Fly Buy: ALU

I bought 100,000 Alcatel-Lucent (ADR) [[ALU]] @ $2.60.

Disclaimer: If you buy ALU because of this post, your dog will die. And, you may lose money.

Before I rant, here are the moves made to the portfolios this morning:

Sold out of salesforce.com, inc. [[CRM]] @ $43.70’s
Sold 20% of ADTRAN, Inc. [[ADTN]] @ $25.10’s
Sold 25% of Atmel Corporation [[ATML]] @ $4.18
Sold 20% of Ciena Corporation [[CIEN]] @ $10.80’s
Sold 30,000 [[ENTR]] @ $3, holding lots more
Sold 20% of Corning Incorporated [[GLW]] @ $16.90’s

What other website gave you picks like that above? Tell me, you fucking ungracious bath tub scrubbers. Let’s have more Flotek Industries, Inc. [[FTK]] discussions, shall we? Or, instead, let’s have some back handed remarks floated around, about other stocks that went down (God forbid) after Senor Tropicana blessed it with his magic wand. While everyone else told you to “be careful” and act like a hermaphrodite, “The Fly” told you to “put your balls on the guillotine,” and bank some coin like a man.

Luckily, I have a higher echelon audience, in The PPT, where throwing meatloaf at one another is strictly prohibited. In there, believe it or not, we actually talk about stocks, nothing else.

Coming here, onto iBC, is sort of like being in the back seat of a black car, while passing by Harlem, where I point at the burnt down buildings and sort of just laugh about it with the kids.

Honestly, most of you are undeserving of my advice, since you are retarded in the first place. Most investors that I meet are lacking ball size or brain capacity. Most people never have the right amount of balls and IQ to make a serious run at this market.

With my money, I decided to raise some cash, via booking profits in a variety of names (see above). Additionally, I am eagerly anticipating earnings from Starent Networks Corp. [[STAR]] tonight. In my opinion, they will blow past the estimate of .17. But, after such a big run up, I am hesitant to buy it now. Instead, I might just load the fuck up on STAR‘s biggest competitor, Alcatel-Lucent (ADR) [[ALU]] . In an oddball way, owning ALU is a hedge against STAR. In short, STAR is a main player in the 3g/4g rollout, occurring world wide. They have an 80% market share lock on the mobile core router industry (think iphone, bberry internet access). For me, STAR is the most important earnings story, whether I own it or not, with respects to my current investment theme.

(flicks ashes to the screen)

Developing…

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The “new economy” is well on its way to replace the old bullshit one. No longer do we need asshole brick and mortar companies. To live free, all we need is a good LCD teevee and a fucking smartphone.

Aside from the face punching I received in my Advanced Micro Devices, Inc. [[AMD]] gamble, I had a blissful day, with gains in just about everything, sans the bitch of a whore Flotek Industries, Inc. [[FTK]] .

Much to my surprise, numbers out of homebuilder, NVR, Inc. [[NVR]] were amazing. Can it be? Dare I say it?

I will not!

At any rate, while EVERY Tom, Dick and Harry waits for a market pullback, I continue to put my balls on the guillotine, via a large technology weighting. It’s amazing, frankly, no matter how well the market performs, some people ALWAYS highlight the negatives. These idiots always tell tales of “resistance,” whether it be on a 200 day, 50 day or 10 minute moving average basis. It’s easy to find and accentuate the negatives, masked through “technical analysis,” but hard to stick to a thesis with discipline and passion.The reality: people who use technical analysis are simply using a so-called “scientific method” to express their market bias. As a result, no two technicians interpret the market the same.

The purpose of my daily bashing of chart chompers is not to embarrass or belittle anyone, but to raise awareness to another form of investing, that entails the use of your fucking brain. Don’t become a lazy worshiper of idols and false profits. Investing is not about following the herd in and out of trades, but, instead, thinking independently using a thesis or a gameplan.

For now, my bias will remain to the upside, until the mood changes or the shadows near my favorite urinal tell me to sell.

NOTE: For the first time in internet history, “The Fly” accepted an online interview. Check it out.

I bought 2,000 Ceragon Networks Ltd. [[CRNT]] @ $7.19.

Disclaimer: If you buy CRNT because of this post, you will be afflicted with a form of impotence that is immune to viagra. And, you may lose money.

Before you know it, my favorite time of the year will be upon us: “DEACON OF DEATH SEASON” aka Hurricane Season. I’d be remiss if I did not prepare the iBC readership for ‘Cane of Death plays. For the love of waterbugs and rice, I even hired the services of a real life meteorologist for my reading satisfaction. As you can see, clearly, Senor Tropicana is not fucking around when it comes to the weather. It’s a pet peeve of mine.

