GNK - almost on the sea bed

Genko (GNK) shipping is not far off zero. Its been in a decline for over a year, today's 8% drop is yet another nasty wave over the deck for the SS GNK.


GNK, daily

Summary

I don't expect GNK to last this next deflationary collapse wave. I'd guess someone will either launch a bid in the next 6-12 months - at a price of $2 to $4, or merely wait to pick up the scraps after what might be eventual bankruptcy. The latter is a bold assertion, but then GNK is still not profitable, some 4 years after the financial collapse supposedly ended.

See financial stats on GNK  A market cap <100 million, with debt of 1.7bn or so. Not good at all.

Other shippers like EXK, OSG, and DRYS, all have charts broadly the same. They remain one of the ultimate warnings that 'this global economy remains SICK'.

CSTR - headed for the low 40s

Coinstar (CSTR) posted results which disappointed the market last Thursday evening. There was a major drop last Friday - on strong selling volume, and today offers no hope to those who were trying to 'catch a bargain'.


CSTR, daily

Summary

CTSR was in renewed trouble today. Its attempt to hold together last Friday (a long legged doji candle) - whilst the indexes soared, but today, you can see the follow through with further weakness - a 5% drop.

Next key level is $41, which now seems likely within the next few weeks.

FB - lousy results, on its way to Fair Value of $4

Facebook (FB) posted results that initially met expectations, but underlying the headline earnings/revenue numbers, there was renewed concern about just what sort of future this web based company has.

It remains entirely insane that just a few months ago the clown channel finance TV talk was all about 'ohh, FB is valued at $100 billion...maybe it can eventually be valued more than AAPL, and go to 1 trillion?'.

The Facebook hysteria/delusion broke from day'1 of the stock IPO, and FB might never see $38 ever again.


FB, daily

Summary

Very little needs to be added. FB remains over-valued on any basis.

First target remains somewhere in the low teens...perhaps $10/12..if the market can get a wave lower into the sp'1100s later this summer/autumn.

True 'fair value' remains no higher than $4...and I would only consider being a buyer around $1.25

The Financial historians of the late 21st century will be as bemused at the social media stock hysteria, as we are today of the Tulip mania in the 17'th century.

For the bears...FB is the gift that keeps on giving. There remains a long way down yet to go.