SG Talk

Dow up 50pts, Nasdaq down.1% only.

Within Nasdaq many overvalued bubble stocks popular in early part of the current rally getting dlush down sharply.

Many of these previously "Hot stocks" are story based and low earnings e.g Zoom.

All these stocks if you have need to get out. Many will go down 80% 90% ..95%. Many are down 40-50% but still overvalued.

Here are some of them.

At the same time you see Cryoto currencies getting crushed also.

Many investors/speculators are moving away from assets without earnings and yield to support the price.

Market is starting to differentiate

Becareful if you own these.

(10-12-2021, 04:03 AM)sgbuffett Wrote: [ -> ]Dow up 50pts, Nasdaq down.1% only.

Within Nasdaq many overvalued bubble stocks popular in early part of the current rally getting dlush down sharply.

Many of these previously "Hot stocks" are story based and low earnings e.g Zoom.

All these stocks if you have need to get out. Many will go down 80% 90% ..95%. Many are down 40-50% but still overvalued.

Here are some of them.

Among the above stocks...many of which have losses or low earnings.

Zoom can go down to $50 and there is nothing to stop this.
Nicola is.likely to get killed by competition and going to $0 is nothing surprising.
Quantumscape  technology will take 10-20yrs to realise by which time it may not be even relevant...it is just a lottery ticket.

Quantumscape shot up from $20 to $140 and sink back to $24.

This one will just go to zero...its just used by speculators to play EV market but worth nothing in of itself.

As Tesla itself.is overvalued and need to correct. All the other stocks that simply ride on EV hype without earnings will just sink.

The famous Gamestop supported by YOLO investors on Wall Street Bets.

Surprisingly strong given low earnings and a dying business. But how long will wall street bets support the stock at this artificial level ...given their other favorites are also dying and going down.

This ship will sink soon as the great differentiation take place.

What about the father of hype Tesla.
Many swear they will hold this until they die.

Frankly I am not sure this one will deflate like the others but it .based on the valuation numbers...the stock price is really stretched...but this one has many fan boys.

Early part of this year when everyone wax lyrical about AI stock.

One of them was Palanthir...saw many CNBC segments about its wonderful technology .

But earnings is not forthcoming...

Many of these stocks will just fall 90% and some to zero.

Out of 50 stocks one will come back to be a multi bagger. Rest will just get delisted

Many have now fallen 60% from peak and naive investors who believe stories go and pick. One reason why they invest by stories is because recent yrs thisbmethod of investing was crazy profitable but it is a fad and bubble.

When I started this thread they were half way down by 60%...they contjnue sinking.

(10-12-2021, 04:03 AM)sgbuffett Wrote: [ -> ]Dow up 50pts, Nasdaq down.1% only.

Within Nasdaq many overvalued bubble stocks popular in early part of the current rally getting dlush down sharply.

Many of these previously "Hot stocks" are story based and low earnings e.g Zoom.

All these stocks if you have need to get out. Many will go down 80% 90% ..95%. Many are down 40-50% but still overvalued.

Here are some of them.

Above was posted 6months ago when I warned that stocks that are hype bubbles will collapse

Now they are at these prices. Some will go yo zero as they are making losses but pumped by by sexy stories to lure new investors without experience and don't do valuation.

Even after fallingb50% they will keep falling by 80-90% as they have no or very little earnings.

There are a many problems with these stocks.
1. Some are fraudulent- company that promise many things and cannot deliver.

2. Some a heavily overvalued and eventually can become viable companies but stock will drop to reasonable level. Reasonable level can be 90% below peak

3. Others are overvalued and eventually beaten by competition become irrelevant and stock become worthless

During the bull market thousands...yes thousands of companies go for IPO and on Nasdaq because Nasdaq allows "pre earnings" companies I.e companies making losses to list. That is why Grab etc want to list on Nasdaq.

When you have no earning how you attract investors for your IPO. You need to tell a "growth story". So companies hire PR companies to create a story. YouTubers are paid sometimes to promote the company or just repeat this sexy story to lure viewership. One of these stories is Palanthir. Anyone involved in AI and analytics knows there are many tools better than Foundary sold by the company its products are expensive but they managed to get q few govt contracts. The company made many videos to tout its technology which is nothing impressive. The stock IPO and rocket up. Now the company cannot deliver.

All this is nothing new. In 2000 we had dot.com bubble. 20yrs later in 2020 we have the "disruptive technology" bubble...now bubble burst these stocks fall 50% 80% 90% 100%...is nothing surprising.

Why? Because many néw investors never seen a bubble bursting and they will hold as it goes down or buy more because they believe stories. Many also think they are smart investors because they made money on the way up so think their strategy js the right one.

(10-12-2021, 04:03 AM)sgbuffett Wrote: [ -> ]Dow up 50pts, Nasdaq down.1% only.

Within Nasdaq many overvalued bubble stocks popular in early part of the current rally getting dlush down sharply.

Many of these previously "Hot stocks" are story based and low earnings e.g Zoom.

All these stocks if you have need to get out. Many will go down 80% 90% ..95%. Many are down 40-50% but still overvalued.

Here are some of them.

6 months ago warned about the above list of hype stocks that lured many inexperienced non professional investors. Look at how much they have fallen in the update below.

They have fallen 50%. These stocks can fall by another 50% and are still expensive. Many will run out of money by next year and have to issue stock/debt go bust later. Others will see their growth stories burst stabilise at prices 90% down. ..some will be penny stocks.

Today we see stalwarts like Apple and Google falling 2-5% a day easily because their growth will slow. In fact Apple will see a fall in revenues soon as China and Europe slowdown and customers hold back or switch out of the expensive Apple eco system. If Apple and Google are headed for trouble many 'growth stocks" without profits and cashflow will just sink into the abyss. The nesdaq hasnt even fallen to a reasonable to begin discounting slower growth...imagine how far down Nasdaq will go if gorwth is negative. 

Smart investors are just dumping everyday and reducing exposure.