Friday, March 19, 2010

BAGAKOAA March 19, 2010 SALVE LUCRUM update


 March 19, 2010 SALVE LUCRUM update

Sorry, as technical issues kept me from posting on the 18th.

It’s been a couple of weeks since I gave an update of the Salve Lucrum portfolio so here are some of the latest trades. As mentioned I closed out my position on that CHIO Chinese on line insurance company. I have moved it to my watch list. I took some nice profits on a Juniper Networks July 29 dollar call as well as a June $15 dollar Denbury Call. Got a nice dividend on my MCD holdings, got an interest payment on my Zion Bank bond, added to my position on RPM (parent company of DAP caulking products), continued adding to my position in INSM, on the morning of the 17th, I bought 5 June $62.50 TEVA calls. I did not know about the possible merger that actually happened today. Both my long position and this call looks very pretty right now. By most accounts, TEVA is the best of breed for generic pharms and has great international exposure. I closed out me march 20th call position on Best buy with a 97% loss. That is my worse loss of the year, and it was a dumb investment done with out enough homework. If I had read the 3rd quarter earning report, it was pretty easy to see the margins trends going in the toilette. BBY was forced to compete with WMT on their big screen offering and it sucked the life out of their profit. I assumed with Circuit City OOB that BBY had clean sailing for the Holidays. I ignored the WalMart factor. Shame on me. I also added to my position in KTCC which offers electronic management services such as product design, surface mount technologies for printed circuit board assembly, tool making, precision plastic molding, liquid injection molding, automated tape winding, prototype design, and full product development. This 6 dollar stock has an intrinsic value of about 12 bucks. Do your own homework on this one as it is small cap. I added to my position in TQNT, Triquint Semiconductor. Management made a favorable forward looking comments about future earning pegging it at 11 cents a share versus the 9 cent consensus. If that 11 is conservative and most magament is conservative when making forward looking comments. TQNT could crawl back to 8.20 a share in the few weeks. I also added to my already large position in ARMH out of the UK. This very special chip maker is getting to be the darling of the smart phone industry. There is one portfolio in the Uk which I provide tutelage on where the actual company (ARMH is a US ADR- An American Depositary Receipt (or ADR) represents ownership in the shares of a non-U.S. company that trades in U.S. financial markets.-Thank you Wikipedia) is up 38% since last September.
I mentioned the TEVA Play but it is worth noting that the 5 Billion acquistion of Ratiopahrm should help the compnay long term. It really enhances their international exposure as Ratiopharm is very strong in Russia, Spain, France, Italy, as well as Canada. While it seems like big bucks, TEVA has had bigger acquistions. They bought Barr Pharm for 7 plus billion way back when and it turned out to be a great acqusition. Ratiopharm should be just as beneficial.

On Wednesday I called an S & P to the upside by 9 or so points and pretty much nailed it. I was expecting something more exciting today. The jobless claims weren’t as good as many had hoped but they are still headed in the right diocrection. The feds busines indicator were positive but we got no po from it. Inflation is non exisitant. I had suggested last Sunday night we would see a subtle but measurabel increase in the Consumer Price Index. It was so subtle it was not measuable. It is about as flat as flat can be. Not to worry about inflation. Then there were some earnings reported today. Of note, Nike is liking Tiger and people are liking Nike. They blew away street estimates by 21 cents or so. This is much more fun when I rpedict these things. Also my son may have been wiser than I. Game Stop had a good earnings call and although we are all of of the GME position,It was up 6.5% today to 21 and change. I still feel that cloud computing especially by gaming houses will do to GME what Netflix did to Blockbuster.

If I don’t post, have a great weekend.

Salve Lucrum


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