2 replies to this topic

[ogm]

Overowned, overbloated, overloved. Typical bloated pig in this overextended market.

24 P/E, minimal growth, minimal growth prospects, pays only 1% dividend. Lets face it, this rally is all about dividends, and Costco isn't offering any.

Earnings not until may 30s, but June puts look very reasonable.

Edited by ogm, 30 April 2013 - 05:24 PM.

[CCL]

Really? Shorting a stock with a monthly P/E over 80? Weekly RSI compression just under O/B? At the very least, how about a test/breakdown of that MACD triangle or the daily RSI compression? June puts on this Monster is just a contribution at this point; they'll be MUCH cheaper in a couple of week. Or just PM me and wire the money direct - cuts out the Vig.

[ogm]

Really?

Shorting a stock with a monthly P/E over 80?

Weekly RSI compression just under O/B?

At the very least, how about a test/breakdown of that MACD triangle or the daily RSI compression?

June puts on this Monster is just a contribution at this point; they'll be MUCH cheaper in a couple of week.

Or just PM me and wire the money direct - cuts out the Vig.

Why is it a monster ? Just because its so overloved and overowned ? They've been growing in single digits, they only plan to open 10 new stores. The stock is very expensive, and nothing here justifies 20+ P/E.

The key here is dividend. They simply aren't paying enough. If they paid 3% or so I probably wouldn't touch it. But since they are paying in 1% range, I have no problem shorting it here. This is a yield rally. Costco just a tag along.

The daily chart has hit my daily radar screen for a short signal yesterday, once I looked at the weekly chart, it was all clear. Monthly RSI at 80 is just an icing on the cake.

Edited by ogm, 01 May 2013 - 07:49 AM.