Sunday, March 8, 2009

Dvorak-Horowitz Unplugged #19

Columnist John C. Dvorak and money manager Andrew Horowitz were on the best damn podcast that isn't called No Agenda. Here are the quick highlights:

  • The stock market is a wounded animal, do you want to be in the prescence of a wounded animal?
  • The short squeeze will be like an immense puss filled zit popping
  • The amount of negativity is amazing. Some companies are way oversold
  • General Motors is dead (stock price 1.86, EPS -54)
  • Autozone is at a 52-week high right now, people are fixing their own cars rather than buying new ones
  • Home Depot, at 1:30 on a Thursday, the parking lot was overflowing
  • Of any nuclear war, there will be survivors
  • Riots in Russia
  • Eastern Europe has been abandoned by Western Europe
  • Trading movement is trending to the upside
  • I'm not bullish yet ... but we're sneaking in and getting long
  • Mutual funds have to rebalance at the end of a quarter, from bonds into stocks at the end of a quarter
  • General technology has shown a lot of resilience
  • Jacob's Engineering
  • AECOM Technology
  • Excel Maritime
  • Baltic dry index has moved nicely off its lows, people are shipping
  • Apple is overpriced, but the stores are still packed
  • Berkshire Hathaway has very large positions in derivatives that are imploding right now

A short squeeze is a rapid increase in the price of a stock that occurs when there is a lack of supply and an excess of demand for the stock. Short squeezes result when short sellers cover their positions on a stock.

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