I am experiencing a bloodletting today, with my portfolio down 3.6% thus far. Thank you oh so much, TLP and NRP, for crimping me at the neck. I do not appreciate it; oh no, not one bit.
Why this is happening, I cannot say, unless it is simply the market succumbing to selling pressure and leading us lower. Coal and transportation have had a terrific year, so this could just be money rotating out. It could also be people getting ready for skyrocketing oil prices to crush domestic demand.
Pray it isn’t the latter.
In order to hedge a little further, I shorted KOL, the coal ETF, for $45.75 average cost. This should directly relax my position in NRP. NRP collects coal royalties, the determining factor of which I am now betting against.
I’m not a fan of the market right now. Too much shit going on. I’m glad I sold out of as much stuff as I did. This would have been nasty if it happened a few months ago.
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hang in there. Ben is on his way.
(laughter) we’ll see. I wouldn’t mind a good 15% shake out.
I don’t want to be the first to say it, but here goes:
The prospect of the US dollar is now the low cost trade.
Doubled TLP. 7% down days are hard to come by. Still have lots of borrowing capacity left, just in case I need to rectify a mistake sometime down the road.
I want coal to pull back from here to provide entry. If met coal is above $300/ton, the 5 most levered names that could benefit 100% from their levels are WLT, ANR, MEE, PCX, and ICO, with PCX having the most upside. JRCC made a coal ops acquisition a could days ago and after China recently announced their 5 year plan coal stocks got bid. It might be tough to time the buy if we get more overall market selling pressure, but I like the idea.
Thank you Mr. Cain Thaler,
You originally alerted me to MLP, in high fashion I followed you again by adding to my existing position. Just out of curiosity are you in Guardian, Buhl or Penobscot by chance? Thank you for sharing your wisdom
I suppose you mean TLP, as I have never owned Maui Land & Pineapple Co.
Although I do love Pineapple…
Come on man. Everyone is in the pineapple trade!
Sorry my bad.
(laughter) no problem. I was a little confused for a second there, though.
What are Guardian, Buhl or Penobscot? I am not familiar with them.
Buildings in downtown Detroit, I thought I remember you were from the Motor City, No? If not my bad again.
Oh gotcha. Yes, I am from the motor city; however, I don’t really know the building names that well, unless you’re talking the obvious ones like Cobo, or the Ren. Cen.
The Ernst & Young building is pretty cool too.
Recalling your student loan thesis. Am I recalling correctly?
http://www.tennessean.com/article/20110310/NEWS04/103100332/Nashville-State-may-cut-ties-federal-student-loan-program
I wish I could claim that, but that particular observation was laid at my feet by a friend.
However, yes, student loans suck ass. I tried shorting them through that most atrocious business STU, but they got bailed out and my ass got blown through the front of my face in the process.
Sorry about today’s tape. You’ll make it back in no time, though. Win some, lose some.
Added to AEC for $15.48.
A few articles re: rising rent
http://www.huffingtonpost.com/david-m-abromowitz/rising-rents-falling-reco_b_834033.html
http://abcnewsradioonline.com/business-news/apartment-rental-costs-rising-as-fewer-people-are-buying-hom.html
Interesting to see how this plays out with the REITS.
Thanks for forwarding those, Bob.
To think that someone in the Huffington Post believes government should intervene in the housing market. It’s worked so well for them up until now. Just what we need, to make more fucking ghettos.
Yeah, I should’ve added, that I was wholly interested in the data points, not any of the editorializing or whatever the fuck you call that drivel.
(laughter) no need, I was just commentating.
I covered my short in AIV. I am willing to go full support of the multi-family rental industry.
Fuck the haters.
GKK put up quite the fight! Let’s see how the final score is settled.
Oh holy shit, I had figured it was a done deal, being down almost 10%. The little thing made a run for it, at the end; sprinted through the finish line, if you will.
I still think you win though. Congratulations.