iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,441 Blog Posts

“The Fly” is Never Wrong

This is what 9% Chinese GDP growth means:

Dry Bulk shipping rates are way too cheap.

Commodity stocks need to reflate by another 25%, minimum.

The world as we know it is not ending.

See, if you were just looking at the stock market, over the last 3 weeks, you’d think China were “enjoying” negative GDP growth, when in fact they are still ripping higher. With inflation in check, and $2 trillion in reserves, the Chinese can offer real stimulus to their economy, via infrastructure projects, if needed.

Essentially, the rumors of impending doom are gravely overstated.

With my money, you know I like The Mosaic Company [[MOS]] and National-Oilwell Varco, Inc. [[NOV]] . However, on that Chinese GDP number, the whole sector can be bought, from Alcoa Inc. [[AA]] to Olympic Steel, Inc. [[ZEUS]] .

My favorites include:

Freeport-McMoRan Copper & Gold Inc. [[FCX]] , Southern Copper Corporation (USA) [[PCU]] , Agrium Inc. (USA) [[AGU]] , CF Industries Holdings, Inc. [[CF]] , Monsanto Company [[MON]] , Arch Coal, Inc. [[ACI]] , United States Steel Corporation [[X]] and Suncor Energy Inc. (USA) [[SU]] , just to name a few.

In addition, domestic retailers are too cheap, despite the credit crisis. Into the thaw, I want to be long [[M]] and Polo Ralph Lauren Corporation [[RL]] .

Naturally, the consumer staples will rebound for two reasons: one due to valuation, two because they are defensive. My favorite staples are The Clorox Company [[CLX]] , The Procter & Gamble Company The Procter & Gamble Company The Procter & Gamble Company The Procter & Gamble Company [[PG]] and Unilever N.V. (ADR) [[UN]].

While it’s true, this rally may not last very long; it is here now. Moreover, while it’s here, “The Fly” intends to sap every last bit of coin from it and transfer it into his checking account.

NOTE: [[SEA]] is a great way to play the rebound in the shippers.

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49 comments

  1. Ferrari321

    you liking gold at these levels fly?

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  2. The Fly

    no.

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  3. Red star

    you not see? you be solly Fry… oul Chinese numbels ale velly vely long we rie arr the time! numbels ale not as they wirr appeal!

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  4. TraderCaddy

    The Fly was wrong about the Mets.
    On second thought, Fly was right about the Mets. They did screw it up again.
    They need a payroll like the Rays. The Rays don’t even have enough $$ to buy new jockstraps.

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  5. Erin Burnett's Booty Call
    Erin Burnett's Booty Call

    the action today worries me. shit stocks are up more than quality stocks. this is speculation. we’re going back down.

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  6. the Bear

    Lahde Quits Hedge Funds, Thanks `Idiots’ for Success (Update1)

    By Katherine Burton

    Oct. 17 (Bloomberg) — Andrew Lahde, the hedge-fund manager who quit after posting an 870 percent gain last year, said farewell to clients in a letter that thanks stupid traders for making him rich and ends with a plea to legalize marijuana.

    Lahde, head of Santa Monica, California-based Lahde Capital Management LLC, told investors last month he was returning their cash because the risk of using credit derivatives — his means of betting on the falling value of bonds and loans, including subprime mortgages — was too risky given the weakness of the banks he was trading with.

    “I was in this game for money,” Lahde, 37, wrote in a two-page letter today in which he said he had come to hate the hedge-fund business. “The low-hanging fruit, i.e. idiots whose parents paid for prep school, Yale and then the Harvard MBA, was there for the taking. These people who were (often) truly not worthy of the education they received (or supposedly received) rose to the top of companies such as AIG, Bear Stearns and Lehman Brothers and all levels of our government.

    “All of this behavior supporting the Aristocracy, only ended up making it easier for me to find people stupid enough to take the other sides of my trades. God Bless America.”

