BAGAKOAA; October 24, 2012 I Can't Make It Any Redder

Post 728

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October/2012

 

 

I Can't Make It Any Redder

 

Ok, I have (had a brief window as now it is Tuesday.  I cheated and will do as late Monday or Early Tuesday post.) a brief window of opportunity to post a little post to you.  After getting Jack to school, and looking at the carnage on Wall Street, I got to have an enjoyable lunch with a couple of friends.  Yes I have friends.

 

After lunch I had the pressure, I mean pleasure of filling in my mail in ballot.  We have the usual Presidential stuff and Senatorial stuff and the local City Council stuff.  I have had the pleasure of meeting most of the folk at the State and local level so those are pretty easy decisions. 

 

Locally we have a guy named Kenny running for city council.  He is spending a fortune getting the word out.  I am always concerned when someone spends a small fortune getting a part time job that does not pay too well.  My support will remain with Carol, Tony and a new name Glen Acosta.  (Acosta and I co-sponsored an event for one of the supervisors about a year ago.)

 

But what I really enjoyed were the 11 initiatives on the ballot.  Now initiative is a political word for a decision brought to the people because the elected officials cannot agree on anything other than what to name a street and what dead person to give a special recognition.  So they bring it to a general election ballot.

 

Here are a few we get to vote on. 

 

Since Sacramento can't balance a budget Proposition 30 asks those greedy 1% making more than 250,000 dollars to pay more in taxes for education.  Well mostly education as there is a chance the monies could find their way into the general fund.  Oh wait the 6 Billion a year they expect cannot come from the people making 250,000 entirely, but also a ¼ % increase in sales tax, already one of the highest in the country.  But there will be strict oversight in how the monies are being spent, right?  No, they can fund pension plans and bureaucracy as they do now.

 

Prop 31 set a two year budget in place that redirect funds to local government versus Sacremento making those decisions.  I am sure that Jerry Brown knows what is good for me and my friends at city hall.

 

Prop 32 prohibits unions from deduction political contribution monies from union dues?  Government contractors and private sectors have been prohibited from doing that for 20 plus years.  (Driven by union sponsored initiatives, by the way.)  No brainer for me.

 

I don't know how or why 33 made it to the ballot, but it is a confusing initiate involving auto insurance premiums.  If I understand it correctly, if I have been with Allstate (The No Hands people) for 30 years, they have to offer the same discounts I receive regardless of my patronage to Allstate to anyone who asks for it.

 

34 repeals the death penalty.  I happen to think that this did belong on the ballot.  This should be a democratic vote without the pollution of political meddling.  (Strongly suggest you read The Innocent Man by Grisham)

 

35 increases the penalties for human trafficking, another initiative worth a ballot placement.

 

36 is a revision of the three strikes law that basically says if you commit a felony and have two other less than felonious crimes they do not count against your three strikes.  I guess its like a foul ball in baseball.  You can commit misdemeanors till the cows come home and you do not do hard time until you shoot someone in the process of hitting your foul balls. 

 

37 is a fun one.  They want to tell us what is in our food.  I know we already do that, but now, at least in California they want to have food manufactures tell us if there product has had genetic engineering.  Technically allowing a filed to fallow is a form of genetic engineering.  By letting the soil lay fallow, you have a genetically stronger plant than you did before, that is why we do it.  Of course the proponents of this are stores that sell health foods.

 

38 is a rewarded 30 but the results are similar more taxes in to the Sacremento Coffers under the guise of education with little if any oversight.  That sound you hear is the sound of millionaires (who haven't already left) packing for states who can manage their money responsibly.  Mmmm, would that be Utah?

 

39 is a tax on business based upon their percentage of sales in the state of California.  While it sounds logical, it results in a billion to a billion and half of new taxes on business employing a bunch of folk, having Sacramento take the money and determine what energy solutions get the money.  I can see it now, solar panels in the bay area where there is consistent cloud cover and fog and wind farms in the middle of a forest.  Sacramento is so good at managing resources.

