I added to my HABT position towards the end of the day. My best performers for the day were NDRM, AAPL, KLXI, WRE, GILD, JBLU, HCA, LPNT, MD, COST, AAL, MUSA, WFM, BWLD, JAZZ, WMT, SBNY, EBAY and AMGN. My losers were SLCA, YNDX, CHK, PANW, MU, PACD, N, SGEN, TOL, BABA, MS, BEAV, TA.
Do you know the difference between you and a person such as myself? You are merely the family idiot, partaking in Faustian fantasies, whereas I am a professional, toiling away in the markets under the banner of proper asset management. Yes, it’s true, I had a down year in 2014. But it’s also true that I’ve rained fire upon my enemies for well over a decade, ebbing and flowing through these markets as if it were my personal, hacked, ATM machine.
I was down 0.10% for the day. My allocation is working, up 11% for the year, leaps and bounds ahead of my competitors, only trailing those who don’t matter, unimportant catamites addled on tank chocolate.
Rumors of OPEC uniting to form voltron sent crude to a rally, just before it headed back lower again. This is what I’d call an ‘off-day’ at the office, one of those moribund, nothing to see here, types of days that lures you into making poor decisions.
Early this morning the airlines looked great. But now, after they’ve reversed in the face of weaker crude, not so much. Then again, it all depends on what your time horizon is, with regard to the investment. This year I am reverting back to an era when I’d buy and hold, asset allocate, and use my trading acumen to juice returns. Gone are the days of the Four Horsemen of Financial ruin. We have things to accomplish in 2015 and I’ll be damned if I booked another down year.
Thusly, I am down 0.3% for the day, a non-event. Shares of NDRM are strong, alongside many biotechs. My oil plays are weaker and everything else is a mixed bag. AAPL, of course, is in a class of its own and is one of my best performers this year. GILD is bidding higher too, which leads me to my next suggestion.
Focus on free cash flow. It’s all the market cares about these days. Have a look into my purchase on Friday of MD, another free cash flow generating machine.
Early this morning a suspicious set of chaps rolled into my cul de sac, entering my domain at alarming speeds. At first glance I figured it was merely the NSA or some arm of the Grande Recursive Order of the Knights of the Lambda Calculus coming to pay me a visit. But then I noticed they all looked like rap stars, effectively ruling out the former. It’s a good thing my windshield was frozen solid with ice. Normal people simply scrape it off with little plastic tools, but not me. I had a giant fucking Rambo knife out, chiseling away at that shit, wearing a black ski hat and beard. The rappers in the car probably figured I got to the house first, killed its inhabitants, and was now killing the windshield. Upon seeing me, they quickly did a U-turn and made their escape.
Now regarding my favorite sector, the airlines, let’s have a look, shall we?
Oil is completely fucked up. The easy money has been made in oil. You’d be wise to follow my lead and reduce exposure. At the same time, airlines offer a unique play on a booming travel environment and windfall thanks to cheaper crude. Without getting into the details of who’s hedged and who’s not, I am going to toss out some airline ideas based solely on the numbers, courtesy of The PPT.
Largest cap: AAL
Cheapest p/s: SKYW
Lowest p/e: RJET
Best performing YTD: ALGT
Worst performing YTD: GOL
Most Shorted: JBLU
Best fundamentals: CPA
Best Technicals (time sensitive): AAL
Highest Revenue Growth: AAL
Highest Earnings Growth: ALK
Most Revenue: AAL
VRX buying SLXP for $14.5 billion is a huge deal. For one, SLXP is a piece of shit, which recently descended into hell after bad data. But like most biotech stocks, once the stock got flushed out, bargain shoppers stepped in, jacked the price higher–leading to a takeover.
In order to properly asses this deal and not get overly excited about the piece of shit micro caps that you own, let’s look at SLXP’s numbers.
1. The deal is being done at present levels, without a premium. This makes sense since SLXP is a piece of shit and is up 53% over the past 3 months.
2. SLPX’s market cap is $10 billion.
3. SLXP does over $1.3bill in revenues, growing in excess of 40% per annum.
4. SLXP is trading 7x sales
5. Up until recently, SLXP was netting between $20-50 million per quarter. Right now, they are bleeding out, likely due to ramping up R&D or marketing.
6. The company specializes in gastro-ailments.
Using the company search tool in The PPT, here are some results.
I was going to review my favorite French film of all-time, but opted for an Oscar special instead. I will do the French film next week.
I’m not gonna get into the nuance awards, like best actor/actress. For the most part, 2014 was a mediocre year in cinema and only a few stood out as classics.
Here are the best picture nominees.
Selma: I didn’t watch this shit because I can’t stand Oprah. More than that, I’m not into racially divisive films. They fucking bore me. Last year’s best picture winner, 12 Years a Slave, was a work of art. It was absolutely deserving of the award–a true tour de force in cinema. But this Selma shit has Oprah in it. Fuck Selma.
