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Splunk to go kerplunk; Investor Buckley makes case for short

Monday, October 01, 2012 - 02:45

Oct 1 - Hedge fund manager Zack Buckley made the case for shorting data analytics company Splunk and believes the tech sector is overvalued in general.

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A lot of technology stocks are on its hair at least one of them shouldn't be let's stop the exact Buckley -- Buckley capital partners. At the value investing congress could talk Cusack -- on YouTube now you present an idea a short idea. First -- -- all right tell me a little bit about what she learned when he started researching this company and why you think it should be Jordan. I think the biggest problem is there's a potential pricing war but there's a lot of new competitors coming into the market has a lot of venture capital going into this field right now. Precisely pricing will come down this one has its products price substantially above we're competitors are. And I think that's going to be difficult for them what you look at when you consider what kind of companies to short. Generally just looking for broken business models are bad business models. It's one does have a broken business model I think they have. Somebody that's unsustainable right now they've been growing very rapidly and I think given a new competitors coming into the market that's going to change. She thinks look is the exception to the bullet technology or anything technology is looking a little right for selling. I think the tech companies are definitely overvalued in general. It really is company dependent for -- plenty of other companies likes ones that are treating it -- very high price of cells were negative operating margins. Now -- stunned at what crisis FaceBook become a valued stock. I would say probably around seven to ten dollars a share. So I'm not sure -- myself but I think that there's still a lot of the downside from here. What's the outlook for being about your best tennis market today. You just have to be selective so there's still undervalued stocks PDF to look a little bit harder because the markets privacy up there's still plenty of value. Today maybe just tougher to find him taxpayers for example but I look and multiple different industries zone. He's got a great story during your presentation of how you became a short seller now -- actually -- like China gets an excitement -- -- wild. What happened what is this kind of play it. Any right now. I don't invest in China really anymore I think it's it's just too difficult on the long side and on the short side most of the frauds have been uncovered at this point. And so it's much more difficult finding no surprise that they used to be I would walk into a factory in presenting. And it was pretty easy to sort that company they had no no production whatsoever and now is totally different than what they've -- an SEC filings. And so that doesn't happen anymore the -- that are left are very sophisticated. And so it's it's much more difficult to find -- this -- generally speaking to divert it looks like in the US now yes I do not focus almost entirely unless. And any other sector is catching your eyes as a place. Not specifically I really just look at specific businesses and that's that's over several different sectors. -- nothing specific. Back up like they -- talk to you thanks so much appreciate it. I run this out there this is Reuters.

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Splunk to go kerplunk; Investor Buckley makes case for short

Monday, October 01, 2012 - 02:45