Are there many stocks that hit all-time high's, and never look back?

[bigbet1234]

i was wondering if it's a good idea to short stocks that hit all-time high's. IE, SIRI over $9 at one point, now under $6. Sbux over $64, not under $50

BB

 

[Illini]

Probably not a good idea to short anything in infancy stages that is going nowhere but up. After 8 years, maybe. But I wouldn't short Sirius. I haven't looked at their numbers, but sales increase and profit increase each quarter is what is going to drive a stock way up. That is the reason to buy it.

 

[viking611]

Satellite radio is going to be HUGE in the next ccouple years.

 

[tryingtofade]

SIRI had revenue of $25 million and operating expenses of $284 million, for a net operating loss of $259 million last quarter. Total net loss for 2004 was over $700 million, up from a net loss the prior year of more than $300 million. And this little gem of a business, which lost a cool $1 billion over the last two years can be bought for the bargain basement price of $7.5 billion ($6 per outstanding share). Hmmmmm, takes a lot of $10/month customers to pay for Howard Stern, Music Royalties, Sports Casts, etc.. Oh, yeah, satellites.. ya need those too, but they must be cheap.


Can I interest you in some Duke -37 in their next tilt?

 

[ACE-ACE]

Siri And Xmsr....is Why I Have To Pay The Irs This Year!!!! In Mar Of 2003 I Got Siri At 1.38.....and Got Xm At 5 .38...... Just Sold Them In Dec.....i Never In My Life Made As Much Money As I Did In 2004....and Xm And Siri Was A Big Part Of It.....

 

[Fishhead]

Siri And Xmsr....is Why I Have To Pay The Irs This Year!!!! In Mar Of 2003 I Got Siri At 1.38.....and Got Xm At 5 .38...... Just Sold Them In Dec.....i Never In My Life Made As Much Money As I Did In 2004....and Xm And Siri Was A Big Part Of It.....

Very nice to hear!

Congrats!

---FISH---

 

[WildBill]

You would not do well. Stocks that hit all-time highs usually proceed to continue to do so for awhile. Momentum drives stocks up to and past all-time highs and until you find clear reason to think the momentum is going the other way it is financial suicide to try to short them.

Same on the downside, stocks hitting 52 week lows are usually best avoided. Don't try to beat or time the turnaround on a stock, wait it out for a bit and make sure it has had a reason to turn and then confirm the market is agreeing with that analysis.

Best way to think about it is the best technical analysts will tell you if something is dropping or rising, try to make money in between 25% and 75%. In other words if a stock is about to go up $10, try to make money catching after it has gone up $2.50 and stay with it until about $7.50 of the gain. Of course you never know where those points are exactly, but that is the general goal. Get in after confirmation and hold on until it appears too many people are on the train with you. Never attempt to hit the exact top or bottom.

 

[Kiss1]

You would not do well. <snip>

Bill,

Your never ending source of wisdom and knowledge is impressive.

Do you have a decent recipe for Meatloaf that won't give me heartburn ?

TIA

-K1

 

[WildBill]

Cooking ain't my thing and I was sent to the hospital with acid reflux so bad question for me!

I am just "well rounded", but the reason I know stock behavior fairly well is I am called upon to explain it in my "day" job...

 

[Kiss1]

Cooking ain't my thing and I was sent to the hospital with acid reflux so bad question for me!

I am just "well rounded", but the reason I know stock behavior fairly well is I am called upon to explain it in my "day" job...

I was just kidding Bill, you're a sharp guy always willing to help. I'm hooked on Acid Reducers .... I wasn't kidding about the heartburn.

:thumbsup: