Romney, For the Win

During last night’s debate, much to my surprise, Romney came out aggressive in favour of coal. I am sure the toothless, overall wearing, guitar playing, rednecks threw their beer cans in the air upon hearing it, as a classless sign of southern solidarity with the monstrous mormon. Since Romney won, rather decidedly, coal stocks are screaming higher today, in hopes that a mormon administration will be a favourable development to the black lung crowd.

I sold ANR three weeks ago near $8.80, a rare top-tick of sorts. And now I am buying that fucker back.

I sold out of my largest position, KMB, and dropped half of the proceeds into ANR. It’s now a big position of mine and I am going to make a fucking killing on it.

I do regret selling WNR, HFC and ALJ. As I write this, the Brent-WTI spread is upwards of $20 and 321 crack spreads are north of $36, with gasoline soaring today. The price of gasoline is now retailing for $4.40 per gallon. As you get mugged at the pump, the crude is just sitting at Cushing, OK doing nothing.

Let’s not even discuss the oil being extracted from the Eagleford Shale. There is a desperate demand for pipeline infrastructure in this country, to get the crude and distillates moving. However, the EPA hamstrings them, fucking you directly at the pump.

As a result, refinery related stocks are enjoying a renaissance. HFC, TSO, WNR, CVI, DK, PSX, MPC and VLO are the new bankers. They are the guys stealing from you, with the help from the government of course. Truth be told, running a refinery business is capital intensive and they need to eat too. Nonetheless, do not complain when gasoline is retailing for $6.00+ when the war with Iran starts.

We have the oil and the capacity to refine it. We just don’t have the infrastructure to move it around–all thanks and praise to your local fucktard politicians.

I didn’t think the market would turn so quickly. Nevertheless, I am back to banking stupid coin again, tossing bearshitters down elevator shafts, having horses kick them in the fucking face.

Commodities are decidedly higher. Romney trounced Obama in the debates. Dare I say, NAK is going the fuck higher today, a big middle finger to the devils at the EPA, who are so interested in saving “the environment.”

FUCK THE ENVIRONMENT.

May we all perish from the Black Lung, as rich as can be, addled with rare types of cancer– but exceedingly wealthy from our prospecting fortunes.

Top picks: DDD, OSG, PPC and JIVE

Happy Anniversary Mr. and Mrs. Obama.

You can read my view points here.

It was embarrassing for Obama.

I’ll be live tweeting this shit from Twitter.

@The_Real_Fly

While we all sit here and wait for the “next housing boom”, the market is giving us fits. Only thanks to my supreme standing with the stock gods, I am enjoying a +1% day. Everyone else, for the most part, are losing their shirts.

I won’t take too much of your time, as I am sure you need to prepare supper. I understand people from housing tenements like to eat supper before sundown, to avoid getting shot in the streets, in search of potatoes and macaroni.

We have the Presidential debates tonight, so that should be fun. Be sure to follow me on Twitter: @The_Real_Fly, where I will make fun of both candidates, furthing embedding myself on the CIA’s “to kill” list.

I like boats, chicken and 3-D printers, OSG, PPC and DDD. In addition, I like APKT, SVU, KMB and ESRX. My top 3 positions by size are KMB, DDD and ESRX. As you can see, “The Fly” is a rather conservative gentleman, who never delves into intoxicants during work nights or disgraces himself for whores, unlike many of you. I tend to uphold traditional standards, living life as it was lived 10,000 years ago (no caveman). The stock market is nothing more than an avocation for me, as my true passion lies in building Orbital Space Cannons (OSC) and amassing fortune and power on a governmental scale.

Long term readers of the site understand that “Winship” is my middle name. I shall not be denied and time adheres to my caprices.

Every single one of you housing haters have been wrong in 2012. All day, every day, you talk shit about home values, as if they’re supposed to decline 20% year over year. Lo and behold, all housing related stocks have exploded to the upside. I’ve made money on the turn, several times, in a number of housing stocks. But the fun has only just begun–providing this trend continues.

Here are some hard facts, published this morning:

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, jumped 16.6 percent in the week ended Sept 28.

The index of refinancing applications surged 19.6 percent, hitting the highest level since April 2009.

Here are some other facts, with regards to year to date performance of a “housing resurgence” watchlist that I created a year ago.

Although these stocks are way up and multiples are stretched, they are likely to trade much higher. Picture housing as a giant boat. It’s not easy to turn around, but when it does, it’s directed with conviction. Housing has been dead money for more than 6 years. With super low rates and American’s rich as fuck, it’s only a matter of time before home values explode higher.

Naturally, there are levels of explosion that needs to be acknowledged. The lower to mid-tier homes will enjoy small increases, due to socioeconomic factors. But the higher end is set to spring board higher, in my humble opinion.

I own just one housing related play, KIRK, derived from The PPT algos. However, I am very much interested in buying a number of names, hopefully on a meaningful dip.

Aside from refiners, I have two long term themes in mind:

1. Housing resurgence.

2. Healthy food.

An example of these themes is to be long WSM, BZH, PIR, WFM, BNNY and HAIN.

