The price is based on the fact that demand is exceeding supply, whether the demand is from short covering or actual new longs. AZO has a fairly high short interest of nearly 12%, but that's not ridiculous like SYNA at 60%. If you want to short a stock in this sector that you believe is priced at "ridiculous" levels, why not choose ORLY? Their trailing P/E is 23 compared to AZO's very reasonable P/E of 15. Just because AZO is a high priced stock doesn't mean it's "overpriced". If you're looking to short them beyond intraday trading, I would recommend waiting for a more seriously overbought condition, or a truly confirmed breakdown of the trend.
Actually, I figured this out ! AZO is going up because those defaulting-on-their-huge-mortgage homeless people are living out of their cars now !
Hello Fencerd4 and others looking at AZO After reading the tag line for this thread I thought I would take a look. As many know I make my living off of shorting over bought stocks and I fade the move up so not only am I not afraid to put offers out to be lifted that is my standard practice. I do not think AZO offers a good risk to reward to short at this price (at least for me anyway). I would suggest that if your not short that you don't get short and if you are run a very very tight stop. This could run another 10 points very easily. Just my thoughts on this stock and that doesn't mean it won't go down just that the risk vs reward is not high enough for me to short it. (if someone crazy like me who jumps in front of speeding trains almost daily isn't willing to commit funds to it do you really want to???) Best to you RW
thanks for the honest response. This stock reminds me of Leap Wireless (leap). I shorted it in early 2008 when it was $52 because I was so pissed off that a company with a negative eps, who consistently lose money every quarter is worth 52. However, after reporting a 27% drop in revenues the next day, the stock rallied $4. Since then, the stock dropped to the teens. However, the one thing that azo and leap have in common is over 90% ownership by institutions and their manipulation tactics sickens me.
Looking at the chart I would have said to not short it. But the quote from the turd made me change my mind. Donw 75% in 2 months, short away!
Fenced4: AZO has very ugly balance sheet. Your short position got squeezed because Short interest rate are so high that this offers market maker a good chance to squeeze your short position. * Shares Outstanding5:54.69M * Float:54.08M * Shares Short (as of 10-Mar-09)3:6.22M * Short Ratio (as of 10-Mar-09)3:2.8 * Short % of Float (as of 10-Mar-09)3:11.50% TA
i know how u feel!! i read every post in this thread. from a trading perspective the non-shorts are obviously correct, but from an emotional and reality perspective, i agree 100% this stock is garbage, and yet it is going up. look at wal-mart. that is a great company and it is getting clobbered this year. u cant even compare the two. it is sick how stocks become in favor. it is like poker, where the bad hand wins. with that said take a look at GUESS! GES. it has outperformed the S&P by 75% this year. the stock is out of control. the earnings were garbage. and guidance down yet it has had 3 upgrades and 2 reiterations in the past week and is up 35%. i hate this stock, lol. by the way, i am not serious about hating a stock, because i dont get emotional, but if i did get emotional i would hate this stock. this stock will be at 12 in the next 3 months, watch.
When it comes to the stock market stupid gets more stupid when it comes to price. I'm not sure exactly what you plan to get by shorting the strongest stocks in the market (except a possible ego trip on the 1 in 30 times you get it right), but there tends to be, at least in my experience, a lot more money in buying stocks like this then in shorting them. For the sake of full disclosure I'm long from $133 in AZO and from $32.60 in ORLY.