Intuition Confirmed on IBM, NFLX, GS from 4/7/17

A record number of money managers think the markets are overvalued.

On 4/7/17, initiated Speculative Short on IBM as Armonk is a ghost town and IBM’s flagship product, Watson, is aggressively being promoted despite high $80/month/seat price tag losing to Microsoft’s freemium product, PowerBI.  Also, IBM competes with NCR for cash register business for bricks and mortars.  On 4/18/17, IBM Reported after hours and Confirmed 20th Straight Decline in Quarter performance Y Over Y.  Decline in Software and Legacy Mainframe business.  Warren Buffett invested 6% of outstanding shares with an average price of $170.43.  Reduced overseas operations because of weak dollar.

According to Kulbinder Garcha of Credit Suisse, Weak fundamentals do not support Valuations, as interviewed on CNBC.  Target price, $110: The Trend is Your Friend.

On 4/19/17, down 5.57% or $9.48.

Also on 4/7/17, initiated SHORT on NFLX, $143.11, now down to $140.80, down $2.29 or 1.60%.  Guidance came in below expectations, as well as domestic and international growth rates.  Down while the NASDAQ is up, The Trend is Your Friend.

Bucking the Trend and an Upgrade from Citi, GS still falling from initial recommendation, on 4/11/17.

Reiterate CRM Short, will fall as bellweather of B-to-B (Business to Business) expenditures, IBM, takes a big hit.

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