SNAP Stinks

A couple things I learned and then some of my own thoughts as to why Snap stinks.  

     25% of all stock issued at IPO was promised to be held for one year. Snap and the underwriters - Morgan Stanley and Goldman Sachs - were able to convince individuals/institutions to agree to buy the stock and hold onto it for at least one year. It's very rare that companies are able to accomplish this and those companies are actually turning a revenue. These shares that are held for a year are going to help legitimize the company, which is useful since they lost $514.6 million dollars last year. 

CMG Moving Averages Cross

Chipotle  [CMG]     

     After a couple days into a down week I was scrolling through the charts I usually do. Today I noticed that Chipotle is showing a bullish signal which I find surprising amidst all the bad news surrounding them recently. The front cover of Barron's was promoting an article they wrote saying Chipotle could have a 20%-30% downside 2 or 3 weeks ago. And today it fell 1.65%, the equivalent of $6.78 and broke below any support from the 50 or 200 day moving average. 

Falling Forty

In an effort to keep you readers engaged while I study for midterms I wanted to post a brief analysis on the two companies that fell greater than 40% today based on finviz.com.

1. [RTK]

Valeant [VRX] Reversing Trend

Valeant Pharmaceuticals International, Inc     [VRX]


I wish I had been able to post this on Monday when I saw this. Before the subsequent 12% trip up. Valeant had formed a reverse head and shoulders. 

Down 40%!? [LNKD example]

     Aha, misleading title. This isn't about a specific stock that's down 40%. You didn't miss any huge news. No worries. I wanted to talk about losing 40% as a short term buying opportunity. If a stock falls 40% in one trading day, wouldn't that seem like a great opportunity to buy? Sometimes. To buy that stock there would have to be certain things you believe in and certain things you look for. 

Strategy? [TGT]

     There has been a lot of news and prominent investors coming out and saying a load of different things. Some argue that all of Trump's plans will encourage growth and the stock market will continue its bull trend for the foreseeable future. Others are saying that a tax cut could increase the debt dramatically and lead to a market correction. It has been very frothy lately, not wanted to move too much higher of lower since mid December. Seth Klarman in his note to his investors wrote that he is moving toward a larger percentage of cash in his portfolio because he believes there is more downside potential.