To All, Portfolio Notes: I have some reports on the puts I ordered today. If the stocks continue to work higher, I will buy more. Here are names, symbols and shorthand reasons.
1. Fannie Mae March 60s. FNMOL. All Time High. Leveraged like a hedge fund. The spread is narrowing between what they receive in interest and what they pay. Invested in crappy mortgages. Has fallen apart during every down move in the past. I hate their slimy guts. <G> Seriously, I hate Freddie Mac even more, but it was up today and we all know that I buy puts on up days.
2. First Onion Bank April 55s. (FTUpk). All Time High. Spread weakening. Every one I've ever met from this bank was a dum-dum. Perhaps that says more about the type of people I meet, but still.... Trying to get bigger for no special reason. Sucking off the Fed interest rate cuts and I think we are at or near the end of that game. Cheap puts.
3. Novellus March 40s. NLQOH. If I have to tell you, invest only in money markets. <G> Sadly, not at an all-time high, but too high for anybody with an IQ above room temperature. This is not only a co. in a lousy industry, IMHO, it is a lousy co. in a lousy industry.
4. CDW Computer Centers April 75s. (DWQPO). All time high. Vulnerable to Compaq's direct order system. Flying high on seasonal factors when muscular competition is about to eat their lunch. Many of us remember the coup a couple of years ago on CompUSA, where the analysts and the bulls said everything was wonderful. But when we visited stores in various parts of the country, nobody was buying computers. Same sort of story, except an even higher pe ratio.
5. Intel April 85s INQpq. I don't believe the turnaround story. I believe the seasonal uptick and I believe that CPQ had a lot of new orders for its direct division. But nothing long term at this trading sardine hitting a new all-time high. A huge # of Xmas lies probably means the insiders want out now.
I will report on others if and as the market moves up.
MB |
