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.
I’ve been studying the laws of science and can happily report to you this morning’s negative 0.1% GDP number to be nothing more than a parlour trick, a ruse of sorts to admonish short sellers with stupendous “surprise sex” rallies. The fourth quarter was a very big one for Obama indeud. He had to contend with sheer hatred of his reelection, fiscal cliffs and the specter of another debt ceiling debacle.
The very rich in this country are enjoying double digit inflation rates and very high growth. I cannot say how fast the higher end of the economy is growing, as those figures are not available to me at the moment. But just know and rest assured, the caprices of the blue collared class in Detroit is becoming ever so more irrelevant in this country. The amount of spending being done at the high end makes it easy to ignore the poor.
So, before you call your brokers and ask them to reserve a seat for you inside the FAZmobile, remember that today’s numbers were meaningless, “priced in” if you will (remember the marker went down for a day or two last month?). Plus, markets don’t go up and down based upon domestic macro-trends anymore. If you’re looking at domestic GDP and wondering why AMZN is at $300 or how FLS can be so frigging expensive, look outside of your borderless country and realize there are Africans out there who desire one click shopping and sewer pipes.
Before you cast aspersions, go listen to the DHI conference call embedded below.
You know that I am biased, favouring names like BZH, HOV, FBHS and USG. But there are at least 25 names that will rise as the housing market recovers. It’s simply a matter of mathematics, as America’s population increases, the need for more homes increases. We should build over 1 million homes in 2013, up from 750k in 2012. However, to get to a normalized market, we need to get up to 1.5 million.
Do you have any idea how high USG’s stock price will be if we get to 1.5 million new builds?
Ask Warren Buffett, the second largest shareholder of the company.
Here is a list of 16 names that fit a specific criteria, from my ‘Housing Resurgence’ screen inside of The PPT.
I searched for companies with positive earnings growth, 15%+ quarterly revenue growth, alongside 6 month and YTD share price performance stats.
It’s worth noting, ELLI, has become a battleground stock, despite their fantastic numbers. I suspect the stock will remain under pressure until earnings are reported in mid-February.
BTW: Your best possible trade here is to buy actual property, due to leverage.
I’d like to salsa dance on your graves right now to the tunes of Frankie Ruiz. However, I am down for the day and know that I am not alone, despite the 70 point melt up in the Dow.
Here is a look at the internals, as tracked by The PPT‘s industry page, sorted by breadth.
I’m down just 0.15% for the day; but I am down nonetheless. Moreover, I eagerly await in the shadows with a handful of cocaine–readying to throw it into your eyes. Lastly, I give you Frankie Ruiz, the song that I will be play whilst dancing inside of your mausoleum.
I’ve been moving parts around like a homeless man with a shopping cart. Being that my gains are superior to yours, yet again, I felt it was incumbent upon me to disclose my top 10 positions, by size. This is unprecedented for the mezzo cito, so pay attention and take notes.
Slowly but surely, my portfolio will reflect core themes: housing and Japan. Both are reflating and will appreciate in price. With Japan, I’ve opted to buy the asset management company of popular ETF, DXJ, in favor of traditional names like CAJ or NMR. The biggest loser on that list is ELLI. I am patient with it because it’s a small position and because the fundamentals point to high growth, low valuations. If they miss earnings, I will likely sell and cut my losses.
Refiners are on a tear this morning on VLO’s earnings and possible sale of HES. The simple truth of the matter is the refinery business is going to thrive under Obama and any democrat for that matter. Domestic oil production is on the rise. Global oil supplies are at risk and the EPA will not permit the pipelines needed to properly transport the oil to ever be built. So the end result is pricing power like we’ve never seen before for the refiners, literally stealing money right from your purse.
I was a buyer of WNR from $11 and recently sold out of some for a quick trade. At the moment, I have zero exposure to the space. My question is “which refinery stock is cheapest now, post run?”
Let’s start off by looking at the 1 year and 3 month returns in the sector, to get a better idea of where Wall Street has been placing their bets.
Incidentally, over the past month HES, CVI and ALJ have performed best.
Based upon FPE ratios, YPF, WNR and MPC are cheapest. Based upon price to book ratios, HES, YPF and VLO are cheapest. And based upon price to sales ratios, PBF, ALJ and VLO are the most attractive. As you can see, it’s a mixed bag.
If you’re looking at Return on Equity ratios, CVI, DK and PBF are best.
If forced to buy into the sector now, I’d take a contrarian approach here, buying underperformers with cheaper valuations than the leaders.
Siemens is the small player in all of this patent infringement madness. But it validates what the good folks over at VHC have been saying all along.
Cisco and Avaya are next. If they choose to avoid the easy route and license VHC’s technology, they will lose by trial, triple damages, and pay billions in damages.
RESTON, Va. and ZEPHYR COVE, Nev., Jan. 29, 2013 /PRNewswire/ — VirnetX Holding Corp. (NYSE MKT: VHC) and Siemens Enterprise Communications GmbH & Co. KG, and Siemens Enterprise Communications Inc., today announced they have signed a Patent License Agreement, which will allow VirnetX to license certain of its patents to Siemens Enterprise Communications, for a one-time payment to VirnetX and an ongoing reasonable royalty for future sales. The agreement will extend through the expiration of the licensed patents with respect to certain current and future IP-encrypted products.
