This is more of a personal gripe. The voice and data pacakge information for the iPhone was released yesterday and it is far from impressive or tempting. A petition is circulating that will hopefully get some results.
The Wall Street Journal, Forbes, and many other publications came out today and yesterday after the close saying that we were now trading in a “bear market.” This is absolute idiocy, the market has been trading like a bear market since before the new year. There has been a lot of multiple contraction since the new year, the market has dropped substantially, and there have been numerous bounces, all of which have been defeated by the bears - all signs that we are in a bear market.
To suddenly stamp a number on it and say that a 20% decline from the peak is a bear market is ridiculous. The media and speculators should simply start refer to the market as a bear market when the conditions are right. Sure, this could lead to debate on when we are actually in a bear market, but doing this will allow the term bear market to have much more meaning.
Details on my strategy, which I have used effectively throughout this bear market will be revealed as time goes on. I’m preparing a post later for tomorrow discussing my strategy for Monday.
With Airlines reducing the number of flights along with the number of discount tickets they are offering, Priceline is the obvioius victim out of this. There is the direct impact of fewer flights for sale which will hurt their revenues along with the fewer discount seats for sale which is what they specialize in. This will hurt their airplane ticket division the most but there are also the indirect consequences of fewer flights avaliable.
Firstly, hotel sales will decline since people are travelling less, hurting their hotel division and car rental sales, along with less travel again, will also decline. Already, flights are being cancelled hurting travel plans and raising the price of the remaining flights making air travel unafforddable for many Americans. For all of these reasons Priceline looks like a fabulous short.
Finally, take a look at this chart…
Priceline just passed through it’s 50 day MA and it looks like a good short all the way down to about $110 in the short term where it will likely collide with the 200 day MA. There could be a slight bounce but I believe that in the long term, PCLN’s earnings potential has been greatly reduced and it should break that line.
This is officially the first post on this blog that I have made. Welcome, and please do come back, comment and let me know what you think of everything. This site will mainly discuss financial news, opinions and the way the market is performing. I love the stock market, which is why I am writing about it, and am heavily invested in it on both the long and short side.
Expect frequent updates, multiple times per day during the trading day. Thanks for stopping by and get ready for some great content.
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