Wednesday, September 24, 2008

Presidential Address - Bush Actually Wasn't That Dad

I'm as much of a Bush basher as anyone. I'm not red or blue. I'm not a liberal or a conservative. What I am is fair.

So with that spirit, Bush did a very nice job reaching out to the people in one of the darkest times, and there have been many, during his administration. Facing a situation that would really hurt all of us, he delivered a speech that explained the situation, the consequences and what the solution would do in a clear and concise manner. The fact that he didn't screw it up is an indication of how serious this is.

So hang in there America, help is on the way. I just hope it got through to everyone as it did with me.

Tuesday, September 23, 2008

Inside the Oracle's Eye - What does Buffett See?

Warran just invested in a financial company. Wait, I thought the world is telling us that not the play to make. Especially a company that just got it's application to become a holding bank accepted. Don't get me wrong, I'm totally with WB on this play. I scooped up BAC back at 18 and added to my AXP position at 32. As he says time and time again, "be greedy when others are fearful..." his 5 million dollar play on Goldman Sachs should make that clear to us that the bottom is upon us. To add upon that point, don't forget he just purchased Constellation Energy Group (CEG) before he bought into GS.

So with that. Let's remind ourselves that this is where people put themselves into a position to really profit from the market. Great companies at amazing prices. Money talks and Warran's money speaks even louder. It's a calming message to the markets that "hey, we are at bottom and let's keep our heads, take a look at what's going on and start making some money.

So what have I been buying and watching?

General Electric GE - $23ish (22.16 - 42.15) 52 week high/low
American Express AXP - $31-32ish (31.68 - 63.63)
United Health Group UNH - $23ish (21.20 - 59.46)
Apple AAPL - $120ish (115.44 - 202.96)

Allied Irish Banks AIB - $15ish (14.22 - 53.00)
Humbodlt Wedag KHD - $18ish (18.11 - 45.74)

Constellation Energy Group CEG - $26.5 (13.00 - 107.97)
Goldman Sachs GS - $115 (85.88 - 250.70)
American Express AXP - He recently added to his position
Wells Fargo WFC - He recently added to his position

I'll personally will be looking for an opportunity to get into GS and CEG in the next week. Assuming Mr Market provides me with an opportunity.

Monday, September 22, 2008

The Full Short Sale Ban List

Wow, the world is now banning short selling. That's crazy.

If you were wondering what stocks are on the short-sale-ban-list like I was, here is a link.

The list is up to date as of today and has the 28 NYSE stocks added to it.


Thursday, September 18, 2008

The Eye of the Storm

Wow, the last few days have been incredibly exciting. For the rest of the market, it's absolute madness! Sheer madness. It's so bad it's driving straight men into each others arms. Watch the two guys in the background of the video.

For me, I haven't been this excited about the stock market in my 10 years of investing and trading. What's happening now is what every stock trading book tells you about. To paraphrase; "Be greedy when everyone is fearful and fearful when everyone is starting to get greedy." So everyone is saying that this is only the middle of the crisis, and while that may be true, there are a few things that are happening that are really encouraging me to start buying in force.

So while there are predictions that there are more disasters comings such as the fall of Citibank. Here are some reasons why I believe we are going to be ok moving forward.

1) The world is now serious about combating this. Today, the banks of the world combined together to build up 250 billion (and still growing, Canada just joined up) in money to calm financial markets.
2) Merrill Lynch, WaMu and all other distressed companies have already positioned themselves to be bought up or combined if the need were to ever arise.
3) Short Selling, which is one of the biggest contributors to this crunch, just had it's leash around it's neck tightened. In the US, you are not allowed to do any naked short selling anymore and in the UK, you're not allowed to short sell at all until next year. On top of that, the SEC is forcing all hedge funds to publish the list of all of it's shorts and frankly, that will be a big deterrent for those companies.

So with that, I implore everyone to keep their heads and just watch, soon enough things will be better.