Whiplash: Holy shit this was good. JK Simmons should win best actor for his performance as “Shillinger” (Oz), the artsy conductor version. I thought I’d hate this movie, fucking drums and shit. But I ended up loving it, especially its epic finale.
https://www.youtube.com/watch?v=Sv-uocYREig
Interstellar (not a nominee): This is one long ass film and Matt Damon mailed in yet another fucked up role that further denigrated his downward spiraling career. However, McConahey was amazing. He is one of my favorite actors at the moment. It’s funny because I used to hate his guts, until after True Detective. At any rate, Interstellar was the movie Kubrick wanted to make with his retarded and worst film of all-time, 2001 Space Odyssey. Believe me, I am a huge Kubrick fan and could watch Barry Lyndon every day for the rest of my life. However, Space Odyssey was some trippy ass horse shit. Interstellar should be the Oscar winner, unless that savage animal, Oprah, pays off the housemaids of Hollywood to give her the award.
American Sniper: I was expecting an epic film, save the fake baby, but ended up getting 2 hours of boring headshots. Look, it was a decent film and Bradley Cooper was terrific. I guess you can say I am not a huge fan of Eastwood films. They sort of plod along. Although I did enjoy Letters to Iwo Jima, which was an absolutely stunning war movie. Botton line: this shit isn’t winning.
Birdman: I loved this film and wouldn’t be mad if it won. Michael Keaton played a former Hollywood star, a former super-hero, who was trying to regain fame. In other words, he was playing himself. There are plenty of films along this story line, my favorite being Sunset Boulevard. However, Birdman was unique and should win the award, despite Interstellar being the better movie and not even nominated.
https://www.youtube.com/watch?v=Mj_dujWtsgY
The Imitation Game: I’m a huge Benedict Cumberbatch fan for his role as Sherlock, the BBC show. However, this movie was pure bullshit. I mean, another homosexual super-hero? Really? The movie was somewhat entertaining. Although I didn’t like the way Benedict delivered his words, sort of with a speech impediment, unlike in Sherlock, when he is sharp as a tack.
The Theory of Everything: I didn’t see this shit either. Poor Steven Hawking. I don’t have time to watch sappy shit like this.
Grand Budapest Hotel: I’m a huge Ralph Fiennes fan, from the Harry Potter movies to an under the radar gem The Duchess. Plus, this film has Jeff Goldblum in it, “The Fly”. What’s not to like? But this movie was just bizarre. It was thoroughly entertaining, but in no way deserving of a fucking Oscar.
Boyhood: OMG what a fucking waste of three hours. Let me just say, I am a fan of Ethan Hawk and feel his three film epic, spanning over 18 years (Before Sunrise, Before Sunset, Before Midnight), are some of the greatest accomplishments in movie history. If you haven’t seen all three, I strongly advise doing it before your life ends on this planet. But Boyhood was nothing like that. It was about some stupid, boring kid, growing up to be a fucking boring ass adult. I could not believe how aimless and retarded this movie was. If this movie wins best picture, I will throw a 10 pound barbell through my teevee.
Glaring Omission: Interstellar (see above), Gone Girl. Gone Girl was easily better than most of the films above and should’ve been nominated for the best picture award. Another one of my favorite films of 2014 was Fury, one of the best war films of all-time, in my humble opinion. However, it wasn’t artsy enough, or gay enough, so Hollywood snubbed it.
Honorable Mention: Nightcrawler. I think David Einhorn did a great job in his role as Lou Bloom. What do you think?
Every single time, without failure, the market tricks bears into believing “this is it”, lures them into a barn, and then burns it down to the ground. Even though these cycles are as predictable as the day is long, many of you dedicated short sellers miss the move and end up on the receiving end of gravity hammers.
How stupid are you anyway?
How can this happen over and over again and you do nothing about it?
Frankly, I am sick and tired of making fun of you. Even worse is the guy sitting in 90% cash, waiting for a confirmation of the breakout. Seriously, do you people actually believe those people have the slightest clues what they are doing? If you’re always in a 90% cash position, well then, that means absolutely nothing at all. You are simply watching the market for the rest of us, afraid to make mistakes.
Why are you afraid to make mistakes? I don’t know. Maybe you have something to lose.
“The Fly” isn’t afraid of making mistakes and will punch your mandibles straight off your insect faces. Nothing is gonna stop me, especially you.
In light of the epic melt up in February, I’d like to remind you of the sick, twisted, nature this market has embodied for over a year. Do not be surprised if we sold off for a day or two, before heading higher. This is course is meaningless shit for people with any semblance of dignity– those who don’t mind the store every second of every hour.
But for the rest of you, cocaine addled trading monkeys, you might want to buy a utility and pray for the apocalypse.
As you know, there are many utes to choose from, but only one worth your time and effort at this juncture in time.
My utility of choice is PCG. It’s a mega-cap cash generating, dividend paying machina (heavy italian accent).
This is a Friday and we are scared of Greece. Plus, anything could happen over the weekend. By Scott, the very fabric of civilization might crumble and turn our human flesh into ash. As always, prepare for the worst, the crematory, and expect nothing more or less than unadulterated bliss–for we are members of a society that doesn’t understand boundaries. We are making them as we go, embedded in the never ending struggle of greatness.
I realize some of you actually make a living off intra-day trades, an occupation I do not relish in the least. But for the rest of you, quit watching the screen all day. Go outside and play with the squirrels, avoid myopia and take in some natural light.
Sandwiches are in order on days like this.
The volume is low, volatility is non-existant, nothing is popping. What would the Macho Man Randy Savage say if trying to trade this market? He’d fucking break the computer over someone’s head, then head outside to chop down a tree.
We are firmly in an uptrend and will likely continue this trajectory until late April.
Chill the fuck out and start positioning yourself for success, and quit thinking about failing.
