View Single Post
  #30  
Old 08-03-2007, 11:04 AM
RicoTubbs RicoTubbs is offline
Senior Member
 
Join Date: May 2007
Location: Miami
Posts: 101
Default Re: Shoeprint #1: Six Flags (SIX)

I was trying to put myself in the position of someone receiving your newsletter. I open up my newsletter excitedly and see this:
AMZN - I think amazon is way overvalued and due for a correction. However, the stock is hot right now and I would not suggest shorting it until it appears to be cooling off, it might be a long time before it starts to correct.

I am unhappy for two reasons:
1. The complete lack of any analysis or evidence of why the stock may be overvalued.

2. (What drove me to post). There's absolutely no indication of what I am supposed to do. I'm getting your newsletter because you know about stocks and I'm using your knowledge to profit. So what do I do? It's overvalued, so I should sell or short? No - you tell me not to short because it's "hot". So should I buy the hot stock? Probably not. Apparently, I should short, but not until after it's "cooling off". How on earth do I know when it's cooling off?

It's the kind of generalized nonsense that can be rationalized after almost any market movement:
- Amazon went up? See, I told you it was "hot"
- Amazon went down? See, I told you it was overvalued
- Amazon was flat? I told you it would cool off

It's like going to a psychic and being told that I should be very careful about decisions regarding the number 4. If you're so inclined, you can look into it and see a lot of truth. If you're more skeptical, you can look at it as a big cloud of fuzzy nonsense.
Reply With Quote