September 27, 2013
Comment on Model Portfolio activity
During
the week we sold JC Penney at a loss (see below) then bought it back lower on
Friday and booked small profits in Aéropostale and Ascena Retail. We repurchased
Abercrombie and added to American Eagle.
JC
Penney has become a real soap opera. After Bill Ackman- the hedge fund genius
who destroyed the company by installing a CEO who didn’t know retail- sold his
position we thought the company would be able to turn itself around. We still
think it will survive but the big boys and girls have turned the shares into a
battlefield where the bulls and bears are fighting for short term results.
On
Wednesday we decided to take our lumps and head to the sidelines to see what
developed. On Friday the company offered $1 billion in shares to raise cash for
corporate purposes. This gives JCP enough money to make it through the Holiday
season.
Given
our feelings of eventual recovery we bought back half our position on the Friday
drop in price. The shares are obviously a speculation.
*****
September 20, 2013
Comment on Model Portfolio activity
With Taper news behind us-it continues- now the media mavens can focus on the scary debt
ceiling showdown and the budget resolution. And maybe these gurus can create the panic
necessary for the ten percent correct we have been waiting for all year. Or not.
During the week we sold a few issues as the markets made news highs.
We sold not out of conviction regarding the individual issues other than they were
the ones we least wanted to hold, but because we always do a bit of selling at new highs.
*****
September 13, 2013
Comment on Model Portfolio activity
We
added to our JC Penney and GM B warrants, repurchased U.S. Steel and purchased
Verizon. Large accounts are 25% to 35% invested with smaller up to 50%. We
continue-for the most part- to add issues that have
corrected 20% to 50% in the last few months.
*****
Bulls 37%, Bears 22%.
*****
September 6, 2013
Comment on Model Portfolio activity
We
added to our AT&T and ARO and repurchased Microsoft when it dropped 10 % on
news it was purchasing Nokia’s cell phone business for $7 billion. MSFT is
using some of its overseas cash hoard which is won’t repatriate because of
taxes. With interest rates at near zero it isn’t earning anything on the money
so any earnings from the cell phone operation will be a plus. The gurus didn’t
like the action –a plus- and with a 3% yield we think the changes coming at
MSFT will eventually lead to much higher prices. PCs aren’t going away and MSFT
has a stranglehold on the operating systems.
Unless it is money in his
pocket:
Surrounded by corn and soybean
farms — including one owned by the local Republican congressman, Representative
Stephen Fincher — Dyersburg, about 75 miles north of Memphis, provides an eye-opening
view into Washington’s food stamp debate. Mr. Fincher, who was elected in 2010
on a Tea Party wave and collected nearly $3.5 million in farm subsidies from
the government from 1999 to 2012, recently voted for a farm bill that
eliminated food stamps.
*****
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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