Perhaps Someone Should Share this Information with our President

Janet Yellen on America's Economy

Insanity: Doing the same thing again and again while expecting a different result.

Maybe this is why we hear nothing about jobs out of Washington anymore…


Counter-Intuitive Insider Action

Usual Suspects - DJIA

Officers and Directors ususally like to buy low and sell high. 

By Paul Price of Market Shadows

Logic says that last week’s 2.4% rise in the DJIA would make insiders more prone to selling and less inclined to buy. Instead, company officers turned somewhat more bullish as fears of a major sell-off vanished like Kayser Soze [Continue Reading]

Better than Berkshire?

VMI  10-years 2004 - 2013

Valmont Industries could be the greatest growth stock you’ve never heard of.

By Paul Price of Market Shadows

Is it better than Berkshire Hathaway? The numbers say yes.

You would think that a stock that turned $10,000 into $64,415 over the most recent decade would attract a lot of ink. In reality, very few investors [Continue Reading]

Our Win Percentage Rose to 88.5% Today

CCL   Chart with put

Option Expiration Came One Day Early this Month 

By Paul Price of Market Shadows

Market Shadows’ Virtual Put Writing Portfolio had one short option position expire after today’s close.  The result was not in doubt. Carnival Cruise Lines parent company, Carnival Corporation (CCL), had taken a big hit last September on a lot of [Continue Reading]

Market Shadows Didn’t Wait for Good Friday

VVP as of Apr. 17, 2014

Every day was a holiday this week in terms of making money.

By Paul Price of Market Shadows

We truly enjoyed all four days of the holiday shortened trading week which culminated with the Virtual Value Portfolio sitting at an all-time record by the  4 PM  closing time on Thursday. Our $100,000 stake [Continue Reading]

Canary In the Yen Shaft: $10 trillion JGBs; No Bids!

Banksy in Detroit

Two guest authors, David Stockman and long-time contributor John Rubino, write about Abenomics. 

Canary In the Yen Shaft: $10 trillion JGBs; No Bids!


This one matters a lot. Abenomics was predicated on a lunatic notion—namely, that the economic ills from Japan’s massive debt overhang could be cured by [Continue Reading]

Those new Puerto Rican bonds? Worse than stocks.

Sucker - image

Puerto Rico Bonds Down 5% In First Month

Michael Aneiro of Barron’s noted that Puerto Rico’s recent bond offering has been worse than the stock market.

In fact the bonds have been trading today at levels that would mark a 5% loss for investors since Puerto Rico sold $3.5 Billion worth, one month ago. 

The bonds now [Continue Reading]

Winning: Defined as Losing Less

VVP as of Apr. 11, 2014

Market Shadows Excelled – With a 1.36% Weekly Decline

By Paul Price of Market Shadows

In the land of the blind, the one-eyed man is King. Our Virtual Value Porfolio took on that role this week as we lost a modest 1.36% of our value while the DJIA, S&P 500 and Nasdaq  Composite [Continue Reading]

Against the Grain Action in C H Robinson

CHRW  logo

Those who watch what’s UP when most stocks are FALLING might want to check out the action in CHRW.

Logistics company C H Robinson (CHRW) was up yesterday and is up nicely again today (+ 2.29% as of 2:03 PM) despite the big market sell-off. There are large size bids from call buyers.

Is good news [Continue Reading]

IPO-ed: ALLY and LQ


For more about the IPO-ed ALLY, read David Stockman’s post, copied below. He also covers La Quinta, an “uninspired mish-mash” of hotels. 

Tops In! La Quinta And Ditech Are Back

Courtesy of  

This Wall Street Journal headline surely speaks of a market top:

U.S. IPO Market Expects Busiest Week Since [Continue Reading]

The Most Important Reason to Avoid ALLY (in one simple visual)

ALLY First Trading Day

By Paul Price

Ally Financial (ALLY: the old GMAC) came public this week at $25 but has never traded that high again since. 

ALLY needed a taxpayer funded bailout to survive the 2008-09 credit crunch. They failed early banking industry stress tests.

They have one big problem compared to all their major competitors.

One picture is worth [Continue Reading]

The Dr. Phil (and Dr. Paul) School of Investing

IM 2012 GF chart

By Paul Price of Market Shadows


Television’s Dr. Phil is famous for saying that the best predictor of people’s future behavior is their past behavior.  

I agree with him on that point and think it applies to stock trading just as much as it does with human behavior. A stock’s own history [Continue Reading]

Sold Two – Bought One – Banked Some Cash

Sold Two - Added One

Locked in Two Gains – Redeployed Cash into Honda

By Paul Price of Market Shadows

Market Shadows’ Virtual Value Portfolio  decided to sell out of both Helmerich & Payne (HP) and Kohl’s (KSS) today. We locked in nice gains on both stocks.

Kohl’s was purchased for $46.00 on Nov. 29, 2012 and sold this [Continue Reading]

Get Your Motor Running

Know What You Want - HMC

Knowing what things are worth lets you move quickly.

Get your Motor Running with Honda 

By Paul Price of Market Shadows

When world-class companies go on sale at new lows it is worth talking a good look. When the shares are down despite outstanding fundamentals it demands action.

Market Shadows Virtual Put [Continue Reading]