There have been insider sales on many companies after the big market run. V is not unique.
You might be right about valuation - V is currently 20x forward P/E which is probably the end of the P/E expansion and the stock will be driven more by EPS growth (still 15%). Even with a multiple contraction to 18x in the next 2 years, that still indicates 10% annual appreciation.
What is the catalyst for your predicted 5-10% drop? Your technical analysis seems questionable as stocks often dip temporarily below their 50dma and the channel was driven by P/E expansion as I mentioned, with the likelihood of a new, lower sloped channel in line with EPS growth.
A Nomura note predicting higher card fees for PayPal (previous) helped eBay (EBAY -0.6%) make fresh 2013 lows. "Payment networks are taking the gloves off," writes Nomura. With PayPal's rapid growth and offline expansion efforts making it a bigger rival to Visa (V) and MasterCard (MA), "the incumbents will do everything in their power to prevent PayPal from riding on their rails without extracting a toll." Evercore thinks a new MasterCard fee for online payments services could be aimed at getting service providers to share more transaction info. [View news story]
Exactly what is the benefit of paying cash? With credit, you get points, a record of your purchases and benefits to your credit score without having to go to the ATM every couple weeks.
Cyprus's parliament is due to convene this afternoon to debate an astonishing eurozone demand that it tax all bank deposits at up to 10% in return for a €10B bailout. While approval is not guaranteed, Cypriots rushed to take as much money as allowed out of ATMs. And although EU Commissioner Olli Rehn ruled out a deposit raid in other eurozone countries, menacingly for savers, eurogroup chief Jeroen Dijsselbloem would not. "We are in a new world," says an economist. Update: The parliamentary debate has been postponed until tomorrow. [View news story]
BP asks a federal judge to temporarily halt its ~$8.5B settlement with plaintiffs over the 2010 Gulf of Mexico spill, saying the claims administrator's decisions could give the claimants "windfalls" and that the company could be "irreparably harmed." A judge ruled March 5 that BP must keep paying some compensation in larger amounts and to more parties than the company had anticipated. [View news story]
Just like the banks, BP doesn't want to accept the responsibility for it's reckless behavior.
I bought SBH at $24 last year and it has bounced back to a little under fair value of $30, but it's a much safer than ULTA. I hope to start buying ULTA under 20x forward P/E ($67) and it should easily get there given momentum stocks often overcorrect once the fast money leaves.
In the two decades through December, the average return of all investors in U.S. stock mutual funds was an annualized 4.25% vs 8.2% for the S&P 500. That translates into a difference of $25,467 for an investment of $10,000. "The dismal truth is that over the long run, the average person is a woeful investor," writes the NYT's Jeff Sommer. [View news story]
No, the market is rigged against clueless investors. If you panic every time HFT algo's drive prices down, you deserve to lose money.
Smart individuals can take advantage of these HFT "manipulations" to buy on unwarranted drops.
"The market is designed to transfer wealth from the active to the patient" -- Warren Buffett
Evidence is growing an iPhone 5S (AAPL +0.4%) will arrive around mid-year. Mizuho says checks indicate an iPhone refresh in June or July, and that March quarter iPhone shipments will fall to the 35M-40M range (in-line with consensus). Wedge Partners: "We understand Foxconn is currently prepping production lines for ... iPhone 5S production, which we believe is scheduled to begin in the April timeframe." The firm thinks the 5S will be unveiled at the WWDC conference (typically in June), with sales likely starting in July. MacOtakara recently reported Foxconn has begun 5S production. [View news story]
I agree - it seems that it would be easy to have a 5S and a 5SWide. From what I can tell, beyond size, the Samsung really doesn't offer anything that iPhone doesn't.
There was also a recent white paper that said PETM and BBBY were the most at risk from AMZN and I think Goldman(?) downgraded PETM recently because of lower shipping costs by AMZN made shipping pet food more competitive.
Johnson Controls (JCI +1.9%) pares back gains after the company denies earlier reports that it might sell its automotive interiors business, saying it has no current intention to divest this segment. [View news story]
So who is going to buy the auto interior business if it's so bad? If JCI get bad offers, it's worth keeping.
