Monday, October 3, 2011

Wall St. Uber-Genius Bill Miller

My apologies for lack of posts as I was out of town attending the wedding of a niece down in Houston Texas with very spotty internet access.

Most out there are aware of the situation that has become Eastman Kodak. Here we have a stock that since late 06' has fallen from about $29 to Fridays close of 70 cents. or $0,70 if you prefer.
Don't even bother going back further in the charts as it only gets worse but rather than focus on that or go into all the issues surrounding this name I want to look at EK from another angle. The Wall St. genius Bill Miller of Legg Mason angle.


Regular Readers know my contempt for this empty suit of a fraud who masquerades around as smart money. In a piece back in late March of this year entitled How Right You Were Grandpa! I remarked how Bill Miller had made a rare appearance on CNBC after getting his head handed to him, or rather his fund unit holders getting their collective heads handed to them, following the developments of subprime 'not being contained' and the housing ponzi scheme blowing up.

In particular I remarked of Bill Miller;

"How fitting that his onions grew back only after this monster rally hence allowing him to come out from hiding underneath his desk to exhibit his acumen. Absolutely perfect timing. Loved his comment about his big regret was not noticing the bubble bursting was a collateral bubble instead of a liquidity one like 87'. A boob like me saw it coming and this heralded fund manager could not see one of the biggest if not THE biggest bubbles of our lifetime. What was that phrase about confusing brains and bull markets? Or as my late grandfather used to remind me.... you never appreciate the value of your pilot, skipper, surgeon or fund manager til the shit hits the fan! How right you were grandpa, how right you were!"

Since the market was on a roll with the Dow north of 12K Bill Miller was VERY available for interviews. Funny how he was nowhere to be found back in late of 09' when the Dow was sub 7K but why deal in facts when fiction is so much more entertaining.

Well with the Dow on a roll and Bill Miller back on CNBC less than a month later I had this to say regarding the market sage Apr. 11, 2011 in my piece Animal Spirits, Market Gurus and Keeping Nimble.


"I also happened to catch Bill Miller of Legg Mason who was on as yet another market master. For those that didn't know or have forgotten, this is the same Bill Miller who never met a stock, in particular financials (who wouldn't in the ultimate ponzi scheme?) he wouldn't buy nor average down all the way to zero.

The Bill Miller playbook.

  • Take other peoples money and buy (it's a ponzi so buy financials).
  • Just keep buying (the stock market always goes up).
  • Mock anyone who claims your performance was related to the tide(this justifies your fees).
  • When positions drop in value buy more (heck, it's not your money).
  • When problems arise, your acumen questioned buy yet more (mention all the other parking lot valets own it as well).
  • Lunch with said parking lot valets, who all own the same things you do, confidently buy more.
  • When the shit hits the fan hide under your desk (helps if you've been working out).
  • Pray to the god you worship ($$$) for divine intervention (think TARP think Hank Paulson)
  • Re-emerge on CNBC as guru to claim genius status when tsunami of taxpayer bailouts floats your boat.
  • Rinse and repeat for best results.

Bill Miller, a pure financial genius. Ya think he loves free money. Fixes all woes. I sure wish someone had taught me that game plan as a youngster. They should craft a statue of Miller in adoration so future generations can marvel at our stupid worship of the FIRE economy and ridicule how we all thought the tail wags the dog."


I received some emails following that piece complaining that I was too harsh, jealous, etc, and that Bill Miller had an extremely good long term track record.

Well, I am sure you must be completely shocked to learn that Wall St. uber-genius Bill Miller not only liked bankrupt financials but he also loves Eastman Kodak as evidenced by his Legg Mason Capital Management Opportunity Trust Fund holding 17.26 million shares of EK or 6.4% of the stock outstanding. The stock is the #2 holding in the fund representing 3.76% of the fund.

Bill Miller is no different than the Casey Serin's of the world. The NINJA (no income, no job, no assets) real estate expert who got a Liar Loan on a half million shack and used it to pyramid up with multiple homes and ride the wave. He was right multiples of times as he flipped and pyramided his way to stardom, until finally he was not and got wiped out.

Now if I told you I only knew daylight would you be shocked I was dumbstruck when night fell?

Bill Miller only knows daylight (bull markets). Stock drops just buy more. I have never seen anyone on TV identify poor Bill Millers investment strategy for what it is, the Martingale betting system, nothing more. Sadly for his fund's unit holders who pay fees for this hustle, Bill Miller has had this right time, right place good fortune portrayed by a fawning financial media as acumen and insight.

Bill Miller is no different and sadly he gets paid big bucks for his useless opinion on all things financial. How Bill Miller is actually paid to manage funds for other people is beyond me. Then again thugs like Henry Blodgett are considered experts, expert on anything other than fraud, deceit, and unmitigated bullshit is beyond me as well but what would I know, I am a simpleton idiot blogger hence I will defer to the expert anchors and shills on CNBC.

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


Open Positions:
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $96.70
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $98.25
Long 2 units Ultrashort Xinhua China ticker FXP @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60
Long 2 units US dollar Bull index bullish ticker UUP @ $22.04 stop @ $21.17
Long 2 units Ultrashort Euro ticker EUO @ $18.87 stop @ $17.44
Long 2 units Ultrashort Yen ticker YCS @ $13.66 stop $13.27

1 comment:

Anonymous said...

http://www.nytimes.com/2011/10/29/your-money/the-best-investing-advice-maybe-not-the-conventional-method.html