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Varchild2008 (85.29)

Whirlpool NOT Ford is the Strong Sell, Strong Short of the Day

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September 21, 2009 – Comments (2) | RELATED TICKERS: WHR , F

Looking at the market and wondering what to sell or short?  Popular Short/Sell is (F) Ford.  At least it was last week and looks to be in the pre-market this morning.

But, I disagree with the investor sentiment.  They are pointed in the wrong direction.

Given share price... of now less than $7.00... What does that mean other than FORD IS NOT PROFITABLE?   

If (F) was overbought it would have to have a closing price at or above $8.00.

So while Wall Street is out there on the "Cash for Clunkers is Over" bandwagon....well....I say those wheels will fall off in January if not sooner... And the cheaper the price gets the harder it will be to justify it much lower and the harder it will be earn anything off a SHORT scheme.

What we have is a bunch of SPOOK Stories in the Newspapers and Mainstream Media and Analysts all chirping about the Death of Cash for Clunkers.... Cash for Clunkers is meaningless.... Auto Sector worse not better..... Run!!! don't walk away from (F).....  If you ask me everyone is BEARISH on (F) Ford that has a megaphone.

Which is why it doesn't make sense from a contrarian perspective to hop on that Bandwagon off a cliff. 

Instead... you want to SHORT.....I STRONGLY URGE....the SHORTING.... of (WHR).

Let me clarify whether or not I am biased... I am not... I own shares of both WHR and F and the dollar value of both is nearly identical.  Share count is not.  But dollar value is.

WHR pays a huge dividend... If I was to be biased I'd be telling everyone to BUY  WHR.
I already said last week that the thing needs a $10 pullback at some point...whereever the PEAK happens to be.

But you know what?  We have had JIM CRAMER telling investors to buy WHR at $64.00 a share because there's 9 pts more to the stock.

We had some unintelligent investor analyst lookin all goofy as if he had something in his teeth paraphrasing, "Jim Cramer says WHR has another 9 pts to it!  9 times Mr. Bueller...9 times Mr. Bueller."

Well.. Varchild sees all of these morons bullish as all get out on WHR...... And you know what?

It is not justified!!!!!

Jim Cramer on his T.V. show always says, "You can trust the C.E.Os"

Taking that philosophical approach to WHR..... and WHR is waaaay overbought.  The C.E.O. as I pointed out a month or so ago has already said that he doesn't expect 2010 to be any kind of a turn-a-round in sales....

The C.E.O of WHR still sees a Recessionary economy for his global business for many months to come.

The share price where it is at is trading WAAAAAAAY beyond what Q3 and Q4 earnings reports could possibly justify.

I am placing therefore.... a $55 12 month target price on WHR.   That's just $15 more than Standard and Poors that also has a SELL rating on the stock.

Investors are TOOOOOOOOO  BULLISH.

The stock went up the 9 pts Jim said it would.... Now's the time to DUMP  WHR....
And Buy (F) Ford or any other stock that has too much negativity surrounding it.

WHR is not justified as a $70 stock and Jim Cramer knows better than to create this artificial rally.

This week and rest of Sep.  Investors on Wall Street are expecting, demanding, hoping for an overall market pullback anyhow.  So the buyers are munching on a bag of CHEETOS... They aren't buying anything...just sucking there thumbs...except maybe buying (PEP) cause they own Frito Lay which Owns CHEETOS.

2 Comments – Post Your Own

#1) On March 04, 2010 at 9:48 PM, BrandonPaulChevy (< 20) wrote:

I totally disagree man.Ford continues to rise despite the drastic effects of recession. In face, they are modifying the ford tailgate of the lynx so that it would look a lot more better.

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#2) On December 31, 2010 at 4:18 AM, HARE90 wrote:

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