Universal Display Corp $OLED Short Raid Underway? Asensio Not a believer.

Universal Display Corporation UDC (Nasdaq:OLED) has caught the ire of Asensio. Asensio is known as the King of the Shorts who does his homework before he takes the kill shot. Trigger has been pulled.

Universal Display is engaged in research of Organic Light Emitting Diodes or OLED and has major contracts/relationships with Samsung and Philips.

Asensio has called the arrangements into question and by way of executive summary has concluded the emperor wears no clothes.

Just take a look at the short position history. Several months ago there were approximately 10 million shares short. The position has been covered down to about 8 million. Days to cover fluctuates widely because the underlying trading volume fluctuates wildly.

Q3 results are a surprise loss and management does seem to be tap dancing around some of the issues. Oh while you’re thinking about things it has a 76 PE ratio. so pardon the short community for acting like sharks with blood on the water.

Management could clear this up very easily with an analyst call and or and analyst day and just explain everything. But somehow they do not see the need for clearer communication.

Canaccord Capital who have a pretty savvy reputation have issued a research report calling UDC into question.

Oh and the SEC is investigating UDC’s treatment of Samsung revenues. Always comforting to see the SEC poking around because the story is not believable.

The set  up seems to be cataclysmic in the making. when this resolves it will result in a major move. If its nothing a 75 PE ratio will be called into question at best. If the emperor has no clothes the shorts win and the stock crashes and crashes.

Sort of like watching a heavy weight bout for about eight rounds. Then one fighter starts to buckle and goes down. All 15 rounds never get fought.

George Gutowski writes from a caveat emptor perspective.

Suspicious Information Issued Tonight $SPX, $DJX

Check for any new press releases today after 16:00 New York time. timed after market close and when most eyes and minds are away from the market a lot of suspicious news will be disseminated by the unethical. It will be legal and investor toxic.

Tonight check the news feeds. Scan in your stock tickers before it runs you over when market opens.

George Gutowski writes from a caveat emptor perspective.

Thanksgiving Day Trading Dangers $SPY, $VIX, $VXX, $DJX

Many investors are travelling and emotional levels are heightened. If you have reached the point of frustration where something needs to be hurt if not killed than short selling is probably not the best investment idea for you. Just go to the bar. Order an expensive cocktail. It will be expensive at the airport. Contemplate the selection of drinks available versus what is being ordered. Backtrack to the bottler, distillery, vintner or purveyor and determine if you are identifying a viable trend. Order a second round to confirm suspicions err analysis.

Then WTF just watch the news crawl and don’t do anything stupid.

George Gutowski writes from a caveat emptor perspective.

Thanksgiving Day Trading Risks $XRT, $DJX, $SPY, $VIX, $VXX

Thanksgiving Day creates its own set of trading risks. Today Wednesday before is one of the biggest travel days. All forms of transportation are stressed and many people away from the desk. If you are at the desk to many people away from the desk to make substantive decisions.

Therefore do you trust the trading volume. Even with the plethora of mobile devices many will not be in a position to trade. The price action and volume you are looking at does not fit the norm of two standard deviations.

This will also be true on Friday with limited market participation.

George Gutowski writes from a caveat emptor perspective.

 

Mortgage Fines Reveal Board Room Stupidity at $BAC and $JPM, $C, $WFC, $XLF

We all knew billion dollar fines were coming. We now know that they are just speeding tickets. Bank of America, Wells Fargo, JPMorgan and others thought they were getting strategic assets at bargain basement levels. Turns out take-overs were not worth it. Big money spent should have been kept inside. Billion dollar fines will always be a bad use of capital.

The banks will survive because they are too large to fail.

However  you have to ask “How smart was that board of directors to buy a pig in a poke” what will they do next time. What grand strategy will they have.

Banks are the most difficult investments to analyze. So you decide to follow good management. Except you cannot find good management. When they had the chance they bought crap.

George Gutowski writes from a caveat emptor perspective.

Google still does not know where the chop sticks are. Is that Bullish or Achilles Heel $GOOG, $FB, TWTR, $BIDU, $YHOO

Google (Nasdaq:GOOG) is surging, charging and bulling; creating a lot of excitement. Longs and Bulls are making money. Today. Just remember while you guzzle victory’s champagne. Google still does not have China figured out. They still have not recovered  from what Beijing views as intransigence.

If they cannot establish a large foot print in China they will be missing a critical piece which others will capture. Global scale means global as in planet earth. Global does not exclude China. If Google can skate that one on side than $2,000 a share will be cheap.

Google does not know where the chop sticks are.

George Gutowski writes from a caveat emptor perspective.

$GM burns US tax payer for Ten Billion. Just what did America get for this?

General Motors (NYSE:GM) will finally shed the US Federal Government as a shareholder. The market expects Uncle Sam will take a haircut of $10 Billion. Roughly the cost of a small cheap aircraft carrier.

Assuming a population of 230 million that’s $43,478 per man women and child within the public debt which needs to be repaid eventually.

God Bless America. But the devil controls the treasury.

George Gutowski writes from a caveat emptor perspective.