Thursday, April 3, 2008

Tidbits on a Thrusday

RIM, maker of the BlackBerry, beats estimates for its EPS and revenues and guided earnings and revenues for Q1 up, too. Hmmm ... revenues were up 102% year over year. Uh, that familiar question come to mind.

The ADP and Challenger-Grey jobs numbers were OK, consistent with a mid-cycle slowdown. Today's unemployment claims number will be interesting, too. Anything close to 350,000 is fine. Recent increases were due to the strikes in the auto industry, so we need to pay attention to the details here.

Soros says this is the worst since Great Depression. Sheesh ... is he senile or delusional or just stupid and ignorant ? I know he's a serial America hater. Or maybe he just likes the headlines from the press that he gets from these silly pronouncements that he's made for years. I guess he was on another planet in 1973-5 and 1979-1981. By any objective standard, economic conditions were much worse then than now. What an old fool !

Alitalia might go bankrupt ... uh oh ... I've got business class tickets for Rome for a May vacation for Mrs. B and me. I see Luftansa might take them over. Or Air France. I think I'll be OK as someone will take over those operations and my tickets.

More beefer ping-pong occuring. This AM in Europe, miners are up, fins are down. Yesterday's US markets were mostly beefer ping-pong, too. As I said yesterday in the comments, real buyers show up on dips. So when a move shows buying at higher prices, that's usually beefers trying to get on a momentum trade, even for a few days. We know they are a non-thinking, emotional lot, hence my animal metaphors. Most beefers can't think more than a few days ahead, let alone buy some stocks based on where the prices will be in a year. All they want to do is rip off some gains and collect their fee at the end of the quarter or month.

So don't get "buck fever" and buy on rips up. Wait. Be patient. The beefers will "rotate" soon and sell you some shares at a low price for a long term hold.

Word of the Day

"Epigone" - noun [$10]; also the adjectives, epigonic and epigonous. The "o" is pronounced long, as in "bone".
Epigone means an imitative follower especially an inferior imitation of a creative thinker or artist.
Sentence: Of the 7,000 hedge funds, perhaps 50 managers are truly worth the management fees paid. The remainder are mere epigones. Most hedge funds are provide worthless value for their investors compared to the Krypto Fund style. Their epigonic managers simply sell hope for the rich, and provide good country club chatter on the gold courses.

56 comments:

Bud said...

Soros a fool?

what the f are talkin about Bman????

Soros made a killing last year in the markets.....short the US dollar...and long china and india



the guys knows the markets.......i wish i was a fool like him


'america hater'

gimme a f'ng break

so we're back to name calling.....ok....i'll play along

dick cheney dirtbag and geroge bush scumbag have damaged america more than anyone alive today

Bunkerman said...

I just listen to him and have been for years and he sounds like a fool to me.

Even an old fool can be right once in a while.

He lost it over a decade ago.

mfl59 said...

I'll join in on the name calling...Mike Mussina is a washed up whining coward who should leave the game of baseball...

Spin-em said...

Pedro....."aye carumba.....My Hammy!!!!.......oh well..Willie please send my paychecks to the same place as last 2 times

Bud said...

162-0???


die yankees die !!!!!!!

mfl59 said...

Carl "give me $50 million and Ill crash a porsche and then never pitch" Pavano....pfffttt

mfl59 said...

Soros pfffttt....the Alpha Fund hammered the Quantum fund last year...

Spin-em said...

Phillies 0-2

162-0..yeah I was siri..lool.lame Bud

Spin-em said...

get over it mfl.....Yanks spent..they won...Boston spent..they won...Mets are doing it now...I guarantee you as a fan, wont give a shit how much they spend if they win the World Series

Bud said...

well played mfl

spin gettin defensive


lmaoooooooooooooooooooo


PS....learning from the master.......stick with me kid


"get over it"

Bud said...

uh Bman.........what you say of the jobs number???

is this a re........?

"i'm so bullish.....it's scary"

Spin-em said...

just livin in reality Bub....If you wanna live in Mernania fine

Bunkerman said...

back from errand. Don't like that unemployment number. There seem to be conflicting numbers in the jobs market: ADP, Challenger, week to week jobless numbers, etc. Must watch.

Unemploymnet is a lagging indicator, btw.

mfl59 said...

Bunkerman have you ever seen a recession with a 5% unemployment rate?

Bunkerman said...

OK nonmfg ISM number, almost flat economy.

Bunkerman said...

can't remember one. 5% used to be condidered almost full employment. But demographics matter.

Frosty said...

Dear Sal

my cankles are killing me after our march on scranton...the extra weight of the body armor is just to much...help me make it out alive, send mo money.

Bud said...

Hillary looked real good on mad money l;ast nite

tivo'd it.......watched it a few times .......i luv her!!!



die obama die !!!!!!!

mfl59 said...

what was Hillary doing on Mad Money?

Bunkerman said...

perhaps giving out futures trading help ... cattle, etc.

MOOOOOOOOOOO

Frosty said...

Dear Sal

Thanks you watching me on sad money...a little double monkey spank treat, just for you...now reach deep into your pocket with that hairy palm and send mo money.

mfl59 said...

Bunkerman....if a 90 year old woman came to you with $1 million, how you would invest her money?...She is in excellent health and hopes to live another 5 yrs minimum....upon death she will give the $ to her 2 children....

