Fly Buy: BZH, USG

Off the MAS earnings beat and comments, I bought back BZH and added to USG.

I know the condition of the market, with its lack of volatility and exciting news, has many of you “bored” or unable to appreciate a slowly moving tape. But money isn’t boring is it? Last I checked, money affords me to do exciting things: travel, drink like a fish, renovate my house until the neighbors surrender. Learn to appreciate the moribund and profit from the bland.

Deep in the bowels of the market is a select group of stocks that are soaring higher, without the prerequisite fundamentals or anything to do with proper institutional support that typically characterizes a winner. Small capped stocks are being bid up by the very worst investors in the world, men saturated in their own urine and feces, trying to make enough money to pay down their credit card debt.

BEHOLD the top 25 stocks under $5 list.

The number one stock embodies this type of saturated investor that I mention. Its share price has gone from .17 to $1.60 in a very short period of time.

Oh, you want to know what they do?

No one knows, not even the company itself.

Japan’s HGH powered economic minister, Akira Amari, said Japanese stocks are “still low” and that “…there is no doubt higher stock prices are better than low ones.”

I happen to agree with this man.

Everyone thinks Japan is this pathetic island nation beholden to the degeneracies of their mortal enemy, China. The fact of the matter is, as the Chinese build phantom cities to keep their pathetically poor vagrant farmer class content and away from the pitched fork, the Japanese are living a life of luxury, with unemployment in Japan at its lowest level since 1999.

So don’t feel sorry or make fun of the samurais until you find a job.

But things are about to go from good to very good in Japan, despite their psychotic 205% debt to GDP dilemma.

ENTER KURODA!

“Japan’s economy has suffered from prolonged deflation that must be eradicated — that would raise short-to-medium term growth prospects significantly,” Kuroda, 68, said in an interview in Tokyo yesterday. “Two percent plus for calendar year 2013 would be quite possible and for some years could be sustained,” he said, referring to a pace of expansion not maintained in Japan since stagnation set in in 1992. source

To be clear, the favored new head of the BOJ is intent, hell bent even, on seeing Japanese inflation at 2-3%, in order to stimulate the economy.

Umm, the last time Japan had real inflation was in the 90’s, aside from that weird period of 2008-2009.

Japanese inflation is at zero right now. In order to jack it up to 2%, the yen will need to decline by another 25%.

Your trade is to be short yen, via long YCS, and get long banks and exporters. My favorites are NMR, MTU, HMC, TM, PC and CAJ. And of course, the best way to play it from a savage leech American perspective is to be long WETF, as inflows swell into DXJ.

The NIKKEI is up 2.5% for the session, so far.

In how many ways do I need to explain to you this is as good as it gets? The entire world is in the currency war and equity holders are the direct beneficiaries. I’m not even picking stocks at a particularly rapid or efficient rate, yet find myself up more than 10% for the year–just for showing up.

I have the balls to be 95% invested, cutting losses along the way, as well as booking gains. I am trying a bunch of different approaches, all to do with trending stocks. Eventually, I am going to hit my homerun, AND MORE.

90% of the “hard part” is showing up and not doing anything stupid. I am avoiding outlier stocks like the god-damned black plague. I want nothing to do with a stupid stock that can’t go up in the midst of this lunacy. If your portfolio was down today, shoot yourselves in the freakin’ head.

“The Fly” doesn’t have time for your crap. Do you understand me?

I’ve gawked at stocks that were on the bottom of my shoe double in price, for little to no discernible reason. Like I said a few sentences ago, my stock picking prowess hasn’t exactly been of the stellar varietal, partly due to 30% of my assets being tied down in VHC. Nevertheless, it’s a marathon, not a sprint, and I know exactly what the market is going to do from now until April 15th.

Top pick: BX

New highs in the market’s means higher fees for asset managers, more ipo’s, secondaries, and of course earnings per share. I know you might think it’s a little late to buy into the sector, but only if you think the market is topping out. Some people I know have believed the market was going down for 15 years now. Through all of the negativity and depression, these persons have missed the boat, watched others get rich in their stead.

