Wednesday, February 24, 2010

BAGAKOAA Feb 24, 2010 CRM and SL Update


 Feb 24, 2010 CRM and SL Update

Well, Bernanke said nothing and that was good. It gave this rally a little more room to grow. Unfortunately it bumped the dollar so commodities got a bit cheaper and energy stocks went down. RIG was down about 4 bucks today. What does that mean? BUY BUY BUY!. I did.

What else did I do? Well I think we are out of our sideways stuck in the mud market that started on January 26th. I am thinking rally monkey (got better seats this year at the Angels Stadium-but I digress-oops wrong blog The rally started on the 19th of February so I have been buying. You will get a Salve Lucrum Update once all the chips settle, but here are some of the trades over the last several days.

The Feb 20 Call Options on RPM, parent company of the famous DAP caulking materials, was exercised at 17.50. I lost money on the calls but it is good to have this stock. There is some more COCO in the SL portfolio having been added on three occasions this week. Please take a look at this stock. This has made a nice run to 15 but I am thinking its 28-30 by summer. I added to my position on NEWN, but this is a very speculative play on lithium batteries, only the brave and stupid need apply. I got some more TELT, and if you think NEWN was speculative, TELT makes NEWN look like (I guess we don’t have any sound big name blue chips stocks to fill in the blank anymore?) Anyway its as close as I get to a penny stock. I added to my position on Intel and RIG. I got out of VZ. Verizon fell through an important barrier at 29.69 and I don’t see where the bottom is at this time. I took it out of all the portfolios. I also took my lumps on the VZ calls I had. If you heard a scream earlier this week it was when I took my hits on CHU, the stock and the calls. This hurt and if I look back in a year or so I hope I turn into a pillar of salt. Since I was into pain yesterday, I also took my medicine on a group of calls that were killing me, like a March call on MELI, Mexico’s answer to Amazon, NOT!.

I then regrouped and started a new position on CNXT. While this is another chip play I like it because of the international exposure. Look for this 4 buck chuck to get to 7 by years end.

Then you can call me Bond That’s Corporate Bond. I had to park some cash for a while, a long while I hope so I did some Bond hunting. Most of these are 6% callable bonds maturing in 5-15 years, junk rated. I got some Ford Motor Credit, Zion National Bank, and CitiGroup, all yielding between 7.2% and 8% to maturity.

Today I took a loss on a May call for United on Line UNTD? I don’t even remember why I bought it in the first place. To quote one of our seasoned sales people, “I may have been drinking at the time.” I am back into HAS. This has got legs to 40 easy and I am back in. I also added more COCO and BA today. Because I am convinced we are in a hopefully long rally (2-3 months maybe), I bought the burger, that’s right MCD. I think its channeling days might be over for a while and 78-80 looks doable in 12 months. And yet another chipper, TQNT. Very speculative, but into Bluetooth technology and wireless home network products. DO YOUR HOMEWORK. And a stock I did quite well on earlier in 2009, TEVA looks like a double to me. Ok maybe not a double, but 90-100 in a year. Generic drugs baby, that’s what they are all about.

So remember what I said in January, we needed consumer spending and housing improvements to get a year long rally going. That would be the 19% upside on the S & P I suggested in early January. We are not getting yet, YET, but we have some nice tells that as of the 19th of February kicked of what I think is a reasonable sustainable rally.

Salve Lucrum


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February 25, 2010 at 11:11 AM  

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