The Blood Has Been Bought

That was fast. I go out for an incognito run to Dunkin’ Donuts, disguised with fake mustache and ivy hat, and the market gets gobbled up like brains in a town filled with zombies.

Much to my displeasure, I have not been able to buy in cheap. I want to own Aixtron AG (ADR) [[AIXG]] and Veeco Instruments Inc. [[VECO]] , based upon the expansion of LED technology into the television and lamp fixture market. At the present, LED’s make up 2% of the lamp fixture market. That number is expected to increase to 50% by 2015 and 90% by 2020, according to Phillips electronics.

My point: the LED market is not to be ignored. Embrace it, like a French whore in Papua New Guinea.

Other LED related names include Cree, Inc. [[CREE]] , Honeywell International Inc. [[HON]] , Ultratech, Inc. [[UTEK]] , LSI Industries, Inc. [[LYTS]] and Universal Display Corporation [[PANL]] .

In short, the technology revolution is around us; it’s everywhere. Are you man enough to play it? Are you smart enough to mint coin from it?

Aside from that, my General Cable Corporation [[BGC]] , Flotek Industries, Inc. [[FTK]] , [[ENTR]] , Corning Incorporated [[GLW]] , Barnes & Noble, Inc. [[BKS]] and ADTRAN, Inc. [[ADTN]] positions look great.

Thank heavens, the market is down today, because some of you assholes think bad news is bad news. Well, I got news for you, pal: bad news is good news and good news is better news and better news is Dow 10,500. Don’t quote PE ratios or debt to equity levels, while the economy expands, for they are meaningless.

Ladies, the market is due for a mild correction. However, we are still 1,000 points cheap, at a minimum. Watch, six months from now, when U.S. gdp is hitting 2% again, you will be shining my shoes.

Despite today’s dip, my positions are holding up well. Regrettably, I blew out of my TerreStar Corporation [[TSTR]] position a little early. My only consolation, certain distinguished gentlemen of The PPT made a killing. In my estimation, the market should decline by another 3%, prior to a resumption of the uptrend. So, with that in mind, I will be watching over my watchlists very closely, while limiting my exposure to retarded stocks—a difficult task indeed.

In short, don’t lever yourself to this dip, for it could be the beginning. Pace yourself, find a hobby. When the time is right, “The Fly” will step in, like a fucking deranged T-Rex in a San Fransicko nightclub.

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You lost barrels of coin, while seeing your dick shrink several sizes down to a squirt gun. I’ll have you know, “The Fly” is pleased with today’s dip, as it is giving me an opportunity to delve in at lower prices. With a cash position at around 40%, I am begging for lower prices.

For the day, I enjoyed a minor pullback, as some of my more prominent positions bled out, such as Flotek Industries, Inc. [[FTK]] and TEKELEC [[TKLC]] . However, for the most part, it was a non-event.

If and when the market dips, you will see me get aggressive, like a motherfucker inside a mother factory, whatever that means.

I bought 5,000 DryShips Inc. [[DRYS]] @ $6.90.

Disclaimer: If you buy DRYS because of this post, you will fall victim to a “midnight mugging.” And, you may lose money.

My DryShips Inc. [[DRYS]] is melting higher. I know the company is a piece of shit. However, if we are going to have some “good old fashioned Weimar Republic style inflation,” the shippers should catch fire, on the coattails of egregious commodity prices.

Without a doubt, the quality of like in America is about to take an oddball turn for the worse. Forget about such luxuries like health care and a military. We are going to be eating each other’s young, soon enough.

Taking a gander at the market, I am very much interested in the business software sector, due to m&a activity. “The Fly” is into that sort of thing, so have at it.

Within the sector, the following names interest me, based upon valuation:

Patni Computer Systems Limited (ADR) [[PTI]] , Cognizant Technology Solutions Corp. [[CTSH]] , ArcSight Inc. [[ARST]] , Amdocs Limited [[DOX]] , Tibco Software Inc. [[TIBX]] , CSG Systems International, Inc. [[CSGS]] , Sapient Corporation [[SAPE]] and Cogent, Inc. [[COGT]] .