For the day, I am up another 1%, back near new highs, enjoying the splendour that is the stock exchange with all of its magnificent gifts.

UPDATE: I bought APKT

As you know, I just bought a new house and have been renovating it over the past 3 months. I’ve spent inordinate sums of money bring the house up to my standards, never sparing a nickel to improve my rightful claim to luxury.

ENTER THE BLIND HANDYMAN.

I hired a handyman to build an exclusion barrier around my front porch. It was my idea to put mesh behind the lattice of the front porch, in order to keep out critters. His work, although rudimentary, was sufficient. He then reminded me that he did “work on the side.” It just so happened that I wanted to redo 3 bathrooms. So I gave him the small one downstairs, as a project of sorts, a tester to see if he was up to the task.

ENTER THE BLIND HANDYMAN.

As he was tiling the bathroom, I had a staff of carpenters installing wainscoting, coffered ceiling, crown and base moldings, the works. Their level of professionalism could not be matched because their work was flawless. From time to time, they’d peer in on the Blind Handyman to see how he was doing. I ordered travertine for the job, at $9 per sq ft–a quality tile.

ENTER THE BLIND HANDYMAN.

Dust and smoke billowed throughout my house, covering everything upstairs, even my clothes inside the closets. This bozo was cutting tiles inside of my house, while I was away. My carpenters told him to “do it outside”–because it would cause too much of a mess. One of the carpenters commented “it looked like a fire was ripping through the house, with all the smoke coming from the bathroom.”

I took a peek at the bathroom, to review his work. CATASTROPHE!

All the tiles were uneven and poorly spaced. One of the tiles was cracked and he fucked up so many cuts, there were zero tiles left, even though I provided him with 50% more than he needed. I am not surprised, frankly. He’s an older man, with glasses, and an avid cigarette smoker. With all the dust on his glasses from fucking up my tiles, his vision, apparently, had been impaired.

I hired someone who came without a recommendation or body of work. His price was 50% cheaper than proven tile masters. It’s a parable of sorts, a lesson that has reminded me “you get what you pay for.”

Much to my chagrin, the carpenters are having a good laugh at the bathroom, as I write this blog– saying in thick Russian accents “he do a professional job, custom work, very nice.”

Fucking Borats.

Check this out:

Ranjana Bhandari and her husband knew the natural gas beneath their ranch-style home in Arlington, Texas, could be worth a lot – especially when they got offer after offer from Chesapeake Energy Corp.

Chesapeake wanted to drill there, and the offers could have netted the couple thousands of dollars in a bonus and royalties. But Bhandari says they ultimately declined the deals because they oppose fracking in residential areas. Fracking, slang for hydraulic fracturing, is a controversial method used to extract gas and oil.

Their repeated refusals didn’t stop Chesapeake, the second-largest natural gas producer in the United States. This June, after petitioning a Texas state agency for an exception to a 93-year-old statute, the company effectively secured the ability to drain the gas from beneath the Bhandari property anyway – without having to pay the couple a penny.

In fact, since January 2005, the Texas agency has rejected just five of Chesapeake’s 1,628 requests for such exceptions, a Reuters review of agency data shows. Chesapeake has sought the most exceptions during that time – almost twice the number sought by a subsidiary of giant rival Exxon Mobil, Reuters found.

Chesapeake says it only seeks exceptions to the Texas statute – called Rule 37 – as a last-ditch effort, and often because it cannot locate the land owner. The law, company spokesman Michael Kehs said, “protects the rights of the majority of mineral owners.”

Read Full Article

In other words, the land you own may have oil or natural gas underneath it and may be worth millions of dollars. However, the good people over at CHK can get a judge, who is bought and paid for,  to declare that YOUR PROPERTY can be drilled on (horizontally), extracting all resources for the  direct and explicit benefit of this mighty fine oil and gas company.

What the fuck!

Are we so impotent as a people to just let this sort of stuff continue? Clearly, I am not out there in Texas protesting for landowners rights. But are these subjects ever broached? Do people even give a shit anymore?

In other news, get ready for the Romney-Obama debate, where they will talk about NOTHING of American importance, but stand there calling each other names and driving wedges between the country, all the while–ever so quietly, this type of shit happens.

In light of the “Value Investing Conference” taking place in NYC today, my urinal shadow just gave me a presentation as to why shares of OSG are heading higher. It was rather convincing, and strikingly similar to David Einhorn’s short thesis on CMG, but in reverse.

In summary, he feels “the odder boat companies, see, just plain suck.” He also states that he “spits on the fucking graves of that bitch Diana (DSX) and Drydicks (DRYS).”

Fact of the matter is, the Baltic Dry Bulk Shipping Index (BDI) is down more than 55% for the year, an extreme exaggeration of perverted distortions. Armageddon is priced in and the BDI is poised to bounce.

As you can see, a bounce is underway.

On this bounce, I expect the shippers to catch a bid, whenever the market decides to trade up again. Saddled with a huge short position and the very worst priced in, OSG will see better days ahead.