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
21,502 Blog Posts

Landmine Time

Forget about what the market is doing right now. The real issue is “How many legs where blown off with the The Stanley Works [[SWK]] for The Black & Decker Corporation [[BDK]] and Berkshire for Burlington Northern Santa Fe Corporation [[BNI]] deals? Do you notice a pattern?

Big deals are being financed again, which spells disaster for those who are short. Literally, it is a financial minefield for those who make a living selling short. So, in addition to having an active ipo/secondary market, we are blessed with a very healthy m&a market too. This is very good news for stocks and the banking industry.

Unfortunately, as of now, the market disagrees with me, by way of a stupid sell off. However, as sure as I am sitting here, it shall rise again—like the sun over Tokyo.

On this decline, [[ENTR]] gets an automatic looksy, as it is always a good dip buy. And, that’s about it for now. Banks are getting ripped apart, thanks in large part of [[RBS]] and UBS AG (USA) [[UBS]] .

Nonetheless, this decline should be temporary and the dip should be bought.

NOTE: On the [[BNI]] deal, give the trannies a look, especially CSX Corporation [[CSX]] , Canadian National Railway (USA) [[CNI]] , Union Pacific Corporation [[UNP]] , Norfolk Southern Corp. [[NSC]] , Kansas City Southern [[KSU]] and Genesee & Wyoming Inc. [[GWR]] . The market cannot go down with this sort of strength in the trannies.

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18 comments

  1. The V.King

    Do It!!

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  2. The Zombie

    The Fly is God.

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  3. Woodshedder

    The Fly likes looking at trannies…hehehe

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  4. LLCJ

    Trannies are a one day wonder due to Bufftard

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  5. Mr. President

    Mr. Fly,

    Would you consider a nice tranny like BNI as a hold-forever stock?

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    • The Fly

      why?

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      • Mr. President

        Good company; healthy growth, dividend, etc. Is that a no?

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      • Mr. President

        You mentioned the other day that you have some very-long-term-to-forever stocks; I was just wondering if you would consider a healthy tranny to be worthy of this type of time-frame..

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        • JakeGint

          Just UPS.

          _________

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          • JakeGint

            El Presidente–

            Sell half your BNI now.

            Do it!

            Take proceeds, purchase as much RGLD as you can.

            In two years, begin naming first and second grandchildren “Jake.”

            No matter the gender. Just do it!

            _________

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  6. Javier

    Uh

    Isn’t the Stanley/Black and decker deal an all stock one?

    Buffet has had the ability to do deals when no one else would even consider them.

    Not sure these are a great barometer. When we see KKR and Blackstone are getting active the shorts will have a real reason to be scared.

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    • JakeGint

      Buffet is dealing in the same league as KKR and BX. In fact, I’d argue he’s a better tell than those guys because he is a cheap grasping greedy old mother-clucker and he only makes entire acqusitions when

      a) the price is too low to be ignored (ie, below asset value)

      b) he thinks the price is going to be more dear tomorrow

      _______

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  7. zephler

    fly you still in TKLC? What do you think earnings are gonna be like? It’s been absolutely destroyed in the past 2 weeks…gawd!

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  8. Cash-N-Guns

    lets remember buffett bought a stake in Govt Sachs, and it continued to sink much lower…this means shit in the short term…longer term are the thesis of all of his investments…nothing to do until the feds speak tomorrow..hopefully we can rally so I can sell more crap into it.

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  9. JakeGint

    I wish I could say I was doing deals the size of BNI and SWK, but let me tell you, things have gotten very busy around here.

    Like a bottleneck got cleared and all the pressure behind it is pushing on through….

    ________

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  10. finclyde

    Fly,

    Do you like shippers here on the dip?

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