Thursday, May 26, 2011

BPI & average true range

I was reading this morning the WSJ and Bloomberg articles. They may have moved the market on BPI yesterday. Maybe it was the Ira Sohn Investment Conference in New York. I'd love to get  a transcript of the presentations there.

OK, let's try to get BPI volatility into perspective here. If you look at the 14 day ATR its volatility is up, but the 200 day ATR shows that it was higher last year. Not all the short interest is going to unwind at once. And there is a still good case study for the "bear" camp. It will be interesting to see the end of the month short interest stock data. Will the short % increase or decrease?

Morningstar has BPI defined as a Small Core Aggressive Growth stock. In my mind it has just morphed into a different investing asset. From GARP to speculative?

I don't know which way the sentiment is going to go, but things are in flux until July and are not going to settle down for awhile.

[Edit:] did a write-up of the Ira Sohn Investment Conference:
    Sunjay Gorawara / Investment Idea Contest Winner: This year's Ira Sohn featured an investment idea contest where the winner was able to present their idea to all attendees. Michael Price introduced the contest winner but while he was talking, he mentioned that Goldman Sachs (GS) could be a buy as it should be worth $100 more than where it currently trades. And in general, he was bullish on financials. 
    Judges Bill Ackman, David Einhorn, Michael Price, and Joel Greenblatt selected the winning entry of Bridgepoint Education (BPI) from an undergraduate student at Indiana University who will be interning at JP Morgan this summer. 

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