Wednesday, April 22, 2009

Some Random Thoughts



Tyler Durden over at his awesome blog Zero Hedge had an excellent post yesterday regarding Vornado's secondary equity offering. I was overwhelmed with some other items so am very grateful for him bringing it to my attention.
Please click the above link and read Tyler's observations.

Now take a look at the tape from yesterday on Vornado, ticker VNO, which is a real estate investment trust. Have a look at the 2 day 2 minute chart (above) and decide for yourself. Now I am not short Vornado but I am short real estate via my long in SRS.

What do you think?

Well, what I think is that even a nit wit, in the bag, grovelling eunuch like former SEC puppet Chris Cox might even have a clue something might be amiss here.

The point here is that this type of shit has been going on for a long time on Wall St. Readers who read this blog are sometimes bewildered at my harsh criticism of the arena of my former employ (Wall St.).

In particular they are often bewildered by comments I have used like "when cannibals turn one another" or "it couldn't be happening to a nicer bunch of people". You decide for yourself. When you hear a voice on CNBC or Bloomberg say the Wall St. model is broken and is finished you don't know the half of it.

I am sure that when Rome was in its last days many were looting with reckless abandon as they saw that the gig was up and there was no time to waste. I believe Wall St. is in a similar situation.


To which I respond, this is not he Wall St. the grandfather worked for. Men like Charlie Merrill, though not perfect, would be rolling in their graves. Men like that never intentionally set out to separate you from you money yet this is exactly what Wall St. has become. Maybe we should thank some of my favourite institutions like Harvard. You think they teach a financial ethics class there?

I did not have a chance to catch the pompom networks (with Scott Cohen) hard hitting interview with Sir Allan Stanford yesterday as I was too busy watching some paint dry. The question I do have is, and this relates back to the hard hitting interview that CNBC empty suit Carl Quintanilla had with the distinguished SIR back in the SIR's heyday, in which Carl asked the SIR the intellectually challenging question " what's it like being a billionaire". Ah Carl, I can see that Pulitzer coming your way now.

Did Scott Cohn of CNBC asked Sir Allan what it was like NOT being a billionaire? Just curious.

Quite a bit of news out this morning with the shocker being the story that the acting CFO and 16 year veteran of Freddie Mac David Kellerman has apparently committed suicide.

I did a quick check on Freddie Mac's website on Mr. Kellerman and observed that prior to being CFO Mr. Kellerman "
served as the senior vice president and business area controller. As business area controller, he led the organization responsible for all accounting and finance for Freddie Mac’s lines of business."

I do not want to pile on but given his position with the company and it accounting shenanigans over the years I cannot help but wonder if this was an act of seppuku on his part if it was in fact suicide. A heavy conscience can be quite the burden.


Morgan Stanley numbers came out this morning. Yup, chopping the dividend to the bone but they have plenty of money to pay back the TARP.


Housekeeping notes;

Late yesterday I was stopped out of the bargain basement teen clothing retailer know as Aeropostale ticker ARO at $31.42 for a loss of just over 1.5 pts on 1 unit.

Good speculating to you all and never forget that "an investor is a speculator who made a mistake and will not admit it".


Open Positions:
Long 1 unit Ultrashort Real Estate ticker SRS @ $27.05 stop @ $25.24
Long 1 unit Ultrashort Financials ticker SKF @ $62.90 stop @ $58.46
Short 1 unit Autozone ticker AZO @ 164.05 stop @ $167.11
Short 1 unit Amazon ticker AMZN @ $78.70 stop @ $80.31
Short 1 unit Goldman Sachs ticker GS @ $118.35 stop @ $121.86

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