I saw a tweet today from @Stephanie_Link that Standpoint had downgraded Amazon $AMZN from Sell to Strong Sell. Now, really what does that mean? All you can do is sell a stock, you can’t strongly sell it. It’s meaningless.
It reminds of the scene in A Few Good Men where the Demi Moore character “strenuously” objects to a statement from a witness, and gets ridiculed for it. As if strenuously objecting is more important than any other kind of objection.
So, I came up with my own sell ratings that are easy to understand, and actionable.
Buy 1 – Buy this stock, when it looks like it’s a good price, maybe on a pullback.
Buy 2 – Buy it now.
Buy 3 – Buy it on margin, now
Buy 4 – Mortgage your house to buy it
Sell 1 – Sell the stock on an up day
Sell 2 – Sell all that you have, now
Sell 3 – Sell all that you have, and short more, up to your limit
Sell 4 – Mortgage your house to short the stock, and buy out of the money puts
See, understandable, actionable recommendations. Now, you won’t see me actually make any of these calls, because I am not an analyst. And no one in their right mind should take action on Sell or Buy 4.
And I don’t own any Amazon, and nothing here is a recommendation to buy or sell stock.