Just When I Thought I Was Out…

…they pull me back in.

Naturally, the idea that as soon as I capitulated and bought stocks, the market would top and I’d run upstairs to cry under the blankets. But only suckers think like that and “The Fly” isn’t a sucker; I’ll have you know. Should my positions trade lower, I will buy more.

The two that I’ve initiated, thus far, aren’t earnings risks and are undervalued. In the case of EZPW, once people start sniffing around the balance sheet, I suspect they are going to like what they see, AND MORE. It is ripe for activist shareholders, someone with a very sharp ax to grind.

I was going to buy WPRT; but my conviction level isn’t there yet. I was also interested in EGO; but then I was quickly reminded that EZPW is an ancillary play off gold, rendering it redeundant.

SALE is a high conviction play for me and I loathe the fact that I didn’t buy during yesterday’s temporary dip.  I have a lot of money to invest and will be quick about getting started,  regardless of whether we’re overdue a pullback or not.

I started a position in CRTO, taking it slow, hoping for a pullback to add bulk.

This is a terrific play on online advertising.

I am reentering the market today, buying EZPW on the dip. I will be initiating 5 new “core positions” within the coming days.

I know the negativity is taxing, especially for those of you who think I am dead serious. Lighten up. I am simply stirring the cauldron, while practicing black magic.

Here are some interesting debt/GDP stats.

United Steaks: 101%

Jamaica: 145%

Italy: 127%

Ireland: 117%

Belgium: 98% (almost!, getting there!)

Greece: 156%

Portugal: 124%

Japan: 212%

Lebanon: 139%

Singapore: 98% (close call!)

In addition to the growing mountains of debt, about a dozen countries have seen their currencies drop double digits versus the dollar, as well as see their sovereign yields shoot higher, appreciably.  What does it all mean? ARMAGEDDON?!!

Not quite. It means that the primary goal of central banks will be to keep rates down, no matter the cost. If it means throwing the stock market into the garbage, in order to scare money into bonds, so be it. In order to sustain our lifestyle of grandiose entitlements, it’s important that we borrow money, cheaply, and spend as much as we like. Theoretically, this should be a race to the bottom, causing massive inflation, bullish for gold and bit coins–but NOT maxcoins. However, since 2011, the only asset that has been appreciating is stocks, worldwide.

Gold, silver, oil, natty, coal, wheat, cotton, sugar, corn, uranium: ALL BEARISH.

Let’s be frank with one another, shall we? Without the world central banks flooding the markets with liquidity, we’re all toast. But they are flooding the markets with liquidity and there isn’t a better place to make money, other than stocks. There are pitfalls, especially when looking at some of these earnings debacles. But, ultimately, the only game in town is stocks and the only balls on the table, strong arm, guarantee is that central banks will smash your equity holdings to pieces–in order to preserve this wonderful status quo.

What did you expect? I’m retired after all.

I’ll leave the cat and rat game to the lot of you, scrounging around for marijuana money. We’ve had the biggest rally in 13 months, yet all of the stocks that I sold, mind you, are BELOW where I sold them. How do you like that? However, there have been many, many, stocks that I should’ve bought and profited from, as this rally presented itself.

People are now obsessed with Yellen’s heavy Brooklyn drawl. They’re also pointing towards the shape of her face, jaw line and curvature of her mouth, for reasons that escape me at the moment. Let me add, there is nothing more blissful than missing out on an epic rally and not caring one bit about it. I don’t need the money, after all. See, I’ve made my money when the cards were down, when men were men and the lot of you were scrawling graffiti grawlix on the walls of your housing tenements.

I’ve given you plenty of stocks to play over the past week, have I not? Do not concern yourselves with me, as I’ve been waltzing to a different tune ever since I’ve been capable of killing a man. There is nothing you could say, or do for that matter, that will somehow get me to thinking the way you do, drones–pre-programmed– to think with the collective.

You’re not men, but babies playing with toys.

As for me, I will choose the battlefield of my liking when I am good and ready. I’ve come to the conclusion that all of this worrisome concern by the lot of you is nothing more than hatred, spewed out from the depths of your black, cavernous, murderous hearts.

71% of stocks are higher today, led by gold and silver.

Let me repeat that last point again. The market is being led by gold and silver. Year to date, gold and silver stocks are up around 35%. Now, knowing what you know about how awful gold and silver truly is, do you think it’s wise to chase them here? As good as they look now, God knows they are 1-2 days removed from 5-10% declines.

