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Protecting and preserving capital over the long term is more important than growing capital. Particularly devoted to researching cheap stocks of high quality companies, GARP stocks, Magic Formula names, and stocks trading below intrinsic value. Participate long only without hedge when overall... More
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  • Trading Poem
    Trading Thoughts for June 2,

    In the 3rd year cycle
    But stocks are overvalued
    POMO’s still roaring
    Stay diversified and boring
    Don’t trust everyone’s books
    Just because it’s cheap
    They may well be crooks
    What they sow they will reap
    Don’t bet on the Kindle
    Ammy’s PE is too high
    Don’t bet on the Nook
    Barnes and Noble might die
    the market is rigged
    and Bernanke’s your god
    If they get busted for stealing
    SEC gives both a wink and a nod
    Make sure to be hedged
    The ponzi’s near dead
    Because of Fukushima
    You may want to wear lead
    You likely want justice cause they stole all your loot
    They will just blame the bad market
    And unzip their gold parachute

    Watch those Levels Me Hedgephones!
    SPX 1315 — 1320 — 1331 — 1340
    QQQ 57 — 57.27 (100 day) — 57.43 — 57.64 (50 day) 58

    Jun 02 11:51 AM | Link | Comment!
  • Salesforce is Priced for Perfection and Beyond....
    Cheaper Cloud Plays than or Other Cloud Bubble 2.0 Names

    Salesforce isn’t the only cloud computing stock out there, it’s just the most overvalued… Here are a few good altenatives or for the more adventurous investor, a good list of longs for a cloud pairs trade with CRM as your short hedge.

    EBIX — 12X earnings, 25% historical growth, stock is off around 30% in the past three months, oversold RSI, strong market position in Insurance industry… good way to play the growth of database storage without the high PE (albeit lower absolute growth at present)

    FFIV — 46X trailing earnings, 25X forward earnings with 25% projected growth rate this year and next. Makes the internet faster and better… cloud play derivative trade.. better than CRM and cheaper than VMW, etc…

    GOOG — Google is the ultimate cloud stock! No one get it that Google IS the cloud, but eventually they will.. 20X trailing earnings and 13X forward earnings…Cheap growth stock.

    AAPL — Apple intorduces its entry into the cloud space today, and the stock trades for just 16X trailing earnings and 11X forward earings.

    VMW — 36X forward earnings 100X trailing earnings, with EMC buying a controlling interest and picking up more shares almost every day…

    ORCL — Inveneted cloud computing and taught Benioff everything he knows… calls Salesforce’s valuation “rediculous” and says the company “earns very little money.”

    Jun 01 8:55 AM | Link | Comment!
  • Thoughts on Inflation and Innovation...
    Thoughts on Truthiness, Banana Politics, ShwagFlation, InnoFlation, and Ipodification

     Luckily there is no inflation these days — stocks are in a raging bull market because the American Economy is booming and and the “innovation” that we need to “grow our way out of this” has gotten a big boost from Bernanke and thhe Fed backstopping the labor market. Thank goodness the central bank has such a warm hearted outlook and approach to saving the nation’s poor — the more “accomidative” he is, the better off the poor are due to the Phillips Curve. Yes, the Phillips Curve, the infinitely reliable tradeoff between inflation and employment that has driven every central bank decision in America since we learned our lessons from the Great Depression…

    Read the rest of this article at

    May 28 6:51 PM | Link | Comment!
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