Protect Your Neck

Life is good and the market has been very rewarding to those who had the cajones to be a player. However, let’s not forget the homeless guy on the street corner covered in feces. The economy is coming back, but not good—yet.

It’s important to buy stocks when no one else wants them. Equally, it’s vital that you, the internet leech, take profits when Cramer the Clown is fondling stuffed animals (bears) on national tv. Take some profits, have a drink, and do a few hundred lines of coke (just kidding).

Following a glorious two week run, “The Fly” is raising cash, while chuckling at his bearish counterparts for missing the rally. While I am gone (leaving Tuesday morning), I will have no less than a 30% cash position. Believe me, it pains me to sell stocks like OmniVision Technologies, Inc. [[OVTI]] and Corning Incorporated [[GLW]] ; but they’re only stocks. I can always buy others and make money in just about any environment, long or short. I rather book the profits now and chill out with Mickey Mouse, than be a nervous wreck on a potential GLW earnings disappointment, effectively coercing me to punch Goofy in the fucking face.

In other news, the frolicking fondlers at Flotek Industries, Inc. [[FTK]] are gaining forward momentum. Regardless of where the stock trades, I am in the name for the duration, or until it hits $3. Finally, [[ENTR]] looks pretty sweet too. If their “Moca-chips” made any substantial headway into Time Warner’s set top boxes last quarter, the stock will double in price. Last I checked, Verizon Communications Inc. [[VZ]] is gaining 500k Fios subs per quarter, all containing chips from ENTR.

Booyah.

WINSHIP UPDATE: It will come as a relief to many of you basement-dwelling lowlifes to know that THE INVINCIBLE NATIONS OF IBANKCOIN have added an egrgious lifestyle column. Although “The Fly” cannot gain anything from the words of its author (Jason Treu), the vast majority of you stand to benefit a great deal from any advice that might assist you in overcoming your life-long struggle as a piker and/or repeat offender.

In light of my pending vacation, I am raising cash here, selling out of some of my biggest winners.

I sold out of Corning Incorporated [[GLW]] , north of $16.70

I sold out of OmniVision Technologies, Inc. [[OVTI]] , north of $12.50

And, I sold out of Atmel Corporation [[ATML]] , around $4.10

At the present, my cash levels are just north of 30%.

You know I laud Goldman just to piss you fuckers off right? Seriously, if Goldman is so gangster, able to front run everyone’s trades and get away with it, I say we get what we deserve. If the regulators are not interested in pissing on Goldman’s head, well then, neither am I. Instead, you frisbee tossers should be picketing outside of the SEC’s offices, demanding justice. Sadly, you won’t; because you are just internet people with an ax to grind, disgruntled over getting pawned by Mother Market and her fucking Goldman robots.

Here on iBankcoin, we talk about making money, even if it means smoking cigars with Goldman robots, if you know what I mean. I do not concern myself with conspiracies, unless of course we broach the topic of FAKE LUNAR LANDINGS.

My point: “The Fly” wins all the time, regardless of pin-striped suit wearing, tommy gun wielding, cigar smoking robots at Goldman.

As for the tape:

Small down day is to be expected, following yesterday’s clown raping of the bears. The buy list includes: CEVA, Inc. [[CEVA]] , TEKELEC [[TKLC]] , Alcatel-Lucent (ADR) [[ALU]] and ON Semiconductor Corp. [[ONNN]] . However, there is a strong possibility that I will do nothing, opting to throw slices of hot pizza out the window instead.

We all see what’s going on, don’t we? Semiconductor names are blowing away estimates, thanks to inventory adjustments/end user pick-up. Instead of giving you food to eat, I will attempt to teach you how to hunt for yourselves. Understanding how cycles work is imperative, when buying the chips. For most people, including most money managers, going with a diversified ETF or just Intel Corporation [[INTC]] is the preferred course of action. However, if you are adventurous and want to play the sector like a fucking musician playing chop sticks, listen to me very quietly.

Here is how the semiconductor foodchain works:

MEMC Electronic Materials, Inc. [[WFR]] produces silicon wafers

Applied Materials, Inc. [[AMAT]] , KLA-Tencor Corporation [[KLAC]] , Lam Research Corporation [[LRCX]] , Novellus Systems, Inc. [[NVLS]] , Varian Semiconductor [[VSEA]] produce front end equipment.

Teradyne, Inc. [[TER]] , Verigy Ltd. [[VRGY]] test the wafers.

Amkor Technology, Inc. [[AMKR]] , Advanced Semiconductor Engineering (ADR) [[ASX]] , [[SPIL]] and Entegris, Inc. [[ENTG]] assemble and package.

[[SMI]] , [[CHRT]] , Intel Corporation [[INTC]] , Micron Technology, Inc. [[MU]] , Taiwan Semiconductor Mfg. Co. Ltd. (ADR) [[TSM]] and United Microelectronics Corp (ADR) [[UMC]] produce the chips.

QUALCOMM, Inc. [[QCOM]] , Tessera Technologies, Inc. [[TSRA]] , CEVA, Inc. [[CEVA]] , Rambus Inc. [[RMBS]] license intellectual property to chip makers and collect egregious royalties.