In addition, VirnetX and Siemens Enterprise Communications have agreed to dismiss the patent infringement case brought by VirnetX against Siemens before the U.S. District Court for the Eastern District of Texas.
“We are pleased to have come to an agreement with Siemens Enterprise Communications on terms consistent with our VirnetX IP Licensing program,” said Kendall Larsen, VirnetX CEO and President.
A typical day of mine consists of 3-4 hours of sleep and lots and lots and lots of reading, watching and listening. For years, I’ve been reading anything and everything that I can get my hands on. I’ve studied the profound and the inane. For over a decade, I’ve isolated the bulk of my reading to the classics, novels, biographies, poetry and essays. Over the past 6 months, I’ve put the books down in exchange for cinema.
I found, while in conversations with the average pedestrian, cinema is a topic of great universal appeal. Most people don’t have the capacity to read 5,000 pages of art per month, so they chew on popped corn and watch movies. I’ve always enjoyed going to the movies; but I had very little knowledge of the old classics, which is why I embarked on an obsessive mission to see them all, literally.
On average, I’ve been watching about 1 movie per night, sometimes more. I do that in the late night, past midnight, when the bats are hanging upside down in your garages.
During the day, I listen to conference calls, bloomberg radio, CNBC and read an inordinate amount of research. Since I am able to read at a pace no less than 800 words per minute, I skim through everything in minutes.
I consider it a goal of mine to learn as much as possible, so that when I die it will all be one giant extraordinary waste. To live a life of the mundane is to jape at a funeral procession. I never jape, mind you, at funeral processions, except for one time when I was young and the coffin was exceedingly funny.
There is nothing amusing about being a log headed moron, might I add. You should take offense to your own ignorance and take corrective measures at once.
I like to read everything. I listen to everything, all types of music, from African jungle drums to African American jungle drums.
As I edify myself within the laws of reason and logic, the purblind loses comedic appeal. I once found great pleasure in watching men have pies thrown into their faces, or clowns shot from undersized cannons. I’d watch such occurrences while eating chocolate covered nuts and cottoned candy, sugared food goods designed by pharmaceutical companies to make me obese and feeble. But everything loses its luster after a while, even tossing foul mouthed barbs on the internets at total strangers, doesn’t it?
The reason why I love stocks so much is because the rules of the game are constantly changing. What works today is assured to bankrupt you tomorrow. Complete fools are able to make billions and geniuses fail to make a red cent. It is the ultimate arbitrager of collective intelligence, sum of parts transient so that no one can master it, not even high powered computers developed by the world’s brightest. Their best edge was to cheat, by grabbing information faster than everyone else, not exactly noble prize winning innovation.
I’ve concluded that it is my life’s work, a CHARITABLE FUNCTION OF THE KINDEST ORDER, to read the tea leaves, develop tools inside The PPT, share wit, for the benefit and at the behest of the mentally disadvantaged– so that they too can snatch a little bit of coin for themselves to help finance the purchase of a few morsels of grain alongside a few cherries and certainly some sweet, buttery pie, for the purposes of general consumption for their lovely families.
You want olde school? I am going to give it to you.
Over the past month we’ve all seen shares of NOK and RIMM soar, as AAPL dropped like a stone. The stock exchange, in its infinite wisdom, has declared the Apple fad to be over, in exchange for crappy cellular phone devices–built by sub-standard engineers.
I give you the crappiest cell phone on the planet.
NEXTEL LATIN AMERICA, walkie- talkie and all.
How fantastic!
Que bueno!
Excelente!
Some loser from SeekingAlpha did a very stuffy analysis as to why the sum of parts are worth more than the current share price. That’s a waste of time if you ask me.
This is about one thing and one thing only: who is the ultimate anti-apple? I reckon the retarded Nextel phone steals the crown.
Considering 40% of the shares are sold short, this little piece of garbage can mosey on up to $10 in a flash. Hence, I am long about 100,000 shares.
Carl Icahn has lemon meringue pie all over his ancient face. It seems the FTC shut down a pyramid scheme. Therefore, Wall Street’s knowledge dictates that they are to shut down the racists over at Hebal Life soon.
FTC Announces Action Against Alleged Pyramid Scheme
The Federal Trade Commission will co-host a press conference in Lexington, KY, today at 1 p.m. ET (Noon Central Time), with the Kentucky Attorney General’s office, to announce a major action against an allegedly illegal pyramid scheme.
Steve Baker, Director of the FTC’s Midwest Region Office, and Kentucky Attorney General Jack Conway will be available to answer reporters’ questions.
Steve Baker, Director of the FTC’s Midwest Region Office
Jack Conway, Kentucky Attorney General
WHEN:
Monday, January 28, 2013, 1 p.m
WHERE:
Lexington Police Department conference room
150 E. Main St.
Lexington, KY
CALL-IN:
Reporters unable to attend the event can call in. The phone number is 800-230-1085, the confirmation ID number is 280333. The lines, which are only for news media, will open at 12:45 p.m. ET (11:45 a.m. Central Time). The conference leader is Bruce Jennings.
With this sort of pinless hand grenade action, I can only presume Ackman now has the initiative and will inflict great pain and suffering upon the faces of both Loeb and Icahn.
The hedgefund wars continue.
RELATED: Other multi-level marketing schemes are being bled too, namely MTEX, BTH and NUS.
