Fly Buy: $SOL

I added to my SOL position.

Goldman is out with positive comments regarding the solar sector this morning.

One of my new positions is an old one: SOL. I was buying this stock when you were drunk and stupid, back in the days when the solar sector was belittled–considered to be the laughing stock for all of  mankind. Now all of a sudden, solar is cool and everyone wants in. Well, I have news for you: not everyone deserves to make money in solar stocks. You jackanapes who’ve been mocking the solar space, all the way up, are not permitted to read this blog post, so log off now, else I will cut your heads off.

SOL is scheduled to report “earnings” in a week. The company doesn’t know how to make money, so it’s all about the top line with this one. They’ve exceeded analyst expectations, for the top line, 7 consecutive quarters. Moreover, they’ve offered upside guidance for the last 4.

With the sector on fire, following FSLR’s breakout quarter, there is a good chance this sucker will run up into earnings. However, based upon recent history, there is an equally good chance that this stock will work its way higher, following an earnings win and subsequent guide up, as is customary for this company to do so.

My position isn’t large, but big enough to matter. I will not throw too much behind it because earnings plays were designed for the feeble minded gambling class. Nonetheless, barring a sinkhole opening up in the earth and swallowing “The Fly” whole, I will be holding through the big day.

Actually, the mission has only begun.

I am fully levered now, at 130%. Let’s try this again.

I started positions, in bulk, in GIMO and SOL.

This company is ripe for activism.

I started a position under $27.5.

In the filing, BALT intends to use the proceeds from their secondary to buy 2 Ultramax vessels with an option to buy another 2, to be delivered in the 2nd half of 2014. One has to ask oneself: do they know something we don’t know? Or, are they gluttonous bastard pigs?

Here’s the thing: this sucks for traders of the stock. But, as an investor, this is welcomed news.

On a rising tide, you want as much leverage as possible. BALT just went from being a small player with 10 vessels to a player with up to 17 by June of next year. If we’re right about shipping rates, BALT’s upside leverage just went through the roof.

Quick note: the previous two capital raises (9/20, 5/22) marked the bottom for the shares. In other words, today’s a good day to go hunting.

Quicker note: For those of you confused as to what the hell an ‘Ultramax’ is, consider it a supersized Supramax, falling into the Panamax category of 60,000+ dwt. BALT is mimicking the BDI.
http://www.youtube.com/watch?v=-N_NG96-eh0

This quarter, like every quarter, has been brutal to companies who didn’t commit accounting fraud to exceed analyst expectations. Although the market is near the highs, many people are -20% in recent weeks thanks to shortfalls.

As always, some of these sell offs are exaggerated and should be considered for a “buy the blood” opportunity. The stocks in bold indicate they’re currently rated “buy” or better, using The PPT algos. Members can find this screen here.

1 Week Losses

SRPT -65%
NES -39%
INWK -35%
QUAD -33%
PWE -24%
NSM -24%
EZPW -23%
FSYS -22%
NXTM -22%
TSLA -21%

(none of the above stocks are ranked buy. In fact, only one -10% stocks (weekly) is rated “buy” and that is TRNX)

1 Month Losses (no duplicates)

NIHD -46%
ONTX -45%
RPRX -40%
PVG -36%
TNGO -35%
SNTA -34% (not a buy, but highest rated)
MCP -32%
IMMU -30%
OMER -30%
AVG -30%

Notable buys off i month loser list are: RNF, FUEL, VOLC, RATE, OSIR)

2 Week Losses

BSFT -28%
IRG -27%
CARB -27%
LAYN -23%
STRA -23%
NXTM -23%
BYD -23%
AAWW -23%
AVP -22%
GTLS -22%

Notable buys off 2 week loser list are: BCRX, NPSP, WRLD and QCOR.

What did we learn? The biggest losers still suck. But there are some awful stocks upticking worth a gander.

These maniacs are intent on dilution.

They don’t need more vessels, unless of course they have crystal balls up their asses. What they should be doing is sitting tight, waiting for rates to increase, while sporting a pristine balance sheet. Instead, shareholders like me get caught holding the bag.

Knowing they are Greek, they probably just have ordinary balls–up their asses.

I was going to do some “chart art” for ALJ’s recent SURGE upwards. But, quite frankly, the narrative is too tragic for me to endure. I sold the stock, mind you, at the precise lows, only to watch it, pornographically, erect itself off the backs of idiots like me. The other day, when I penned the blog about not looking back, that was at lower prices–friendo. But when it surges, naturally, those opinions no longer apply.

No worries. As soon as the time machine is out from the shoppe, I will go back to Friday and buy more, instead of selling it. You stupid idiots won’t know any better because I’ll erase this post and you’ll never know that I sold, since the future will be altered. Maybe while I’m at it, I’ll short SRPT too.

MU looks “dreamy”, as one of my ambiguously gay friends used to say. I’m actually making money today because NSTG and RBCN are higher. Of course if I would’ve held onto ALJ, I’d be bowling on you bozos right now, drinking O positive from a diamond encrusted chalice.

I’ve moved past brewing coffee, by the way. I find eating the coffee beans straight out from the bag “desirable”. Be careful not to eat more than 8, however, else you’ll get the jitters like a cat on a hot in roof.

US corporations have never been richer, a true dichotomy when compared to the general population. Due to productivity gains, corporations do not need to ramp up on employment in order to maximize profits. As such, employment in the US remains stagnant, while cash on hand for our best corporations reaches new heights.

The poster child for cash on hand is AAPL, with their absurd $150 billion in reserves. However, there are many names out there with fantastic balance sheets that are often overlooked.

Using a net cash per share/price ratio inside The PPT, cross referenced with a bunch of other stuff, here are a few that caught my attention.

NTAP
NVDA
MRVL
APOL
KLIC
TIVO
UTEK
AVX
VSH
QLGC
PKE
SWIR
CRAY

Usually stocks with huge cash positions are bogged down, impaired somehow, like MODN. Most of the names above haven’t performed very well, but present an interesting opportunity for activist shareholders or leverage buyout firms. Naturally, they’d want to get their hands on the cash in the form of a special dividend.

Food for thought.

The market looks weak and I am simply a spectator today.