As of 4:35 p.m.:

Closing Breadth

% Movers

S&P 500 Sectors

Nasdaq 100 Heat Map

Nasdaq Advance-Decline Intraday

I am taking off my Index positions now.

* Markets were volatile with the election uncertainty.

* This remains a great trading market but not so great for the buy-and-hold crowd.

Banks were market leaders to the downside and energy market leaders to the upside.

Here's today's improving breadth (vs. late last week): 

At day's end I will be modestly net short.

Today's "Things":

* I profitably traded Index calls from the short side several times today.

* Shorted more  (NVDA)  and covered down a few points.

* Covered more  (KO)  short at $64.61.

* Sold some  (FRPT)  +$20 ($153.65) after EPS beat.

* Sold some  (VKTX)  on the wild gap in premarket and bought back at an average price of about $66/share.

* Added to platinum long.

I added to platinum  (PPLT)  all morning.

Freshpet  (FRPT)  is +$20 (off of the big EPS beat). Selling some more at $153.65.

* I am in a sell on strength mode...

With S&P cash now -4 handles I am back selling short Index calls on a scale.

I have a research call between 2 p.m. and 3 p.m.

Radio silence.

A solid post from Chris:

chrisideker

Dougie's post on TSLA brings thoughts to mind of the debacle at SMCI. Full disclosure, EY was their auditor and I am a retired EY partner. I was a forensic accountant and, in the wake of Enron, Worldcom, etc., worked with the audit practice on developing protocols to respond to allegations of financial impropriety (AFI). I'm about 15 years out, but many of the policies and practices I helped develop remain. I took a flyer on a really small position in SMCI ahead of earnings tomorrow. I know absolutely nothing about the situation with EY/SMCI other than public filings and the Hindinberg research report. Here are some of my thoughts:

1) A whistleblower surfaced in April with concerns about accounting practices and governance. EY raised concerns in July and the Board formed a special committee to investigate. The committee hired Cooley LLP, assisted by a boutique forensic accounting firm, to investigate the concerns.

2) This must be ugly. The audit business is is tough right now and firms don't just fire their clients for no reason. EY was in the middle of their first audit and resigned due to preliminary findings by Cooley.

3) The fundamental underpinning of an audit is reliance on management integrity. If you can't rely on management integrity, you can't do the audit. Period. EY determined they couldn't rely.

4) I have heard some social media folks post that this is largely due to "cultural differences". BS. This audit is done out of the San Jose office of EY. I bet that audit partner has spent more time in China that Xi.

5) That said, this seems to be a pissing match of entity level controls. There doesn't seem to be an actual dispute over the numbers.

6) More trouble lies ahead. SMCI doesn't have a auditor. They don't have an audit opinion for 6/30/24. They can't file their 10-k without one. They will be out of compliance with listing requirement. They could be up for de-listing if the situation persists.

7) They won't be able to replace EY easily. The Big 4 audit firms, and the next two, all have client acceptance requirements. This will go to the very top of these firms Professional Practice groups. This will be like bringing a sex worker home to meet your mother.

8) What SMCI needs is for Cooley to finish their work and give a report to the Special Committee. The report (which will be oral) will include findings and recommendations for improving Corporate Governance, up to and including termination of potentially key people. Often, when I did an investigation, the CEO was not long for the world.

9) With Cooley's report and a remediation plan, SMCI will be able to get a new auditor. One of the audit committee members used to use KPMG. They could be in the wings. They would have to start at square one, though. I wouldn't expect a clean year 1 opinion, either.

10) I would guess another option is a sale to a competitor. The vultures must be circling.

Probably more than you wanted to know, but I enjoy this board and this is one of the rare instances where I actually have some expertise.

From Rev:

I got much more serious with  (VKTX)  at about $65 just now.

But this is a wild and volatile stock.

Weight accordingly!

Coca-Cola  (KO)  has been a terrific, "no drama" short.

I am taking some off now at $64.71.

Moved to small sized given the changing reward vs. risk.

S&P cash is now -26 handles.

I am taking in my  (SPY)  and  (QQQ)  call shorts (put on today) for a profit.

I am now delta neutral in my Index position.

With S&P cash +7 handles I am shorting some more Index calls — but taking baby steps!

As a society and as a marketplace we might have hit bottom with this IPO!

