RadioShack has been my big recent short.
Morgan Stanley yesterday downgraded RadioShack ( RSH) from Equal-weight to Underweight, and established a $4.50 PT (jargon for price target).
Morgan Stanley commented in its report, “We are downgrading RSH and decreasing estimates as we expect further challenges. Pressure from carriers and handset makers is intensifying, depressing earnings, and shares are not cheap at 14x `13E EPS. Further downside earnings revisions and a potential dividend cut are likely catalysts.”
RadioShack closed yesterday at $5.17.
I’m not sanguine about the market for the next few momths. Playing it to the downside, check out:
RSH (RadioShack)
CAT (Caterpillar)
PNRA (Panera Bread)
CMG (Chipotle)
YHOO (Yahoo)
BBY (Best BUY)
AMZN (Amazon)
SHLD (Sears)
X (US Steel)
Favorite YouTube video.
United Airlines broke Dave Carroll’s treasured Taylor guitar ($3500). Carroll spent over nine months trying to get United to pay for the damage caused by United’s baggage handlers. During his final exchange with the United Customer Relations Manager, he stated that he was left with no choice other than to create a music video for YouTube to expose your lack of cooperation. The Manager responded: “Good luck with that one, pal.”
Carroll posted the video on YouTube. The video has since received over 6 million hits. United contacted Carroll to settle in exchange for pulling the video. His response was: “Good luck with that one, pal.”
Taylor Guitars sent Carroll 2 new custom guitars in appreciation for the product recognition from the video that has led to a sharp increase in orders. Carroll himself has built the whole busted guitar story into a new career for himself with videos and a book.
There is an obvious moral. Treat your customers right.
Watch the video here.
Facebook shares are available on Fidelity, allegedly.
A wonderful evening. I spent three hours with a bunch of young programmers figuring the next “Facebook,” the next billion dollar phenom.
It’s a seriously wonderful world when you figure that a handful of smart kids can create and grow a huge business without building a factory, without spending billions on marketing, without hiring thousands.
The programming tools are freely available. Amazon (and others) provide the instant infrastucture (the “cloud”) and everyone has the access tools, called smartphones and iPads.
The key is imagination, willingness to take the bet, confidence in yourself and — if you’re lucky — the ability to program.
What can you do with a clever gorgeous iPad app? Download the free iPad app MOMA AB EX NY.
Two bad, but funny blonde jokes. Number 1.
Two blondes were sipping their Starbuck’s when a truck went past loaded up with rolls of sod.
“I’m going to do that when I win the lottery,” announced Blonde #1.
“Do what?”, asked Blonde #2.
“Send my lawn out to be mowed.”
Number 2 bad, funny blonde joke.
After becoming very frustrated with the attitude of one of the shopkeepers, the young blonde declared, ‘Well, then, maybe I’ll just go out and catch my own alligator and get a pair of alligator shoes for free!’
The shopkeeper replied with a sly smile, ‘Well, little lady, why don’t you go give it a try?’
The blonde headed off to the swamp, determined to catch an alligator. Later in the day, the shopkeeper was driving home, and spotted the young woman standing waist deep in the murky water, shotgun in hand.
He saw a huge 9-foot gator swimming rapidly toward her. With lightning reflexes, the blond took aim, shot the creature and hauled it up onto the slippery bank.
Nearby were 7 more dead gators all lying belly up. The shopkeeper watched in amazement as the blond struggled with the gator.
Then, rolling her eyes, she screamed in frustration……
Sonofabitch! … THIS ONE’S BAREFOOT, TOO!
Harry Newton, who is having fun, but playing things very conservatively. I continue to like high-yield mortgage REITs for their dividend.
I’m not sanguine about the market for the next few momths. Playing it to the downside
The above is all I needed to read, Newton. I'm now a buyer @ these prices and I suggest others be too.
Harry – I suggest sometime soon you address the elephant in the room – the way you were depicted in the Buffett book “Snowball.”
Harry, how can you say you're conservative when you short stocks? First you have unlimited losses, and you have to pay interest for borrowing the shares and you have to pay any dividends, and most stocks go up most of the time!
Harry…looking at new tv's..what is the difference btw plasma, LED and LCD?
also..what do you recommend?
The Samsung 60' 8000 LED series. Best TV around. Not cheap, however. Make sure you have Wi-FI handy.
LED, of course!
Go stand in front of a plasma, hold your hand on the screen, feel the heat being generated and then think of your electric bill! I bought a Sony LED and my electric bill went down. I had a big old 55″ projector type TV.
IPO Message from Fidelity:
You are not eligible to participate in equity new issue offerings through Fidelity Investments. Eligibility is reserved for brokerage customers with a minimum of $500,000. Only rich client can get in, I may get lucky and get some shares thru E-Trade.
You have no idea how big my Fidelity account is. Why would you write without checking?
Harry, I think “Krazyrph” was restating what the message from Fidelity said, not in reference to you or your accout. Fidelity requires that anyone has account(s) worth at least $500K with them before they will be eligible to participate in new equity issues/IPOs.
Thank you, that's what i was referring to.