Wednesday, March 24, 2010

Grubb & Ellis (GBE) Rally Built on Stupidity

Look at the type of analysis that is going into the Grubb & Ellis (GBE) enthusiasm.

Pure momentum investing with not a thought about the fundamentals of GBE!

This type of action is just part and parcel of the bubblish, manic action going on in the market recently. 


Howard said...

Tsk, tsk, tsk. Kinda sucks when you're on the wrong end of a short - doesn't it?

The bottom line is that you are/were very wrong, at least in the short term and your short position is getting decimated. Whether you are right longer term remains to be seen, however, shorting a stock at under $2 (probably under $1.50 in your case) is not a very smart thing to be doing in the first place.

As far as the silly posts you point to as the reason the stock is going up, why reference a site like StockTwits? Why not focus on the institutions that dumped lots of money into GBE since the beginning of the year? You think they're influenced by the silly momentum? For the amount of money they invested, I personally don't think so.

So, as the stock climbs and you suffer larger losses, are you going to be posting more frequently and icessantly here and other sites why you are right? I equate being right to making money on your position. You can pound the table all you like, but, it appears that the stock will not go back to the price where you shorted. So, the question now becomes, when will you close your short position and throw in the towel?

CP said...

I think it's interesting that you went to the trouble of reading and responding to my GBE posts but you didn't dispute any of my contentions about buying human services businesses generally or the valuation of GBE specifically.

Do you disagree about the likely levels of free cash flow to equity?

If yes, state your case.
If no, what are you doing here? This is a value investing blog.