By Paddington Bear | Saturday 18 March 2017
Disclosure: The author has a short position in one or more of the shares mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
I am sharpening my claws and preparing to return to the fray as a contributor to this esteemed website: well, once I finish my marmalade sandwich. What is it that has brought me back you might ask? It is a confluence of factors:
With the spectre of inflation and risk of rate hikes it is a good time for analysts to sharpen their pencils and bears to sharpen their claws.
Low-interest rates have kept many companies afloat that without the IV drip of QE and monetary easing would have died years ago
Uncertainty and political change from Brexit and Trump
Not looking to espouse a view here one way or other on either event - this is simply stating the bigger the political change the bigger the economic impact is likely to be. There will be winners, but there will also be losers.
Potential border taxation, shifting geographical trade patterns, and other uncertainties will create opportunities for this bear
Market valuations across the globe are looking stretched However, given where interest rates are the bull market may still have much further to go. But the more expensive a market gets, and the greater the potential for volatility
There are some companies that have raised my ire. More on them to come. Some old pals have returned. Maybe you remember Cupid PLC and the work I did there; well, they’re back. In fact it's the same company, Cupid beget castle street, beget Coretx
Does this now make me a seasoned short seller? Now that my first jockey has returned to the public markets? I am certainly older (and have less hair ). Anyways - so what do we have in the pipeline, and what can you look forward to.
Stride Gaming- related party transactions that make you laugh out loud
Cimpress – a hyper growth hyped leveraged roll up
RPC – aggressive accounting and debt-fuelled roll up
Cortex (a very smart chicken farmer once told me to bet on the jockey and not the horse!).
But the big one is a large and eminently shortable UK play. Monday morning my friends...not too long to wait now. Paddington is out of retirement.
This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.
Comments are turned off for this article.
Search ShareProphets |
Stock market news |
Recent Comments |