Candy Crushed: Another Lesson; Bond Short Update: Best of Kass

NEW YORK (TheStreet) -- Doug Kass of Seabreeze Partners is known for his accurate stock market calls and keen insights into the economy, which he shares with RealMoney Pro readers in his daily trading diary.

Last week, Kass wrote about the fall in King Digital shares and about short bonds.

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Candy Crushed: Another Lesson Learned

Originally published on Wednesday, Aug. 13, at 8:08 a.m. EDT

" Candy's IPO will get crushed like Zynga," (ZNGA) said Doug Kass, founder of investment shop Seabreeze Partners Management. "The games business is no different than the movie business," Kass said. "One great hit doesn't ensure that the next movie will be a hit."

-- New York Post interview with Kaja Whitehouse, "Wall Street Wary of Candy Crush Maker's IPO") Feb. 18, 2014

In after hours trading last night the shares of Candy Crush's parent company King Digital Entertainment  (KING)  dropped by over 20% after an earnings miss and weak guidance.

Read More: 8 Stocks George Soros Is Buying in 2014

For over 15 years I have advised (in my diary on Real Money Pro and on TheStreet) that investors and traders should always adopt a healthy skepticism of fads (particularly ones that we play on our computer or smartphones).

Importantly, beware of false investment icons that embrace the current rage of popularity but, to paraphrase Gertrude Stein, have little there there. Case in point: Look at the share price decline of nearly everyone's retail favorite Macy's  (M)   after its earnings miss this morning.

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