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IBDvalueinvestin (98.35)

2 massive extreme trades today : FUQI, REV



November 09, 2009 – Comments (5) | RELATED TICKERS: FUQI.DL , REV

While longs are being crushed on FUQI, shorts are being crushed on REV.

5 Comments – Post Your Own

#1) On November 09, 2009 at 3:47 PM, coolgoose (< 20) wrote:

Why is FUQI getting crushed....the results weren't too bad were they ?

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#2) On November 09, 2009 at 4:57 PM, dantefromsomm (< 20) wrote:

ibd, this is my first year investing and im aggresively learning as fast as i can. i see , and of course know there are people like you that know alot more than i love it if you could send me an email with some advice on what to learn to do better. dantefromsomm@yahoo , thanx, n reply here as well so im sure its you

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#3) On November 09, 2009 at 4:58 PM, ExitOnBir (< 20) wrote:

Apparent reason is lower than expected Q4 guidance and a potential slowdown in sales for the coming quarters. IMO-targeted short raid of another well priced small cap. Market rallies, FUQI beats each an every expectation and it's shorted like there is no tomorrow. Go figure.

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#4) On November 09, 2009 at 7:09 PM, Snoova (< 20) wrote:

I dont get it!  How did this go down so bad today after such a good report?  Anyone?  Is it because they are in line with estimates, that they have been crushing?

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#5) On November 09, 2009 at 7:30 PM, Counterparty (< 20) wrote:

Markets aren't exactly know for being rational. It's still primarly controled by analyst recommendations and we as investors still seem to follow investment bank ratings and flawed rating agencies like S&P and Moody's, still payed by the issuers, like they know it all. But of course those investment bank traders already have position when their own rating upgrades come out and they know pretty much when to sell, when the rest of the sheep have pumped up the share price based on the rating.

Who cares about real fundamentals, cash flow, dividend and P/B. Until we beat the tendency it's just a matter of time for the next big bubble to emerge and pop, but then that's exactly what the professionals are banking on. Hopefully the smaller investors have learned their lesson in this credit crisis and know when to get out if valuations become irrational in some markets. Better to have a little less profit then to get stuck with a lot more loss! But then timing is the hardest thing and we're lucky if we get it right most of the time :)

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