- NYSE volume is 4% above its one-month average;

- Nasdaq volume is 8% below its one-month average;

- VIX index +1.33% to 22.17

Financials seem to be rolling over again. I remain short  (XLF) ,  (BAC)  and  (JPM) .

While I always may trade opportunistically, I do not plan to do anything substantive today or tomorrow.

The more analysis I do on Tesla  (TSLA)  the more I want to short the name.

From last week — when I highlighted the company's aggressive accounting:

Tesla and 'Unaccountable Accounting'

* Tesla's aggressive accounting (and "earnings beat") bears addressing.

I was weaned, cut my teeth and earned by bones reading Abraham J. Briloff's book, "Unaccountable Accounting" (h/t Alan Abelson/Barrons):

Tesla (TSLA) needed something to restore its faithful shareholders, after a long series of earnings disappointments, pricing pressures and slowing EV sales, a collapse of the resale values of Tesla cars, a disappointing Robocar event and a government investigation of the safety of its Full Self Driving system.

It delivered a third-quarter 2024 report that showed earnings of $0.12/share better than Wall Street's estimates. While 12 cents may not seem to be so significant to a stock over $200 per share, it triggered a massive rally in which the one-day increase in the company’s market value (late last week) exceeded the combined total market value of both Ford undefined and General Motors (GM) .

Unaccountable Accounting?

A review if Tesla’s financials raises many questions. Did aggressive accounting play a role in the reported numbers? When cash is expended by a company, it can be treated as an expense and will reduce reported profits. If instead, it is deemed to have future value, it can be capitalized and added to an asset. This would enhance reported profits as it would not be treated as an expense. In that context, the following analysis is offered:

* The ostensibly higher earnings than expected were $0.12 per share

* There are 3,497 million shares outstanding

* $0.12/share x 3,497 equals $420 million in post tax earnings

* The effective tax rate was 21.6%

So, pretax earnings would have ostensibly risen by $420 million divided by .784 (adjusting for taxes) and therefore been $535 million greater than expected. million than expected.

Were Cash Expenses Capitalized Rather Than Expensed?

* Property Plant and Equipment in the second quarter was $32.902 billion. It increased by $1.488 billion in 2Q from 1Q 2024

* In 3Q it increased $3.214 billion from 2Q, which is $1.726 billion greater than the increase in the prior three months

* This differential alone, if extra expense were capitalized, could have enhanced reported earnings by $0.49/share!

* Does this make sense? (See prior analysis.) What was capitalized in 3Q that was not in 2Q or 1Q?

Prepaid expenses and other current assets rose from $4.325 billion in 2Q to $4.888 billion in 3Q -- a gain of $563 million, which if capitalized rather than expensed, would equal a 16 cents per share enhancement.

Other non-current assets rose from $4,458 million in 2Q to $4,989 million in 3Q an increase of $531 million, which, on the same basis, would equal 15 cents per share.
So, it appears that there are a lot of unusual gains in asset categories relative to what one might have expected, given the relatively flat shipments (quarter to quarter), By capitalizing them rather than expensing them, they could have easily enhanced earnings by much more than the reported earnings beat.

Does the Sharp Drop in Costs Per Vehicle as Reported Make Sense?

A review of stand-alone leased vehicle sales and expenses raises questions.

* In 2Q leased vehicle sales were $458 million and leased costs were $245 million, reflecting a cost of goods sold of 53.5%

* In 3Q leased vehicle sales were $446 million and costs were $247 million reflecting a cost of goods sold of 55.4%. So, at least in this area, costs per car actually rose, rather than fell, as claimed by Tesla

* The more expensive Cybertruck was more significant in 3Q, which would have tended to bias costs per vehicle higher, which further makes the claims of lower costs per vehicle lower, which is puzzling.

Further, the claimed free cash flow of $2.7 billion seems to be more reflective of Tesla’s slow payments of its liabilities than of operating efficiency. The increase of accounts payable alone was $1.6 billion and increase in the accrued liabilities was $1.0 billion.

None of this was questioned on the conference call following the earnings and, as I previously mentioned, only two analysts were able to ask questions, one of which was Adam Jonas, who represents Tesla’s lead investment banker.

Bottom Line

The company needs to plausibly address these issues, especially in light of its comments on the call that these results would be difficult to sustaining the future. Only then can a real understanding of this quarter emerge.It is likely that Tesla found 12 cents somewhere around here:

1. Higher PPE 49 cents

2. Higher capitalized prepaid expenses 16 cents

3. Higher Noncurrent assets 15 cents

Post Script: Watch What They Do, Not What They Say

Late yesterday afternoon it was announced that three Tesla employees filed to sell up to $260 million of stock (or more than one million shares).

