Picking the Slaughtered

 | Apr 24, 2014 | 10:35 AM EDT  | Comments
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Stock quotes in this article:

FB

,

gm

,

qcom

,

xlnx

,

cat

No price they won't sell? It sure feels like it. I write that because if a stock has real growth, not manufactured growth, but no dividend and little to no buyback, it is being crushed right now.

Some are calling it the denouement of high-growth investing. Others are saying that it is simply the washout at last. Still others are saying that this is the bond market showing too much strength in regard to Ukraine and when we have seen interest rates go down it does provoke selling. 

I think it is case by case unless it is in high-multiple tech or ANYTHING biotech. ANYTHING.

What's so incredible to me is that you get situations like Facebook (FB) where the company literally threw boilerplate cold water on growth and people believed it.

You have companies that are cautious on growth, notably Qualcomm (QCOM) and Xilinx (XLNX) and people believe it.

You take a look at the software as a service companies and we see -- for the moment -- that there is no price anyone will pay for these, almost as if someone put on a short basket right at the opening and everyone who bought was picked off. It is a remarkable development.

I don't trust the selloff, meaning there are stocks with good earnings going down as fast as companies with no earnings, but good revenues. The only stocks that are up right now are looking like Caterpillar (CAT) and GM (GM), both with very low expectations.

I am a picker of the slaughtered with good earnings, even in light of bonds and Ukraine.

I am not a buyer of what's up.

You had to do that yesterday.

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