My disdain for civilization was renewed this morning. It was not a big event. Actually, it was nothing at all. It was something ever so subtle that triggered a chemical reaction in my brain, causing me to hate all of you, as well as others, once again. Do not be offended by my hatred, for it is distributed in equal parts to all races and religions. In general, people are dumb animals, motivated by greed, gluttony and pride. For the most part, you are all primitive creatures, deviants of the first order.
I see precious metals are shooting higher this morning. based upon the future prospects of the dollar. I get the whole “fuck the dollar” policy. It makes our goods and real estate attractive to foreign buyers. If the dollar continues to drop, expect a sharp increase in coastal real estate values. It’s probably a good idea to buy real estate now, providing you can get good terms. You really can’t lever up anymore. If you want to buy, you will likely need to fork up 20% for a down payment.
Two deals worth mentioning this morning: RDWR and VRGY. Once again, if you are a corporation holding billions in cash, it makes no sense keeping money locked in treasuries. Look at SCMR. Those fuckers have been holding onto their cash since the dot com bubble. It’s a fascinating story, really—a relic of the dot com excess. They did a secondary when the stock was like $300 and never spent the money. Fast forward many years and the company is doing like 100mill per annum in revenue, with over $1billion in cash tucked away in the bank. For years, they simply collected interest on their treasury holdings. However, they just paid out a special divvy of $6.50. Why? Answer: treasuries are risky.
I’m not sure what the market will do today, following such a big run. The PPT is OVERBOUGHT again and we could pull back for a day or two. However, rest assured, mutual fund managers are clamoring to punch you in the face with Portuguese dinner plates. If you short this market, you are destined to taste porcelain.
Top picks: EXK, REXX
If you enjoy the content at iBankCoin, please follow us on Twitter
Fig
First
let me be first. natural gas has been down too long. it is time for it to rise up (REXX), but also CRK, CHK and HK. look for huge draws on NG inventory on Thursday.
This is good seasonality for NG but don’t overstay your welcome.
NG will be lucky if it peaks at $5. One word: Fracking.
When NG goes to $4.70, I will be looking to increase my holdings of companies that transport it. I expect them to trade higher once NG is back on the down trend.
Damn
Indeud. Sold VRGY calls/stock today at +2100% in roughly two weeks. Top of the hat to you.
PWER is another interesting one with takeover rumors and potential. Their free cash flow and profits have been increasing well and we could see some consolidation in the solar space as the larger companies look to control their costs and become more vertically integrated. There is a massive short position there too (47%).
Wow, that’s terrific.
Thank you Sir.
Tonight I shall carve a top hat out of the cork that sits atop the bottle of grape and color it black. Gentleman wine.
LMLP…
Help me understand why real estate prices in coastal areas would go up, if the US dollar goes down.
I am hearing that about 25% of all RE buying right now is from foreign interests. Michael Hudson also recently said recently that he expects RE to go up sharply, as well.
Wouldn’t US salaries need to be going up, too (in response to inflation), to make this happen? Or is the expectation that foreign investors would be clamoring to become our landlords, here in the States?
One word:
“Foreigner”
And not the 80’s rock band
What’s the prediction?
1) Foreign investors seeking US coastal properties as a second home
2) Foreign investors seeking any US property, in order to generate rental income
A combination of the above? Something else?
What’s the time line for this, considering there’s another wave of option ARM resets in 2011, ending in summer 2012?
you have to look way beyond that time frame.yes, they can rent it out,but it still is an investment into the future,their kiddies would inherit it. and you cant put a timeline on it.real estate outlasts you and me.
It was a fly-joke.
the japanese did the same thing,they bought up california like it was going out of style back in the late 80’s 90’s. outside money was stronger against the dollar
The coasts of the U.S. have pretty beaches. If U were a rich foreign dude, wouldn’t U want a second home there?
No.
I would move to far west virginia and stop going to the dentist
STFU and buy stocks.
That is all.
i did, more exk