The sellers include Elon Musk's brother Kimbal (152,088 shares), Tesla Chairman Robyn Denholm (674,345 shares) and Tesla Director Kathleen Wilson Thompson (300,000 shares).

Position: Short TSLA (S)

By Doug Kass Oct 29, 2024 9:45 AM EDT

Over the weekend and in an online exchange with some subscribers I mentioned that I am buying platinum.

More on my thesis in the next few days.

With S&P cash reversing nicely from the morning's lows (and now +1 handle) I am adding modestly to my short Index calls.

After selling much higher, I am buying some Viking  (VKTX) on a scale lower (started at around $74).

Some of my faves (boldface on VKTX on me!):

Viking Therapeutics obesity data exceeded expectations, says JPMorgan JPMorgan says Viking Therapeutics released data on the higher doses of oral-2735 at ObesityWeek which exceeded expectations on both efficacy and tolerability. The highest dose of 100mg showed 8% weight loss with steep efficacy curves at the four week cutoff, potentially indicating high rates of additional weight loss over longer periods, the analyst tells investors in a research note. The firm expected oral-2735 to potentially point to an attractive efficacy and tolerability trade-off, and says the data strengthens its conviction. It sees a clear path for Viking towards "becoming a viable player and/or partner in the diabetes/obesity market." JPMorgan has an Overweight rating on Viking Therapeutics.

Freshpet reports Q3 EPS 24c, consensus 11c Reports Q3 revenue $253.4M, consensus $248.21M. "Our Q3 results demonstrate the strength and consistency of both net sales and profitability growth we have been striving to deliver. We delivered our 25th consecutive quarter of greater than25% year on year net sales growth and matched that with a very strong operating performance. This further strengthens our confidence in our ability to meet or exceed our 2027 goals," commented Billy Cyr, Freshpet's CEO.

Freshpet raises FY24 revenue view to $975M from $965M Consensus is for FY24 revenue $969.47M. Lowers FY24 Adjusted EBITDA view to at least $155M, compared to at least $140M in the previous guidance. Lowers FY24 Capital expenditures view to ~$180M, compared to ~$200M in the previous guidance. Billy Cyr, Freshpet's CEO, commented, "We are raising our net sales and Adjusted EBITDA guidance for 2024 to reflect this continued strong performance and our confidence in our ability to finish the year strongly and, as a result, create significant shareholder value in a way that serves pets, people, and the planet.”

Charts from 8:29 a.m. ET:

Chart from 8:49 a.m.:

Upside:

-ATSG +23% (confirms to be acquired by Stonepeak for $3.1B or $22.50/shr)

-IRON +15% (successful end of Phase 2 Meeting with FDA for Bitopertin in Erythropoietic Protoporphyria (EPP), including potential for accelerated approval)

-CVRX +12% (announces positive outpatient payment of ~$45K for Barostim Procedure in 2025)

-CRVO +8.9% (announces key takeaways from oral presentations at the 17th Clinical Trials on Alzheimer's Disease Conference (CTAD))

-YUMC +8.3% (earnings, guidance)

-IART +6.6% (earnings, guidance)

-COHN +5.8% (earnings)

-ZTS +5.5% (earnings, guidance)

-GUTS +5.3% (REMAIN-1 weight maintenance pivotal study on-track to report mid-point data analysis in 2Q25)

-FOXA +5.1% (earnings)

-VKTX +4.9% (plan to discuss with FDA the clinical path forward for injectable VK2735 later this quarter and expect to initiate Phase 2 study of oral tablet formulation of VK2735 by end of this year; confirms new data from VK2735 Obesity Program at ObesityWeek 2024)

-FRPT +3.6% (earnings, guidance)

-BNTX +3.1% (earnings, guidance)

-RBLX +2.8% (Morgan Stanley Raised RBLX to Overweight from Equal Weight, price target: $65 from $38)

-KALV +2.3% (DRI Healthcare Trust announces acquisition of a Synthetic Royalty Interest in the Worldwide Sales of Sebetralstat for Treatment of Hereditary Angioedema Plus an Equity Investment in KalVista Pharmaceuticals for for an aggregate purchase price of up to $179M)

Downside:

-TGTX -14% (earnings, guidance)

