Welcome to My Pawn Shop

I’d like to offer you a loan at 15% interest, to be held against that nice watch on your wrist, or that lovely necklace around your ladies neck. What say you?

The underbelly of the US economy is booming. All they need is for the #1 source of collateral (gold) to trade higher and then these stocks (EZPW, CSH, FCFS) will head back towards all-time highs.

It’s the American way.

Top pick: EZPW

There was a time when I considered myself to be “an oil man”, “a coal man”, then finally “a gas man.” But, as fate would have it, I’ve become the very thing that I despised most “a gold man.”

Like it or not, gold is going higher. I am long gads of EGO and an enormous amount of EZPW, which is a double win for me, since they prey on the weak, disabled and vilely poor.

Go to your local pawn shop and hock your television, iPhone and watch. Take a loan and default on it. See what happens.

With gold trending up, EZPW is my single best idea.

Gold is back and I’m in the black.

I bought UNXL and EGO for a trade and initiated a core position in MA.

In light of the reemergence of the cocaine locomotive, I’ve made arrangements to reserve myself a 1st class ticket, fitted with extra straws.

I added size to EZPW and started a new position in SPLK.

Luckily I sold ANGI near $19 a few weeks ago. I sold it because of my aversion to earnings and how they tend to murder people who trust them. Looking at these numbers, I am shocked at how bad this company is being managed. They are in a sweet spot and should be killing it. I call into question their decision to spend inordinate sums of money on marketing, and poorly to boot. If you’re gonna spend $20 million per quarter on marketing, you better grow your damned business.

Frankly, there isn’t any excuse for this abysmal execution. Management should be changed, ASAP.

On the plus side, even at the lowest end of 2014 revenue projections, ANGI is trading 4x sales. It shouldn’t get much lower than 3x, or $11 per share. If ANGI gets down to $11, I will be buying with both hands.

Eventually, this works big. Once they figure out how to scale the business and stop wasting money on idiotic teevee commercials, I think ANGI will trade up to 10x sales, maybe even higher. No one trusts the stock because management has proven to be inept.

But there is value to the enterprise and the stock will not stay down for long.

Check this story out.

This sums it up:

In July 2013, Galena paid $50,000 to a subsidiary of The DreamTeam Group for 240 days of “advertising, branding, marketing, investor relations and social media services,” according to a disclaimer on The DreamTeam Group’s Web site.

I’ve been telling you Seeking Alpha was nothing more than a modern day bucket shop; and now you have proof. I don’t know if the owners of SA facilitate this or not. However, they certainly turn a blind eye to it. If any of that stuff happened here, at iBC, the blogger would be fired on spot. On Seeking Alpha, they merely take down the article, permitting the felon to commit future crimes.

Why am I paying so much attention to SA?

They are one of the biggest finance site’s in the world. I bet you didn’t know that. Their reach is huge and their reckless editorial standards have hurt me, vis a vis idiotic short raiding articles of pure trash. You can say that I have a vendetta out for them–because they deserve it. I suspect the owners and VC’s who back them are greedy upright walking pigs, the worst sort of people in the world.

I spit on the house of Seeking Alpha and their clueless staff of criminal bloggers.

I started a position in SALE, despite watching it rout short sellers for the past 15 points. I am doing the opposite of what I’d normally do, a la Costanza trade; because ultimately, SALE will trade to $100.

NOTE: My cash levels are now 45%.

…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.