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Dr. Fly

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.

North Korea Warns ‘Nuclear War May Break Out Any Moment’; Markets Tell Them to Fuck Off

Good evening gents.

When I say ‘gents’, I most certainly include all of you ladies out there. When you visit iBC, do not feel the need to identify with a gender, for I will always address everyone here as if they were men. In case some of you men would like to be addressed as a woman, simply invert all of my gender assignments in your head and that will make everything all right and good.

It appears the Deputy UN Ambassador for North Korea just warned oa imminent nuclear disaster. Kim In Ryong said, the situation with the US “has reached the touch-and-go point and a nuclear war may break out any moment.”

He complained to the UN about Trump’s menacing ways, claiming he’s up to no good, designing schemes to decapitate N. Korea’s supreme leader — calling it a “secret operation aimed at the removal of our supreme leadership.”

His message to Trump and the American people is clear.

“The entire U.S. mainland is within our firing range and if the U.S. dares to invade our sacred territory even an inch it will not escape our severe punishment in any part of the globe.”

Indeud.

Meanwhile, world markets are telling Kim In Ryong to fuck off, with the South Korean markets +0.10% and S&P futures flat. There’s nothing that can stop the upward march or prosperity, quite literally — not even nuclear war.

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NEW RECORDS, FRESHLY MADE, DAILY

Good afternoon gents,

I write to you from a small room, in a tower otherwise known as a spire. I am not in captivity or anything like that. I am simply in this place because I want to be here. From atop this perch, I can clearly see markets have hit new record highs, and all of the little pikers on Wall Street are cavorting, gaily, in search of fresh beers, swill to wash down all of the opioids they’ve ingested during the afternoon.

This is a really big week for the Chinese government, so don’t mess it up. The communist government will appoint new leaders, discarding the old one’s to organ retrieval vendors, to be expeditiously ferried into Tokyo for rapid transplants. It’s a shame our government isn’t as efficient as the Chinese. By now, we could’ve executed all of the enemies of the state, plus pass new healthcare and tax plans, which would’ve made sure no one got any.

Life as a vegan is going swimmingly. Strength is down in the range of 50-70%, and my energy levels match men 50 years my senior. Other than that, it’s great — sustaining off bread and potatoes — the way life ought to be.

Most of my stocks did really well today. I see some people seem to still believe their charts are making stocks trade up. Silly jackass manlets! Stocks are trading higher because it’s what they’re supposed to do. Why, you wouldn’t interrupt a lion while feasting and query, “dear Sir Lion, why are you eating that black baboon? It’s racist!”

With that line of questioning, you’re liable to be eaten yourselves.

Like the ferocious lion, the stock market bull gallops ahead, with zeal, because that’s what he’s designed to do. Please pardon my gender designation, I am an old man trapped inside of a 41 year old vegan torso.

I must go now. Time to make a large black cup of coffee and a flat white panini with beige hummus, perhaps with a side order of carnival red tomatoes and Irish green scallions.

Fun fact: I am color blind!

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$HIIQ is Just Getting Started

The stock had fallen because of an earnings warning. It recently caught a bid based on reports that they were one of the few companies who stood to benefit from Trump’s latest gambit to destroy Obamacare — by permitting people to cross state lines for cheaper insurance.

Today, the company guided up and announced a share buyback. I know the stock is up big today, and I did warn you emphatically about this happening, but it’s not done going higher.

Via The Pelican Room inside Exodus.

Here on the blog.

Today’s action.

And why.

Health Insurance Innovations sees Q3 EPS and revs above consensus; announces $50 mln share repurchase program (18.90)

Co issues upside guidance for Q3 (Sep), sees EPS of $0.44-0.46 vs. $0.35 Capital IQ Consensus Estimate; sees Q3 (Sep) revs of $62.3-63.3 mln vs. $54.98 mln Capital IQ Consensus Estimate.

Additionally, the Company expects to report EBITDA in the range of $9.4 million to $9.9 million and adjusted EBITDA of $12.3 million to $12.8 million for the same period. The expected range in GAAP net income represents an increase of approximately 8% to 18%, and the expected range in EBITDA represents an increase of approximately 27% to 34%, over the comparable prior year period.

Co also announced that its Board of Directors has authorized the repurchase of up to $50 million of the Company’s Class A common stock through October 2019.

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LET ME SHOW YOU MY CHARTS

Three of my positions are higher by 10%+ this morning, on news that “The Fly” is a superior being to all of you.

Our ‘modified risk’ cigarette play just got a little less risky.

