Fly Buy: $CRDS

I bought a small position in CRDS.

Pure gambling, nothing more.

My exit on CLIR was sublime. Truth be told, it wasn’t a very big position, just 30,000 shares. But I made more than $50k overnight, so I can’t complain. It’s true, The Devil is positioning into CALL. But be warned, the law of averages catches up to us all. After seeing both PAMT and CLIR go haywire, I am tempted to go all in on CALL. But I am reminded of all of the times when hubris nearly destroyed me, so the position shall remain small– at around 7% of assets.

My other positions are not working today, with a general weakness foreshadowing what should be considered a terrific bull market.

I am waiting for BZH, USG, HLF, WNC and RAS to move higher. Until then, I am biding my time, looking for the next deal.

I booked a 36% overnight gain in CLIR.

h/t: The Devil

A new front on the war to “Kill Bill” has opened up.

Dinan, who heads York Capital Management which manages $15.1 billion, this week told an audience at a Morgan Stanley investing conference in New York that the firm is shorting JC Penney’s debt, effectively taking a dim view of its future.

That puts Dinan at odds with Ackman and his $12 billion Pershing Square Capital Management hedge fund. Ackman has become a big JC Penney cheerleader since his firm started buying the stock in 2010.

Ackman is now under pressure from big-name investors taking the opposite side on two of his positions – the other being nutritional supplements company Herbalife Ltd in which he has a $1 billion short position and has been battling hedge fund manager Daniel Loeb and legendary investor Carl Icahn, who have both taken long positions.

A spokeswoman for York declined to comment on whether the hedge fund is betting against the retailer’s debt.

Morgan Stanley’s high yield bond desk is also betting against JC Penney bonds, said a person familiar with the firm. The firm is betting on a decline in the value of the retailer’s bonds using credit default swaps.

A Morgan Stanley spokesman declined to comment.

 Source

York Capital join the cabal of like minded gentlemen who are opposed to the success of both Ron “Business Man” Johnson and “Montauk Bill” Ackman.

Before JC Penney dies, it will respond violently, volatile, whip-sawing both longs and shorts alike. Nonetheless, the trend is firmly to the downside, in both equity and bond prices–let alone the underlying business. For now, it is a 3% short position of mine.

I’ve been through the best bull markets and the worst bears throughout my career. I’ve enjoyed two frantic bubbles and multiple implosions. We are in the midst of what is going to be viewed upon as a renaissance for degenerate gamblers, people who could only make money when markets traded up–every–single–day. And it did.

Over the past month or so, I’ve been knocking the ball out of the park, through the building outside the stadium, and into people’s faces. Web traffic is meh, similar to the response I’ve gotten from people in real life. No one cares. If you are interested in the mystical world that is the stock market, you are in the minority.

The craziness of Europe and flash crashes, following the unbelievable stupidity that was 2008, has driven the retail client out of stocks. Most of the people that I know, who have a lot of money, are buying real estate again–not stocks. No one trusts the market because it is widely believed to be unfair and inequitable.

Look what they’re missing out on.

Fools.

I kicked out of my BX and MTU positions for handsome gains. BX was my largest holding, but not anymore. I’ve replaced part of it with RAS. I intend to make RAS my largest position, which should mark my final salvo of extreme risk taking until the fall. As you know, I intend to “cash up” near tax day.

I purchased CLIR, based upon the musings of The Devil. Being that he’s had an incredibly hot hand, I gave it a go. I am looking for $8.

It looks like I am finishing out the day up another percent, pushing my gains to +20% for the year. Keep in mind I’ve done this for the past two years, this being the third, only to give most back in the 4th quarter. Things will play out differently in 2013; I promise you that.

At the present, my largest positions are USG, RAS, BZH, WNC and HLF. Both CALL and my JCP short are respectable–but within the bounds of reason.

Another day floats by and another win is chalked up for Señor Tropicana.

I started a position in RAS.

I started a small position in CLIR.

Disclaimer: If you buy this stock because of this post, The Devil will claim your soul. And, you may lose money.

In case you didn’t get the memo, this Friday Ron Johnson, alongside his team of fashion experts, will launch Joe Fresh in their stores. The Joe Fresh brand is what Ron has been telling us we need all along. He convinced Bill Ackman to wear the attire to Pershing Square board meetings and now he’s going to dress America.

Starting Friday, the future of JCP shall be revealed, from the visionary himself RONALD “BUSINESS MAN” JOHNSON. The entire company, the employment of thousands and supply of cheap wares for millions of misers across the country depend, hinge even, on this one sweater.

BEHOLD:

The company has $685 million in debt maturing by 2017, with a burn rate of $1 billion per annum and $800 million in the bank.

Everyone has sources, some are good–others are great. I have numerous sources of information, one of which is from someone we call “The Devil.” I’ve highlighted his calls here before, from VHC to IOC to KRO.

His last successful call was PAMT, highlighted inside The PPT @ $8.70. At first, I did not buy because of the thin volume. After some cajoling, I finally gave in and bought @$10.74.

Here are the time stamps on his PAMT calls.

His newest pick is CALL- The MagicJack. The stock trades by appointment and is surrounded by controversy. Nonetheless, the company consistently smashes earnings expectations, which are slated to be released on the 16th.

Past results does not mean future returns are assured. Nonetheless, I am a small buyer of CALL– a 5% position.