A Strong Wind Blows From the East, Towards Mr. Obama

I love “signature pieces of legislation” gone awry. For me, there is nothing better than seeing Obamacare implode from its own weight. Obama fixed himself with an albatross around his neck and now it is pulling him down. Republicans, however, need to stop celebrating, since this will only embolden our dear foreign leader to dictate, govern by fiat. He’s a gym teacher for christ’s sake. What did you expect?

In other more exciting news, Wall Street is being starved from 7 figure bonuses this holiday season. All of the government restrictions on using leverage and gambling with OPM has hit our local bankers where it matters most: their luxury car dealerships. Truth be told, banks should’ve never been allowed to gamble with deposits. It’s ridiculous to hear some of these people complain now.

Futures are higher and all is good on the eastern front. I’m looking into some of the newly traded companies to buy, since we’ve been bombarded with new issues, odds are some of them slipped through the cracks and offer value–similar to GOGO.

More later.

In a rip roaring tape, I lost 1% today. It wasn’t my day, even though my prophecies were coming to fruition, all over the place. From GOGO to ALJ, my advice remains a constant source of monetary winship, unparalleled in the crowded field of finance.

I am sure you BALT lovers rather enjoyed today’s action, when compared to the pinless hand grenade behavior in EGLE, GNK and DRYS.

Do not fear the tape. Do not fear anything at all. All will be well. The great whores who intermingle with the devil in an attempt to bewitch the markets towards tragedy have been routed. Ben Bernanke is on the offensive and General Yellen holds an atom bomb in her purse.

If you didn’t make coin today, you’ll make it tomorrow, or the day after. All you have to do is avoid the murderholes during earnings season and wait.

This isn’t too hard; but patience is certainly a virtue worth honing.

Of course the very best plays are refinery stocks, spearheaded by none other than ALJ.

After three consecutive up days, I am taking a breather, off by 1%. BALT is down in tandem with the rest of the shippers, as cape rates continue to slide, led by “apparent” weakness in the chinese iron ore markets. This is what was told to me from a chief over at a certain shipping company. However, he’s hellbent on the iron ore market and feels it will have a banner year in 2014, which is why he is buying vessels like a heroin addict in a poppy field.

By the way, I don’t even know how EGLE blew that quarter. I am sure it has a lot to do with them being tied to charter rates, instead of spot. Also, they messed up, big time, by not doing a secondary when the stock was $9. There is no excuse for that type of incompetence, considering their huge debt load. I would avoid that stock for now.

BALT seems to be the best way to play this bedeviled industry.

CSCO’s miss is causing a lot of old guard tech stocks to drop, like my BRCM.

Today’s tape is fueled by “Yayo Yellen”, lower rates, surging homebuilder stocks and a resurregent REIT market. Gold and silver look good too. If I had some liquidity, I might buy a little AG down here.

Hell, if bit coin can trade above $400, gold can catch a bid.

Yellen is gonna give us more of that stuff we need. QE for life (Fly throws up gang signs and fires 5 shots in the air with his desert eagle).

I added to my SOL position.

Goldman is out with positive comments regarding the solar sector this morning.

One of my new positions is an old one: SOL. I was buying this stock when you were drunk and stupid, back in the days when the solar sector was belittled–considered to be the laughing stock for all of  mankind. Now all of a sudden, solar is cool and everyone wants in. Well, I have news for you: not everyone deserves to make money in solar stocks. You jackanapes who’ve been mocking the solar space, all the way up, are not permitted to read this blog post, so log off now, else I will cut your heads off.

SOL is scheduled to report “earnings” in a week. The company doesn’t know how to make money, so it’s all about the top line with this one. They’ve exceeded analyst expectations, for the top line, 7 consecutive quarters. Moreover, they’ve offered upside guidance for the last 4.

With the sector on fire, following FSLR’s breakout quarter, there is a good chance this sucker will run up into earnings. However, based upon recent history, there is an equally good chance that this stock will work its way higher, following an earnings win and subsequent guide up, as is customary for this company to do so.

My position isn’t large, but big enough to matter. I will not throw too much behind it because earnings plays were designed for the feeble minded gambling class. Nonetheless, barring a sinkhole opening up in the earth and swallowing “The Fly” whole, I will be holding through the big day.

Actually, the mission has only begun.

I am fully levered now, at 130%. Let’s try this again.

I started positions, in bulk, in GIMO and SOL.

This company is ripe for activism.

I started a position under $27.5.

In the filing, BALT intends to use the proceeds from their secondary to buy 2 Ultramax vessels with an option to buy another 2, to be delivered in the 2nd half of 2014. One has to ask oneself: do they know something we don’t know? Or, are they gluttonous bastard pigs?

Here’s the thing: this sucks for traders of the stock. But, as an investor, this is welcomed news.

On a rising tide, you want as much leverage as possible. BALT just went from being a small player with 10 vessels to a player with up to 17 by June of next year. If we’re right about shipping rates, BALT’s upside leverage just went through the roof.

Quick note: the previous two capital raises (9/20, 5/22) marked the bottom for the shares. In other words, today’s a good day to go hunting.

Quicker note: For those of you confused as to what the hell an ‘Ultramax’ is, consider it a supersized Supramax, falling into the Panamax category of 60,000+ dwt. BALT is mimicking the BDI.
http://www.youtube.com/watch?v=-N_NG96-eh0

This quarter, like every quarter, has been brutal to companies who didn’t commit accounting fraud to exceed analyst expectations. Although the market is near the highs, many people are -20% in recent weeks thanks to shortfalls.

As always, some of these sell offs are exaggerated and should be considered for a “buy the blood” opportunity. The stocks in bold indicate they’re currently rated “buy” or better, using The PPT algos. Members can find this screen here.

1 Week Losses

SRPT -65%
NES -39%
INWK -35%
QUAD -33%
PWE -24%
NSM -24%
EZPW -23%
FSYS -22%
NXTM -22%
TSLA -21%

(none of the above stocks are ranked buy. In fact, only one -10% stocks (weekly) is rated “buy” and that is TRNX)

1 Month Losses (no duplicates)

NIHD -46%
ONTX -45%
RPRX -40%
PVG -36%
TNGO -35%
SNTA -34% (not a buy, but highest rated)
MCP -32%
IMMU -30%
OMER -30%
AVG -30%

Notable buys off i month loser list are: RNF, FUEL, VOLC, RATE, OSIR)

2 Week Losses

BSFT -28%
IRG -27%
CARB -27%
LAYN -23%
STRA -23%
NXTM -23%
BYD -23%
AAWW -23%
AVP -22%
GTLS -22%

Notable buys off 2 week loser list are: BCRX, NPSP, WRLD and QCOR.

What did we learn? The biggest losers still suck. But there are some awful stocks upticking worth a gander.