-ENTG -11% (earnings, guidance)

-PCRX -10% (notes that CMS confirmed that both EXPAREL (bupivacaine liposome injectable suspension) and iovera qualify as eligible non-opioid pain management products under the NOPAIN Act)

-RILY -9.3% (discloses on Nov 3rd, Franchise Group, its operating businesses, and certain other affiliates, including Freedom VCM, commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware)

-CEG -8.4% (earnings, guidance)

-NRBO -4.1% (completes last patient last visit in Phase 2a Clinical Trial Evaluating DA-1241 for Treatment of MASH; Topline Data Readout from Part 1 and Part 2 Expected in December 2024)

-FVRR -3.9% (BTIG Cuts FVRR to Neutral from Buy)

-VRNA -3.7% (earnings)

-MOVE -3.0% (submits response to FDA as Part of Final Review Phase for EvieMED)

-SMCI -2.7% (reportedly Nvidia steps in to restructure Supermicro orders, reshaping AI supply chain)

Jefferies on Freshpet  (FRPT) :

Freshpet, Inc. | HOLD

FRPT | $133.69 | PT: $123.00 | % to PT: -8%

3Q EPS First View: Another Solid Print / Guidance Raised

Freshpet crushed the quarter (again). Topline growth was 210bp above Street (24.2%). But more importantly Adj EBITDA was way ahead ($44m vs Street $35m). The beat was driven by substantial margin improvements (+625bp GM expansion). It seems debates about positive FCF will be put to rest. Higher '24 guidance includes $975m net sales and $155m Adj EBITDA. Fresh/frozen demand remains solid, which should enable Freshpet to keep outperforming the category.

FRPT 3Q24 Earnings Review

From Peter Boockvar:

Those industries most interested/The Fed/Sentiment/Earnings comments

I guess industry wise, I'd say autos, the financial sector (particularly regional banks) and energy are the three most focused on the election outcome. This with respect to the EV mandates, who will run the Consumer Financial Protection Bureau and permitting for both energy facilities (LNG for example) and drilling. Broadly, who will run the FTC will hugely matter too, particularly for the tech sector and M&A bankers. The healthcare sector is the most influenced by government, via Medicare and Medicaid payments, but I don't see much of a change regardless of who wins because of how entrenched policy already is.

With respect to what the market is betting on in terms of the winner, we can of course look at the official betting markets but can also watch the direction of the US dollar. A rising dollar was an implied bet on Trump as much higher tariffs would help the dollar as it would lower our trade deficit, in theory. A falling dollar, the opposite bet on Harris. Today, the US dollar is falling to a two week low.

With the Fed this week, they will likely do as the market has priced in and cut 25 bps but considering how much rates have risen in their face since the September 50 bps cut decision, along with a bunch of conflicting economic data and anecdotes which has seemed to be more confusing than clarifying, shouldn't the Fed from a risk management standpoint do nothing on Thursday and give themselves more time to be 'confident' in the inflation and labor outlook? I think so as they can always cut again in December and they've already gotten 50 bps of cuts out of the way.

On this whole debate over whether the Fed is restrictive or not, again it depends on who you are and what your perspective is. Last week we saw core PCE up 2.7% y/o/y, and core CPI above 3%. Historically, a REAL rate of about 200 bps was perfectly normal, which is about where we are today. Anything related to the financial markets is hardly restrictive. If you're in commercial real estate or are a small business with a cost of capital of 10%, they certainly are.

Stock market sentiment ahead of the major events this week is pretty bulled up again. We saw last week that consumers have the highest expectations of further stock market gains since the question was first asked in 1987 by the Conference Board. Over the weekend I saw the Citi Panic/Euphoria index which is back above the .41 level which Citi defines as levels that "generate a better than 80% probability of stock prices being lower one year later." Last week the II survey had Bulls still above 55 at 57.6, though down a touch from 58.3 in the week before. Bears rose .3 pts w/o/w to 22. In AAII, Bulls exceed Bears by about 9 pts but nothing extreme there. Bottom line, we should always be aware of our sentiment surroundings and the positivity is worth noting from a short term trading perspective. 

With regards to earnings season, I say just about every quarter that I guarantee that around 75% of companies will exceed earnings expectations. Lo and behold on Friday, Factset said of the 70% of S&P 500 companies that have reported so far, 75% are above earnings estimates. The difference this time is that "In aggregate, companies are reporting earnings that are 4.6% above estimates, which is below the 5 year average of 8.5% and below the 10 yr average of 6.8%."

