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Jim: You
want to know why
we came back
today from the
depths of
despair, even
though for most
of the day felt
like trading
stocks…more like
you're trading
bullets
actually. Maybe
the battle of
Summer, the
imperial city of
way, pork chop
hill! Why we
recovered…do you
want to know why
we recovered in
spite of the
fear, despite of
the endless
selling from
Hedge Funds
going wild to
have the Dow
close up 10
points and to
reach down 168
points at its
low. The S&P
flat! Hey,
Nasdaq up almost
3 1/4, I mean
wow! And do you
believe me now
when I just say
that it's the
Hedge Funds
going wild
that's doing all
their selling?
Because when
their selling
finished, we
rallied hard.
I'll tell you
why!...
Once those moronic
Hedge Funds finished
liquidating, the
market flew to the
positive. Why?
Because the
fundamentals! The
fundamentals of most
companies out there
are a lot better
than the selloff
would make you
believe, and that's
actually more
important than
problems with Europe
or the dollar or
gold. We talk about
those things
everyday! It's not
making you money,
listen to what we're
talking about. The
fundamentals, that
will make you money.
It'll make you even
more money than the
decent unemployment
number we got.
Do you know this? Of
the 314 companies in
the S&P 500 that
have told us what
their earnings are
so far, 74% were
doing better than
what I was looking
for. 71% have sold
more product than I
thought they would.
That's right! Beat
on earnings, beat on
revenues! These are
unbelievable
numbers! I mean,
come on! If you
watch a lot of TV or
read the papers,
you'd think the
world is ending. Or
how about this
one…the dividend
boost. From November
through January, 47
companies in the S&P
500 have raised
their dividend. Only
4 cut them. I mean,
come on! That's a
huge improvement
from the 12 months
before where we got
40 dividend raises
and 21 cuts in the
same period.
Yep, this earnings
season, it's been
fabulous! Is anyone
else saying that
besides me? We also
focused on Portugal.
I can't even find
Portugal on the map.
I mean, I'm looking!
I mean, I know it's
there. I mean, it's
like there's a place
called Beats or
something!
Anyway, it's
eventually the
positive
fundamentals always
win out. And the
fundamentals of
companies trump to
selloff inducing
fundamentals of the
money management
business. See some
Hedge Funds were
caught leaning the
wrong way and they
had to sell
everything to meet
investor demands.
Their failing
created an
atmosphere of
tremendous fear
everywhere I went,
where everywhere I
went, where many
people believe that
we had to fall hard.
Because their
selling made it look
like something was
terribly wrong. That
judgment was
rendered by the
closing prices
yesterday. It turned
out it really didn't
mean much at all.
The closing prices
were wrong like I
told you. And the
mid-day prices were
wrong today. Why?
Because we got a
good employment
number this morning.
One that showed a
glimmer of hope that
we could soon be
creating some jobs
around this joint
and because the
earnings we got were
terrific. It looks
like our friends
Chicken and Little
seemed to have been
terrible
forecasters. And we
think they'll be
wrong again next
week when I expect
the terrific rally
to ensue, at least
if we stop worrying
about the rain in
Spain or Portugal or
Greece for that
matter, and start
focusing on how job
creations coming
back and most of the
earnings are down
right awesome. In
other words, look
let me just boil it
down. Business is
pretty darn good in
the country, doesn't
mean the stock
market's good. Does
mean the stock
market will
eventually be good
which is why I got
to play close
attention to this
game plan.
First, Monday
morning…
CVS (CVS),
you probably shop
there if you don't
shop at Walgreens.
Hey, this is a cheap
stock, it could be
usually undervalued.
If they execute,
they have not been
executing…if we see
some signs of return
I got to tell you I
could be
recommending this
stock Monday night
if they encourage
us...
Read more from this
segment
Read all of
Friday
night's complete
recap
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Lightning Round
Picks: |
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Citigroup (C)
Jim:
342 days, maybe give or take 3 hours… no, I cannot tell, I mean here is the thing… first of all Vikram Pandit (CEO)... everyday you look at the papers, he is supposed to be fired… those are stories being planted by people… because Vikram Pandit is not being fired, he is doing a good job… secondly, here is what you need to know… that stock has held the price that it did that deal at… third, I think that Citigroup is going to be 60% international and 40% domestic by 2012... finally, the book value here is $4 and change… it deserves to sell at premium to book… I think that it can make a dollar, if they did not force them to do all that stock… the stock would be at $5 already… and I do like… hallelujah. |
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All Lightning
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See
entire week
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stock picks on
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XTO Energy (XTO)
Jim:
Alright, Janice I am glad that you called me, because to tell you the truth I do not like the tenor of the Congress on this XTO… and the hearings that they have had this week about natural gas.. our President refuses to put the word natural with gas… which tells me that this is a very out of favor fuel… Exxon has a clause which says that they can walk away from the XTO deal if hydraulic fracking, which is the revolutionary different technology that they use, is in trouble… so therefore on Monday, I need you to lock in a gain of XTO… and we will find you a high yielding oil… or maybe a master limited partnership, if not Energy… which is that propane company that I like, give you a 7.5% yield… I need you to sell XTO… you
pull the trigger.
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Round picks |
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Toyota Motor (TM)Jim:
Alright, you know what? This is what I used to call at my old hedge fund a battle ground, I mean this thing could go up 10 or down 10... I cannot be in battle grounds… not when I have a man like Alan Mulally, who is working for us every minute of the day… Alan Mulally, who reminds us, to serve is to live… he has got a preferred that is in arrears, it can be a fabulous security… I want you in
Ford (F), not Toyota… why court situations where the brakes, the accelerator… Ford is back and better than ever. |
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Round picks |
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