Naturally, there are other minor players that compete with the above companies and other foreign names, like Hynix and Samsung, that are major players. But, for the most part, that is the food chain. Other names, like Advanced Energy Industries, Inc. [[AEIS]] and MKS Instruments, Inc. [[MKSI]] leverage themselves off the front end and can produce exceptional returns during semiconductor renaissance periods. And, companies like Rudolph Technologies, Inc. [[RTEC]] (yield management), Cymer, Inc. [[CYMI]] (laser light source supplier) and Kulicke and Soffa Industries Inc. [[KLIC]] (copper wire bonding), [[ATE]] (sells the machines that test the wafers) supply vital parts to the food chain, giving keen investors early hints to cycle booms and busts. My point: when the food chain is busy and the foundries are ramping up production, like they are now, you can make reasonable gambles that end user sensitive semi’s, like Broadcom Corporation [[BRCM]] , Texas Instruments Incorporated [[TXN]] , Marvell Technology Group Ltd. [[MRVL]] , Diodes Incorporated [[DIOD]] , NVIDIA Corporation [[NVDA]] and Atheros Communications, Inc. [[ATHR]] , will blow the barnyard door off earnings estimates.

If you want to get a feel for how the semiconductor industry is doing, start by studying the food chain, then work your way down to names like RF Micro Devices, Inc. [[RFMD]] and Skyworks Solutions, Inc. [[SWKS]] later. This is the basic premise behind studying any industry, whether it be oil, ag, telecom or chips; there is always a food chain worth examining and exploiting.

This one goes out to the Tim Knight crowd.

Uncle Fucker and his clan of rich robots, gave the bears 0’s and 1’s today, until their heads fell off. In cartoonish fashion, CNBC donkey punched stories of “recovery,” all fucking day, which in turn created a state of panic amidst misdirected bearshitters.

The aristocracy on Wall Street, headlined by the likes of great men, such as JOE TERRANOVA, BILL MILLER and LAWRENCE KUDLOW, were probably busy shining the shoes of Goldman’s robots, all day long—without the luxuries of lunch or bathroom breaks. Thanks to the control freaks at Goldman, the market is making people “rich as fuck” again. Seriously, if you missed out on this rally, due to your misguided agenda, stop managing money, immediately. If you are a financial blogger and missed this rally, shut it the fuck down now, coffin stuffer.

“The Fly” is all about being right, whether in a game of chess, watching gameshows or playing the stock market. He does not fuck around and does not like to waste time helping bath tub scrubbers make money. He blogs, frankly, because he can. That’s all, nothing more to say.

I sold some stocks today, raising my cash levels. And, I bought a block of 100k Alcatel-Lucent (ADR) [[ALU]] , in order to ride the coattails of STAR‘s pending earnings release. Aside from all of that, I intend to eat a fucking monstrous 2 1/2 inch thick cowboy cut rib eye this evening, heavily salted, lightly peppered.

I bought 100,000 Alcatel-Lucent (ADR) [[ALU]] @ $2.60.

Disclaimer: If you buy ALU because of this post, your dog will die. And, you may lose money.

Before I rant, here are the moves made to the portfolios this morning:

Sold out of salesforce.com, inc. [[CRM]] @ $43.70’s
Sold 20% of ADTRAN, Inc. [[ADTN]] @ $25.10’s
Sold 25% of Atmel Corporation [[ATML]] @ $4.18
Sold 20% of Ciena Corporation [[CIEN]] @ $10.80’s
Sold 30,000 [[ENTR]] @ $3, holding lots more
Sold 20% of Corning Incorporated [[GLW]] @ $16.90’s

What other website gave you picks like that above? Tell me, you fucking ungracious bath tub scrubbers. Let’s have more Flotek Industries, Inc. [[FTK]] discussions, shall we? Or, instead, let’s have some back handed remarks floated around, about other stocks that went down (God forbid) after Senor Tropicana blessed it with his magic wand. While everyone else told you to “be careful” and act like a hermaphrodite, “The Fly” told you to “put your balls on the guillotine,” and bank some coin like a man.

Luckily, I have a higher echelon audience, in The PPT, where throwing meatloaf at one another is strictly prohibited. In there, believe it or not, we actually talk about stocks, nothing else.

Coming here, onto iBC, is sort of like being in the back seat of a black car, while passing by Harlem, where I point at the burnt down buildings and sort of just laugh about it with the kids.

Honestly, most of you are undeserving of my advice, since you are retarded in the first place. Most investors that I meet are lacking ball size or brain capacity. Most people never have the right amount of balls and IQ to make a serious run at this market.

With my money, I decided to raise some cash, via booking profits in a variety of names (see above). Additionally, I am eagerly anticipating earnings from Starent Networks Corp. [[STAR]] tonight. In my opinion, they will blow past the estimate of .17. But, after such a big run up, I am hesitant to buy it now. Instead, I might just load the fuck up on STAR‘s biggest competitor, Alcatel-Lucent (ADR) [[ALU]] . In an oddball way, owning ALU is a hedge against STAR. In short, STAR is a main player in the 3g/4g rollout, occurring world wide. They have an 80% market share lock on the mobile core router industry (think iphone, bberry internet access). For me, STAR is the most important earnings story, whether I own it or not, with respects to my current investment theme.

(flicks ashes to the screen)

Developing…

[youtube:http://www.youtube.com/watch?v=qoFi-J21jbs 616 500]