March 27, 2012 What Am I Doing Here?

BAGAKOAA; 27 March 2012 What Am I Doing Here?

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March/2012

So there I was, sitting next to my lovely wife. At the table next to us was Pilar Wayne, widow of The Duke, John Wayne. A couple of tables over was former Governor Pete Wilson at the same table with General Bill Lyon's of Lyon's Homes and Uberwealthy developer Donald Bren of the Irvine company. Next to his table was a good friend of my father's, former Ambassador George Argyro's. As I looked across the sea of 400 of the south Orange County's who's who of the Republican Party, I could only say, "What in the hell am I doing here?"

It was a very nice event. It started out fun as I parked in the wrong area and had to walk down the hill where reader and friend Betty and my wife had properly parked. They headed up the street to the 12,000 square foot Italian Villa estate of our host, David Horowitz (no not that one another one). I had not made the turn yet and spotted a slender tall brunette that caught my attention. It was Senator Mimi Walters.

I said "Hello Senator" and she walked over and said hello Mr. Cronin and we gently embraced just as Devin and Betty looked back. Betty said, look like you've lost your husband. Devin looked back and shrugged.

Once on the grounds, we waited as the photo line made its way down and we took our seats at a nicely appointed table. Several minutes later we were presented a lovely dish of chicken and salmon something with a tasty couscous salad.

Mr. Horowitz greeted everyone and introduced Governor Romney and his wife Ann. She made some opening comments (funny lady and very articulate) and then handed over the microphone to Mitt.

As you can see we had nice seats. He said everything you would expect him to say and did it in a very comfortable easy delivery. You could tell he was enjoying himself. He was enthusiastically surprised to run into an old friend from Michigan and shared his story, one of a simple beginning to phenomenal success. He said all the right things and with each point, I noted to myself congress won't agree with that, congress won't agree with that, congress won't agree with that, congress won't agree with that, congress won't agree with that and so on.

Probably the most important words I heard him utter was his commitment that anyone on his staff, if elected will have practical real world experience managing a significant payroll and successfully managing a significant budget. If he gets the chance, that would be an incredible breath of fresh air. I challenge this audience again, to show me one staff or cabinet person in the current administration that fits that criteria. That is a first in US history. (Again, I will give you credit for Hilary for her timed served on Walmart's Board though it was in a legal capacity.)

It was a nice gathering except for the exodus. It took about an hour to get my car back and get back on the road. Please go out and buy a John Wayne movie soon. Pilar Wayne got in a 1989ish Buick.

With that, here is a quick summary of the action today from our note to the Salve Lucrum Family

Boys And Girls

Just got back from the Romney Lunch. It was a true gathering of the who's who of south Orange County Republican conservatism. (I wondered what I was doing there.) More about that in tonight' post.

We were surprised at the drop in the last 20 minutes of the trading day. We could not wait to get back to the office and see what was going on as the market dropped about 50 points (DJIA) in the last 45 minutes of trading.

There was no smoking gun that triggered the sell of, so it must have been the culmination of more bad news out of China, a sluggish manufacturer report out of the Richmond Fed, home prices softening (not as much as they could have), and a consumer confidence report that did not impress anyone.

Remember it is the end of a quarter so there may have been a little profit taking by the big guys. We did see our VXX options jump 25% today which suggests some nervousness in the front offices of the Casino.

Let's look at the outliers in the portfolio today. The Nasdaq was basically flat today while the DOW and the S&P 500 were down .3%. Let's use that as the gauge for today.

MSFT

In line no news.

XOM

In line.

CELG

Down a little more than the market, but no significant news.

UNFI

A Little soft, but no news.

MGRC

This on as well was a little weaker than the market, but no news.

AAPL

The wonder stock added yet another point and half on to its celestial climb.

ACETO

Contrary to the market it eecked our a quarter point to the upside. No news.

LMT

Lockheed Martin went opposite the market today trading up .3%. It could be a 600 million dollar missile contract. I love it when there is a contract issued and the stock goes up. Does anyone ever read these contract and ask, (Will they make money?) Anyway it makes good press.

GWW

A nice day for the industrial supplier.

Now if you have been following the blog, you have heard me say, "You can't steal second when you standing on first." Last night I saw a chance to steal second base. APOL was reporting and learned their fate for their involvement is questionable enrollment activities. The minute we heard the good news, we went in the after hours market and bought some 1 month out in the money call options assuming that the earnings report would be good and the legal relief would give this stock a nice little bump and pop for us. It did not, I stopped out this morning 11% off. Guess you could say I was called out at second. We did not do this in anyone else's account. Just mine.

Brian

Salve Lucrum

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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