Stocks get Pantsed

Lululemon Athletica stumbled today after Jeffries & Co., a not-so-popular ratings firm, downgraded the stock from Hold to Underperform. Investors still took the news quite seriously, knocking the shares down over 10%. Co-CEO of The Markets Are Open has been bearish on the stock for months now. “All it takes is patience,” Edwards said, “I’ve been endlessly preaching that this stock is extremely overvalued. That’s how some no-name firm with a downgrade can knock it down so much.” LULU is now the most profitable position on The Markets Are Open’s Shorter’s Paradise Portfolio, and has generated large sums of cash for clients. View Edwards' full LULU report here.

Nvidia Corp traded down over 4% today after it was hit with a downgrade from Standard & Poor’s from behind, and then shot at when they lowered the rating from Hold, to not a Sell, but a Strong Sell. They blamed weakening PC demand. “More like strengthening PC demand.” Andy “Raw” Kibbens co-CEO of The Markets Are Open and star analyst had to say. “Standard & Poor’s is probably the best rating agency for calling the bottom in a stock with a downgrade. I’ve made more money doing the opposite of what they say then actually listening to them.” Earlier in the year Allan Edwards had proved that recent Standard & Poor’s Buy and Sell ratings, were not just meaningless, but inverted. “Nvidia has been beaten to a pulp already and now we have back-to-school as a catalyst to take the stock higher. It looks like the analysts don’t have time to play StarCraft which is why their ratings make no sense. Any teenager would be buying Nvidia stock along with their new graphics card.” Kibbens wrote out to clients earlier this week when he announced that he was buying Nvidia shares for his fund.