Buzz Bits: Dow and Nasdaq End in the Red
Your daily Buzz & Banter highlights.
Blow the horn, tap the tambourine. Close the gap of dark years in between. You and me, Cassidy! - Todd Harrison - 2:56 PM
I'm deep in the throes of mapping ten themes for 2008 so please forgive the brevity of my posts or the lack of humor. OK, I'm not that funny to begin with (hairline notwithstanding) but I try. If nothing else, I try.
In any event, my point (and yes, there is one) is that, while the tape seemingly wants to lift (after the gap fillage and given the balanced breadth on the lows), the bacon is shaking Bonnie's confidence. In other words, as goes the piggies, so goes the poke and with the financials under distribution (and near multiyear lows), we should treat any rallies as subject.
I don't know nuttin' Honey, but it sure feels like another shoe is about to drop in write-down land. I don't know if it happens and, if it does, I'm unsure how the tape responds (given the heelsy field position) but if it's on my lung it's on my tongue (or keyboard, as the case may be).
Gotsta hop to theme number deux. If they're sloppy, wrong or inconsistent, you can blame the BCS. I mean, who plays football until midnight? Honestly?
Bounce with me! - Quint Tatro - 2:40 PM
We're seeing a little traction in the bounce here but once again, it sure is tough to trust. China Medical (CMED), a stock started several days ago, is really running here. I have peeled back a touch and if you happened to catch it, don't hesitate to take some off as well.
I am watching some of my others: Om Group (OMG) and FCstone (FCSX), which are also challenging highs, but I am not inclined to add.
A name I did remount but will trade around aggressively is my old friend Evergreen Solar (ESLR) as the stock is pushing over recent closing highs and looks like it could be a runner into the bell.
It is never dull out there, that is for sure.
Positions in CMED, OMG, FCSX, ESLR
Remember, Amgen Sees ODAC Again Soon - David Miller - 1:05 PM
Amgen (AMGN) bulls might be breathing a little easier this morning after a bounce in the stock. I have three thoughts:
1. Remember Amgen is going in front of the FDA's ODAC panel again, providing yet another opportunity for them to take a whack out of the company's epo franchise.
2. This earning's boost was the result of cost-cutting. What's the right multiple for a company whose bottom line growth comes only from cost-cutting?
3. How does the cost cutting affect the company's ability to develop new drugs to supplement the struggling epo franchise?
Good on Amgen management for cutting costs aggressively, but people should be careful here because the fundamental story is still not good.
Gold not turning back... - Lance Lewis - 12:45 PM
The XAU/gold ratio is a mere 0.218. It's still very early for those who were thinking of selling into strength.
Click to enlarge
Obviously there wil be a place to cut back at some point but that's probably a ways away in both time and price. These juniors for example haven't' even really moved yet cause guys are still focusing on the big liquid names due to fear of the stock market tanking and trapping them in illiquid juniors. Eventually, Newmont (NEM) or Barrick Gold (ABX) will buy one of these juniors with its stock (or cash) and they will all pile into them though
Another example of how things are hardly frothy… ASA's (ASA) net asset value (NAV) as of today is 91.95 which means the stock is about 10% below its NAV.
Position in gold, gold shares, ASA
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