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Etsy Debts Test Bullish Bets (ETSY)

Posted on January 4, 2021

So crafty, that…

We’re playing the online marketplace for all things unique and crunchy today, ETSY Inc. (NASDAQ:ETSY), because everything that rises must be purged.

Etsy has some fundamental problems, you might say.

  • From a P/E ratio of 104.28,
  • To its Price to Book of 32.52,
  • To its non-existent dividend, and
  • Its overdone debt to equity ratio of 1.67,

The stock faces a volatile future.

There’s no question the company had a couple of very impressive quarters, as the Batflu online-buying craze ratcheted up sales and earnings.

But now that we have a faux-vaccine…

Will prices remain at their current levels?

We’re arguing, no.

And insiders appear to agree with us.  They’ve dumped over $80 million (!) in stock in the last six months – a full 50.17% of their holdings.

For that reason, too, we’re suggesting the top for the stock is already behind us, and an intermediate term trend reversal is now underway.

Have a look at the daily chart –

Best of luck with it, brethren.  May the Holy One bless you with winnings only.

With kind regards,

Hugh L. O’Haynew

 

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