Herb Greenberg's parting advice

Discussion in 'Wall St. News' started by turkeyneck, Apr 28, 2008.

  1. Lesson No. 1: The numbers don't lie. They can be stir-fried, oven-fried or convection-baked, but in the end they always hold the keys to the kingdom. That is why some short sellers and forensic analysts don't like to talk to companies. They want to avoid the spin or the face-to-face meeting that can create a psychological connection that may skew what otherwise would be black-and-white analysis. Don't ever underestimate the power and influence of the human factor.

    Lesson No. 2: Quality, not quantity. Ignore the "beat the Street" headlines on earnings. It is what goes into the earnings that counts. As I quoted investment legend Thornton Oglove as saying here the past week, the real story is often on the balance sheet. And let's not forget the cash-flow statement. And this tip: The more complex and convoluted the financial statements get, especially for businesses that aren't overly complicated, the more reason to worry.

    Lesson No. 3: GAAP isn't the same as a Good Housekeeping seal. Generally Accepted Accounting Principles, according to which all financial statements are supposed to be prepared, include plenty of gray areas that give management enough rope to hang itself. GAAP, after all, is subject to interpretation, and some managers are more conservative than others. Remember, just because the accounting is legal doesn't mean the end results won't be lousy.

    Lesson No. 4: Don't confuse stocks and companies. They sometimes go in opposite directions. Stocks sometimes really do lie. Sometimes they are pushed artificially higher by a rotation by investors from one industry group to another, because that one sector happens to be in favor. Sometimes they lie because of short squeezes, which occur when short sellers -- who bet stock prices will fall -- are for some reason forced to rapidly purchase the shares they sold short. And sometimes they lie because of momentum. Momentum can take stocks to infinity and beyond, but true believers can wind up learning that momentum has a dark side: It is called reverse momentum, and it tends to kick in when you least expect.

    Lesson No. 5: Risk isn't a four-letter word. A good rule of thumb is that before you buy, instead of asking how much you can make, first ask how much you can lose. That is what the smart guys do.

  2. Herb Greenberg. LOL

    I think I'll give up the gold mine, and go start a research firm. Reporter = Analyst. Perfect fit.
  3. Friggin guy would wet his pants if he had to buy 100 shares of GE, but he's giving advice. What a joke.

    I'd love to see him come up with one original idea and put his own dough on it. LOL, that'll never happen.
  4. Herbie and CNBC Krew just did quite a monologue on "That Nut Job at Overstock".

    "Blatent Liar, Fax Machine, etc.."

    PB should crank out a defamation lawsuit just for the hellofit.
  5. Greenberg = one of the street's biggest shills.

    So he's going to start a firm to research better shilling?

    What a joke.
  6. http://www.cnbc.com/id/15840232?video=748124091&play=1

    Here is what I find interesting. Discovery is looming. But David Faber feigns not knowing where OSTK is at the current time. David Faber is mentioned in the Elgindy transcripts. He has to know all about what is going on. He may be in it.
  7. LOL!!!! beautiful quote
  8. i used to make some nice money on herb greenberg's calls
    good luck to him