SHARES OF $BSI SPIKE 900% ON REVERSE SPLIT NEWS

You people are truly retarded for doing this.

This really happened today.

Why? Because of a reverse spit, naturally

The new ADS to ordinary share ratio of 1 for 10 will be effective prior to the commencement of trading on the NYSE on Monday, December 14, 2015. The change in exchange ratio for the ADSs will have the same effect as a 1-for-10 reverse stock split of the ADSs, reducing the number of outstanding ADSs, as of close of business on December 1, 2015, from 1,228,635 to approximately 122,863 ADSs.

In all of my years, I’ve never seen something as ridiculous as this. Back in the dot com days, stock splits were met with buying frenzies. But, even then, reverse splits were frowned upon because it usually meant the stock was a piece of shit.

Shares of BSI are now halted after Simple Jacks ran it up 900%.

It sucks to be King. Although, it might be nice to visit Europe this summer and enjoy the grandeur of our King Dollars over their stupid euros. However, that plot has been largely foiled by the specter of middle eastern men blowing themselves up in cafes.

The dollar is rising on Yellen’s insistance that rates should be jacked higher. This, of course, has a debilitating affect on US multi nationals. In the first qt alone, it cost N. American companies $28 billion in earnings. Each and every earnings release is paired with FX losses that boggle the mind. Don’t these people hedge?

Purely from a consumer standpoint, a strong dollar crushes import prices, making them cheaper for us to hoard. Theoretically, this should increase volume at WMT and permit inflation to remain fucked, in the process saving Americans billions in expenses. But for some reason, retailers can’t figure this stuff out.

Too tricky, I suppose.

What the fuck did I just read? Did our Federal Reserve chair just suggest that NOT tightening into a weakening economy WILL cause a recession? The truth is, these bastard recessions are almost always brought on by Fed rate hikes.

Yellen posited that if we don’t hike now, and all of that looming inflation that doesn’t exist takes hold, we’ll be forced to hike like mad later on.

Fucking delusional.

“On balance, economic and financial information received since our October meeting has been consistent with our expectations of continued improvement in the labor market,” Yellen told the Economic Club of Washington on Wednesday, according to a text of her prepared remarks. “And, as I have noted, continuing improvement in the labor market helps strengthen confidence that inflation will move back to our 2 percent objective over the medium term.”

“We have seen a welcome pickup in the growth rate of average hourly earnings for all employees and of compensation per hour in the business sector,” she said. “While it is too soon to conclude whether these more rapid rates of increase will continue, a sustained pickup would likely signal a diminution of labor market slack.”

“It appears that the underlying rate of inflation in the United States has been running in the vicinity of 1-1/2 to 1-3/4 percent,” Yellen said, once the core data are adjusted for downward pressure from low oil prices and a stronger dollar. She noted that policy makers are paying close attention to indicators of inflation expectations, some of which have shown deterioration recently.

“The Committee anticipates that even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run,” Yellen said Wednesday.

Were the FOMC to delay the start of policy normalization for too long, we would likely end up having to tighten policy relatively abruptly to keep the economy from significantly overshooting both of our goals,” and that pace would risk disrupting financial markets and pushing the economy into a recession, Yellen said. “Holding the federal funds rate at its current level for too long could also encourage excessive risk-taking and thus undermine financial stability.”

What are we moronic children? So, if we don’t hike now, when things are tenuous and getting worse, we’ll be forced to really really raise rates later, when a hypothetically strong economy takes hold? This strikes me as juvenile and pollyanna type thinking. Instead of dealing with certain realities, the Fed appears to, once again, be in an academic bubble of their own making, thrusting their opinions upon us as if they were fact.

Yellen makes a strong case for abolishing the Fed altogether and forgoing this nonsensical rabble once and for all.

Ever get the feeling of impending doom? This market has all of the classic traits of risk aversion. Nothing lasts. Scouring over the Exodus momentum screen, I am entreated with comedic relief, for I know none of these stocks will be up tomorrow.

What is our momentum screen? An algo that produces stocks that appear to be careening higher. The great thing about running these algos is that is forces you to separate emotons from trading. Right now, I am incredibly cynical about the market; but the algos say differently.

I am doing all right, all things considered. VRX is lower, but PAH and CNC are higher. I really want to get super bullish, excited about a position, and kill it on a big trade.

Don’t we all?

At this moment, I am leaning towards VRX being that killer trade idea for 2016. It possesses all of the qualities of a stock that can climb a wall of worry and defy reason. There is a distinct possibility that the stock can be the single best performing large cap name over the next 12 mos.

Anyone recall NFLX at $60? I do, since I was long down there. Zerohedge ran stories of liquidity issues, alluding to the possibility that NFLX would run aground. Naturally, I sold out too soon and Carl “fuck you, give me 3 seats on your board” Icahn ended up making $3 billion on the trade.

VRX has that sort of crazy upside potential, a double or triple from current levels.

Aside from that, we are on a rudderless, sinking ship, heading towards a sea of fire that is filled with carnivorous sea monsters.

Happy trading!

 After Russia proved the blood sucking Turks buy oil from ISIS, earlier today, the Turks responded with threats to, err, freeze their own people.

Russia imposed sanctions on some Turkish goods after Turkey shot down a Russian military jet on Nov. 24, saying it had violated its airspace. Russia refutes that, saying the plane was in Syrian air space.
“Turkish firms are not simply worried about a reduction in LPG deliveries from Russia because of the current (political) situation they are already preparing for this,” one trader who works in the LPG market told Reuters.
“It may be more expensive, but the process of how to ensure future deliveries from elsewhere is being worked out. We are not just talking about deliveries from Algeria, but from the United States as well.”

