Ciena, Cypress and a few others are real…
Ciena, Cypress and a few others are really putting on some nice moves this morning. The markets are drifting higher and I’m looking at adding a couple more short names today and tomorrow. Here’s my analysis on why I’m looking to start shorting Live Nation from my recent republished/updated report, 14 Stocks That Could Double in 2011 (and 6 That Could Collapse), available in its entirety for you dear subscribers here.
Live Nation’s business model continues to fold beneath them, and the costs of paying all that interest on all that ugly debt that they took on to sign Jay Z, Madonna and the Pope at the top of the market in 2007 or so, is killing this company. They have no freedom to innovate, to change models, to switch things up, or take any risks.
The Company is likely to turn earnings positive and I even expect estimates for 2013 or 2014 could get up to 40 or 50 cents if everything goes right for these guys. But let’s throw a 15 or multiple on that and you’re at $7.50 in the best case scenario for the company. More likely, we’re looking at a $5 stock at some point in the next couple years.
