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By Scott Rubin
For the uninitiated, the answer to the title of this article may seem obvious - of course shorting overvalued stocks is a good investment strategy. What other kinds of stocks would you want to short? Certainly not an undervalued stock, right? Since valuation is far from a hard science, maybe we should refine what type of "overvalued" stocks we are talking about.
For the purposes of this article, I am talking about "seemingly" overvalued stocks using all of the traditional valuation metrics - i.e., P/E, PEG, Price/Book, Price/Sales, etc. In order to get an even better define the term "seemingly overvalued," let me provide you with some examples. Salesforce.com (CRM) trades at a trailing P/E of 245, a forward P/E of 87, a PEG ratio of 4.92, a Price/Book of 14.7, and a Price/Sales ratio of 11.46. Looks to be overvalued, right?
Well, CRM has gained 83% in 2010. Would you want to be short? That wouldn't have worked out too well. How about Acme Packet (APKT)? This stock trades at a trailing P/E of 97.64, a forward P/E of 53.33, a PEG ratio of 2.40, a Price/Book of 12.19 and a Price/Sales ratio of 17.13. Using normal metrics, this name would appear to be "overvalued." But, the stock has appreciated more than 400% in 2010. It just keeps getting more and more "overvalued."
In fact, many of the best performing stocks in the market today would appear to be wildly overvalued using normal metrics. This includes, Chipotle (CMG), Amazon (AMZN), Riverbed Technology (RVBD), and F5 Networks (FFIV), to name a few. These are all stocks that you should have been buying, not shorting. In 2010, stocks with high P/E ratios have trounced their cheaper peers.
Lets break that 52wk high and we fly from there
HANGING ON TIGHT HERE TILL $1,s
SERIOUSLY
SAME HERE WILL HAVE FUNDS IN THE AM TOMORROW LOADING UP
AGREED CEO1
No ones buying whats up with that
IT IS SUPER QUIET HERE GAME PLAN IN PROCESS GO OPXS $$$$
BAIL THIS IS GOING TO DROP HARD
.0005 up yahooooo
WE ARE HEADED NORTH BIG TIME
Yea there is i don't know that one
More like drop 600% lol
Buying back borrowed securities in order to close an open short position. Short covering refers to the purchase of the exact same security that was initially sold short, since the short-sale process involved borrowing the security and selling it in the market. For example, assume you sold short 100 shares of XYZ at $20 per share, based on your view that the shares were headed lower. When XYZ declines to $15, you buy back 100 shares of XYZ in the market to cover your short position (and pocket a gross profit of $500 from your short trade). This process is known as short covering.
THIS WOKE UP FOR A REASON SOMETHING IS COMING HANG ON PEEPS
Kabooooooom time
KABOOOOOOOOOM
Thk god i sold
Looooking goooood
Nevermind
Maybe its higher raise it to .033
Thats strange
ITS GOING TO POP
UNBELEIVABLE WHY
Here we go lets keep it going
Loooking goood
Is this stock dead
BOOOOM TIME
Business Description:
Optex Systems Holdings, Inc., manufactures optical sighting systems & assemblies, mainly for department of defense & foreign military applications. It also provides periscope configurations, rifle & surveillance sights, & night vision optical assemblies.
Address: 1420 Presidential Drive, Richardson, TX, USA, 75081-2439
Telephone: +1 972 764-5700 Website: http://www.optexsys.com
Facsimile: N/A Email: N/A
Details
CEO: Stanley A. Hirschman
Employees: 63 Market Cap: 4.41m
Issue Type: CS
Auditor: PMB Helin Donovan, LLP
Last Audit: Unqualified Opinion
Indices: Aerospace & Defense
Industry Classifications
Sector: Industrials CIK: 1397016
NAICS: Optical Instrument and Lens Manufacturing (333314)
SIC: Optical Instruments And Lenses (3
SOMETHING IS ABOUT TO GIVE HERE
.45 COMING SOOON
ST. LOUIS, MO--(Marketwired - Mar 13, 2014) - Tanke, Incorporated (OTC Pink: TNKE) (PINKSHEETS: TNKE), a diversified holding company focused on emerging technologies and "cleantech," is pleased to provide this update to its shareholders and the investment community. This release includes information about the Company's plans and announcement of a management, investment and incubation, agreement with Utime Trading & Commerce Ltd. (Utime) a logistics provider in central China.
Tanke is a diversified holding company that manages and finances emerging growth companies, with a primary focus on the development of environmental technologies. The company is now positioning to become a major participant in the logistics industry in China, a $400 billion market.
"We are extremely excited to ride along the internal consumption trend in China through our investment in Utime; this massive, fast growing market with undiscovered areas where our unique strengths can be effectively utilized," said Xiaoying Zhang, CEO of Tanke. Utime focuses on internal consumption logistics, a large segment within the industry. Internal consumption in China has accounted for 45.9% of China's growth in 2013 and it's poised to be the major growth driver in China.1
Tanke committed to develop, manage and finance emerging companies in high growth industries Tanke has decided to deploy resources to the logistics industry. Through this investment, management and incubation program Tanke seeks to exploit the high growth on internal consumption.
"We are very exciting to combine Tanke's expertise in, high growth industries, development of proprietary technology & brand promotion with our strategic networks and distribution channels throughout China will help position us to become a significant player in the region enabling both of us to achieve a global reach," said Mr. Joseph Stone, CEO of Utime Trading & Commerce Ltd.
"China, which continues to be a rapidly growing market with abundant yet-to-be-tapped opportunities and great promise, is in fundamental need of the most advanced, innovative and cutting-edge logistics solutions; solutions that can optimize the effectiveness and profitability of the industry as a whole. With our proven track record and long history of applying proprietary and innovative technology innovation, investment and management in emerging growth companies, our instrumental strategic partnership with Utime will prove highly rewarding for us both," added Xiaoying Zhang.
References:
1. Transportation & Logistics 2030 - PwC
About Tanke Incorporated
Tanke is a diversified holding company with the mission to develop, manage and finance emerging companies in high growth industries. Tanke is focused in the development of environmental technologies and "Cleantech" for a wide range of markets such as commercial, industrial and municipal applications. Tanke believes that globalization and the emergence of Asia stresses natural resources, water, energy and food, and environmental technologies will be at the forefront of the new paradigm shift in usage of resources. Through its subsidiaries and affiliates in the world and with its deep experience in China -- the fastest growing emerging market in the world, Tanke seeks to grow through acquisitions, organic growth in the USA and also in the emerging markets. Our holdings consist of: Environmental & Water technologies, eWaste and reverse logistics technologies, and The Triple R Water recycling technology under the Re:Water™ Brand.
Safe Harbor Statement: Certain statements and information included in this release may constitute "forward-looking statements" as defined in the Federal Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied in such statements. Additional discussion of factors that could cause actual results to differ materially from management's projections, estimates and expectations is contained in the Company's SEC filings. The Company assumes no obligation to update any forward-looking statements as a result of new information, future events or developments, except as required by federal securities laws.
Tanke Inc.
Additional information is available on the Company's website: www.tankeinc.com or contact Investor Relations at: IR@tankeinc.com
ITS GOING TO POP SOOOOON
SHORTS ARE IN TROUBLE HERE DONT SELL HANG ON KEEP BUYING THIS WILL PREVAIL AND THE LONGS WILL WIN
HERE WE GOOOOOOO
YEA MIGHT HAVE TO JUMP OFF THE BOAT NOR LIKEING
Yea looks that way
WTF
ROCK AND ROLL BABY
LETS BREAK THAT .5