MRLP Short Virgin
September 10, 2008
– Comments (6) |
RELATED TICKERS: SCC
Disclosure: I have never shorted a stock or industry. In MRLP I buy and hold, rarely trading and until recently it has paid off fairly well. Since joining CAPS I have taken a small % and dedicated it to short term trading. This also worked well until I was upside down with NVDA and TTM. Currently I am in a little bit of a trading funk. The Energy and Oil Service stocks that I see having real growth opportunities are underappreciated, and are getting crushed by the market. I see value in backlog and future earnings, whereas the market is just looking at the price per barrell of oil.
This said, I do not have much faith in my ability to pick winning stocks, my open accuracy in CAPS bears witness to this fact. I am considering entering my first ever short in MRLP. Anchak referred me to SCC, it is short some relatively strong retailers that have put up relatively good numbers recently, at least compared to the rest of the market. I traded it in CAPS several times and did pretty well until all of the government interventtion.
Disclosure, I trade purely on gut instinct at a Macro level. I respect the technical traders and their input only because others do. To me it has no relevance other than what other investors consider as important. I respect those that take the time to perform due dilligence on their investments and go through the reports with a fine tooth comb. For me it has very little meaning as I was once and Enron Investor and I lost money based on that "analysis."
Lately my "gut" is out of tune with the market with my personal investments. My time horizon is 10-30 years, and paid in cash, so I am not ready to jump out a window yet. I have been watching SCC though, and I feel with certainty that it is due to rise. It has been shredded by the short squeeze, and I am looking for an entry point.
I am writing this blog in hopes that I can receive all of the opinions of the analysis that I put down earlier. I can restate all the negatives for retail, but the market does not seem to appreciate them-and Alstry seems to have the market cornered on doom and gloom. I have to say though, this is the same market that was running up Fannie and Freddie until the dire end, so I do not feel I am too far out of touch with reality. The mutual fund managers should be fired and I mean across the board.
What is your buy price with real cash for SCC? It is currently rated a 2 on CAPS, and that does not seem right under the current market conditions. Any and all input is appreciated, including the hypnotoad.
James
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