Hey, big guy: Did you see where Factset focused on Amazon lowering its eps from positive 15 cents to negative 13 cents? Amazon rallied. I am beginning to understand investing now. The trick is to lose as much money as possible and either be loved by wall street or loved by the Fed (which I guess is Wall Street). Anyway this debunks what I have been using for decades; looking for companies with accelerating revenues and earnings, real quality earnings, in which to invest. Apparently the trick is to make a good sales pitch. If you can’t dazzle them with brilliance, baffle them with bullshit. – comment from “Hal”
Yes, Hal. AMZN is going to lose money in Q1. They are projecting their operating loss to be as high as $450 million. If they were forced to use the GAAP accounting standards used in 1990 – standards which were more stringent and realistic than are permitted today – FactSet would be forecasting a loss that is double the current estimate.
In our fraudulent markets – fraud which is “turbo-charged” by the massive Fed intervention – dozens of companies with little or no revenues now sport multi-billion dollar market caps. Our stock market makes the Dutch tulip bubble look like a rational and efficiently priced market by comparison.
The valuation measures like price/earnings make it appear as if the current stock market is not as overvalued as the markets of 1929 and 2000. But that’s strictly a mirage induced by the fraudulent nature of current GAAP standards. If uniform accounting standards were applied across the board, the current stock market would be, by far, the most overvalued in history.
Big hedge funds move massive amounts of pension/retirement money into the stock market, using bank-provided leverage of course, based on whether or not the Fed decides to use the word “patient” in its policy statement. To say this is “absurd” is an insult to whomever invented the word.
AMZN is a perfect example of just how ridiculously stretched and permissive modern GAAP accounting standards have become. When the rug is finally pulled out from under this stock market, AMZN is going to fall like a 1 ton lead weight off the top of the Empire State Building.
My AMAZONdotCON stock report lays out in explicit detail the fraudulent accounting being used. It shows why AMZN is hemorrhaging cash. Losses like it will incur this quarter, combined with capex spending on business ideas that lose even more money, will cause AMZN to burn thru quickly the $6 billion in cash it just raised through the highly overvalued and fraudulent bond market.
The Fed-induced money-printing has spawned the biggest stock market bubble in history. The is not going to end well – for anyone. I asserted back in 2003 that I hoped Alan Greenspan lived long enough to see his name live in ignominy. But he’s been given a chance to cover up his crimes. It looks to me like Grandma Yellen – that witless idiot who looks like she’d be more comfortable with a set of knitting needles in her lap than fielding softball questions from a captive media – will be the one of who bears the burden of wearing the collapse the is coming.