Are Herbalife's Products A Bad Value Compared To Its Competitors? [View article]
So have you done an investment analysis on GNC? It seems like it's trading at a reasonable valuation and is in a good industry with long-term secular growth.
Visa - What Is Going On Here? [View article]
That being said, I hope the author got out of his puts yesterday when Visa broke above it's 162 resistance.
Visa - What Is Going On Here? [View article]
It is very unclear the full impact (at least to me).
Disclosure: long V and MA
Visa - What Is Going On Here? [View article]
You might be right about valuation - V is currently 20x forward P/E which is probably the end of the P/E expansion and the stock will be driven more by EPS growth (still 15%). Even with a multiple contraction to 18x in the next 2 years, that still indicates 10% annual appreciation.
What is the catalyst for your predicted 5-10% drop? Your technical analysis seems questionable as stocks often dip temporarily below their 50dma and the channel was driven by P/E expansion as I mentioned, with the likelihood of a new, lower sloped channel in line with EPS growth.
A Nomura note predicting higher card fees for PayPal (previous) helped eBay (EBAY -0.6%) make fresh 2013 lows. "Payment networks are taking the gloves off," writes Nomura. With PayPal's rapid growth and offline expansion efforts making it a bigger rival to Visa (V) and MasterCard (MA), "the incumbents will do everything in their power to prevent PayPal from riding on their rails without extracting a toll." Evercore thinks a new MasterCard fee for online payments services could be aimed at getting service providers to share more transaction info. [View news story]
Cyprus's parliament is due to convene this afternoon to debate an astonishing eurozone demand that it tax all bank deposits at up to 10% in return for a €10B bailout. While approval is not guaranteed, Cypriots rushed to take as much money as allowed out of ATMs. And although EU Commissioner Olli Rehn ruled out a deposit raid in other eurozone countries, menacingly for savers, eurogroup chief Jeroen Dijsselbloem would not. "We are in a new world," says an economist. Update: The parliamentary debate has been postponed until tomorrow. [View news story]
BP asks a federal judge to temporarily halt its ~$8.5B settlement with plaintiffs over the 2010 Gulf of Mexico spill, saying the claims administrator's decisions could give the claimants "windfalls" and that the company could be "irreparably harmed." A judge ruled March 5 that BP must keep paying some compensation in larger amounts and to more parties than the company had anticipated. [View news story]
Ulta Slammed: Beast Or Beauty? [View article]
In the two decades through December, the average return of all investors in U.S. stock mutual funds was an annualized 4.25% vs 8.2% for the S&P 500. That translates into a difference of $25,467 for an investment of $10,000. "The dismal truth is that over the long run, the average person is a woeful investor," writes the NYT's Jeff Sommer. [View news story]
Smart individuals can take advantage of these HFT "manipulations" to buy on unwarranted drops.
"The market is designed to transfer wealth from the active to the patient"
-- Warren Buffett
Evidence is growing an iPhone 5S (AAPL +0.4%) will arrive around mid-year. Mizuho says checks indicate an iPhone refresh in June or July, and that March quarter iPhone shipments will fall to the 35M-40M range (in-line with consensus). Wedge Partners: "We understand Foxconn is currently prepping production lines for ... iPhone 5S production, which we believe is scheduled to begin in the April timeframe." The firm thinks the 5S will be unveiled at the WWDC conference (typically in June), with sales likely starting in July. MacOtakara recently reported Foxconn has begun 5S production. [View news story]
Crown Castle Is In The Wireless Sweet Spot, Part 1 [View article]
PetSmart's Earnings: Oops [View article]
Crown Castle Is In The Wireless Sweet Spot, Part 1 [View article]
Johnson Controls (JCI +1.9%) pares back gains after the company denies earlier reports that it might sell its automotive interiors business, saying it has no current intention to divest this segment. [View news story]
Are Herbalife's Products A Bad Value Compared To Its Competitors? [View article]
How Low Can J.C. Penney Go? [View article]
1:06 PM ET, 03/06/2013 - Street Insider
In a CNBC interview, former J.C. Penney (NYSE: JCP) CEO Allen Questrom said the chances of a turnaround for the retailer is 1 in a 100.