Thursday, October 22, 2009

BAGAKOAA October 22 2009 FLIR HBAN HAS BKE ARMH and other stuff

BAGAKOAA October 22 2009 FLIR HBAN HAS BKE ARMH and other stuff


October 22 2009

There was a lot of action the last few days in my portfolios.  You’ll be updated in a minute about that , but first let me tell you about the reading I’ve been doing.

The book Getting Back To Even, by Cramer is good, not great just good.  You can tell by the company references he uses he wrote this circa April-July this year.  It was a volatile expanding market at that moment.  We are now settling into what many are considering a 3-5 years secular growth market.  (I still think we are do for a correction by years end, but we’ll see.)  Anyway, about the book I would recommend you get Real Money by Cramer if you have not already read it and then you will benefit more from Getting Back to Even.  If this is truly a secular growth pattern we are entering, overall you’ll get more out of Real Money book than GBtE.

Here is how it might be described in terms of religious publications.  Security Analysis by Graham in 1934 would be the equivalent of the Papal Vulgate written by St. Jerome in the 5th century and would become the basis for the King James Bible of the 17th century just as The Intelligent Investor by Graham and Dodd was based upon Grahams earlier work.  Now as many theologians used the KJ Version of the bible to create their own interpretations and bible studies, Cramer uses Graham and Dodd books as the foundations for his show and his own publications.  Did I just compare Cramer to a theologian?

Ok, yesterday the Federal Reserve released the latest issue of the Beige Book.  Here is a link to it if you want.

BTW, it is available in a PDF format so you can send it to your Kindle for reading later.  Yes Ben M, not Bernanke, I do need a life.  Words like moderate improvement and stabilization are followed by depressed levels, so it only did a little to tickle the market.  Baron’s summed up the report much better than I: “Overall, the Fed's Beige Book reports a sluggish economy that is slowly moving along recovery. Sectors are mixed with the consumer sector soft but stable. Housing is improving from low levels of activity but commercial real estate appears to be in decline. The biggest positive is the moderate rebound in manufacturing. With few signs of inflation, the Fed is able to maintain its current policy stance-very low interest rates-for some time. Today's Beige Book does little to change the view that the economy is in a slow recovery.”

In a quick review of what I did in my bag of tricks over the last week, I added to my positions in HAS, TGT, AMT, TPI, ARMH, GOOG, BKE (New position this week), RIG, CHU, MTNOY, and VALE.

I stopped out or took profits in HBAN, GME, GS and EBAY.  I stopped out of EBAY and do not know why it crumbled as it did.  More homework tonight.

There was a energy grid stock mentioned by Cramer last week called Itron Corp.  They make remote read metering systems for the utility companies.  The market is huge as there are 250 million plus meters and only 7% are currently remote readable.  I do not own this and have NOT done the homework yet so if you get to it before me leave a note on my blog.

The mortgage banking info release yesterday was not positive and will be followed tomorrow by existing home sales figures which will probably not be impressive.  Check you stops and protect your gains. 

I have not gone through the notes from the SEC investigation of Galleon, but will do so over the weekend and let you know if I found any inside insider trading secrets.

Salve Lucrum



Post a Comment

<< Home