July 31, 2007


Stock Du Jour (LFC) & Random Observations

Kind of a flat morning then buying picked up in the afternoon… a decent day.

Notable New Lows: Vonage (VG) — is a Happy Meal about $2.40?; Gannett (GCI) — read that they recently boosted their dividend which horrified me; and Redwood Trust (RWT) — wonder if Wally Weitz still loves this one.

Notable New Highs: China Life (LFC), Intuitive Surgical (ISRG), and First Solar (FSLR).

I’ll feature a monthly chart of China Life Insurance (LFC) which has gone up a little bit these last couple years.

LFC

July 30, 2007


Most Desired Employers

Came across a couple of interesting lists in an article in the latest issue of Bloomberg magazine:

Employer Preferences, All Undergraduates

  1. Google
  2. Walt Disney
  3. Apple
  4. US Department of State
  5. Peace Corps
  6. Central Intelligence Agency
  7. PriceWaterhouseCoopers
  8. Microsoft
  9. Federal Bureau of Investigation
  10. Teach for America

Employer Preferences, All MBAs

  1. Google
  2. McKinsey
  3. Goldman Sachs
  4. Bain & Co.
  5. Boston Consulting
  6. Apple
  7. Microsoft
  8. General Electric
  9. Nike
  10. Bank of America

Source: Universum

July 29, 2007


Favorite Lines from The High Window

Here are selected bits that I liked from Raymond Chandler’s The High Window:

“His smile was as faint as a fat lady at a fireman’s ball.”

“… as thin as an honest alibi.”

“From thirty feet away she looked like a lot of class. From ten feet away she looked like something made up to be seen from thirty feet away.”

“I’d plug you as soon as I’d strike a match.”

“He looked as if he had been sitting there since the Civil War and had come out of that badly.”

“I stroked the bill with my fingertips, as if it was a kitten.”

“… a sound came out of him like a convalescent rooster learning to crow again after a long illness.”

“… old men with faces like lost battles.”

“… a voice that even whiskey had failed to improve.”

“We looked at each other with the clear innocent eyes of a couple of used-car salesman.”

“That would bother me like two per cent of nothing at all.”

“… as loud as a ton of coal going down a chute.”

“His face was as empty as my brain.”

“Breeze looked at me steadily. Then he sighed. Then he picked the glass up and tasted it and sighed again and shook his head sideways with a half smile; the way a man does when you give him a drink and he needs it very badly and it is just right and the first swallow is like a peek into a cleaner, sunnier, brighter world.”

“The limousine went past me making a noise like dead leaves falling.”

“… a plot with all the originality and drive of a split fingernail.”

“She had eyes like strange sins.”

“His voice cut through the muted rhumba music like a shovel through snow.”

“In my business tough boys come a dime a dozen. And would-be tough boys come a nickel a gross.”

“Class is a thing that has a way of dissolving rapidly in alcohol.”

“His face was like a vacant lot.”

“I could use a five-dollar bill so rough Abe Lincoln’s whiskers would be all lathered up with sweat.”

“You wouldn’t notice the colour of a hummingbird’s eye at fifty feet.”

“Except for her face she would have looked all right.”

“… as flat as a flounder.”

“I don’t give one little flash in hell about you any more.”

“… a hand as steady as a stone pier in a light breeze.”

“She’d have made a perfect nun. The religious dream, with its narrowness, its stylized emotions and its grim purity, would have been a perfect release for her.”

“It would take the Yankee outfield with two bats each to give her what she has coming from you.”

“… the quietly strained voice of a stage manager at a bad rehearsal.”

July 28, 2007


Gratuitous Cute Chick Pic — July 27, 2007


two birds nests are worth one in the bush



Stock Du Jour (TWM) & Random Observations

A more even start to the day then things went negative at around 11 AM and the selling was pretty bad, the close very weak.

