Value Is Where It's At

 | Apr 11, 2014 | 6:38 PM EDT
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No redemption. But a consistent theme still permeates: Value can defeat the short-selling exchange-traded funds, the program traders and the insider sellers. Value has dividends. Value has buybacks. Value has very few insiders who want to sell.

Growth has the opposite.

I wouldn't repeat what seems obvious to me, but I have spent oodles of time talking to investors of all stripes this week, and the points -- the concepts -- just aren't understood. I don't think they will be until the selloff in these stocks is over. And we don't know when it will be over because of the tale of Voxeljet (VJET). Not familiar with this one? It is the most overhyped and overvalued of the 3-D printing concerns, the one that has made me be bearish -- and stay bearish -- on the group because the group is still loved.

Voxeljet, which traded at $70 last November, priced 3 million shares today at $15, $3 in the hole, and it barely held! At least the money went to the company. But how desperate is the company that it was willing to sell all the way down here?

When I see this kind of behavior on the part of companies, on the part of insiders and on the part of dealmakers, all I can say is you will not get a bottom until it is over.

If you circle back to the obvious bear case I wrote about this morning, everything still holds true after the day's end. We're simply lower. We aren't done. And we aren't done because if there is no place that's too low to sell for Voxeljet and the like, there's no price worth buying a Voxeljet.

In the meantime, value hardly got hit. It's because of the sellers, or lack thereof. You aren't freaking out the owners of value. They aren't departing. They are buying.

Two markets.

Only one is working. You just have to wait until the programs take value down enough to where the buying's easier.

Growth? Not yet.

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