BAGAKOAA; 8 February 2012 How Do You Do It?

Post 591 CLICK HERE To See Past PostsFebruary/2012

 My day started out wonderful. Woke Jack for his last day of basketball practice this season and he was very cooperative. We were out the door, on time. I was back in the house before 6:00 AM, after some tea and Cheerios (with blueberries) we were up at the controls of the USS Salve Lucrum Portfolio.

 

Then before I left the house we took the big dogs across the street (Still protecting the new sod out back.) and Jacee decided to do gonkers before she had breakfast and I did not have the right equipment with me to clean up after her. I brought the children of the fur into the house and went back out holding my barbeque tongs. As I crossed the street, Lori our next door neighbor (and fellow flood victim) stopped her car rolled down the window and said, "Uke nimba uke gaga a nimba uke.", just kidding, she does not know caveman speak. She said, "It is nice to see the leader of a large global organization walking out his driveway carrying the pooper picker upper device. It means that all is good."

 

I forgot to tell what happened yesterday morning (Tuesday). After taking Jack to practice, I went to the office upstairs in the house and for some reason that has been a Pavlovian cue for our big cat, Jethro, to begin gorging himself on cat food. I tried to get his to slow down and he kept eating away. After about three attempts to slow down his consumption, I said to heck with it. He slowly made his way across the office and at exactly 6:29 (I know because I was patiently waiting for the market to open.) I heard this incredible burp. I looked and there was Jethro atop his cat tower, looking at me smiling as if to say, "Uke nimba uke gaga a nimba uke.", don't be silly cats can't speak caveman, as if to say, "Did you hear me dad, that was my burp."   Then the smile disappeared and out shot a stream of chewed cat food about 5 inches long. It was 5 inches long and doing about 37 miles per hour as it flew threw the air from four foot off the ground. It landed two foot nine inches from the cat tower. A very impressive puke indeed. Needless to say we missed the opening of the market by a few minutes.

Ok boys and girls, I really would like to spend time writing on what you want to hear about. Yesterday we did our thing on Rail Roads because one of our reader asked. Please if you have a questions about an economic issue, a stock idea, a trading strategy, an asset allocation idea, don't hesitate to send it to me so I am not wasting my time telling you cat barf stories.

 

Today we did little in the market and market did little in return. More on that later. Ellen, my trusty task master had me in a couple of meetings and writing cover letters for my complimentary publications list. I also had a pleasant lunch with our CFO and President deciding on bonuses for the executives. It is nice to have the luxury of paying people for a job well done. Oh yeah, we had lunch at Hannah's. It had been two weeks since I had the infamous Pear Salad. (sorry Ben).

 

After a productive afternoon, I took a gorgeous brunette to Hannah's for dinner. I enjoyed a six ounce filet with Brussel sprouts. My date the gorgeous brunette enjoyed the chicken tacos while discovering a new drink. Rum and ginger beer. Really it was really good. It tasted like root beer and vanilla. The funny thing was I left my drop dead gorgeous date with an organic vodka on the rocks, went to the loo for about 90 seconds and when I came back the guys at the next table had given her one of these rum concoctions. She is a gorgeous brunette, what should I have expected.

 

We had a lovely meal and then went home and helped the pretty lady sort clothing she was giving away. All in all a great day.

How Do You Do It?

 

We do get asked from time to time where we find some of the stock ideas. While that question has two hundred answers, we thought it might be interesting to walk you through one example. Let's take ABT Abbot Labs. Jim Cramer likes it so I bought it. There any questions? WE DO NOT OWN ABT

 

Ok you know better, though I know some of you actually use that method. Which is not necessarily a bad thing as long as you do EVERYTHING else Cramer instructs you to do.

 

Tonight we are looking at today's IBD. Inside on page two in one of my favorite columns "Trends and Innovations" there was piece about age blocking proteins. The Salk Institute discovered some natural occurring proteins that last an extremely long time. The think that these proteins could be studied to treat age related diseases.

 

We took that information and went to the finviz.com website and searched for "protein" in the company profiles of 7,000 companies. 29 names came back. We used the link that says "view in screener", so we could sort these based upon market cap and price. Then we used IBD to quickly evaluate the IBD rating of these companies and their peers. We discovered one of our core holdings CELG and a few others worth putting on the watch list. They include ALXN, CBST, GILD, ANIK,

 

Slow Down You Move Too Fast

 

Yeah Simon and Garfunkel said it best in the 59th Street Bridge song (aka Feelin' Groovy). Yesterday we were pimping rail road stocks. We suggested you consider GWR, Genesee and Wyoming RR. We suggested getting in at 63.60 or better. We did and we immediately placed a stop order in at $59.50, our normal 8% stop order. Well in our haste to jump on board this train (sorry could not resist), we overlooked the fact that yesterday was earnings report day. It is a good idea not to buy most stocks on earnings day unless you have really researched and feel comfortable about what is going to be said. In this case, the earnings were good, but the CEO gave downward guidance for 2012. The stock dropped and triggered our 8% stop. Our initial reaction is to get back in, but then we would be carrying a wash sale. We will sit this dance out and see what happens 30 days down the road. Sorry if you followed us into this trade, but most of you DO NOT MOVE that fast.

 

Now we want to tell you all the exciting things that went on in the market today. . . . . . . . . . . . . . any questions. It was a go nowhere day as everyone was sitting on ready waiting for word out of Greece. That word was tomorrow. No volume to speak of so we still have a green flag, there just is no wind to lift it aloft. Now the VXX eeked up a bit today indicating that there was some future shorting going on and that could be a tell about the 2-3% correction we mentioned yesterday. Let's see what tomorrow brings.

 

In looking at our core holdings, UNFI, MSFT, XOM, CELG, GWW, NUAN, MGRC, GLD and VXX, XOM was down a point because of a government report that we were a few quarts high on our national inventories. The commodity dropped a bit as a result, MSFT was up for no apparent meaningful reason. All of the biotech sector was weak today so our holding CELG adjusted a bit. Grainger went no where. AAPL strong quarter helped NUAN. And that is about all the news I can dig up. Have a great day.

 

Salve Lucrum

 

 

 

 

 

 

 

Brian Ireland
Since 12/21/2011
BAGAKOAA;

I am not a professional investment advisor. Anybody reading my blog and investing accordingly must be out of their minds. I have made more money than I have lost. There are many more qualified people than I to actually tell you how to invest your money.

BAGAKOAA=Boys And Girls And Kids Of All Ages

Salve Lucrum=Latin for Hurrah for Profit.

2012 Year Ending

Dow 13,073

S&P 500 1,358

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