Timmothy Posey

Monday's Options Recap

Roubini has been predicting a recession and Dow 5k since 1997. I think everybody has forgotten he is a pariah and has only gotten attention lately because he was finally right about an oncoming recession.

Even a broken clock is right twice a day.

Playing the Auto Bailout With Yields as High as 45%

This is TOO risky. It is almost like some binary gambling option, where the speculator wins or loses it all. If you want something without the binary option, take a look at high yield corporate debt. An etf like JNK or HYG offers plenty of yield and capital appreciation opportunity without the do-or-die mentality that this author writes about here.

Movie Gallery and GM: What Happens When You Have Too Much Debt

GM and MOVI are both flawed "Old Economy" businesses. GM still tries to push SUVs and Trucks down on consumers, yet Toyota, Hyundai, and Honda are pushing more fuel efficient cars. GM says its "impossible" on current technology to get 40mpg, yet the Toyota Corolla has been doing it for years on a standard 4-cylinder engine.

As for Movie Gallery, buying Hollywood Video was a dumb move and now they are paying for it. The rental business will NOT be around 15 years, as direct downloads will take its place. Currently, you can rent the same movie from Movie Gallery for $3.99 (nearly same price) on XBox Live Marketplace, or watch it over the web on NetFlix.

Both GM and MOVI will have to get with the 'times' if they want to survive in the next 10 years.