BAGAKOAA; 19 May 2012 Corbina and Apple

Post 649

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May/2012

Was the Facebook launch a flop?   It really depends on who you ask.  But we will talk more about that later. 

 

Friday, I took Man Child to school and made sure the dogs were very quiet as to allow Devin to sleep in a bit. I had dropped off my computer at Apple the night before so I really couldn't do anything about the blog. Devin and I went shopping for exercise equipment we looked at a GTS machine and the Precore treadmill. At the sporting goods store there were two models I was interested in.   When I asked the salesman about the difference between the two expensive models will he looked at me as though I was an idiot for asking.

 

There was about a $400 difference between the two models.   Apparently if you're spending a lot of money on a treadmill it is stupid to ask what the $400 difference actually buys you. The salesman said "I will have to find the manual to find out." That was his upsell line I guess.  We suggested he go and get it.  Then we asked him to plug in the floor model so we can see how it worked. He was not very happy. In the long run we bought the more expensive one because we will be able to hang more laundry on it. 

 

Now a GTS machine is like a Total Gym (Think of Christie Brinkley and Chuck Norris) on steroids.   It is supposed to be really cool and you can really hang an awful lot laundry on a GPS machine.   

 

Then Devin I did something we have not done in decades.   We snuck off to a matinee too see Dark Shadows with Johnny Depp. Okay, now Depp was not there with us, he was in the movie, good movie. I can recommend it is worth the price of the matinee and admission. 

 

For dinner, Man Child wanted a Taco feast as I was learning the world of Macintosh. So far I like it, but had a couple of glitches with the printer and the Trackpad. 

 

This morning I played with the computer and downloaded a few toys. Dragon Speak Light was one of the applications that I downloaded. I am using it right now to do this blog. I talk and it types with about an 80% accuracy. So you can expect much much longer blogs. Then I went to Fullerton to meet Dennis at the world-famous Marriott's fly shop store for a seminar on surf fishing for Corbina. It was interesting and expensive, as I need new gear to fly fish in the surf. It is good exercise and I'm actually looking forward to it. My buddy Dennis and I stood in the back of a standing room only presentation. We have our list of things to buy so we can be kings of the surf fish whisperers. 

 

Tonight Devin and I dined on hotdogs and tater tots then we watched a few season finale programs and now it is time to blog.

 
I waited anxiously for the Facebook IPO. NOT. We had to watch it, because that was all that was going on in the market. Facebook launched 38 minutes late because it is not easy to match almost 100,000,000 buy and sell orders. The $38 stock popped quickly to $42 and then fell a few pennies above its original launch price. A few of you bought Facebook despite my post of Thursday night. Hey that is what makes a market a market. Greed, fear, fools, and opportunists. Just to be a piece of history, people plunked down their money. We wish you all good luck. Please have an idea as to where you want to get outSalve Lucrum 

  

This week's Barron's was an interesting read. The S&P 500 was down 4.3% on the week as China and Euro news kept money out of the market and in the safe harbors of the Deutsche Bund and the 10 year treasury bonds each touching near record lows. Personally, as we mentioned, we moved everyone to cash by midweek. The current downward inertia is compelling and the guys and gals at Camp David this weekend cannot and won't help matters. 

  

Bill Gross, made a comment on Friday "I know a bubble when I see one."  One has to wonder if he was only talking about Facebook. Jonathan Bach wrote a great piece about the euro contagion. If you like a good scary story please read page M7 in this week's issue of Barron's. For some really interesting and really risky Facebook option plays, take a look at Steven Sears article on page M 11.  He suggests selling puts for the first 90 days of the Facebook IPO then buy puts on the 91st day, as 171 million shares come out of "lockup".  (Sounds vaguely familiar to the buying puts strategy I suggested Thursday night.)

  

Tomorrow, Jack and I head off to the soup kitchen. No we did not lose that much money this week. He has community service hours he must perform so I will be accompanying him to his duty. 

  

Footnote, we have seen our VIX option come out of the basement of a -89% to about - 9% loss in two weeks. With what will probably be "the worst is yet to come" over the next eight weeks we will not have to change our disclaimer we should be back in the money soon.

 

Salve Lucrum

 

 

 

 

 

 

Brian Ireland
 
Since 5/2/2012
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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