 

40 is so confusing I had to call Senator Mimi Walters for advice (No, really I did.)  She explained that this is not the perfect solution for congressional redistricting, but it is a good start.  There were a team of judges picked in 2010 to draw new lines for congressional, the GOP lost a few key areas and Senator Walters actually has to move to be in her district, but she agrees it is needed to properly represent the populace and break up some very dense influential pockets of disportionate representation.  That means, that yes is a good thing long term for breaking some of the gridlock in Sacremento.

 

Hey that was interesting as all snot. 

 

We have a solution to the leak issue.  After four weeks and what I am sure will be several thousand dollars, we have determined that our next door neighbor (I wish they were readers.) has either a leak or a bad drainage issue in their back yard. 

 

Despite this they still say it is not them.  But we are building what is called a French drain that will take ground water into the pipe, drain to our lost spot in our yard and have a sump pump (think bilge pump) pump the water into the proper drain system out to the street.  We should have our yard back in order this time next week. 

 

Last night I had a business meeting.  Yes I had a business meeting.  I have been asked to be part of a brain trust developing a TV series for PBS.  I like the concept and actually look forward to hopefully contributing to the project. 

 

Then my lovely family arrived as did Mr. Napoli and Mrs. Hall, Jacks tutors.  It was a fun night at Hanna's.  I also got to see quite a few of the regulars.  (Fred, Lionel, Thomas L., Dianne, and of course the wonderful staff who make every visit so special.)  I enjoyed a wonderful Cioppino and a bottle of 2006 Merus.  It was a great night, and now you know why we did not publish last night.

 

Oh yeah, a quick acknowledgement from the handful of folk who really liked our post about getting your affairs in order.  A few people did download the executors check list and are writing instructions down concerning their wishes for the inevitable day that they are not with us.  I am glad it helped and I know your loved ones will truly appreciate you doing that.  (Unless of course in your instructions you screwed them out of what they though was rightfully theirs.)

 

AND that's not all.  I have to share my new toy with you.  I have waited 7 months for this.  It is a Fender Telecaster James Burton Signature Flame Paisley Guitar.  Not bad for a guy who only knows D, A, G, chords.  Can't wait to start making noise.

 

 

I Can't Make It Any Redder

 

We suggested you watch the 1425 resistance point in the S&P 500 and Tuesday we drifted right on through again.  This time, we did not see buyers step in and provide the suggested resistance.  The Red Flag is flying high and strong. 

 

If you read the earnings reports coming in, you can see a consistent message.  Top line lases are being missed by most of the influential reports.  Those companies that had ways to clip expenses showed  some respectable numbers, but most have not.

 

Today AT&T and Boeing had decent number this morning, but it was not enough to stimulate a bounce of any significance.  The Feds statement was a yawner and had no impact on the market.

 

The balance between winner and losers was narrower than you'd think at 15 to 13.  Volume was relatively light.  Oil was down as was gold.  A lot of folk will be watching AAPL tomorrow to see how they report.  I am thinking they will surprise to the upside and will get the market in the black tomorrow.   Other market movers report tomorrow PG (a beat), PHM Pulte Homes (a beat), SHW Sherwin-Williams, (a beat), AET Aetna Insurance (a miss), CL Colgate-Palmolive (a beat), MO Altria (a beat), DOW ( a miss), and Amazon (a beat).  Look for an up day, up about 1%.

 

We did some trading today.  Here was our action.  It was all based upon core holdings that had some attractive PUT options which we sold thinking that current pricing is a bit oversold.  Here are the actual trades.

 

Sell to Open

XX

PG 12/22/2012 67.50 P

PUT PROCTER & GAMBLE $67.50 EXP 12/22/12

 

$1.15

Sell to Open

XX

XOM 12/22/2012 87.50 P

PUT EXXON MOBIL CORP$87.50 EXP 12/22/12

 

$1.42

Sell to Open

XX

CVX 12/22/2012 105.00 P

PUT CHEVRON CORP$105 EXP 12/22/12

 

$1.59

Sell to Open

XX

MCD 12/22/2012 85.00 P

PUT MCDONALDS CORP$85 EXP 12/22/12

 

$1.38

 

 

Salve Lucrum

 

 

 

 

 

 

 

 

Brian Ireland
 
 
Since 10/10/2012
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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