On the revenue side, 60% have reported above expectations "which is below the 5 yr average of 69% and below the 10 yr average of 64%. In aggregate, companies are reporting revenues that are 1.1% above the estimates, which is below the 5 yr average of 2% and below the 10 yr average of 1.4%."

On Friday, October auto sales totaled 16.04mm at a seasonally adjusted annualized rate and that was above the estimate of 15.8mm and compares with 15.5mm in October 2023 and 16.55mm in October 2019. I don't have a breakdown between retail sales and those to the fleet, like rental car companies for example but we still can't get consistently above 2019 levels. We know all about the high cost of financing a car purchase which is on top of record high prices and ever increasing insurance rates. Here is another issue, if you didn't see the article last week, https://www.wsj.com/personal-finance/auto-loans-negative-equity-aa742965.

The article says, "Roughly a third of people who financed cars owe more than their vehicles are worth, which can be consequential once they get rid of the car." According to the CFPB, that is roughly 30mm of the more than 100mm auto loan accounts. "Being 'underwater' is common because a car loses value as soon as it is driven off the lot. But that 19% drop in used car prices since their peak in 2022 means more cars are now worth less than the remaining balance on the car loan - and by larger amounts."

On to some earnings comments.

From Wayfair:

"The third quarter exhibited a continuation of choppy macro trends we've seen across 2024. Consumers remain trepidatious in their spending patterns and are demonstrating more price elasticity than we saw in the early months of the year. While we were pleased with the response we saw over Way Day at the start of the quarter, which we ran as an extended event for the first time this fall, it had become clear even as we exited September that we were seeing a broader pullback by shoppers in the lead up to the election. Attention is focused away from the home right now and when customers are in the market it is increasingly for lower investment, lower consideration purchases vs large ticket items that represent our traditional area of strength."

From Eastman Chemical:

"When you think about just the last couple of years, we've had incredibly high inflation and interest rates, as everyone knows, and we've been in a manufacturing recession that really started in the summer of '22. We've had almost two and a half years now of no improvement in end market demand, especially in the discretionary markets. And when you think about the area under that curve of low demand, if you will, there's a lot of pent up demand that has not been served, even when you consider some of the overstimulation in '24."

"So, macro clearly uncertain right now, we all know that. What we do know, I think, at this point is that the customer inventory destocking is over and we're sort of reconnected to primary demand."

What's doing ok? "what we call our stable markets, things like personal care, aviation, water treatment, ag." What is not? "The discretionary markets, which are auto, housing, consumer durables, that's where we see demand has not really improved very much."

From Church & Dwight which makes everything from Arm & Hammer, OxiClean, kitty litter, men/women health care products as well as personal care stuff:

On the consumer, "in July we noted a deceleration in consumption in our categories. This continued in Q3 as we expected. After seeing 4.5% growth in our categories for the first five months of the year, June, July and August were closer to 2.5%. Now in September, we saw consumption in our categories strengthen to about 3%, and then in October category consumption was up 5%. But, let's all remind ourselves that the hurricane and the port strike no doubt influenced those results. So, we remain cautious in Q4 regarding the US consumer, and category growth rates."

How are the Chinese new housing policies helping to drive demand? According to a Friday South China Morning Post article, "Residential sales by the nation's top 100 developers rose 7.1% in October from a year earlier to 435.5 billion yuan (US $61.1 billion), according to data published by China Real Estate Information Corp (CRIC) on late Thursday. They surged 73% from September." I do think that existing home sales are doing better than new as some consumer don't want to take chances with some developers.

Now this overall process of absorbing the excess supply will take years but trying to put a floor under prices via reducing inventor is the main focus, not to stimulate new homebuilding to any great extent.

Uranium stocks have been on a tear in 2024 but have recently lost momentum (and have rolled over and  (URNM)  is -15% over the last two weeks):

URNM is a trading sardine and not yet an eating sardine.

Once again, Hedgeye was on top of this trade — being the obstetrician (buying near the lows) and the mortician (selling near the highs).

We sold out a few months ago in late July:

A Good Out (Part Deux)

* Of a uranium-kind

In mid-June I sold out (URNM) above $58.

Last sale $44.43!

From six weeks ago:

A Good Out

Damn good out in Sprott Uranium Miners ETF (URNM) above $58 recently, now -$1.70 on the day and -$8 from the recent sale price.