Chardan Capital Markets raises their XXII tgt to $11.50 from $3.50. Firm’s tgt move is premised by the proximate cause of Big Tobacco’s decline, in their view, was the FDA’s announcement on July 28 to begin a “comprehensive regulatory plan to shift trajectory of tobacco-related disease, death,” beginning with a public dialogue about lowering nicotine levels in combustible cigarettes to non-addictive levels through achievable product standards. Assuming the FDA continues on its program, firm believes XXII has the opportunity to license its technology to Big Tobacco at a fraction of the cost they are currently contemplating it will take to comply with potential FDA regulations and this could result in a royalties or licensing stream far surpassing today’s market cap. While firm’s tgt is based on changes in the US market they expect other countries to follow the FDA’s lead, opening up additional markets for XXII and higher expected value for the shares.

I also have a very high IQ.

$HIIQ: Health Insurance Innovations sees Q3 EPS and revs above consensus; announces $50 mln share repurchase program (18.90)

Co issues upside guidance for Q3 (Sep), sees EPS of $0.44-0.46 vs. $0.35 Capital IQ Consensus Estimate; sees Q3 (Sep) revs of $62.3-63.3 mln vs. $54.98 mln Capital IQ Consensus Estimate.

Additionally, the Company expects to report EBITDA in the range of $9.4 million to $9.9 million and adjusted EBITDA of $12.3 million to $12.8 million for the same period. The expected range in GAAP net income represents an increase of approximately 8% to 18%, and the expected range in EBITDA represents an increase of approximately 27% to 34%, over the comparable prior year period.

Co also announced that its Board of Directors has authorized the repurchase of up to $50 million of the Company’s Class A common stock through October 2019.

Briefing Note: HIIQ provides less expensive plans on their online marketplaces. This company along with peer eHealth (EHTH) might benefit from President Trump’s executive order last week that will instruct the Federal agencies to allow consumers to purchase cheaper and less detailed healthcare plans. This order will also allow consumers to purchase healthcare across state lines.

And for the hat trick, shares of HMNY are higher by 11.5% this morning, without news, simply jogging on into the sunrise of optimism.

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Morning Poppers (Copper Has Exploded Edition)

Good morning lads and lassies. It looks like copper has exploded to the upside, further entrenching the notion that new environmental laws in China are starting to crimp supply, causing prices to rise. We saw this on Friday with iron ore and steel, and now this morning with copper.

Copper is higher by 2.8% n early trade. WTI, also notable, higher by 1.3%.

Stocks are flat in Europe, with the Eurostoxx50 down by 0.06%. We’re expecting a slightly higher open here — with Nasdaq futs +12.

Over in China, the morons are holding a once every 5 years meeting to choose new communist bastard leaders. This will likely lead to stronger than expected growth out of the dog eating nation — due to thieves lying and cheating to make themselves look good in an effort to make a lasting first impression.

This from CNBC:

In short, it’s a meeting to vote on the leadership of the Communist Party of China. Held every five years, the event’s duration is not officially reported, but the last Congress ran over eight days.

About 370 full and alternate members of the party’s elite Central Committee will be elected at the Congress. Full members have voting rights and they all come from a pre-selected pool of candidates.

They are chosen by 2,287 delegates from diverse backgrounds and groups. Among them are farmers, professionals and academics.

Those participants have been pre-screened and are deemed to have “unshakable belief,” “correct political stance” and “good moral quality,” among others, according to state-owned China Daily. The Chinese Communist Party boasts a membership of 89 million.

At its first session, the new Central Committee will elect about 25 members of the powerful Politburo

The Politburo will then choose members of its Standing Committee, China’s top leaders. The group — now headed by President Xi Jinping, who is general secretary of the Communist Party — will be unveiled a day after the first Central Committee session.

Here are some other headlines that caught my attention.

VHC: VirnetX Holding +11% in early trading after reportedly being awarded $344 mln from Apple (AAPL) dispute
AAPL: Apple upgraded to Overweight from Sector Weight at Pacific Crest; tgt $187
ADBE: Adobe Systems downgraded to Hold from Buy at Deutsche Bank
C: Citigroup downgraded to Sell from Hold at Societe Generale
BAC: Bank of America target raised to $28 at RBC Capital Mkts

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Here Are the Top Ranked Stocks in Exodus

Based purely on technicals, sorting through and ranking data comprising of accumulation/distribution, price performance, relative strength, volatility and volume, here are our top 10 stocks as of Friday.

HLG
ARDM
UGP
KEM
BP
STO
VLO
HUN
SQM
CB

Looks like oil is boolish.

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Former Japanese Convicted Criminal Launches New Foray into Beef Industry Dubbed “Wagyumafia”

There’s nothing unusual about this, just a former convicted criminal from Japan trying to jimmy his way into the world of fine dining by way of wagyu beef.

Takafumi Horie served 21 months in prison for securities fraud after manipulating the share price of his companies subsidiary, and now he’s going to manipulate the price of your steaks — because he wants to hack the world.

“I’m always thinking how to hack the world,” Horie said. “With Wagyu, I’ll make my name known to the world.”

