Tesla Price Targets Pull Away From Profits: a classic example that momentum stocks really trade on fictional earnings reports. They’re irrelevant, til they’re not. $TSLA (218)
Amazon Reveals Just How Profitable the Cloud Can Be: by Tiernan Ray. Ultimate conclusion is that Microsoft’s Azure is doing well too. Which would you rather invest in, $MSFT (47) or $AMZN (445) a cloud provider in a hugely profitable if diminishing cash cow or one “trapped in a retailer.” Unresolved: is Azure a function of that dying business of companies running on Windows? Microsoft got other loving mentions in Barron’s as well from the usual spreadsheet watching crowd.
A Recharge for Qualcomm. Can Jana partners get $QCOM (68) to split off the licensing from the chip business? This is an article very related to the above MSFT & AMZN discussion so far as shareholders are concerned.
Let’s Take a Short Ride, a Heard on the Street Column from April 18-19 suggested the desirability of a strategy as follows:
bet against the 10% of stocks with the highest days-to-cover ratios, and bought the 10% with the lowest…it would have fared from the start of 1988 to the end of 2012. The results: a return of 2,917%–almost double the total return of the [DJIA].