Position: None

BY DOUG KASS JUN 11, 2024 10:40 AM EDT

Position: None

By Doug Kass Jul 30, 2024 12:52 PM EDT

This table is a valuable resource for momentum-based short-term traders:

From JPMorgan:

US: Futs are higher with Mag7 names mixed but NVDA higher on its Dow inclusion; Semis ticking higher. RTY is underperforming as the yield curve bull flattens; USD is weaker too. Cmdtys catching a bid, led by Energy as OPEC+ moves to delay its production increase. Today’s macro data is likely to be ignored but given the weaker than expected NFP, investors may want to know the state of the economy as we get past the Election and the Thursday’s Fed mtg. ISM-Srvcs tmrw is the most important print this week with Sentiment updates on Friday.

and...

EQUITY AND MACRO NARRATIVE: Last week, the SPX lost 1.4%, declining for the second consecutive week as bond yield increased; the 10Y yield reached 4.38% its highest level since July 2. The SPX outperformed the NDX on the move lower, NDX losing 1.6%, but trailed RTY which posted a 10bps gain; and, SPW also outperformed by 38bps. At the sector-level, Tech was the winner The drivers of these moves appears to be a continuation of stronger than expected data and some position squaring into the Election, where markets widely expect a Trump victory with investors betting that a Red Wave would be more likely than Trump winning with a split Congress. The USD was flat on the week as WTI fell below $70, losing 3.2%.

As we enter this week, polling is shifting back towards a Harris victory and PredictIt betting market has flipped back to Harris. Plus, we have a Fed meeting where the Friday’s NFP print seems to cement a 25bps cut. A few thoughts before we review the bullish hypothesis, update on positioning, and take a look at the Research view.

I covered the Nvidia  (NVDA)  I shorted Friday night after the DJIA inclusion for a near +$2 profit.

I still have a short position in the name and I would short on any rally.

If you dismiss Berkshire Hathaway's  (BRK.A)   (BRK.B)  unprecedented accumulation of cash reserves, how about Bezos' sale of $3 billion (!!) in shares of Amazon  (AMZN)  announced over the weekend. 

"What the wise man does in the beginning, the fool does in the end."

- Warren Buffett

"A bull market is like sex, it feels best just before it ends."

- Barton Biggs

On Saturday, Berkshire Hathaway  (BRK.A)   (BRK.B)  announced more (signifcant) sales in its investment portfolio as the company's cash exceeds $310 billion (most are using the wrong figure of $325 billion as the company has a payble outstanding on its balance sheet at quarter-end for more Treasury purchases):

Please Do Not Panic

"What the market does is to reduce greatly the range of issues that must be decided through political means."

- Milton & Rose Friedman

Bonus — Here are some links:

Amazon, Bezos and $200

Stock Market and Crypto

This Home Is Built on Solid Ground

Do Higher Spreads Portend Lower Stock Prices

This is at the core of my negative homebulder case:

Uranium falls to a twelve-month low:

Investment short  (RILY)  had some more bad news over the weekend. 

Wolf Street howls about office CMBS delinquency rates. 

Tesla  (TSLA) , an investment short, is trading -$5 on weak Chinese EV shipments for the month of October.

Dougie Kass

I am adding aggressively to my NVDA short at $138.5 on the DJIA inclusion...

Randy

Nice to get thoughts confirmed. Thanks Dougie.

Dougie Kass

average price on nvda short (scaling on strength) is $139.01

Dougie Kass

but still shorting at $139.7

* Over $139...

* Little money is indexed to the DJIA

The announcement that Nvidia  (NVDA)  will replace Intel  (INTC)  in the Dow Jones Industrial Average caused a marked rally in the shares of NVDA (+$5) in the after hours on Friday.

I aggressively shorted because there is so little money indexed to the DJIA.

Dougie Kass

(VKTX)  +$15

I Will Buy Viking in the Mid-Sixties This Week*

* If it falls in sympathy with Lilly

Following this morning's Eli Lilly (LLY) miss and poor guidance I would expect Viking Pharmaceuticals' (VKTX) shares to get hit - as VKTX is seen as a possible buyout candidate for the company.

If the stock moves toward $65 I think it can be purchased as it reports progress on its drug on Sunday.

I expect that report to be positive.

Position: None.

By Doug Kass Oct 30, 2024 8:28 AM EDT