Oftentimes, we hear from analysts, writers or other pundits about a certain stock’s high short interest, and how that can signal bad times ahead for a stock.

So what exactly does a high short interest mean, and does it always signal that a stock is about to fall because people are betting against it?

In this post, I’m going to go over all the ins and outs of what shorting a stock means, and more importantly for us, how sometimes this high short count is not caused by those necessarily betting against a stock, but rather from the financial institutions that have lent the company money and have received convertible bonds or warrants in return.

Why would a financial institution that is lending money bet AGAINST the stock of the company that they just lent money to?

Good question!

This is one of those small little nuances on Wall Street that often confused me, and left me scratching my head wondering why a seemingly “great” stock had so many people betting against it.

Read the rest of this entry »

I got an interesting and thought-provoking comment from a reader the other day.

He stated:

“Chris,

I’ve enjoyed your commentary and analysis so far, but this comment is a bit over the top especially after SBDT and GEOY earnings results the last couple of days…

“Almost every company that I cover usually always meets, and more than not, BEATS estimates, and ups their guidance, and therefore, it is more prudent to buy the shares before that happens.”

As the great Paul Tudor Jones said, “Don’t be a hero. Don’t have an ego. Always question yourself and your ability. Don’t ever feel that you are very good. The second you do, you are dead. Play great defense, not great offense.”

Just food for thought.

Mexx” Read the rest of this entry »

It’s now easier than ever to decide what actions to take on the stocks you currently hold, or positions you are thinking of starting based on the recommendations on PeakStocks.com.

It can be daunting deciding where to start, which stocks you should invest in right now, what price is considered a “fair” price, etc.

What if you could only buy one stock, which stock do I feel is the best place to put your money right now?

To answer all these questions, I have created a widget on the left-hand side of every page titled: “PeakStocks.com Portfolio Recommendations”.

If you are new to the site, or haven’t visited in awhile, I created this recommendation widget so you can quickly see which stocks I am currently recommending to buy, sell, or hold. Read the rest of this entry »

When investing and trying to produce sizable gains that beat the market, there are no hard and fast rules that I play by. In fact, I don’t care where I have to look to make us money.

However, there are particular doctrines and methodologies that I adhere to that produce the most consistency and direction for my investments.

Some of these rules and methodologies that comprise my “Secret Sauce” I won’t share publicly, but others I will, as I feel it gives you a better idea of why and how I pick the stocks that I pick and what I look for in the companies that I want to make a long term commitment to.

One of these rules is what I like to call: The Double Thesis

The basic tenet of this rule is to ask myself one simple question when analyzing a company that appeals to me:

“Can this stock double in one year?” Read the rest of this entry »

I thought it would be prudent to create a post outlining some criteria for Bid/Ask spreads and what to look for to protect yourself from getting screwed by the market makers. Read the rest of this entry »

Poof!

Out of nowhere you get a buy or sell recommendation from me.

You may be asking yourself where did I come up with this recommendation? Why now? How and where did I even find this company? What basket of stocks am I watching now?

Well, thanks for asking. Read the rest of this entry »

It occurred to me that I needed to further explain what I mean by the term “buy around” or “sell around” when recommending that you purchase shares of a PeakStocks.com portfolio recommendation, or when selling one. Read the rest of this entry »