Meanwhile I’m waiting on a stock to go up that’s market cap is < than it’s book value by 10% and its P/E is <2 to 1 or < 3 to 1 if you don’t count non recurring earning.
Seriously though, thanks to passive investing the majority of buying is done blindly and unconditionally, without regard for price or fundamentals. I know this is probably Level 1 thinking but I don’t see how that can be efficient / lead to reality-based prices.
I don’t think this is true. Last I heard only 15% of the large cap market was owned by index funds. Retail investors have moved to passive investing but institutional money still buys a lot of active management. And institutions have more capital than retail schmucks.
So basically Amazon is a Web Hosting company that also sells shit?
Oh yeah. It has been this way for a while.
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Lololol who could predicted
Counterpoint:
My cruise stonks appear to be stonking today. Any idea why?
Do tell. Unless it’s the one I’m currently investigating and then don’t tell til I finish researching and buy lol… Mine has a P/E right at 3 but I haven’t finished digging in to know if it’s recurring or not. It’s trading at like 67% of book though.
TSL.to
I bought at 5 it paid a $1.25 special dividend and then the price crashed. Want to buy more, no idea why the price is so low. Must be missing something, considering using margin as I got a notice today I was reassessed and owe a bunch of taxes.
Matt Levine going on vacation is some straight-up bullshit.
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Amazon is a web hosting company that relies on juicy government welfare sorry contracts that also sometimes sells shit.
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The whole forestry sector is massively undervalued right now. Headlines like lumber down 60-70% off its highs are the reasons for it. Lumber is still well above historical averages, the companies are raking in money quarter after quarter and those lumber highs gave them all massive amounts of cash, inflated their book values by a lot and now most of them have book values well above their market cap with forward P/E ratios of less than 7 to 1. Also, many have little to no debt after paying it all off during the lumber boom.
Yeah but won’t rising interest rates kill construction industry and then they’ll be in trouble again
meh, rates will be low again in 6-9 months.
https://twitter.com/deaftrader1/status/1554900038651871233
wish I thought instead of a sprinkle to pile in but she literally bought the top and sold the bottom
Pretty compelling thread.
https://twitter.com/chrisbloomstran/status/1555013144426291202?s=21&t=rtxEMIgvaF4PSJ4hGejhVg
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I’ll check it out but I’m already overweight on steel exposure with both X and PKX, all three have somewhat similar price movements since late March. The market seems to be reacting heavily to steel price movement and ignoring book value and P/E.
This sounds a lot like what’s happening in steel.
Is there an opportunity to buy puts on MSTR and long options on Bitcoin? Seems like if Bitcoin goes down, MSTR goes to zero well before Bitcoin. If Bitcoin doesn’t triple in value, MSTR has to lose like 67% or more. If Bitcoin triples in value, a long investment in Bitcoin beats MSTR.
It also seems very possible that MSTR gets crushed by shorts and/or the market before anything significant happens to Bitcoin, in which case you can sell the puts for a huge profit and the long options on Bitcoin for a likely small loss.
So it seems like there could be some sort of long/short strategy to use here?
I’ll research the math on it tomorrow if that makes sense to anyone other than me lol.
I would expect that a lot of timber companies harvested some acres earlier than they otherwise would have, so they might be looking at lower volumes for a few years in addition to worse pricing.