The Second Largest Economy in the World
Usually when the speculative micro caps start to blow-off it marks the top in the stock market. In this cycle, so far, there have been three rounds of pump and dump on the micro caps, in less than a year. I've never seen that before - including back in 2000. Even the Federal Reserve meeting minutes released yesterday, had a concerned comment about "forward P/E ratios for *some* small cap stocks". In English that means that traders are chasing junk stocks like Twitter that has a Price/Sales ratio of 75 and a P/E ratio of infinity.
In this latest cycle, we are seeing again more blow-off action which is yet another major risk factor to confirm the Greed-o-Meter readings above.
This company lost $65 million on sales of $142 million. In other words, it sells dollar bills for ~$.55 cents.
Now up 2,000% year over year. Loss of $2/share.
This company lost an astounding $130 million on sales of $135 million. It sells dollar bills for 5 cents. This must be what the Fed is starting to get a little bit worried about:
Correlation is Annihilation - No Way Out