Think Fading Seeking Alpha "hit pieces" will work

V

vanv0029

I have not had many good ideas recently, but I
now think that buying stocks that are criticized
with seeking alpha articles will work. Their is
no editorial control so the SA articles tend to be
slightly low on reality contact.

Purchase of HK (Halcon fast growing E&P) after
secondary around 5.10 and seeking alpha dump
worked last week.

Today I have been buying Green Hunter Energy
that is a micro cap water treatment company.
The SA dump said no cash flow. Actually with
only 33 million shares outstanding cash flow is
about 8 million per quarter so at current 0.98 price
pays for only one year of cash flow. The SA writer
is not able to to understand the difference between
convertible and cumulative preferred and the difference
between an old previous green energy company and the
new GRH.

I am looking for more SA dumps to fade.
 
Not a bad idea if you plan on taking some time to allow those trades to play.


You been trading long enough to remember the Briefing.com and he Jim Crammer Affect?


Briefing.com would post Crammer's love picks and volume would spike madly After-hours with causing some stocks to move up 20%. Professionals were loving this game, Shorting all kinds of shares these Lemmings were diving off the cliffs to purchase. Same with stocks Crammer hated, he would hate a stock and it drops $5 on a decent company only to have Professionals scoop up those shares and bully them back above Crammer's original "House of Pain" price claim.



SeekingtheAlpha has this effect with certain authors, there are some really stupid people generating articles that don't deserve any attention. One author wrote a piece of trash that claimed Line Energy was a "Ponzi Scheme" and that was my move to buy Line Energy at $21.6 and sell at $27.4 plus getting the monthly distribution. Your method is interesting because I have seen these "Effects or "Affects" starting with. I have tried to fade each of these methods below, I wish you success but our Market feels like we are changing winds again. I don't know what that means but it does not feel like the previous seven months so be careful and play safe!


Nothing really is new with these "Effects".

Seeking the Alpha has had a great run with stocks 2013

Mad Money and Briefing.com mentioning everything Jim Crammer said as News on their "In Play" live updates created severly imbalanced and over-priced stocks immediantly.

2004-2008 had his power to move stocks and many of his old followers got slammed into the ground. He was saying Bear Sterns was good in 2008 when I made one of my best trades. I had bought the $60 Puts when Bear was at $75 only to fall to $28 and I made bank out of luck and momentum.

More "Effects Magazines" Pre-Dot.com Blow-ups!

"Individual Investor" with Jonathan Steinberg small stocks would scream once those issues arrived snail mail. I quit my subscription when rumors were flying others were front-running us before the Magazines were sent out. Doh!

Motley Fool Gang who tried to be decent in my humble opinion on those AOL original Chat boards. Those boards could move stocks like Iomega.

CnnFinancial Network

The Smart Money Affect and Barrons 1980s to 2013 Barrons still.


Dan Dorfman and Jim Crammer with "Smart Money" Magazine in the 1980s and 1990s, what happened to Dan Dorfman and what rumors spread about Jim Crammer with his Hedge Fund? Dorfman moved stocks!
 
The level of analysis on SA ranges from impressive to very shallow. Many times I disagree on the timing even if the underlying analysis I agree with. I never really viewed those articles as short term or day trading ideas, but something for longer term investing.

Speaking of "Kray-ma," once I was long IRDM when I saw that it was on Mad Money, causing an instant +15% spike in the stock, which I used as an opportunity to get out. The stock has traded lower ever since.
 
Quote from newwurldmn:

I don't think seeking alpha is market moving.

Unless you are saying they are on the bandwagon too late?
More...

nobody saying that their articles moving the market.but they do move individual stocks and move them a lot. do the analysts. grab stock and news from yahoo and check the ranges.it's really simple.
 
just a very brief sample:

today top articles that highlight a specific stock
positive AMD - up 60bps
negative SCTY - indicated up small
positive NOK - indicated down 2%

I don't think institutional investors (in most stocks they drive the market) read seekingalpha.

In some illiquid stocks or retail heavy stocks it may work.

Unless you have a longer term plan and perhaps the attention a stock gets on seekingalpha is a contrary indicator: negative articles about NLY now mean the bottom is in.
 
Seekingalpha = stocktwits.com + ability to write

A relative few have the ability to comprehend and understand what's going on.

The rest are dead horse beaters -- think the flood flood of dividend investing articles. Bubble anyone?
 
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