Sunday, October 21, 2012

A few observations

So this past Friday was pretty bad, but Fridays have been bad lately and this past Friday was an options expiration day. Big deal. If you need further proof that the market is crooked, then look at what continues to happen with VVUS. They got news that they probably won't get approved in Europe and the stock wasn't cut in half. In addition, we've seen no sales data yet, but bloggers and traders keep the shares propped up. It's like a case study in dubious market behavior. Oh well, at least we know and we aren't part of the clueless masses.

This market continues to confuse and interest me, as while the S&P is near it's high even with a questionable economy, resource stocks have yet to join the party. I wonder what happens if they take off. Does the S&P go to 1600? I'm still uncertain whether or not we have lift off on our coal and ore stocks. They're up nicely lately, but we'll see.

Although this is late, there's the matter of PCS and it's place in the MP, it was removed about 2 weeks ago at about 12 1/2. Actually a little higher. Right on the news/rumor that it was being bought. That's always the best option. Sale on that news right away and don't wait for traders to move it around in ways that make no sense. Sorry I haven't kept up with the MP moves, but it's just me these days and I get here as often as I can. So we've sold HIG and PCS from the MP for nice gains (I think that's it). Those gains should offset losses we've suffered in many of the other stocks!


Sunday, October 7, 2012

We are in the funk again

The market is doing that schizophrenic dance again, up down, up, down, for no real reason. That's when it's best to just sit back and relax. In case you hadn't notice, short interest in some of our stocks like ANR, ACI, FTR, and of course ARNA is sky high. I'm actually pretty encouraged because with all the continued shorting, these stocks have definitely bottomed and are showing signs of life. When this thing gets turned around, it's going to be a barn burner.

I've started to look into an old name, DNDN, trading down around 4.5 it looks like it could be a bargain. They've had trouble in the past, but they may be getting things turned around enough where a legit company might think about taking them out. More to come on that at a later date.

An update on NVTL. I'm still holding and still perplexed by how low this company trades. They've got about $425 million in sales, $50 million in cash, and a market cap of about 63 million. Crazy. Still looking at that situation.

The bargain shopper in me can't help but look at HPQ. That price is starting to look very enticing. I'll let you know when it looks delicious.


The Vix

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Where we rant and rave about the market and of course give our opinions on stocks we love or hate. We're not advisors and urge you to conduct your own due diligence.

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