Fly Buy: PESI

I bought 10,000 PESI, speculative personal account buy.

Description of the company:

Perma-Fix Environmental Services, Inc., through its subsidiaries, operates as an environmental and technology know-how company in the United States. It operates through three segments: Nuclear Waste Management Services (Nuclear Segment), Consulting Engineering Services (Engineering Segment), and Industrial Waste Management Services (Industrial Segment). The Nuclear Segment provides nuclear waste management services, such as treatment, storage, processing, and disposal of low-level radioactive and hazardous waste; on and off-site waste remediation and processing; nuclear, low-level radioactive, and mixed waste treatment, as well as processing and disposal; and research and development of ways to process low-level radioactive and mixed waste. The Engineering Segment offers consulting engineering services, which include consulting services regarding air, water, and hazardous waste permitting; air, soil, and water sampling; compliance reporting, emission reduction strategies, compliance auditing, and various compliance and training activities, as well as provides engineering and compliance support services. The Industrial Segment provides industrial waste management services, including treatment, storage, processing, and disposal of hazardous and non-hazardous waste; wastewater management services, including the collection, treatment, processing and disposal of hazardous and non-hazardous wastewater; and treatment, processing, recycling, and sale of used oil and other off-specification petroleum-based products. It services research institutions, commercial companies, public utilities, and governmental agencies, including the Department of Energy and Department of Defense. The company offers its services directly to customers or via intermediaries. Perma-Fix Environmental Services, Inc. was founded in 1990 and is based in Atlanta, Georgia. [From Yahoo! Finance]

The tragedy in Japan will eventually lead to a massive rebuilding effort, whereby demand for timber, steel and machinery will go through the roof. As of now, economic output is at a standstill. However, soon enough, the Japanese government will be borrowing shitloads of money, and repatriating money from overseas, in order to rebuild. This, without a doubt, will be bullish for steel stocks, like CLF, X, AKS and especially PKX (proximity), as well as CUT. Thanks to a booming pac-rim, basic material are already in short supply. This will make matters worse.

Furthermore, with Japan busy at home, QE3 is all but guaranteed now. Look for THE BEARDED CLAM to smoke short sellers inside of his philly blunts, while laying the hammer down on some of you talking monkeys. Without a doubt, Senator Gint will enjoy even bigger gains in his portfolio of crap that is gold/silver. Inflation will get ridiculous, once the Japanese rebuilding process begins.

In the short term, stocks might suffer because investors have dog brains and cannot look more than 15 minutes into the future. However, once these things that I am teaching you come to fruition, there will be a fucking race to the finish. So you know, “The Fly” has already completed said race and has taken the luxuries of littering said racetrack with “bouncing Betty” landmines.

In the immediate term, I like the refiners, as their crack spread margins expand. Due to loss of refining capacity in Japan, expect refining margins to rise, worldwide. My favorite refiners are WNR, TSO and VLO. I’d avoid the auto-parts companies and most certainly Japanese industry.

Oh, with Buffet buying LZ, look for NEU to get a sympathy pop.

‘Tis the season to be long refiners anyway, ahead of the fucking driving season. Over the weekend, the war mongers (Libyan no fly zone suggesters) out of Europe agreed to expand their own version of QE, by way of allocating $600 billion in imaginary money towards the explicit manipulation of their bond markets.

This may lend, mind you, to dollar strength. An oddball trade is setting up, where stocks might actually trade down. The Japanese situation isn’t making things better. It’s worth noting, oil may drop as Japan’s economy dumps out. But, you might see the crack spread explode higher, due to 1/3rd of Japan’s refineries going offline. Furthermore, with their nuke plants melting down the fucking country, it’s plausible that they might adopt a fossil fuel energy policy.

Bottom line: look for bullish to fanatical pin action in the refiners.

Aside from that, I really need to see how Asian and European markets react to the news before formulating a strategy. One thing to keep in mind, whatever plans you had before this Japanese disaster, with regards to the market, is gone. Everything has changed. This is one of those game changing, black swan events, that needs to be watched very closely.

In an effort to avoid meltdown, they are now flooding the reactor at Fukushima with sea water. Although officials are downplaying the seriousness of the recent events at Fukushima, they have ordered an evacuation of all people within a 12 mile radius.

In addition to sea water, the people at Tokyo Electron are adding boric acid to the concoction, in order to disrupt the nuclear chain reaction.

NOTE: Over 200,000 people have been ordered to evacuate. Despite the plethora of reports that predict some sort of an apocalypse, Japanese officials insist they have things under control.
Japanese Chief Cabinet Secretary Yukio Edano said they were venting out air, which contained radiation, but very low levels.
UPDATE: Japanese officials are streaming a conference right now.

Via the IAEI, the cooling systems at a second nuke plant, Fukushima unit #3, are not working. Thus far, over 140,000 people have been or ordered to have been evacuated.

It’s also being reported that at least 9 people at Fukushima have been exposed to dangerous levels of radiation.

[YouTube:ttp://www.youtube.com/watch?v=pg4uogOEUrU&feature=youtube_gdata_player 515 400]

Residents near plant advised to avoid tap water and to cover faces with wet towels. Evacuations are underway for a 20 kilometer radius near Fukushima.

Related: death toll in quake/tsunami aftermath reportedly at 1,600.

This is getting real grim too fast.

The Kyodo newswire is very slow to respond, due to the overwhelming amount of traffic they are receiving. However, from what I can gather, it looks like the situation at Fukushima Daiichi power plant’s Unit 1 is deteriorating. It’s being reported that part of the core may be “melting down.” I loathe people who ring alarms for the sake of garnering attention. However, logic dictates the Japanese officials would not be making statements like this, unless they felt a melt-down was a real possibility.

In the event of a meltdown, the affected area would be at least 5 kilometers.

Here is a helpful twitter feed to keep up to date with developments as they progress.

Due to the quake, the power outage caused a domino effect that disabled the cooling systems at the Fukushima nuclear power plant. As a result, it’s being reported that radiation levels around the plant are 8x normal, suggesting some sort of dangerous leak has occurred. Evacuations are underway.

Update: Front page of Drudge reporting radiation levels at 1000x now.

Tokyo Electric Power Co operates said plant.

Six of Japan’s refineries, representing 31% of output, have ceased operations, due to the quake. Fires have been raging in the Cosmo Oil and JX Nippon Oil & Energy refineries. Japan has a total of 28 refineries and is the third largest consumer of crude in the world.

As of now, the following refineries have been shut down:

JX Nippon Oil & Energy
Sendai
Negishi
Kashima Oil
Kawasaki
Chiba

As a result, refinery stocks in the U.S. surged ahead today, led by gains in CVI, ALJ, TSO, WNR and FTO

I had a mixed day with losses in ARO/BORN and gains in OPEN, WNR, APC and MAS. It’s pretty heart wrenching to see the developments in Japan. I just read that radiation levels are 8x normal near one of their nuke plants. That has to suck.

It looks like The PPT nailed the ZSL trade again, as silver bottomed this morning, then took prisoners for the rest of the day. With mid-east tensions at a feverish pitch, Japan dealing with a natural disaster and chinese burrito stocks halting indefinitely, my appetite for risk waned throughout the day. I am content with my new position in WNR. However, I didn’t feel enthusiastic about today’s move. It felt like a bounce, nothing more.

Nevertheless, going into the weekend, I’m up about 10% for the year, with a cash position of around 5%.