 |
jj90
Registered: Nov 2005
Posts: 497 |
10-15-12 11:29 PM
Quote from newwurldmn:
I It's weird. Some stocks have gotten really hurt. The pattern is they rally a lot in august and give up all the gains now. The broader market hasn't done the same so something is unique to these stocks.
CAT, CE, WDC are examples.
WDC what a dog. Yea I have it in the retirement acct. Stuff like that makes me think I'm getting way too aggressive with my value stuff and should go back to finding net-nets.
If there's 1 thing I learned this year, it's correlation risk.
|
| |
|
Edit/Delete • Quote • Complain |
newwurldmn
Registered: Apr 2011
Posts: 2662 |
10-15-12 11:45 PM
Quote from jj90:
WDC what a dog. Yea I have it in the retirement acct. Stuff like that makes me think I'm getting way too aggressive with my value stuff and should go back to finding net-nets.
If there's 1 thing I learned this year, it's correlation risk.
correlation being high or low?
WDC is an interesting stock. It's very leveraged to it's industry. Look at it. 26 on the thai floods; 45 on macro and now 35 as tech deflates. I don't know a lot about the company though - but i get the sense it has a lot of operating leverage which is why the stock is so volatile.
|
| |
|
Edit/Delete • Quote • Complain |
jj90
Registered: Nov 2005
Posts: 497 |
10-16-12 01:08 AM
Quote from newwurldmn:
correlation being high or low?
WDC is an interesting stock. It's very leveraged to it's industry. Look at it. 26 on the thai floods; 45 on macro and now 35 as tech deflates. I don't know a lot about the company though - but i get the sense it has a lot of operating leverage which is why the stock is so volatile.
It's high when I want it to be low and low when I want it to be high. I'm just getting straight fucked. At least I learned how to deal with it, the hard way of course.
Anyways, WDC doesn't even have a lot of leverage. It trades like CAT et al. on global concerns, when the company derives the vast majority of its earnings on SSDs. And yes, there are concerns that demand is waning, however the company still made a shitload of cash and is projected to do so for at least 1 more quarter. To sum, I really thought it'd be stronger. Hell, my RIMM position is doing better than WDC.
|
| |
|
Edit/Delete • Quote • Complain |
newwurldmn
Registered: Apr 2011
Posts: 2662 |
10-16-12 01:15 AM
Quote from jj90:
It's high when I want it to be low and low when I want it to be high. I'm just getting straight fucked. At least I learned how to deal with it, the hard way of course.
Anyways, WDC doesn't even have a lot of leverage. It trades like CAT et al. on global concerns, when the company derives the vast majority of its earnings on SSDs. And yes, there are concerns that demand is waning, however the company still made a shitload of cash and is projected to do so for at least 1 more quarter. To sum, I really thought it'd be stronger. Hell, my RIMM position is doing better than WDC.
Are you running a long only type portfolio or are you running a long short portfolio?
|
| |
|
Edit/Delete • Quote • Complain |
jj90
Registered: Nov 2005
Posts: 497 |
10-16-12 05:25 AM
Retirement is long only, main trading acct is long short neutral whatever. It's actually global macro biased. Best of luck to us, I'm looking forward to more volatile times ahead.
|
| |
|
Edit/Delete • Quote • Complain |
Took2Summit
Registered: Jul 2011
Posts: 416 |
10-16-12 08:03 PM
out of the top 5 DOW stocks today, 3 of them are my only 3 holdings:
CSCO
UTX
and the biggest winner of the day CAT
The other two being BA and INTC
I have yet to decide whether this is a good or bad thing. I think what this means is if the market goes down ill get killed, if the market goes up ill out perform.
keeping everything as is for now. Happy to finally have a decent out performance day.
|
| |
|
Edit/Delete • Quote • Complain |
| Receive
an email whenever a new post is added to this thread by subscribing
to it. |
|
|
|
|