This is a CFA Level 3 question...I am curiosu to see if your answer matches theirs...

Frosty said...

MLF59...I would take the old lady down to Wu Tang Financial...put her bonds on the roller coaster and generate the skim...then I would go long of gold, bars, no paper trail and hope she dosen't carry a grudge.

mern said...

id guess roll the money in AA plus and let the greatest trader ever handle it!

how do u not get 1 run for hamels with that lineup, in that ball park.

so if JPM makes me an offer and i take it, who is going short?

Bunkerman said...

well, her tax situation and living standard are important.

How much does she need to live on ?

Her two children must be rather old.

I suppose a highly rated (AAA) money market is fine, as she can then draw the funds to pay expenses

Or 15 year GMNA (government guaranteed) would work and give eher plenty of cash flow if she needs it to pay costs of care, etc.

Of course she could easily live to be 100, too

THe key is her cash flow needs.

Frosty said...

Bud bully bull what are we buyiing today.

Bunkerman said...

actually, I personlly know of similar situations. No abstract answer really works ... the cash flow needa and relative desire to leave money to kids is critical.

If kids really don't need the money ... it matters ... or if one kid is rich and can pay for her care if she runs out.

mfl59 said...

oops yes i forgot those details....she needs 60k per year to maintain her lifestyle...

what would you say if I told you certain advisors recommend a 35% allocation to the equity market?

mfl59 said...

the children are in decent shape financially but will use the money to improve their lifestyle....so capital preservation is important...

mfl59 said...

they cannot handle any costs, however, if the $ was lost....

Bunkerman said...

35% stocks ? ... hello SEC ? I want to report ... ;-)

Hmmm is that 60K after tax ?

Bunkerman said...

and no soc. sec., or any other income ?

aka a net 60K aftertax ?

mfl59 said...

yes 60k after tax...

Yup...when I read that I fell off of my chair....35% exposure to stocks seems just slightly unethical to me....lol

Spin-em said...

your grandmother sounds nice mfl......lol

mfl59 said...

lol my grandmother invests only in gold and silver bars...

Bunkerman said...

Assuming the 60K nut is pretax, it's intriging that on March 31 she could have covered that nut with 5.2% GNMA mortgage securities (100% US credit) that would provide cash flow constant of 6.58%. [Pricing from WSJ of April 1]

So investing $910 in those gives her 100% coverage. The invest the other 90K in a money market fund for unexpected expenses & inflation on the 60K.

The kids get the "annuity" left after depending on how long she lives.

All prepaymetns are reinvested.

She is safe and the kids get a fair inheritence. I rank them a far #2.

Bunkerman said...

will do after tax part later .... need food ;-)

Bunkerman said...

hehe ... the Krypto Fund makes about 10% per annum, mostly low tax.

manager works for dog biscuits ;-)

Bud said...

is this the CFA blog?

Bunkerman said...

the main problem with any equity share is the lack of time diversification in deploying it.

Bud said...

looks like frosty ran out of material yesterday

out of gas after 5 innings

i guess i'll have to smack him around rest of the week

Frosty said...

PORK CHOPS

Bunkerman said...

Also I presume the 60K aftertax needs inflation protection.

I'll assume inflation is 3% for her (no driving !), [Fed policy works]so that means 1.8K more year 1, etc.

She could live to 110 if now healthy.

Hmmm ... thinking

Frosty said...

the schwartz kicked in the spaceballs...who needs BSC, beefers do a much better job than most investment banks managing risk.

Bud said...

inflation 3%



lmaoooooooooooooooooooooooooooooo

Bunkerman said...

With inflation and the aftertax needs, the problem is tougher ... quite tough if one really wants to leave a substantial inheritance to the children AND cover possibility of living to 120+.

If it was a friend/relative of mine, I would start with all money market and pay expenses from it. Then would time diversify into the Krypto Fund type investments over 5 years in ten bites, every six months or so.

Endpoints: 10% TIPS, 15% total bond market index fund (Treasuries after this credit crunch ends); 30% US Vanguard total market index fund or ETF; 20% vanguard international (ex US) index funds or ETFs; 20% TIAA real Estate fund if avaiable; 5% gold. Re-balance as needed.

This should work fine even if she lives to 120 or forever.

Very low tax, low fees, etc.

Bunkerman said...

lol, so call the SEC on me ;-)

mfl59 said...

very thorough sir....well done....but inflation is running at 2%, not 3%...lol....what say you mern?

mern said...

that john denver is full of shit man.

ya i thought the rockies wud be a lot rockier.

if u dont eat, drive, need health care, insurance or education, we practically have deflation.

Frosty said...

Bud how are crow prices...or are you chasing the second mouse for the spx 1440 cheese.

Frosty said...

Bud sees no inflation in expenses relating to dating...odd indeed.

Bud said...

what????

i have no idea what frosty is talkin about

ball4.......i'll walk to first

pussy

Bud said...

make sure you wear a cup tomorrow frosty.....i'll be bringin the heat

oh wait........you have no balls.....you're a little schoolgirl

never mind

Frosty said...

bring the heat...you have no control, you need to find the plate first...I'll let the rest slide...I know I've hurt you badly today, your in obvious pain, sorry.

Frosty said...

Mern...see if can talk Bud off the ledge...worried I've gone to far.

Spin-em said...

PTI slammin your boy Pedro..lol