Fuck You Bears, You’re Dead

Coming soon to iBC, “Fuck You Bears, You’re Dead” funeral cards.

I’m bored. I don’t feel like schooling you fuckers any longer. It is just too tedious. Instead, I will talk to you all like children. If you understand what I am writing, nod your head (pause).

Good.

During most of the day, I was busy slapping people with hot slices of pizza, while chomping on sushi—until the fucking bottom fell out of treasuries. Into the gold bonanza, I sold out of my NGD position. And, at the end of the day, I added to ENTR, FTK and initiated a new position in GME.

From what I understand, GME is NOT accounting for a likely price reduction in the PS3, by SNE. With that in mind, I believe GME is sandbagging and will easily beat next quarters numbers. If Sony announces a price cut, which is likely, GME will run. Write it down.

Bottom line: you fucking bears are pathetic: you suck cockles. Go stick your heads in quicksand, with some FAZ certs sticking out of your back pockets, and call it a day.

I bought 10,000 ENTR @ $2.34, 5,000 FTK @ $2.04 and 3,000 GME @ $22.29.

Japan just announced they will lend companies up to 4 trillion yen within the month. However. to counter such QE talk, Bill Gross confirmed rumors that the U.S. might lose its AAA status. I must say, these credit agencies are a fucking joke. Why do we even keep them around?

Of course the U.S. is not AAA rated. I really don’t understand why the fuckers at [[MCO]] have so much power.

Nonetheless, as a result of Treasuries getting routed, certain sectors (commodities) are rebounding. First and foremost, the [[TBT]] and [[TMV]] players are killing it today. I was long TBT for awhile, but somehow got caught up in the ol’ deflation story. Lo and behold, it appears the level of fuckery, via national debt, may come home to roost sooner than I originally thought.

So, yields are going up and the dollar is getting machined gunned. I think the sell off is too swift and would not chase treasury bear funds, at these levels. Instead, I would take positions in gold, via [[DGP]] or gold stocks, like [[AUY]], [[EGO]] and [[GG]].

As for stocks:

For the moment, they are in the “no buy zone,” unless of course your goal is to accumulate. I would add to my positions, providing the market dipped tomorrow.

My top picks are: IR, GLW, ENTR, FTK and RFMD.

CNBC is in the process of humiliating themselves, again, by way of highlighting “Nigerian investment opportunities.” From my vantage point, munitions and law enforcement seem like great “opportunities” there, to hell with building out an electricity grid.

As you can see, the market is selling off, which means, incidentally, all of the bears will be pounding their homo drums today, praying to Lucifer for a little taste of Armageddon. Unfortunately, for them, any and all sell offs will be met with frenetic buying, due to the idea of future growth.

Until proven wrong, my theme will be to buy “early cycle” tech names, due to stories like this.

If the semiconductor foundries ([[TSM]], [[UMC]], [[CHRT]], [[SMI]]) are rebounding, due to inventory shortages, I want to be long the companies who supply them or have a hand in the packaging and testing of wafers.

Such said companies include: [[AMKR]], [[KLIC]], [[ASX]], [[ATE]], [[SPIL]], [[TQNT]], [[CDNS]] and [[TER]]—just to name a few.

In addition, companies who deliver electronic parts to the foundries are worth investment, including: [[AVT]], [[ARW]], [[AXE]] and [[NUHC]].

After that, there are a myriad of stocks that may benefit from higher capacity utilizations. However, for now, I will stick to the early cycle names.

Separately, there is a boom in LCD sales, particularly in China. In my opinion, the best way to play it is through [[AUO]] (they make the LCD’s) and [[GLW]] (they provide the glass substrates).

And, finally, I am very interested in playing the 4g rollout, due to the emergence of smart phones. So you know, at the present, smart phones ([[AAPL]], [[RIMM]], [[PALM]]), represent less than 15% of the overall handset market. Without a doubt, that number is set to double or triple. A way to play the touch screen technology is through [[CY]], [[ATML]] or [[SYNA]]. The best way to play the internet connectivity aspect for handsets is via [[STAR]] and [[ATHR]].

As for the actual infrastructure, in my estimation, the best plays are [[ALU]], [[ERIC]], [[STAR]] and [[CIEN]]. If you want to roll dice, outlier plays include [[RFMD]], [[LVLT]], [[SONS]], [[ARUN]], [[AKAM]], [[EQIX]], [[SDXC]], [[SOAP]], [[VRGY]] and [[CAVM]].

Two things to note, [[BRCD]] appears to be taking share from [[CSCO]] and [[SONS]] may acquire the distressed assets of Nortel, which may be a huge win for them.

As an aside, LED technology is finally taking off. The big ticket items will come in the form of infrastructure contracts, for LED street lamps in China and possibly here in the states. Unfortunately, most of the LED plays trade Taiwan. Here in the states, there is one company worth investment, if you are interested in playing the LED craze: [[CREE]].

And, every once in awhile, I like to invest in companies with kick ass technologies that offer outsized gain opportunities. Two companies that come to mind: [[OVTI]] and [[ENTR]]. Do your own research, liver lips.

That’s my thesis and I’m sticking to it.

