While investing will always be an endeavor in probabilities, it pays to pay attention to what information the stock market is tells you. While I won't go into any of the fundamental issues with this company or industry, the chart alone was telling you most of what you need to know. Individual investors should heed the warnings that are telegraphed when major shareholders are leaving the party. As of the latest filings, there were close to 3000 mutual funds that own this significantly over-valued (in my opinion) household name. Also in my opinion, this will be the ultimate downfall with today's love affair with passive investing. Sure you'll own some great companies, but you'll also own a lot of crappy ones as well. To me, this is definitely not a bottoming pattern. I have no interest in holding shares in this stock. Remember that over time, the stock market is a weighing machine. The fact that the company is a household name, or has a great product or service is of no relevance. Market participants simply suck all future returns into the present until there is no where for the price to go accept lower.
Valuation and Price/Volume,
P. Franklin, Jr.
August 15th, 2017
All opinions and estimates included in this communication constitute the author’s judgment as of the date of this report and are subject to change without notice. This communication is for informational purposes only. It is not intended as an offer or solicitation with respect to the purchase or sale of any security. This information is subject to change at any time, based on market and other conditions. Any forward looking statements are just opinions – not a statement of fact.
Investing may involve risk including loss of principal. Investment returns, particularly over shorter time periods are highly dependent on trends in the various investment markets. Past performance does not guarantee future results.