AmTech Makes Some Bad Calls Yesterday--Sell Amazon (AMZN) And Buy MEMC Electronic (WFR)

AmTech Research is having a Daniel Powter kind of Bad Day today and for that matter so is retail guru, Jeff Macke, but we'll cover Jeff in a moment. Two days ago, American Technology Research (AmTech) reiterated its Sell rating and $65 price target ahead of Amazon's (Nasdaq: AMZN) Q2 earnings report.

AmTech said before Amazon announced earnings that it had "even greater conviction" in its Sell rating and its thesis is that "Amazon’s valuation was unjustified and unsustainable given the deterioration in consumer sentiment and discretionary spending in the U.S., U.K. and Germany."
AmTech mentioned Amazon's "remarkable resilience" thus far during this cyclical downturn and believes "it is a matter of when, not if, it succumbs."

Well, if you listened to AmTech yesterday, you lost 15% on your money.

Jeff Macke, Fast Money tv personality and retail specialist, was quite negative on amazon.com even after amazon announced its earnings. Macke said guidance was not good enough. He noted, "they are great merchants, it is just going to take more than that to move the stock!" I think Macke may need to take a lesson at Fast Money's Trade School.

Additionally, Macke was long Costco (Nasdaq: COST) into yesterday's 12% decline.

Lastly, AmTech was positive on MEMC Electronic (NYSE: WFR) yesterday. AmTech said it felt MEMC had limited downside as the Street's consensus estimates were below MEMC Electronic's guidance. Today, MEMC Electronic is trading down over 18%.
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