God willing, 2009 will produce a hurricane season of sheer chaos for the natural gas industry. I would like to see a severe disruption, even a Force Majeure, strike at the hearts of the natural gas fuckers. As a whole, we’ve enjoyed exceptionally low natural gas prices for too long. I long for the days of $16 natty, indeed.

Generally, peak hurricane season arrives in late August. As an investor, you want to be long BEFORE the season begins; this way, you can blow the fuck out before it disappoints. So you know, barring a global warming special (Katrina), the hurricane season is always a dud. Nonetheless, investors get jacked up for it (pun intended).

Here is my list of hurricane/natural gas plays:

NGAS Resources, Inc. [[NGAS]] , Southwestern Energy Company [[SWN]] , Global Industries, Ltd. [[GLBL]] , [[UNG]] , Ultra Petroleum Corp. [[UPL]] , Arena Resources, Inc. [[ARD]] , The Shaw Group Inc. [[SGR]] , [[CLH]] , Natural Gas Services Group, Inc. [[NGS]] and BlueLinx Holdings Inc. [[BXC]] —just to name a few. As the season progresses, I will update with more picks. Obviously, the entry points into such said names are very time sensitive. So, I am sorry to say, you are going to need to log onto iBC—each and everyday— for the duration of your pathetic lives.

The 802.11n revolution continues with Atheros Communications, Inc. [[ATHR]] blowing the barn door off of earnings. Fresh reports from China point to continued demand for LCD screens. Aside from the usual suspects, Corning Incorporated [[GLW]] , LG Display Co Ltd. (ADR) [[LPL]] and AU Optronics Corp. (ADR) [[AUO]] , smaller/crazier names are worth a gander (I hate that fucking word and the people who use it). Both Advanced Energy Industries, Inc. [[AEIS]] and MKS Instruments, Inc. [[MKSI]] provide parts to the LCD space and are levered plays off the “front end” of the semiconductor equipment sector (Applied Materials, Inc. [[AMAT]] , Novellus Systems, Inc. [[NVLS]] , Lam Research Corporation [[LRCX]] ).

Another high growth company worth your watchlist is IPG Photonics Corporation [[IPGP]] . They are the market leader in “fiber lasers,” used for industrial purposes. Additionally, they produce a cheap green laser. Remember Microvision, Inc. [[MVIS]] ?

Right now, “Le Fly” is enjoying the luxuries of an egg omelet plastered on his face, thanks to his timely Advanced Micro Devices, Inc. [[AMD]] purchases. Nonetheless, like I said yesterday, I did not buy the stock for a day. I am in the stock for at least a quarter. Without a doubt, I will make money on AMD; watch me if you dare.

Into market strength, I like [[RAX]] , General Cable Corporation [[BGC]] and OmniVision Technologies, Inc. [[OVTI]] . I will avoid the banks like the Black Plague and continue to throw slices of ham at my monitor, whenever Flotek Industries, Inc. [[FTK]] downticks 5%.

Top Picks: Corning Incorporated [[GLW]] , OmniVision Technologies, Inc. [[OVTI]] , [[ENTR]]

Some of you industry insiders know of the subtle, but pervasive, moves by firms to limit the use of levered etf’s. At many brokerage firms, registered reps are not permitted to buy levered etf’s, without a written consent from the client, expressing full awareness that he will likely be wiped the fuck out playing with the devil’s tools aka 3x upside/downside etf’s.

At first, I was against banning the etf’s, due to selfish reasons. I am fully capable of trading The Great Fuckery, without getting 200’d to 2 inside of a short month. However, after speaking with numerous investors/friends about their experiences with those fucking products, I think the SEC should just wind down those black holes and eliminate them from the menu of bullshit that the average Joe and Jane intoxicate themselves with on a daily basis. Fact: people will NEVER fully understand how these products work, no matter how much Danny and Woodshedder explain the mechanics via spreadsheets. Joey Fuckoff, gas station owner from Jersey, does not have time to read iBankcoin.

I mean, really, it is incredibly irresponsible to launch 2x, 3x etf’s during this environment of deleveraging, effectively enticing the downtrodden retail investor into making big bold bets at a time when he can’t afford to lose anymore. Personally, I’ve refrained from using them for different reasons. Last year I found myself getting “cucumber lazy,” trading in and out of etf’s, while slacking on my research rituals. So, I made a conscious decision to lower the boom, by reducing my exposure to The RAPERY (FAZ, SKF, SRS, TNA, FAS), in exchange for singular publicly traded companies. What can I say, “The Fly” is olde [sic] school.

How many people bought SRS at $200+, went on vacation, then opened a brokerage statement showing an 80% unrealized loss?

Too many.

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