a good day to do window-shopping

…or at least to try to find out what’s on the minds of market players.

This is an ugly day, the latest in a series of uglies. In my view, this makes today full of opportunity.

One thing that jumps out to me is that “story” stocks are getting killed …again. I was looking at ASAN, for example. I’m not sure exactly what the company does, or, since I don’t own it, whether that matters at all. It’s one of a series of similar ilk. It’s price was cut in half in late 2021 and this year it has lost 3/4 of its 1/1 value, including being down by about 10% as I’m writing this.

I think such stocks may still be bellwethers for the overall market. If so, it will probably be interesting to see if ASAN can bounce off its July low or whether, either today or soon, it breaks down below that level.

Many stocks like this also appear to be Graham and Dodd middle-of-the-depression cheap. I’m no expert on the 1930s, but back then I doubt it was common to have today’s dual share structure that acts to shield current management from hostile change of ownership control. And, the possibility of such change is key to the value stock argument. So today’s cheap may be lower than value cheap. Even so, there has been at least one case, Peloton, where the board has tossed out the special-share-protected founder.

more tomorrow

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