Notable New Lows: Warner Music (WMG), Travelzoo (TZOO), Stamps.com (STMP), Realnetworks (RNWK), Six Flags (SIX), Cnet (CNET), Allstate (ALL), Qlogic (QLGC), and several Pharmas: Sepracor (SEPR), GlaxoSmithKline (GSK), Mylan Labs (MYL), and Forest Labs (FRX).

Notable New Highs: LDK Solar (LDK), Deckers (DECK), ArthroCare (ARTC), and Crocs (CROX).

I’ll feature the weekly chart of the UltraShort Russell 2000 (TWM), which like all the UltraShort ETFs had a very good week.

TWM

July 27, 2007


TGIF (II)


P. Peng at south beauty



Stock Du Jour (SDS) & Random Observations

Selling from the get-go and it was dramatic enough that my data is screwed up … the only comparably bad day this year I believe was on February 27.

Notable New Lows: Lots of REITs, Bancorps, and Homebuilders as usual … Krispy Kreme (KKD), TradeStation (TRAD), Alaska Air (ALK), Fortress (FIG), UTStarcom (UTSI), Foot Locker (FL), Office Depot (ODP) and OfficeMax (OMX), Tenet (THC), and E*Trade (ETFC).

(I’ll try to sit down this weekend and write a short thing making the case for some stocks to buy here … sentiment is a bit panicky and I see some deeply undervalued stocks out there.)

Notable New Highs: Slim pickings: Apple (AAPL), Crocs (CROX), F5 (FFIV), and Owens Illinois (OI).

I’ll feature a weekly chart of the UltraShort S&P 500 (SDS) … note the spike up back during February’s rout.

SDS

July 26, 2007


Continued Indefinite Rise

Shanghai Property Back in Vogue, by Denis McMahon

Chuckled when I read this bit:

The Shanghai branch of the China Banking Regulatory Commission said foreigners and nonlocal Chinese accounted for 34.4% of all residential-loan recipients in the city in June, up from 24.7% in December.

In July 2006, the government introduced rules stipulating foreign individuals could buy residential property only for their own use and only after they had lived in China for one year. Those rules were aimed at preventing foreigners from buying multiple properties for rental or resale.

Given limitations on foreigners buying Chinese stocks and bonds, real estate has been one of the few yuan-denominated assets in which foreigners can speculate on the Chinese currency.

“Even though some of the properties may end up with low rental yields, that’s fine as long as investors sustain the daily cost of the property,” like management fees and mortgage servicing, Mr. Eric Lee of Savills Property Services said.

“Hold the property for five years and between yuan appreciation, rent and asset appreciation, you could have an almost guaranteed return of 8% or 9%” a year, he said.

Whenever I hear the words “an almost guaranteed return of…” I put one hand on my wallet and begin to sprint.

Hold the property for five years and among yuan depreciation (due to social chaos), constant vacancy and asset depreciation (due to disrepair and paying a stupid price in the first place), you could have an almost guaranteed loss of 8% or 9% a year.


Stock Du Jour (AAPL again) & Random Observations

Tricky choppy nowhere day — an excellent time to stand aside or lose a little.

Notable New Lows: Lots of REITs, Jamba (JMBA), Fortress (FIG), UTStarcom (UTSI), Panera Bread (PNRA), Borders (BGP), and E*Trade (ETFC).

Notable New Highs: Biogen (BIIB), TheStreet.com (TSCM), IBM (IBM), Boeing (BA), Juniper (JNPR), and Amazon (AMZN).

Apple reported earnings and jumped after hours to a new all-time high.

AAPL

July 25, 2007


Checking on the Doomed Dollar

The US Dollar Index recently took out the monthly swing low from 2004 that everyone had his eyes on. Back in September 1992 the Dollar Index went as low as 78.19 (intramonth) … below that level is truly no man’s land. I’ve said it a thousand times and I’ll say it again: Maintain your USD short positions.

DXY

Related:

US Dollar Index - Bearish Any Way You Look At It
Slip Sliding Away

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