Japanese beef has been soaring in demand in recent years, thanks to the special sort of fatty meat their cattle produces. Their black, brown, shorthorn and polled breeds of cattle, after viciously killed, make very soft and delicious meat, juicy with a rich varietal of blood and marbling that has a much higher percentage of non-artery clogging unsaturated fat, which some people propose is entirely healthy for the human species to consume is large quantities, even heavily salted with minerals that jack up blood pressure levels that every so often, and quietly, kill people dead via stroke.

It’s the world’s most expensive beef, fetching for $180 per steak, and the rich want to eat it, over and over again.

“While Wagyu is as scarce as good Burgundy, it has been sold cheaply by JA,” said Horie, referring to Japan Agricultural Cooperatives, the nation’s largest farmers’ group. “I’m confident that the beef can be sold at much higher prices in global markets.”

Indeed.

Horie has introduced a membership program, which has resulted in scores of affluent Japanese businessmen and women clamoring to get a piece of the action. Memberships have skyrocketed from just 300 to over 1,000 carnivores since September. For those of you interested in tasting his chops, there will be tastings in San Francisco, Paris and New York later on this year. Be sure to reserve your private jet and attend these once in a lifetime events.

The former convicted criminal explains his rationale for naming his company after what’s traditionally known as a crime syndicate.

“By mafia we mean a syndicate of ex-IT entrepreneurs,” said Hamada, 40, former publisher of an online movie magazine.

“Our project is to deliver Wagyu produced by selected farmers directly to global buyers, bypassing middlemen and without advertising. We find customers via social media and pop-up” events.

“Our cows have maintained a pure lineage over the past 2,000 years because they are kept in an isolated area surrounded by mountains,” Tanaka said in an interview in Tokyo. “Their purity is the biggest difference from other types of Wagyu.” His 40-month cow was selected as the champion in the Wagyu contest of Hyogo prerefecture last year, and sold for 200,000 yen a kilogram.

Their cows are simply better. Case closed.

“It’s incredible. There is nothing like this,” said American percussionist Lenny Castro after tasting Tanaka’s beef at a Wagyumafia restaurant opening in September. “It’s totally different from other beef.”

Such deliciousness is surely to fetch larger sums of dollars for Horie.

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These Are the Very Best of Times

I was at dinner last night at a very fashionable sushi restaurant, in an area that is almost rural. The line was long and the wait even longer. It took 45 minutes to be seated, so I went to the bar and ordered a few martinis. The bartender took her shaker tin and liberally spilled a cartoonish amount of premium vodka in it, nearly ruining an otherwise simple drink.

The restaurant was expansive and looked out of place in the neighborhood I was visiting. Gray and white marble draped nearly every inch of the walls and rustic black slate blanketed the floors — running through what must’ve been 10,000 square feet. River stones and tiny pebbles trimmed the marble and gigantic whorehouse mirrors festooned the walls downstairs next to the bathrooms. It was an elaborate and expensive set up, something I’d expect to see in Philly or NYC, but not 2 minutes outside pastoral rolling hills and working farms of central New Jersey.

Markets reach new highs highs on a daily basis and a new form of wealth has emerged with cryptocurrencies, now amounting to $175 billion in market cap, aka real money. There’s no denying that future generations will reflect upon these times and equate them with the decadence displayed during the roaring 20s. It’s always hard to appraise in real time, without the benefit of hindsight. But can anyone deny the fact that wealth is at record highs, alongside record levels of debt, alongside record levels of uncertainty for the future?

I’ve witnessed several boom to bust cycles in my lifetime and I’ve never seen such glibness, nonchalant superficiality, like I see now. One of my favorite follows on Twitter is @RampCapitalLLC, who spends his days discussing the fertile lands of Wall Street and the fruit he intends to devour thanks to it. He is unapologetic in his pursuit of Dow 1 million, bathing himself in the nectar of extreme extravagance and ornamenting himself with his very own wheeled chair, in spite of being well and able bodied enough to run marathons.

We are living through the most interesting of times. The phrases BOMB N. KOREA and BOMB IRAN produce praise on Twitter — because they’re a hateful group of people who get in the way of our dreams. We’re invincible, a generation of do nothing wastrels presiding over a broken ATM machine that keeps spitting out $100 bills. We don’t even call bubbles bubbles anymore, instead unicorns, because it rolls off the tongue better and reminds us of childhood fairytales that made us sleep better at night.

We can’t lose. We’re asleep and reality is someone else’s problem, maybe an unfortunate in Puerto Rico, Syria or Iraq, which we’ll gladly help out with catch phrases and $5 donations through one of the many apps on our $700 phones.

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CEO of Moviepass Tells CNBC How His Company Will Make Money

On Friday the CEO of Moviepass discussed his business prospects with CNBC, laying out how his company will make money. Essentially, he intends to burn through cash until he can gain leverage over theaters and force them to share concession revenues. Also, he’s going to sell your data and recommend “preferred theaters” to his members.

I am long HMNY and will never sell it.

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