar decline, people's money being worth less and people are forced to put their money into stocks or riskier assets to get some yield. (you can't make any money by keeping it in cash, by keeping your money in cash, your return for the past 4 years has been negative). So, people are forced into buying stocks. We can thank the Fed for that.

    Your article brings home many truths about other countries buying safety assets like gold and silver. When you are an outsider looking at our countries "great experiment", you get a different perspective. These other countries you mention, see what the path of our country is and they are preparing themselves. Our country, for the most part, has blinders on.

    For now, it is risky to buy Gold, Silver and any of the miners. As long as stocks continue to climb, Gold and Silver will decline. I expect there to be a 5 to 10% correction in stocks in the next month or two. But, we should continue to see stocks rising in the long term, that is unless the Feds money printing machine gets turned off, which shouldn't be anytime soon.
    Apr 4, 2013. 11:58 AM | 2 Likes Like |Link to Comment
  • The Amazon (AMZN) bull case has pivoted to a story of margin expansion from revenue growth after the company surprised analysts with better-than-expected profit margins during Q4. A number of firms are out with price target increases, citing margin expansion as a major factor. PT hikes: Barclays to $260 from $245; JPMorgan to $333 from $245; Baird to $325 from $300; BofA to $315 from $300; Credit Suisse to $334 from $301. AMZN +8.3% premarket to $281.62. [View news story]
    The numbers came out and were not that good. I thought maybe I missed something. Then sitting here watching CNBC (for entertainment purposes, it is fun to see the talking heads move markets one way or the other) David Faber was trying to get people to come to their senses about AMZN.

    The reality is, it should be down 10% not up 10%. Are we seeing an over-exuberance in the markets? Even when companies miss?

    Looking at the overbought charts, we are expanding the bollinger band on the upside to extreme overbought territory. The retail investors may come in for the next few days and this would be a good time for you to sell your winners. (the retail investor has a habit of buying at the top and selling at the bottom) Right now would not be a good time to add to any positions. You could, but hold your breath and brace yourself.

    Right now, I am on the caution end.
    Jan 30, 2013. 09:26 AM | 2 Likes Like |Link to Comment
  • Friday: Dow Up 500 Points To Start The Year - Should We Quit While We're Ahead? [View article]
    True. If you missed the first 5 minutes of trading of the first day of the new year, you missed it. 300 points Wednesday (about 250 in the first 5 minutes or less and another 50 or more points the rest of the day) and another 170 or so on Monday. Yes, 500 points in 2 trading days. Even in the pre-market, stocks were already to high. Of course you could have traded pre-market, which technically would have given you a 2 and 1/2 hour window to trade, but there were no bargains even early on. The overseas markets got our news early and had an opportunity to buy before we could.

    At 1 am Wednesday morning, the Dow futures were +250. If you don't take profits here, you deserve to get slaughtered.
    Jan 4, 2013. 11:01 AM | 2 Likes Like |Link to Comment
  • Why Microsoft Is Severely Undervalued [View article]
    100.00
    Dec 10, 2012. 08:35 PM | 2 Likes Like |Link to Comment
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