Monday, May 24, 2010

BAGAKOAA May 24, 2010 Today was worth wining about


May 24, 2010 Today was worth wining about

Even a real robust existing home sales report could not get the market happy today. Ever heard of CajaSur bank in Spain? You will. One of Spain’s oldest banks asked and received a bail out today. That took down every sector in the market today except wireless services and health care. Gold and Silver was up as well as the VIX.

So again what do you do in these turbulent times. Read and watch Cramer. He is entertaining and he is knowledgeable. Friday’s show, which I caught yesterday, was actually very good. He explained how good stocks can, and do, get hammered in the downward momentum of a crazy market like this. If you didn’t catch it its worth downloading on your iProduct. BUT, be careful as he actually suggested buy BP Petroleum. I got stopped out when the spill happened and it ain’t recovered yet. That is an unusually risky play he is suggesting, but if he is right there could be money to be made. ONLY use the Vegas money on that play.

I just got my renewal notice for the American Association of Individual Investors. I recommend you look into the association if you are serious about investing, if you have a portfolio of at least 20-25 thousand and don’t mind doing the hour a week of homework on each stock you buy. The association’s on line and paper products are informative, easy to understand and if you want and need the group hug thing they have chapters all over the place.

In the last (May) issue of AAII Journal there was a great article about Benjamin Graham (mentor of Warren Buffet and co-father of value investing- long with Dodd) and his last will and testament that was actually a project with a guy named James Rea to create a simple but powerful screen for high value stocks. The 4 page article is interesting and informative, but does require some stop and thinking. There are no holistic screeners out there to execute the screen so AAII has them on their website. Membership for the enhanced (On Line) membership is $59 a year and well worth it.

The Salve Lucrum Portfolio added to AAPL today, but that was about it. Excuse me, we bought some long term calls on a 20.00 INTC. We need a 22.35 Intel to be in the money. In a couple other portfolios, where there is more risk tolerance, we strengthened some GLD and SLV positions. We also added some IBM and INTC.

As I am putting this post to bed there are big concerns about N Korea and Korea coming to fistacuffs.  I can't believe China won't step in a bring some reasoning to the table, but it will be a very rocky start tomorrow morning.

Other than that, I can’t say anything good about the market right now. Only buy if you have to, and really do your homework. My mom always said, “If you can’t say anything good about the market, talk about wine.”

Last night Devin and I were at a fund raiser for children in need of Southern California. We were treated to a great glass of Chardonnay. The 2007 Chateau Montelena Chardonnay was exceptional. If blindfolded I would have taken this to be a Big French White Burg. Pale yellow in the glass with just enough viscosity to track. There were florals and mineral in the bouquet. Had a hard time placing the mineral aroma till someone suggested chalk. On the tongue, there were peaches, a little nectarine, minerality, and it had a nice finish. It was served with a well paired Ahi Tuna starter. You should be able to find this retail for about $40-45 dollars. Simply amazing.

Let’s hope for a better day tomorrow, but as two financial pundits said today. No one knows where this correction is going to end. In the meantime, read up on shorting stocks.

Salve Lucrum


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