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Dougie Kass

@DougKass

27 Jan

@realmoney

@realmoney
Jan 27, 2021 | 10:40 AM EST DOUG KASS
The Fundamental Difference Between Being Short GameStop and Tesla
* Many are becoming hyperbolic and are ignoring the facts

I am seeing some comparisons made between (GME) and (TSLA) on the chat sites, on Twitter and e

lsewhere.

Some suggest that if GME can go to $380 why can't TSLA go to $2000?

Of course anything is possible - but I prefer dealing with facts and stats, especially as it relates to short interest which seems to be the primary reason why GME has rocketed into the

stratosphere.

The short position in GME is about 70 million shares, or 140% of the share float of 47 million shares.

By contrast, the short position in TSLA is only about 60 million shares compared to the float of 760 million shares, or only 8% of TSLA's float.

Read 4 tweets

Dougie Kass

@DougKass

27 Jan

Speculative, heavily shorted gewgaws zoomed higher -- perhaps taking the oxygen from traditional high octane/growth equities.

Meanwhile, some of my fundamental shorts like ($PTON) (-$9.35) and ($CVNA) (-$11.44) cratered today. I have been adding consistently to

these over the last few weeks Disney (DIS) fell by -$2.33. M inexplicably rose by nearly +$2. Homebuilders were mixed.

One of my core and basic shorting tenets is never to short a stock in which short interest exceeds five to six days of average trading volume

(over the last month) and to avoid shorts in which company short interest exceeds 5% to 6% of the company's float.

The short squeezes in ($GME) and the other shiny objects of speculation over the last month are testimony to this strategy of risk control and provides validity

Read 8 tweets

Dougie Kass

@DougKass

22 Jan

@realmoney

@realmoney
Jan 21, 2021 | 04:07 PM EST DOUG KASS
What, Me Worry?
* A generation which ignores history has no past and no future

Like Wednesday, today was another day of divergences -- in which the averages scooted ahead nicely without the soldiers participating.

Specifically

, in today's trading session, though the S&P index rose by 10 and the Nasdaq by 110 handles, market breadth was 13-18 negative.

The "generals" - Facebook (FB) , Amazon (AMZN) , Alphabet (GOOGL) , Apple (AAPL) and Microsoft (MSFT) -- continued to upstage the rest of the market.

My "Uncle" Bob Farrell would not be happy with this divergence:

Rule #7: Markets are strongest when they are broad and weakest when they narrow to a handful of blue-chip names.

Translation: Breadth is important. A rally on narrow breadth indicates limited participation and

Read 6 tweets

Dougie Kass

@DougKass

21 Jan

@realmoney

@realmoney
Most should not be short stocks.
I have made a living shorting stocks - but it takes a lot of conviction, research and patience.
The same observers who questioned my sanity when I went all in long in March, 2020, are confident in their extreme optimism today and

critical of my all-in short call now.
Based on the historical and traditional metrics that have survived a century of investing (in my chart in "Sell Stocks Now") , stocks are as overbought and overvalued as in any point in the last ten years. Speculation is rhyming with past

tops.
In my career I have rarely seen such a favorable reward v risk ratio to the downside as I see today - for reasons mentioned previously.
The reversal of opinion and the thriving bullish "Group Stink" consensus reminds me of a phrase I like to mention - "price has a way of

Read 6 tweets

Dougie Kass

@DougKass

20 Jan

@realmoney

@realmoney
President Donald J. Trump: The End nyti.ms/35V4G33

Run, don't walk, to read Tom Friedman's latest column, which begins with a truly brilliant paragraph:

Folks, we just survived something really crazy awful: four years of a president without shame, backed by

a party without spine, amplified by a network without integrity, each pumping out conspiracy theories without truth, brought directly to our brains by social networks without ethics — all heated up by a pandemic without mercy.

It’s amazing that our whole system didn’t blow,

because the country really had become like a giant overheated steam engine. What we saw in the Capitol last week were the bolts and hinges starting to come loose. The departure of Donald J. Trump from the White House and the depletion of his enablers’ power in the Senate aren’t

Read 7 tweets

Dougie Kass

@DougKass

16 Jan

@realDonaldTrump

When this is all over, nobody will admit to ever having supported @realDonaldTrump except the Far Right.
Throughout the Presidency Trump has, with " a wink and a nod," enlisted the Far Right scum.
For four years Trump has "succeeded" in sanctioning violence yet the

Republican Party ignored his core threat that violence would follow an adverse Election result. The siege of the Capitol wasn’t a departure for Trump, it was an apotheosis. In 2019 he told Breitbart “I have the tough people, but they

don’t play it tough — until they go to a certain point, and then it would be very bad, very bad.”
The Republican Party failed to sanction the gun-toting anti-lockdown activists who stormed the Michigan statehouse last year and dismissed a plot to kidnap and publicly execute

Read 7 tweets

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