    Lahde, who managed about $80 million, told clients he’ll be content to invest his own money, rather than taking cash from wealthy individuals and institutions and trying to amass a fortune worth hundreds of millions or even billions of dollars.

    “I do not understand the legacy thing,” he wrote. “Nearly everyone will be forgotten. Give up on leaving your mark. Throw the Blackberry away and enjoy life.”

    Request for Soros

    He said he’d spend his time repairing his health “as well as my entire life — where I had to compete for spaces at universities, and graduate schools, jobs and assets under management — with those who had all the advantages (rich parents) that I did not.”

    He also suggested that billionaire George Soros sponsor a forum in which “great minds” would come together to create a new system of government, as the current system “is clearly broken.”

    Lahde ended his letter with a plea for the increased use of hemp as an alternative source of food and energy that segued into a call for the legalization of marijuana.

    “Hemp has been used for at least 5,000 years for cloth and food, as well as just about everything that is produced from petroleum products,” he wrote. “Hemp is not marijuana and vice versa. Hemp is the male plant and it grows like a weed, hence the slang term.”

    `Innocuous Plant’

    He added, “The evil female plant — marijuana. It gets you high, it makes you laugh, it does not produce a hangover. Unlike alcohol, it does not result in bar fights or wife beating. So, why is this innocuous plant illegal? Is it a gateway drug? No, that would be alcohol, which is so heavily advertised in this country.”

    Lahde said the only reason marijuana remains illegal is because “Corporate America, which owns Congress, would rather sell you Paxil, Zoloft, Xanax and other addictive drugs, than allow you to grow a plant in your home without some of the profits going into their coffers.”

    Lahde graduated from Michigan State University with a degree in finance and holds an MBA from the University of California, Los Angeles. He worked at Los Angeles-based hedge fund Dalton Investments LLC before founding his own firm two years ago with about $10 million.

    Lahde wasn’t available for comment. A woman at his firm, who asked not to be identified, confirmed the authenticity of the letter.

    To contact the reporter on this story: Katherine Burton in New York at [email protected]
    Last Updated: October 17, 2008 16:27 EDT

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  7. charlie

    EXC is a prudent buy around $50. Obama will win with Powell’s backing and rest assured, his political self will rear its head and repay the EXC chair, director, and VP in a very egregious manner for their massive campaign contributions (they are some of his top fund-raisers). I’ve been researching presidential plays for some time. Also rest assured Obama will throw great weight behind nuclear power once in office, but has to watch his tongue for now because of the large numbers of liberal pussies he’s pandering to with wind and solar energy (which works as a supplementary energy source, but is too fickle to work alone).

    Here’s the article with all the details, including Obama’s less than golden boy political moves. However he’ll do better than McCain.

    http://www.msnbc.msn.com/id/22971762/

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  8. lol

    quick trade, straddle the SSO.
    triangle about to break.

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  9. The Fly

    Come on fuckers, give me my props. My winning percentage is Chicago Bulls like, during the Jordan era.

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  10. Woodshedder

    SEA is pretty illiquid, if I recall from last night’s screen.

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  11. The Fly

    Wood:

    You are right.

    Might as well fuck around with DRYS or TBSI.

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  12. lol

    should break by the end of this week

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  13. BOOMER

    I blew out of AAPL at 96, got to a meeting, see the V shaped recover, and bought back at 97. Oh well. I dont know if Im coming or going.

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  14. derr

    Fly, you’re too good to give props, any possible way anyone could give you props would fall drastically short of worthiness.

    That would be like someone saying “ouch, that must have hurt” after watching someone tortured in unimaginable and unmentionable ways.

    To say you kick ass, would be offensive, as it doesn’t come close to giving you the propper credit for your sheer market dominance.

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  15. Juancho

    This post is gold. If you buy this stuff, watch where it sits in a year.

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  16. Anton Cigur

    “My winning percentage is Chicago Bulls like, during the Jordan era.”

    True, true…

    NOV trading like deep ocean rigs are the new “must have” Christmas gift, too.

