Hi Reader
Let me show you how wonderful and how stupid investors are/can be.
So last month we saw NVidia come out with wonderful quarterly results and we got these awesome forecasts moving forward for the following quarter.
Yes the NVidia management came out with a forecast of $9 billion in sales up $2 Billion from the previous Quarter. So once they put these wonderful bullshit number into the media every puppet and his dog has bought the stock believing that this will be achievable. So how good is this yep management, directors have been selling the stock since the announcement. Retail suckers have been buying the stock while professionals have been selling knowing full well that there is no chance in hell of them making these sales number on there bullshit AI fantasy.
So I'll show you how you should research companies and see if they are full of shit or if they are the real deal.
NVidia!!! $2 billion increase in sales is this quarter so for this to occur we need to see if there suppliers are increasing production to meet there demand?
All there suppliers are scaling back on production, there competitors are also scaling back by 12-15% so how the hell is NVidia going to justify an increase in sales of 30% when both there suppliers and competitors are scaling back by 12-15%.
Bottom line its bullshit and its called professional bullshit and I'll tell you why, management doesn't believe in there own crap. So what confidents does that give the market?
Yesterday we just got told the US government is going to limit NVidia AI chips to China, the perfect excuse to downgrade the forecasts.
So these is no way that NVidia going to meet there forecast, another clue that the company is full of shit.
So in coming week expect the darling stock to downgrade earnings and the market will punish them accordingly.
Looking at the astrology on the stock this stock will fall apart in the next 12 months, so if you hold it please be careful.
As always use the above as an indicator to your own work.
The above is based on Financial astrology.
Please ask your financial advisor on more on the above