mardi 31 mars 2015

Some crazy fucker is short on Callidus Capital

Some crazy fucker in a hedge fund decided to short Callidus Capital. The news was in the media today, at the same time as the company reported results.

The results were very good. But the stock went down because of a not so solid decision to short the stocks (based on a dispute as we can hear).

Investors are lemmings. Warren Buffet said that years ago. So, on the news of a hedge fund going short, a lot of people decided to sell their stock, and a decrease of more than 10% happened in the price of the stock.

It reminded me of the american hedge fund that decided to short Home Capital Group one or two years ago. Well, this time, it's a company with a shorter track record than Home Capital, but it's nevertheless a good company with solid numbers. In my view, you should never short a company that makes profits and that is cheap. I've never been short but if I would, it would be about a stock that is going to bankrupt.

At less than 10 times future earnings, with a ROE of about 18, earning per share growth of 56% since the last quarter (!), Callidus Capital is a strong buy in my opinion.

... And, by the way, Novartis Health is up more than 30% since my last post. Their results were very good. A buy too for that one. 

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