    “Props,” in a diamond encrusted platinum chalice to you, Sir.

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  17. alphadawgg

    No healthcare names?

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  18. I call 'bullshit'

    “The Fly” is Never Wrong”

    My, we have a short memory. Four letters: MVIS

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  19. Gwar

    What the deuce?

    XLF +1.5% & UYG -2.1%

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  20. j

    nton

    That’s not the kiss of death you’re giving to poor NOV is it? Hate to see you comment on the stock and it’s the top.

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  21. alphadawgg

    Gwar–that’s because the gayness of the market is only exceed by the gayness of the people at ProShares.

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  22. Anton Cigur

    Oh, hi j,

    If anybody want the perspective “from down under,”
    they can just ask your wife for it.

    And thanks, again, for leaving our country.

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  23. alphadawgg

    bring back the edit function

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  24. Anton Cigur

    Edit function +1

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  25. mrkcbill

    Ain’t feelin it..
    Went to Macy’s already have Xmas shit up everywhere.
    Went to Dick’s and actually was approached by 5 sales clerks.

    Investor Bill nominates TC to tell us when we see capitulation! Until then its just day trading. If you want to get depressed read Maudlins bullshit letter this week. The home ATM is closed for business.

    BTW is Gov. Patterson, Charlie Gaspirio’s [sic] twin brother. That dude is a downer man!

    Watching these rates fall and getting long stocks is going to Clown Fuck lots of players…just like 40 Vix.

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  26. cek260

    those GDP numbers are a crock… trusting them is like trusting that their powdered milk is safe to drink

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  27. The Fly

    MVIS is soo 2006. Fuck off.

    Edit function may return.

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  28. The Fly

    Only homeless people drink powdered milk.

    I drink that organic shit from Whole Foods.

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  29. Steph

    Ken “Hands” Fisher on CNBC. I’m on pins and needles waiting for my surefire money-making advice.

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  30. Ken Fisher

    I’m long gloves.

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  31. Ken Fisher

    In size.

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  32. The Fly

    Someone needs to break Ken’s fingers and fast.

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  33. charlie

    why aren’t my posts showing up?

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  34. charlie

    well now…

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  35. Lucky Razorback

    Trade the Triangle!

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  36. CAP

    I took cough medicine and I feel high. What do they put in this shit ?

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  37. JWorthy

    Dextromorphan

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  38. Employee8

    SQM Reaffirms Market Outlook

    Tue Sep 30 12:50:00 2008
    EDT

    Sociedad Quimica y
    Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A),
    in light of the high volatility experienced by world stock markets and in SQM
    share price, reiterated its statements from its second quarter 2008 earnings
    release regarding its expectations that results for the second half of this
    year will be significantly higher than both the results for the first half of
    this year and the results for the second half of 2007.
    Patricio Contesse, Chief Executive Officer of SQM, stated, “Based on the
    sales we have accomplished so far, our current projections indicate that we
    will achieve record results in the third quarter. Furthermore, we believe
    this trend will continue into the fourth quarter and next year, considering
    that market fundamentals are expected to be strong in the medium and long
    terms.”

    Long MOS and SQM …

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  39. ShortBus

    Which US based stocks would be a beneficiary of China infrastructure spending?

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  40. Juice

    Fly – you planning to hold FCX thru earnings tomorrow morning?

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  41. The Fly

    Juice:

    No.

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  42. Mushroomz

    ZUES, thats a bad ass ticker.

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  43. Donny

    Donny is now out of his greater prosperity seeking meeting, and presently conspiring how he can gauge out the eyes of those fuckers on the wrong side of his trade.

    Pending …

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  44. jig

    Is anyone holding apple thru earnings? pretty weak today, is this a good buying opp?

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  45. Damon

    MOS is stronger than wolf pussy today!

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  46. Viva Las Vegas

    I’m done DIGging…time for DUG

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  47. Viva Las Vegas

    I’m done DIGging….time for DUG

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  48. blackie swan

    Good job flyster..keep on stacking

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