God Save Goldman

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]

The “new economy” is well on its way to replace the old bullshit one. No longer do we need asshole brick and mortar companies. To live free, all we need is a good LCD teevee and a fucking smartphone.

Aside from the face punching I received in my Advanced Micro Devices, Inc. [[AMD]] gamble, I had a blissful day, with gains in just about everything, sans the bitch of a whore Flotek Industries, Inc. [[FTK]] .

Much to my surprise, numbers out of homebuilder, NVR, Inc. [[NVR]] were amazing. Can it be? Dare I say it?

I will not!

At any rate, while EVERY Tom, Dick and Harry waits for a market pullback, I continue to put my balls on the guillotine, via a large technology weighting. It’s amazing, frankly, no matter how well the market performs, some people ALWAYS highlight the negatives. These idiots always tell tales of “resistance,” whether it be on a 200 day, 50 day or 10 minute moving average basis. It’s easy to find and accentuate the negatives, masked through “technical analysis,” but hard to stick to a thesis with discipline and passion.The reality: people who use technical analysis are simply using a so-called “scientific method” to express their market bias. As a result, no two technicians interpret the market the same.

The purpose of my daily bashing of chart chompers is not to embarrass or belittle anyone, but to raise awareness to another form of investing, that entails the use of your fucking brain. Don’t become a lazy worshiper of idols and false profits. Investing is not about following the herd in and out of trades, but, instead, thinking independently using a thesis or a gameplan.

For now, my bias will remain to the upside, until the mood changes or the shadows near my favorite urinal tell me to sell.

NOTE: For the first time in internet history, “The Fly” accepted an online interview. Check it out.

I bought 2,000 Ceragon Networks Ltd. [[CRNT]] @ $7.19.

Disclaimer: If you buy CRNT because of this post, you will be afflicted with a form of impotence that is immune to viagra. And, you may lose money.