O Chanos! Ocado Group PLC (LON:OCDO) went berserk as it announced a 25-year partnership with Wm. Morrison Supermarkets plc (LON:MRW) today. OCDO rose as high as 46 percent. Yes! Not a typo—46 percent in trading today, and closed at +34 percent on the London Stock Exchange. Why are we so psyched about a relatively unknown online grocery retailer, you ask? Simply because the big boys in the U.S. have been betting against the company. Famed...
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Chris Woods of CLSA is out with his popular weekly GREED and Fear report. Last week the focus from Greed and Fear was on bubbles, Bernanke related. This week Woods starts off with a shot at CNBC in relation to the Bloomberg scandal. He has some interesting comments on China and titles this report ‘China’s Lack of Traction.’ Below is the full report which came out yesterday. China’s lack of traction Beijing The grinning hyenas...
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The Dow Jones Industrial Average (Dow Jones Indices: .DJI) sits above 15,000, an all-time high. But don’t be fooled, this doesn’t mean that stocks are expensive. I understand that it seems logical to assume that if the Dow Jones industrial average, what many believe to be the bellwether index of the stock market, is at an all-time high, then it must simultaneously be overvalued. Herein is the danger of relying on headlines and simple...
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Now that all the 13fs have been filed, we know what the guru investors bought and sold in 1Q2013. The filings of investors like, Carl Icahn and Bill Ackman, who run concentrated portfolios ususally have no surprises, as most of their holdings are public before the Q1 filing comes to surface. Hedge funds Greenlight Capital and Third Point had a few surprises for us, which you will see below. We will be posting a...
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David Einhorn’s Greenlight Capital filed 13f today. The fund was down in April because of losses in gold and Apple Inc. (NASDAQ:AAPL), both of which are major holdings of the hedge fund. In Greenlight’s quarterly investor letter, the fund talked about its winning positions in short yen and how it is still a firm believer in Apple Inc. (NASDAQ:AAPL). The breakup of Greenlight’s long holdings at the end of Q1 are discussed below. The fund has been stacking...
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Dan Loeb says that Sony Corporation (NYSE:SNE) (TYO:6758) reminds him of Yahoo! Inc. (NASDAQ:YHOO) before he waged a proxy battle at the web giant. The hedge fund manager made the comments while speaking to Reuters today. Right now, Dan Loeb is in the opening phase of a battle that he hopes will see the Japanese diversified giant sell off a large portion of its Entertainment arm. Third Point Stakes In Sony Corporation (SNE) Dan...
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Tales of Carl Icahn’s many successful company shakeups can make an infinte list, as he is involved with a large number of companies and is waging war with their boards. Some of his most recent attempts have been at Herbalife Ltd. (NYSE:HLF), Transocean LTD (NYSE:RIG) and Dell Inc. (NASDAQ:DELL), to name a few. Carl Icahn’s magical hand at Netflix, Inc. (NASDAQ:NFLX) is speaking volumes these days and has generated huge profits for his funds. Netflix, Inc....
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By: greenbackd David Tepper was on CNBC this morning arguing that stocks are historically cheap: said the post showed “when the equity risk premium is high historically, you get better returns after that.” He continued, “So we’re at one of the highest all-time risk premiums in history.” In making his argument Tepper referred to this article, Are Stocks Cheap? A Review of the Evidence, in which Fernando Duarte and Carlo Rosa argue that stocks are cheap...
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Introduction This is part two of a series on investing for growth, part one can be found here. One of my primary objectives for preparing this series is to dispel some of the common myths that many investors hold regarding investing for growth. For example, many believe that growth stocks are, by definition, riskier than dividend paying stocks. Although there is some truth to this, I believe this concept is overblown. One commonly measured...
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“Davidson” submits: 5Yrs ago I indicated that commodities were overpriced due to an excessive fear that the US$ would collapse with overheated inflation as a result of increased Fed Reserve liquidity commonly called “The Bernanke Put”. The Fed has actually tried to create 2% inflation to prevent what they saw as a deflationary tendency which they felt could go out of their control. While we did see the indicators register 2% inflation briefly, they...
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BAML is out with their latest hedge fund monitor. Last week they noted that hedge fund leverage had reached a level not seen since 2007 (the data was confirmed by a report from analysts at SocGen). This week they note that funds are reducing their exposure to equities but positions still remain at high levels. Hedge funds reduced their long S&P 500 positioning by ~21%; from $22.4bn to $17.8bn. Positioning remains in a crowded long after...
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