Fly Buy: $TC

I started a new position in TC.

I started off 2014 by taking uppercuts to the scrotum. Immediately, I was down 2%, watching BALT and ANGI swoon like two drunk whores wearing high heels. Then, all of a sudden, lightening struck the New York Stock Exchange, electrifying some of my stocks–placing fire onto the faces of those betting against me.

At this very moment, I am incinerating short sellers in YY and RBCN. BALT is coming back and ANGI is still in the South of Bronx, drunk, wearing stilettos.

Chinese lotto stock, WBAI, is zooming higher, putting me in a rather good mood. Bear in mind, you, I don’t own any WBAI. However, it makes me happy to see such a degenerate stock trade up. I wonder what the people are thinking before they buy it. Look at MDBX. I wonder what those people are thinking too. I bet they are really stoned out, thinking marijuana will soon be retailed inside of high schools and other places of learning. Drugs should be legal of course, this way society can melt away into the oblivion of stark raving madness. Robberies and murder should be legal too of course, as it is the right of every human to take what they want–when they want it.

To sum things up: the market is weak, apparently due to “tax reasons,” according to the sages on CNBC. What said tax reasons on January 2nd are is totally beyond my pay grade–but apparently, it’s very true indeed. “The Fly” is now +0.6% for the day, erasing all of the bad memories of 1 hour ago.

One of the things that surprised me this morning was Berkshire Hathaway announcing it upped its holdings in wallboard maker, USG, to 30.5% of the outstanding shares. Well, it’s not exactly that straight-forward. Here is the press release.

Berkshire Hathaway (BRK.B) discloses 30.5% active stake in amended 13D filing; BH Nebraska, BH Assurance and General Re Life acquired the Conversion Shares for investment purposes (28.38 )

• On November 15, 2013, USG issued a notice of redemption to redeem on December 16, 2013, $325 million in aggregate principal amount of the Notes. The Notes called for redemption would be subject to redemption at the stated redemption price equal to 105% of the aggregate principal amount of such Notes, plus accrued and unpaid interest to (but not including) the redemption date, unless the holders of the Notes that were called for redemption converted such Notes prior to the redemption date. The Called Notes were convertible into 87.7193 shares of Common Stock per $1,000 principal amount of Notes (based on the conversion price of $11.40 per share). If the Berkshire Entities declined to convert the Called Notes and allowed such Notes to be redeemed, the Berkshire Entities would have received an aggregate redemption payment in an amount less than the value of the Common Stock received on conversion, based on the market price of the Common Stock at the time of the conversion by the Berkshire Entities. BH Nebraska, BH Assurance and General Re Life elected to convert the Called Notes held by them, in the aggregate principal amount of $243,830,000, into the Conversion Shares totaling 21,388,597 shares of Common Stock in the aggregate.
• Accordingly, on December 9, 2013, (i) BH Nebraska acquired 11,403,509 shares of Common Stock upon conversion of the Called Notes held by it in the principal amount of $130,000,000, (ii) BH Assurance acquired 6,414,474 shares of Common Stock upon conversion of the Called Notes held by it in the principal amount of $73,125,000, and (iii) General Re Life acquired 3,570,614 shares of Common Stock upon conversion of the Called Notes held by it in the principal amount of $40,705,000.

The olde man converted some debt and now owns a monster position in USG. Given his position and enormous cash position, he might go all the way with this one and acquire the company.

I find it interesting, since housing related names took the year off in 2013, meandering about the sewer pipes, hanging around unsavory types. Perhaps this is the breakout year for residential construction and material stocks. Perhaps, we might get to see some inflation, which will show up in basic materials, even gold.

If that’s the case, you will want to own cement, iron and steel, lumber, gold/silver and of course homebuilders–maybe a little copper too.

After all, the whole point of this QE business is to reflate the economy. Up until now, inflation has been nonexistent, with exception for stock prices.

Look for that theme to play out in early 2014, with a an eye on FCX, VALE, X, CLF, AG, GG, BZH, RYL, LL, USG, JOY and CX.

As of right now, I am nothing but the work that I have yet to accomplish. With a brand new year comes brand new expectations, the proverbial clean slate. In my mind, 2014 is going to be a fantastic year; but I bet Bill Ackman and Ron “the corporation killer” Johnson thought the same on 1/1/13.

If you had difficulties believing the cultish meltups of 2013 and underperformed, kick that emotional noise to the side now and take a fresh look at things.

This post is without bias or agenda to discuss themes and/or stocks that I own or want to own. It is simply a statement of fact, one that has given me great solace in the past.

I recall having horrendous years, cursing my wretched setbacks and the errs of my ways until I was blue in the face. Just last year I gave back 30% of my assets inside of the last 4 months of the year. I neglected business relationships, mostly due to boredom and hubris–but still managed to enter 2013 with a full chest and determination to succeed. Luckily, with some crafty moves and a blessed market, I made over 70% for clients last year, fully redeeming the lackluster performance of the previous two years.

The truth of it all is, as long as you’re in the game, you can win it. Work hard and be industrious; I am sure you’ll find a way, we’ll find a way, to have a pleasurable and profitable 2014.

http://www.youtube.com/watch?v=aPDyuulIZ1Y