Don’t be that guy, the homosexual at the cocked-tail party who proclaims doom and gloom is upon us. Even if it were true, no one wants to hear it. Successful people are attracted to positivity. It’s too hard to get the short trade right for the average millionaire, whose sole interest is to outperform the S&P. If that’s your stated goal, look no further than the asset managers.

I still own GS from $138-$143. I sold out of WETF because I wanted to move up the ladder in market cap. Being that I had a 15% gain, I thought it was prudent to take profits and reduce risk.

There are several other names worth looking at in the space.

Regional brokerage: SF
National brokerage: GS, PRI, NMR, MS
Asset Managers: KKR, APO, WDR, OAK, PJC, FIG, CG, PFG, BLK, WETF and AB
Life Insurance: MFC, PRU

There is a whole litany of regional and money center banks who are benefiting from the great big US housing recovery. But I am not interested in any of that, from a banking standpoint. I am also not interested in serial underperformers, with hopes that investors will WAKE UP to its intrinsic value. No.

I am only interested in buying names that will outperform the overall market, without all of the fuss of having to endure an outlier. In my estimation, BX, APO, GS, OAK and MFC fit the bill, quite nicely.

The Japanese economic minister all but said the government is manipulating stocks and would like to see the NIKKEI at 13,000 within a few weeks. Why, that’s only a 17% lift from here, in the world’s 3rd largest economy.

He said “It will be important to show our mettle and see the Nikkei reach the 13,000 mark by the end of the fiscal year (March 31).” Following a few lines of cocaine, he continued by saying “We want to continue taking (new) steps to help stock prices rise.”

What the hell is going on here? Have people lost their minds, all at once?

I think it’s fair to say Japanese stocks have a strong bid underneath them. However, I am also afraid that this trade is becoming a bit too vogue at the moment. Let it cool down, then revisit it with the fortitude of a Pope inside of an African church.

The market’s look good this morning, as they have for every morning this year. I assure you tougher sledding awaits us AFTER 4/15. Stock up on your wins now, for when the spring arrives, you’re all gonna die.

Fly

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Signed, Sealed & Delivered

I know Joe Terranova might not be the ideal role model in the investment community, but how about his god damned employers, VRTS?

$14 to $160 without a soul talking about it.

We all gallivant (some gallivant more than others) around town, looking for the next AAPL. But while we juggle pinless hand grenades, the asset managers steadily progress higher. In my opinion, this is a no-brainer, low risk trade, in a bull market. You might be a horrendous stock broker; but there are highly successful people in the field of asset management.

Feel free to suck from their tits (female) and ingest their milk (no cow).

As assets increase in value, fees increase. Moreover, as the market advertises itself by making new highs, more money is tossed into the market, further enhancing the fees our beloved money managers procure.

Here are the top 25 performers, over the past 6 months, in the asset management space.

No.	Ticker	6-month Return	Industry
1	VRTS	89.67	Asset Management
2	PJC	88.85	Asset Management
3	AB	74.20	Asset Management
4	APO	73.08	Asset Management
5	EVR	62.61	Asset Management
6	WDR	46.22	Asset Management
7	EV	44.62	Asset Management
8	BLK	39.56	Asset Management
9	BX	38.25	Asset Management
10	LAZ	36.56	Asset Management
11	FIG	36.27	Asset Management
12	OAK	35.95	Asset Management
13	PZN	35.60	Asset Management
14	SEIC	33.25	Asset Management
15	CG	32.72	Asset Management
16	WETF	32.01	Asset Management
17	KKR	30.36	Asset Management
18	FII	30.31	Asset Management
19	JNS	29.52	Asset Management
20	REXI	26.62	Asset Management
21	MN	26.05	Asset Management
22	TCAP	26.01	Asset Management
23	OZM	25.87	Asset Management
24	AMG	25.51	Asset Management
25	BK	24.49	Asset Management

I am long BX until $21.

I started a new position in BX.

Disclaimer: If you buy BX because of this post, your new pirate ship will take on water and sink to the bottom of the ocean. And, you may lose money.

I sold out of both positions.

New buys to follow.