With my cash position, as you know, I am waiting to buy into a slew, mind you, of foreign stocks. At the very top of my list is Aixtron AG (ADR) [[AIXG]] ; but the corn on the cocks will not come down.

All in all, I am having a grande [sic] day, despite dealing with people who think “The Fly” is a backwards rube.

Top picks: [[MWW]] , ADTRAN, Inc. [[ADTN]] , DryShips Inc. [[DRYS]] and Flotek Industries, Inc. [[FTK]]

“The Fly” doesn’t care about your penmanship. He doesn’t care about your ability to absorb information and if you are able to make money in the market. I blog here, daily, to write. I just let it flow, from the lower left part of my brain to the internets, for all the world to see. Unlike most bloggers, I have a job, that pays me a great sum of money—to do what I was born to do: manage money. So, don’t come here asking for handouts or advising me how to teach you better. Le Fly is light years ahead of the competition—just watch and absorb.

Early going, I see the shorts in [[MCO]] are being flame broiled, while the longs in Synaptics, Incorporated [[SYNA]] are getting slapped with hot slices of pizza. For the most part, tech is weak and precious metal stocks are strong. What’s odd, treasuries and the dollar are strong, while gold is up. Something is amiss in Fucktown, USA.

Once again, with my money, I am siting tight. Over the past week, I added four small positions, [[MWW]] , IAC/InterActiveCorp [[IACI]] , Sociedad Quimica y Minera (ADR) [[SQM]] and ADTRAN, Inc. [[ADTN]] . For now, I am content with letting what I have work, while waiting for a fucking pullback. I’m not looking for a catastrophe, just a decline of 3-5%.

Nonetheless, you know how the story goes: wait for a pullback, get a KUNG-POW karate chop to the neck.

First name Henry, last name Fool. His blog, which was carved out with the shards from his bones, is set to launch on 10/1.

Additionally, Mr. Woodshedder’s system trading splendor is almost ready for public consumption. This is the type of product that can be sold to wirehouses and hedge funds for millions, yet you ingrates will get it here, for fractions of what you should be paying.

Finally, “The Fly” is looking to hire (that’s right, I fucking pay my bloggers, unlike others) a high quality blogger—a person who knows stocks and can write in english, coherently.

All developing, as always.

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Recently, the market has been flooded with successful ipo’s, mergers and junk bond sales. Take a look at this junk bond etf, [[JNK]] , on fucking fire. Year to date, the market has absorbed 100’s of billions of new low quality paper, effectively bailing out everyone. If you take a step back and think about what has transpired, over the past 6 months, it’s truly amazing.

The architects of this economy, The Fed, won. They defeated all of the cancerous doomsday circle jerkers and gave this stupid country a second chance to get it right. Naturally, we will fuck it up, just like the tv, automobile and refrigerator; but at least we have some time to get high and fat, before we are sent to Chinese prison factories.

With rates at zero, investors are buying up toxic assets. That’s right. There is demand everywhere. Do not be surprised, sometime soon, to hear of “mark-ups” reported by our dumbest banks.

With regards to m&a:

Inside of two weeks, two IT companies were bought out, first Perot Systems Corporation [[PER]] , now Affiliated Computer Services, Inc. [[ACS]] . If I had to take a wild stab, I’d say Computer Sciences Corporation [[CSC]] , Syntel, Inc. [[SYNT]] , Acxiom Corporation [[ACXM]] could be on the block. For a dice roll, take a looksy at Unisys Corporation [[UIS]] .

As an aside, with Omniture, Inc. [[OMTR]] getting bought out, ValueClick, Inc. [[VCLK]] , Marchex, Inc. [[MCHX]] , IAC/InterActiveCorp [[IACI]] or [[MWW]] are “potential” buyouts. Like I said earlier, the “net” is back, with great veracity.

Bottom line: Wall Street is back and there is nothing you or your stupid friends can do about, as long as money is cheap and cocaine is available. As the market rises, companies will get aggressive and buy each other out, like cannibals without food. All in all, barring a normal correction in the indices, I can’t think of a reason to get short for the remainder of 2009.

Buy the junk; position for more deals. Ahhh, it’s like 2006 all over again.