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kmi

kmi
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  • "We don't want to sell in May and we continue to prefer cyclicals (XLY, XLI, XLB, XLE) ," says JPMorgan's Tom Lee, fully returned to his normal bullish stance. He notes client positioning is "dramatically different" from the heavily long stance of the last 3 years at this time. More, the downturn in gasoline prices could ad 50 bps to GDP in Q2, and the rally in high-yield suggests the economy is set to get stronger. [View news story]
    How do they correlate being long XLE with the position that "the downturn in gasoline prices could ad 50 bps to GDP in Q2"?

    Being long XLE should mean that they didn't expect gas prices to decline, no?
    May 3 08:19 AM | Likes Like |Link to Comment
  • Electric vehicle roundup: 1) Chevrolet Volt sales disappointed by falling 11% Y/Y to trail the Nissan Leaf and Tesla Model S, but GM thinks the Chevrolet Spark EV will fill a gap in the market. 2) Nissan (NSANY.OB) did sell 1,937 Leaf vehicles in April, but at what cost? Major price reductions on the model during the quarter have been reported. 3) As if Elon Musk doesn't create enough buzz for Tesla Motors (TSLA +2.5%) via his Twitter account, now Bloomberg is upping the ante by throwing out the idea in a speculative article that Apple should buy the automaker. [View news story]
    Everything the Bloomberg article suggests Apple could offer Tesla in a merger is either already available elsewhere or in development, and not revolutionary at all.

    The belief is that Apple would simply do it better. Well, let's see how they fare on TV and watches first, shall we?
    May 2 02:11 PM | 1 Like Like |Link to Comment
  • Gold Hasn't Lost Shine For Some: Why ETF Holdings Aren't The Whole Story [View article]
    The argument being made lately is that QE is having a de-flationary impact on market dynamics; and it makes sense:

    Low rates encourage borrowing to invest, most of which has gone to productivity enhancements instead of employment growth, which has driven down costs. Meanwhile in the global quest for yield, money is being driven into dollar denom assets, further pushing down rates, exiting non-productive assets like commodities, and reinforcing the whole process virtuously.

    It's been 5 years now since QE was turned on and the scary hyperinflationary scenarios expected and feared have yet to materialize.
    May 2 01:10 PM | 1 Like Like |Link to Comment
  • Gold Hasn't Lost Shine For Some: Why ETF Holdings Aren't The Whole Story [View article]
    I posted this elsewhere, but I suspect this is a good comment thread for it as well:

    FT's alphaville has an interesting write up on Gold's selloff, the backwardation of the futures curve, and spot demand for physical.

    Regular followers of that site will note that columnists there have been drawing deflationary conclusions from market activity, and have been drawing the same from Gold's current performance. It's a very interesting read:

    http://on.ft.com/10utToK

    "In reality, since gold is a highly financialised commodity, the backwardation signal doesn’t actually indicate the bullishness they imply it does. Rather, it suggests something entirely different: that interest rates in conventional money markets are turning increasingly negative."

    Read more at the link above...
    May 2 01:04 PM | 1 Like Like |Link to Comment
  • Gold (GLD) may have had its worst month since December of 2011 in April (-7.8%), but the metal rose for the seventh time in nine sessions Tuesday and looks to remain strong for the remainder of the week as investors expect the Fed and the ECB to stay the proverbial course in terms of accommodative monetary policy. Traders will be watching the Fed's tone as it wraps up its two-day policy meeting today and will keep a close eye on Mario Draghi tomorrow, as weak unemployment data and tame inflation in the eurozone have fed speculation of an ECB rate cut. [View news story]
    FT's alphaville has an interesting write up on Gold's selloff, the backwardation of the futures curve, and spot demand for physical.

    Regular followers of that site will note that columnists there have been drawing deflationary conclusions from market activity, and have been drawing the same from Gold's current performance. It's a very interesting read:

    http://on.ft.com/10utToK

    "In reality, since gold is a highly financialised commodity, the backwardation signal doesn’t actually indicate the bullishness they imply it does. Rather, it suggests something entirely different: that interest rates in conventional money markets are turning increasingly negative.

    That’s not to say that the signal is uninteresting. It is interesting — but it’s interesting because it suggests gold collateral markets are telling us that real-world rates (as opposed to those publicised by the Fed) are more negative than we think they are.

    The Fed (and other major central banks), in other words, is fighting an increasingly difficult battle to prop up short-term rates."

    Read more at the link above...
    May 2 08:30 AM | Likes Like |Link to Comment
  • Auto sales are being driven higher by a recovery in the housing market and the wealth effect of a percolating stock market just as much (if not more) than pent-up demand, according to analysts. The average age of vehicles on the road has actually increased to 11.2 years from 10.8 years, giving some indication that perhaps "hundreds of thousands" of units need to be replaced. What to watch: All the major automakers report April U.S. sales numbers today with expectations running high that milder weather and new models on the market boosted sales. [View news story]
    Nissan's promos for the Leaf detailed electric efforts going as far back as 50 years ago.

    40 years ago, the battery technology modern EVs rely on -lithium-ion- didn't exist, and the battery technologies available were not up to the task...
    May 2 08:15 AM | Likes Like |Link to Comment
  • Nymex crude settled -2.6% at $91.03 after today's inventory report revealed crude stockpiles climbed to 6.696M barrels, a record high dating back to 1982 when the EIA began tracking the data. E&P equities took a beating, from higher-beta names such as QEP Resources (QEP -6.1%) to giants such as Exxon (XOM -1.6%) and Chevron (CVX -1.4%). (ETFs: USO, UCO, OIL, BNO[View news story]
    We are indeed dependent on imports, but it gets tricky when you realize how much of our imports are Canadian.