Moving on, scouring the market, many high beta names are down, like YELP, FEYE and SFUN.

Copper, steel and coal are doing good too. It’s like the market hopped into a time machine and went all the way back to 2009. I am very sorry to tell you, but I still don’t feel like buying anything. Maybe I’m the one who’s insane!?

Meh, I am sort of used to being retired now, an old cranky spectator, waiving his cane at the whipper-snappers buying the market–predicting doom and throwing mashed potatoes at the television.

I am going to walk away now, especially since I have no business here.

It appears all of the worries about Asia, the credit crisis in China and disaster in Turkey, were imaginary–like friends. The market tends to scare people into giving up their wares, like stick up men, but without the guns.

Janet Yellen’s speech  was written by Ben Bernanke, at least that’s what I like to believe. The idiots in Congress will not be able to frazzle her, as her IQ is at least 100 points higher than theirs. Therefore, one should expect markets to continue to trade up forever, without pause, and without any semblance of apprehension.

My reservations about the market have been proven to be wrong, in the immediate term. And I have to hold myself accountable for my haphazard actions.

I am watching Yellen and paying attention to her tone and cadence. If people sell stocks because of her Brooklyn accent, I can only surmise that we should buy that dip.

DEVELOPING…

The biggest form of collateral for the average Joe is his jewelry. When a person in distress goes to a pawn shop, he pawns his  gold ring/watch/necklace for a loan. When gold was ripping to the upside, the pawn dealers, like  EZPW, DLLR and CSH soared–because loan volume went through the roof. In many cases, they (the publicly traded pawn shops) sold off the pawned jewelry  or scrapped it for big profits. However, ever since gold has collapsed, the other side of the blade has victimized the shares of your locally publicly traded pawn shop.

“The Fly” is all about making a bit of coin off of the backs and struggles of the Obama proletariat.

This is what is going to happen to EZPW.

They just started selling wares on AMZN and other third party sites. Very soon, they will launch their own website, which will be “bonus money” for the company, helping to alleviate inventory builds. Year over year gold write-downs will wind down by the end of 2014, setting up for brand new growth in 2015. Ever since gold dropped, the size of their average loan has declined by 2/3rds, since everything else of value is inside of a never-ending deflationary vortex. I am talking about electronics, to be specific.

As you can see, gold is doing well this year. The pawn shops have already taken out any semblance of growth due to their gold collateral from their models, so any appreciable upside is gravy at this point. In other words, these are great retailers, tailor made for a society in flux, like ours. Once they get the gold situation fixed, I suspect share prices will explode–especially EZPW due to their online strategy.

Twelve months from now I expect to see EZPW trading in the mid-20’s and would be shocked to see it under $18.

Fun fact: Janet Yellen presides from my olde dwellings in the neighborhood of Bay Ridge Brooklyn, NY. She even went to the local high school, Fort Hamilton, which later on became a cesspool for the vagrants traveling from untoward parts of Sunset Park. Had I known she was from Brooklyn, I might have changed my mind about going to “extreme cash,” since people from Brooklyn are rather liberal. However, sometimes, every so often, they can stab you about the neck and chest for a pair of sneakers or even corduroys.

Hell, I recall being on the platform of the N/R train, in Bensonhurst, bearing witness to a pack of savages from FDR High School toss fellow children into the tracks, striking them with hammers, whilst singing “I’ve been working on the railroad.” True story.

I’ve come to the conclusion that I should begin buying stocks tomorrow, no matter what. I have 5 solid stocks, some distressed, others momo, that need to be purchased, regardless of whether Yellen stabs us in the neck of not.

Investing is for the living and cash feels like death.

I wanted to buy EZPW because their stores got hit post gold crash. With gold trading higher, it is the perfect way to play the yellow metal, indirectly. With ICPT trading higher, I wanted to buy GALT on Friday. And, as I’ve mentioned here on the blog, I deem SALE to be in the same league as YELP, perhaps a double from here. Oh, let’s not mention the 20% move in IFON, featured here last night.

Thus far, for me, 2014 is about missed opportunity. But I told you I’d hold 90% cash until after Yellen speaks tomorrow. After all, I am a man of my word.

TXTR, DLLR, CSH and ANGI are also of interest to me. And, with RPTP and GALT trading higher off the ICPT jump, CNAT may follow through. That’s all I have for you today.