Short Positions Increasing, page-29

"Couldn't resist re-entering IFL yesterday at $8.92 after reading madamswer's detailed explanation of what a money making machine IFL is.""

@DSD,

You sold out just the other day and now you are simply unable to "resist" buying back in at essentially the very same price level?

And all because you read a post on a stock chat room?

And, worse, that post in question makes no reference whatsoever to valuation.

I find that to be a bit unnerving.


For no matter how rosy a description of a business is made to sound, don't you think that there has to be a price at which even the most beautiful business ceases to present a good investment opportunity?

Maybe you haven't come across the saying:

"Quality is what you buy, Value is what you get."

Don't you think IFL might be fully, or over-, valued?


Incidentally, given your pre-occupation with the "macro" as an overarching theme to your investing style, IFL certainly seems like a very strange company for you to own given your long-held view that economies are too full of debt, that markets are "fragile" and that equities are overvalued (actually the last one is more my view).

Which means that, if stock markets should fall dramatically, IFL's financial performance will receive a major kick in the teeth.

Not only that, but the financial services industry is coming under increasing regulatory scrutiny and is also experiencing structural fee pressures.

So the "macro" for IFL couldn't possibly be more un-appealing than it is at present.


"Have more in the queue but seeing America rose last night they won't be triggering today."

What if America rises again tonight? What will you do then with your order to buy? Surely you are aware that if you are buying shares in a business that you desire to own, finessing a few pennies here and there on what you pay for the stock ultimately doesn't make any difference?