BAGAKOAA; 11 June 2012 Trust

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June/2012
As many of you know, I made my way into the rank and file of our company, PADI, because of my in depth knowledge of scuba instruction.  Yes, my passion for scuba diving vaulted me into one of the most recognized names in the scuba industry.  Yes, me and Captain Cousteau, oh wait a minute, that is not right.  Oh yeah, I came on board here at PADI because my dad co-founded the company.  Ooopps, forgot.

 

Anyway, as part of my coming on board, it was my role to facilitate a Trust, put in place by my father.  I bring this up as now Devin and I are having to deal with certain Trust issues and I find it amusing to use the word Trust as the name of the document.  Think about it, the definition of the word trust is "a firm belief in the reliability, truth, ability, or strength of someone or something."  The document in question, at least ours, is 54 pages long and describes almost every possible way to insure your wishes are followed.  Of course your wishes are enforced, when necessary, by attorney's and judges.

 

In essence, you are saying you don't trust anybody, (kids, siblings, attorneys, accountants etc.) to do what you want them to do, so you write a trust to insure they do what you want, so you can trust things will be handled as you wish via a Trust.  Kinda funny actually, because there is no word that is an antonym of Trust which is really what the document should be called.  You have distrust or mistrust, but no really new word that is the exact opposite of trust to call the document in place.

 

Once again, it's scary inside this mind of mine.  That tirade just got me off my latest puzzling question as I saw a beautiful table setting with gold knives, gold forks, gold spoons and yet it was called, (wait for it) SILVERWARE.  What up with that?

 

He's So Bright We Call Him Sonny

 

We have more good news about Man Childs academic performance.  We found out that Jack got 142 out of 150 on his English Final.  This is incredible as Devin and Kristin worked with him on the rote memorization of about 6 months worth of vocabulary terms and other important stuff. 

 

Earlier in the year they did "Romeo and Juliet", and were asked to understand the characters and the settings and the literature mechanics of the work.  When the test was finally given the teacher thought it would be fun to ask questions about Shakespeare's birth place and the climatology of the English country side.  Ok, why would a teacher do that? 

 

The good news is we have proven (As Salvay of the Salvay Lewcrum animations so eloquently pointed out.), you can take a holiday the week before finals and enjoy a nice quality of life and still excel in academic achievements. 

 

Yes we are very proud of Jack.  A chip off the old block.  I remember getting straight A's in high school and achieving all kinds of scholastic awards, no, wait a minute, no, oh yeah, that was Devin and my daughter Kristin.

 

My greatest high school accomplishment was running "The Shack", the school based student run snack shop.  It was our senior business class project.  We built, staffed, and merchandised "The Shack".  It was hit, till The Man came in and shut us down with just a week of school left. 

 

Less fortunate students were selling their lunch stamps to buy Snicker Bars, Swizzle Sticks, Dolly Madison Zingers, Pixy Sticks, Sweet Tarts, Dots and Candy Buttons to name a few.

Each business class student put in 10 dollars and we formed The Shack Company and I was elected President.  One student needed their 10 dollars back and I saw how profitable The Shack was and offered to buy his 10 shares for 7 dollars.  I cashed out of my shares for 90 dollars and change and got my only A in my senior year.  Dad was proud until he found a garage full of candy.

 

So how was our return today? We will tell you in a minute.

 

In the late hours of the afternoon, my lady asked me if I wanted to go to dinner. Dah! I suggested a place called Hannas. Perhaps you have heard of it. I have been trying to behave with my diet and drinking so I was determined to stick to the three major food groups. Starches, Grains, and Fruit. In that endeavor, I started out with a Vodka Gimlet (potato vodka, BTW, did you know the Gimlet was named after a 1700 British Naval Surgeon who discovered that the British Sailors were suffering from a Vitamin C depletion called scurvy. He introduced limes to their diet and saved the British Naval force. Henceforth, the Brits have been referred to as Limeys.), then I went to single malt scotch utilizing malt as the next leg of my health triangle, and then finishing with a great Italian wine (Nebiollo Grape) as chosen by Sean Reynolds. Ah health food. I treat my body like a Costco.

 

Ok its late and I have ignored the market long enough.


Brian Cronin Talks, People Listen

 

I am not sure, as I may have been the catalyst for the change in direction of the market today. Last night we asked, since when is a promise of a loan to an already indebted nation a bulling tell? Well, the Asian Markets responded very positively to the news out of Spain they only needed to have access to 120+ billion Euros.

 

We (The US) kinda bought into that bowl of cool aide for about two hours and suddenly as people began reading my blog, the market shifted to flat and then began a steady fall to close down on the day.

 

Ahhh, the power to sway a market. It is magnificent. Really, we can not think of another thing that could have moved the market. There was no domestic or international news to make the market turn around like it did. We finished down 1.1% on the DOW, 1.3% on my favorite the S&P 500, and 1.7 on the NASDAQ.  

 

Oil keeps falling. Soon we will be able to coat the roofs of our homes with the stuff and have carbon based solar heating and electricity. This stuff is getting so cheap, that soon a major oil spill will be good for an oil company's value. Gold is creeping up for NO GOOD REASON. Perhaps the speculators are hoping for another round of quantitative easing, as we have mentioned. The 10 year finished the day at 1.58%.

 

In the portfolios today we added VXX positions to every account. With the VIX derivative being at 18 and expectations of it raising to 35 or 40, we pulled the trigger and got everyone in the game. In the primary account we enjoyed a nice leap in our VXX options. We also saw a nice move for our covered call options for AAPL today. It is not fun being an ambulance chaser , but in some markets it pays the bills.

 

We did indirectly take a new position today for AGU as we sold some put options on Agrium for a July Purchase at 75 dollars a share. We are looking to exercise the options when they come do and we will have a nice entry point.

 

Ok I see your eyelids getting heavy, so we will let you slumber off to the land of nod. That reminds me of the nursery rhyme I would say to my daughter and my son:

 

Winkin', Blinkin', and Nod, one night sailed off in a wooden shoe;

 

Sailed off on a river of crystal light into a sea of dew.

 

"Where are you going and what do you wish?" the old moon asked the three.

 

"We've come to fish for the herring fish that live in this beautiful sea.

 

Nets of silver and gold have we," said Winkin', Blinkin', and Nod."

 

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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