    We have all but eliminated Nigerian imports, what's left of imports from regions unfriendly or unstable isn't much.
    May 2 08:11 AM | Likes Like |Link to Comment
  • Nymex crude settled -2.6% at $91.03 after today's inventory report revealed crude stockpiles climbed to 6.696M barrels, a record high dating back to 1982 when the EIA began tracking the data. E&P equities took a beating, from higher-beta names such as QEP Resources (QEP -6.1%) to giants such as Exxon (XOM -1.6%) and Chevron (CVX -1.4%). (ETFs: USO, UCO, OIL, BNO[View news story]
    And US outproducing SA for 3rd month.

    http://bit.ly/105FtaK
    May 2 07:20 AM | Likes Like |Link to Comment
  • Congressman Mel Watt of North Carolina looks to be the President's choice to replace Ed DeMarco as head of the FHFA. Getting rid of DeMarco has been a popular idea among many in the Administration as he has consistently blocked plans to implement some sort of principal forgiveness program for underwater homeowners. [View news story]
    Don't get me wrong, I don't believe in principal forgiveness for the most part as I believe that's just another avenue for those morally bankrupt to game the system, but I was in the thick of it when housing imploded and I have a hard time buying the schtick that banks aren't the most blameworthy.
    May 1 10:58 AM | Likes Like |Link to Comment
  • EIA Petroleum Inventories: Crude +6.7M barrels vs. consensus of +0.7M. Gasoline -1.8M barrels vs. consensus of -0.6M. Distillates +0.5M barrels vs. consensus of +0.3M. Crude -2.65% at $90.95. [View news story]
    Brent-WTI under $10, I doubt it breaks $8 but you never know.

    $8 is about what it costs to rail to Brent priced markets in the US (East Coast) over piping to WTI.... this is getting interesting.

    I guess it's possible we see one more bounce to 92 or so but we are definitely in a strong downtrend now....
    May 1 10:52 AM | Likes Like |Link to Comment
  • Congressman Mel Watt of North Carolina looks to be the President's choice to replace Ed DeMarco as head of the FHFA. Getting rid of DeMarco has been a popular idea among many in the Administration as he has consistently blocked plans to implement some sort of principal forgiveness program for underwater homeowners. [View news story]
    eric, I would like to see how well you perform in a basketball game against NBA players. Because fundamentally, that's what you are describing. Borrowers for home loans are typically the least sophisticated people in the room. The claim that banks were robbed is ludicrous. With all their resources, they couldn't figure out who was creditworthy and who was not? I call BS. Biiiiiiiig BS.

    Bank apologists are good for laughs.
    May 1 10:28 AM | Likes Like |Link to Comment
  • Electric car maker Coda files for Chapter 11 bankruptcy after selling only one hundred units of its all-electric model. The company aims to come out the other side of bankruptcy as an energy storage firm. The development effectively leaves Tesla Motors (TSLA) the last automaker standing out of a promising California-based EV trio that also included Fisker and Coda. [View news story]
    Absolutely agree with most of your comment, I also think EV buyers want something stylistically standout and Coda was anything but.

    The only quibble is I think Tesla's method of introducing high margin low volume vehicles at the start and migrating to high volume low margin products as costs decrease in the face of volume made all the difference.

    This has only hurt them in that there is some perception that Tesla is set up for, and only wants to, cater to the wealthy, which was never the intent - unlike Fisker. But perhaps this will help down the line as the brand is identified as a Premium marque.
    May 1 09:53 AM | 1 Like Like |Link to Comment
  • Gold (GLD) may have had its worst month since December of 2011 in April (-7.8%), but the metal rose for the seventh time in nine sessions Tuesday and looks to remain strong for the remainder of the week as investors expect the Fed and the ECB to stay the proverbial course in terms of accommodative monetary policy. Traders will be watching the Fed's tone as it wraps up its two-day policy meeting today and will keep a close eye on Mario Draghi tomorrow, as weak unemployment data and tame inflation in the eurozone have fed speculation of an ECB rate cut. [View news story]
    With S&P breaking 'records' and Gold/commodities in decline it's really only a matter of time...
    May 1 07:49 AM | 1 Like Like |Link to Comment
  • Electric car maker Coda files for Chapter 11 bankruptcy after selling only one hundred units of its all-electric model. The company aims to come out the other side of bankruptcy as an energy storage firm. The development effectively leaves Tesla Motors (TSLA) the last automaker standing out of a promising California-based EV trio that also included Fisker and Coda. [View news story]
    Coda actually made a nice product, it's weakness was in that it could not float it's way to profitability because of its business model. It's sort of a shame really.

    Fisker's business model is what did that company in, and arrogant management.

    Tesla started with a viable business model, and that's why it's still here. Testament to Elon Musk's competence that Tesla is the first US automaker to appear and succeed in a half century or more.
    May 1 07:49 AM | 6 Likes Like |Link to Comment
  • "In five years I don’t think there’ll be a reason to have a tablet anymore." Those comments from Thorsten Heins have set the tech press abuzz. Many note Heins' remarks, which follow past comments about BlackBerry (BBRY +4.3%) taking a cautious approach to tablets, seem strange given the market's staggering growth. But an explanation appears to lie in March remarks from Heins about BlackBerry pursuing "a mobile-computing experience" that allows users "to carry one computing device." Instead of competing in a hotly contested tablet market, BlackBerry seems to be pushing a vision of (BB10) smartphones paired with PC/tablet docking peripherals. Time will tell if they'll be more successful here than Motorola[View news story]
    My primary concern with BBRY's future is the departure of Lazaridis...

    But so far I am quite impressed with Mr. Heins.
    Apr 30 09:07 PM | 1 Like Like |Link to Comment
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