Apparently, Turkey will find natural gas somewhere else in the world. No word on exactly where they will find it. Nevertheless, for the sake of their famed bathouses, I wish them good luck.

Potentionally bullish for shares of LNG.

Headlines  out now saying a majority of OPEC members agree that output should be cut.

You don’t say?

The only issue here is our oil overlords at the House of Saud are too busy in their royal harems to give two shits about any of this. All they care about is stocking their harems with a fresh supply of western women.

All the while, every single nation who produces oil is dying a slow, painful, death.

UPDATE: As I write this, one of the oil ministers at House Saud must’ve texted a message from his harem saying they DO NOT support an oil output cut. Basically, Iran is rogue and no one listens to them.

EIA inventory data is out and it’s fucked up.

A build of 1.77 mill barrels vs a draw of 1 mill.

LOLz: oil is so fucked.

Kill me once, shame on me. Kill me twice, you’re a fucking murderer.

Shares of Zafgen are being crushed this morning, down more than 60% due to a 2nd trial patient death, for their obesity drug. This is an incredibly sad outcome; but it’s also really fucked up that a second trial patient had to die in order for the fuckheads who run this company to finally understand their drug doesn’t work.

The biopharmaceutical company said it learned Tuesday that a patient being treated with beloranib for Prader-Willi syndrome was diagnosed with bilateral pulmonary emboli—blood clots to the lung—and died.

The patient was receiving the drug during the open-label extension portion of the late-stage trial, which hadn’t been halted.

Prader-Willi syndrome is a genetic disorder that results in life-threatening obesity because of unrelenting hunger. There is no cure for the disease, which affects one in 12,000 to 15,000 people, according to the Prader-Willi Syndrome Association.

In October, Zafgen disclosed that a patient had died during the beloranib study. The U.S. Food and Drug Administration placed beloranib on partial clinical hold because of the thromboembolic events—blood clots that move after forming and block other vessels—in other trials of beloranib and the unknown nature of that death.

 

I spoke about this a few month’s ago, during the first patient death and how it reminded me of the phen-phen disaster of the 90’s. ZFGN should be crushed into eternity. Maybe Martin Shkreli will buy this company too, when its shares touchdown under $2.

The only intelligent woman at the Fed, Brainard, seemed to be talking directly to her hawkish cohorts this evening, essentially telling them to chill the fuck out and take a laxative.

Weak growth abroad has pushed up the value of the U.S. dollar, pushing down on inflation and the level of interest rates that the economy can withstand while still generating jobs and growth, Fed Governor Lael Brainard told the Stanford Institute for Economic Policy Research.
One model in common use at the Fed suggests a 1-percentage-point cut in rates would be required over the medium term to offset the negative impact on employment of the stronger dollar, she said.
With short-term borrowing costs now near zero, “(t)his shift down implies a delay in the date of liftoff and a shallower path for the federal funds rate over several years,” Brainard said. “In effect, this spillover from abroad implies some limitations on the extent to which U.S. monetary conditions can diverge from global conditions.”
Brainard’s warning against raising rates too quickly echo those of the Fed’s most dovish voting policymaker, Chicago Fed chief Charles Evans, who earlier in the day repeated his view that the Fed has plenty of tools to make things right if it falls behind the curve on lifting rates, but few tools if it mistakenly raises rates too soon.
Speaking just two weeks before the Fed is widely expected to end seven years of near-zero interest rates, Brainard declined to say if she would oppose such a move but instead pointed to the policy debate that will likely dominate discussion at the U.S. central bank once the tough decision of that first rate hike is past: just how long should the Fed wait before raising rates again?

Like bond king Gundlach, Brainard is merely speaking with common sense. YOU DON’T HIKE RATES INTO A DEFLATIONARY VORTEX.

The market is calling bullshit on rate hikes anyway, with yields super low and stocks vegging out ahead of the meeting. If the Fed pauses (no homo) on the rate hike suggestions from Plosser and other assholes at the Fed, stocks will fucking roar like you’ve never seen before. Men and women alike will dance in celebration, in the streets, doing lines of blow off champagne corks.

On the other hand, if they do raise rates, I’m afraid you’re all doomed.

Happy trading.

Finally, Jeff Macke has come to iBankCoin.

For those of you unfamiliar with Jeff, he’s a long time friend of the site, keynote speaker in both iBC conferences, with a long track record of investment experience.  I think you’ll find his videos to be engaging and enlightening, particularly when it comes to retail. Jeff grew up around retail, as his Father was the Chief at Target  and Dayton Hudson for many years. I consider Jeff’s opinion on retail to be the very best around, because he “gets it”, if you know what I mean.

He does daily shows via Periscope called Panic. I’m not certain how this will work with the site yet. Frankly, this is a work in progress. Nevertheless, I am thrilled to be able to host his content on iBC’s youtube channel and have it here for all of you cellar dwelling misanthropes.

I did try to warn you that William Albert Ackman wanted to exact a biblical brand of revenge.

VRX sprinted, no scratch that, knifed shorts in the face higher, by 10%–leaving short seller dust in its wake. On this first day of the last trading month of the year, Le Fly made it happen; he really did.

People reading this will not accept this winship at face value and will instead run along to Bronte Capital dot Blogspot to reassure themselves that VRX is going to zero.

But let me tell you what’s really gonna happen here.

Big money will shit on these websites with screen shots of other websites that declare VRX a scam and instead run this stock, the fuck, higher into the New Year. The squeeze will be epic and your losses gargantuan.

I can’t think of a better way to end 2015, than Le Fly and Super Bill teaming up to lay waste to an entire generation of short sellers.

See you at $115.

NOTE: PAH is next.