As you know, “The Fly” has been delving into the Dark World of Small Crap, as of late. I will have you know, the reason for this is because of my “calculator brain” and 155 IQ. Small caps always outperform big caps, coming off of a market bottom. The trick is knowing when to put the small cap crack pipe down, in exchange for bigger names. My sense, there is another 10-15% left in this market run. As a result, I deem it necessary to be long.

We are entering a newly minted Gilded Age, where $500 hamburgers will be deemed cheap and entirely beneath the average run of the mill connoisseur. The Bureau of Welfare will be replaced with high end wineries, where aged California reds will auction for $1,000,000—minimum.

I’ve taken the liberty to secure property, in desolate areas in the Northeast corridors of the United States, for the intent and deliberate purpose of making pinless hand grenades. They will make fantastic party favors, during the next Gilded Age.

People will dance in the streets, fat and naked, while men hang off of street lamps, blowing horns and playing accordions— until drunken and gay policemen pay them thousands of dollars to go home. The stock market will bite the faces off of short sellers, like hungry rattle snakes in the midst of a busy basketball court, littered with people in wheeled chairs.

President Obama will be declared a “living God.” The people shall vote him “Emperor for life”; and the republican party will move to Mexico, where they will oversee the important business of sweat shop discipline.

Money will be so plentiful, people will use it to line their kitty litters. And, of course, C-notes will be used as tinder for the traditional and mandatory Saturday afternoon BBQ, in the next Gilded Era.

As for me, I shall seek to destroy all big booted clowns, by way of shooting them out of purple cannons into nuclear power plants. My blog will become a picture zoo for traveling circus enemies and my burgeoning “pinless” hand grenade business.

Before I go into a long-winded rant about how great a “dead dollar” is for stocks and the economy, I would like to acknowledge today’s “fuck you, you’re dead” reversal. There is no way to spin it but badly. Following this mornings spike, the sellers have been out in force, crucifying the long only crowd to their dogma. My guess, the market corrects further tomorrow, producing a mini-panic amongst the true non-believers.

Anyway, if you look at the chart above, you will see your dollars at work. In short, a weak dollar enables U.S. companies to crush their foreign counterparts and enjoy big dicked profits overseas, particularly those companies with big overseas business, like KO and MCD.

In my opinion, as long as the dollar is weak, commodity stocks must be bought, especially on dips. And, if you are a believer in mustard seeds, well then, get long the big multi-nationals, for they will profit most from this situation.

During today’s trade, I took profits on a number of small-crappers. At the present, my cash position is north of 30% and my gains are well above 45%, year to date.

The only small cap stocks worth my long term interest are FTK, ENTR and RFMD. All the other names are simply river boats gambles.

I stepped out for a few hours, in order to throw some bowling balls at pikers. Here we are, at a crossroad of sorts, on the precipice of killing the rally or catapulting short sellers into shark infested waters.

The market is sustained by tech and oil, while signs of weakness can be found in banks.

I said it once and I will say it again: FUCK THE BANKS AND THE GAY UNICORNS THEY RODE IN ON.

Let the rally ferment with the use of idiotic factory and almost dead oil services stocks. That’s where the potential growth is, after all.

To quote a great man, Jeff Macke, “Your portfolio is being managed by car people inside of a chimpanzee tea house.”

With my money, as always, I will endeavor to make money. I am blessed with the pullback in ENTR and will accumulate more. And, if possible, I shall swap out of some of my micro-caps, in exchange for companies with greater substance, such as GLW and IR.

In short, believe nothing but the gold chains around your neck, for they are real. And, never tell a stranger the codes to your money safe.

UPDATE: I sold out of LVLT, north of $1.18.

UPDATE II: I sold out of GMO, north of $1.80 and BEE, north of $1.16.

You want a big cap name, sick of my small crap dice rolls?

Look no further than [[GLW]].

All you need to know: there is a shortage of glass substrates, most commonly used in LCD screens. Apparently, demand for LCD’s is so ridiculous, so absurd, prices are going higher. The #1 maker of the LCD glass, GLW, will enjoy better-than-expected margins. Write that down.

In addition, the largest contract manufacturer of LCD’s, [[AUO]], will enjoy margin expansion too.

As for my small crappers:

I’m feeling RFMD and ENTR right here, right now. RFMD is a straight up chips in handsets play. But ENTR is special. If they execute their business plan flawlessly, the stock will be multiples higher than where it trades today. Their technology is the next evolutionary step in the development of the digital set top box. So you know, they are presenting at a JMP Securities conference today. Listen to the webcast here.

Also, I am a big fan of oil here. The set up is pretty insane and I think the small cap oils are readying to BTFO. Within the space, I like ERX, FTK, SU and maybe a little WRES.

Finally, should STAR continue to dip, I want to get long the name, especially since they own the CDMA core router market. And, by the way, CUZ,, ATHR, NGD and TWI are noteworthy too.

BAC is raising 13 fucking billion dollars. Do you know the balls it takes to do that kind of secondary, at these depressed levels? You need to stop looking at these capital raises, as you might have two years ago. The fact that they are able to raise PRIVATE CAPITAL speaks volumes.

The capital raises are saving the franchises.

The banks are taking their medicine and will be rewarded for it later. Personally, I have no interest in playing the banks, out of pure principal. But, I do not suggest being short.

In the event the economy turns the worm for the better this summer, your short only book will resemble the impact center of Nagasaki, circa 1945.

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