Keep talking about crude oil coming down, see where it gets you.
There is no debating the dangerous position the Dow 30 is in right now. Over the next year, we can have 3 Dow components going belly up: American International Group, Inc. [[AIG]] , General Motors Corporation [[GM]] and Citigroup Inc. [[C]] .
Yeah, I said it: Citigroup.
I chuckle at the people on the tv who say things like “Citi isn’t going anywhere. They’ll be around.”
Says who?
Because it makes you feel better about your personal impotence?
Listen to me: “The Fly” had his best day of the year today, up more than 8%.
I am so leveraged and so one sided, it’s a bit scary. However, I have the utmost conviction in my actions, so much I took an oath to cease the foul language until the Dow hits 11,000—as you know.
Still, with all of the big gains today, nothing vexes me more than seeing strength in Vulcan Materials Company [[VMC]] . Typically, when a stock is strong into a bad tape, it is a sign of strength. However, in this case, I believe it is a case of sheer stupidity.
Nobody is going to buy them. They are saddled with Florida Rock and a load of debt. They are increasing prices, as volume declines. Can you believe that?
Essentially, their customers (homebuilders, contractors) are ordering less/going out of business, yet they have the gall to raise prices by 8%. Unreal.
Soon enough, they will destroy their customers to the point of no return. Like the health care industry, Vulcan is cannibalizing their client base, in order to keep the stock price high. This is mismanagement 101.
Frankly, and respectfully, they deserve to be punished for these actions, via a much lower share price.
Update: David Einhorn on a range of topics:
[youtube:http://www.youtube.com/watch?v=IcfMdY1BDhs 450 300]
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