Thursday, 23 July 2009

its definitely the anglo-saxon model of capitalism thats at fault!


its absolutely laughable that its banks in the USA and the UK and all those nasty hedgefunds that are to blame for everything. This is a perfect example of a management that took huge risks, shafted shareholders and very little skin in the game, at least Jimmy Cayne and Dick Fuld lost everything, these clowns got paid out in cold hard cash and a fixed percentage on a one year profit, wow talking about writing free calls. The Raven has ZERO sympathy, Porsche manipulated and cornered the market in VOW shares. He didn't feel sorry for the hedgies that got stiffed as it was a pretty obvious play however that doesn't justify the ridiculous schadenfreude in the media or the hypocracy of the act. Had the newspaper headlines been reversed the German government would have jumped in, ripped up the rule book and had a tantrum.

He also saw this and did have to chuckle:
That really is a terrible throw, lets just say you'd have got beaten up at school for throwing like that.

L: 174% S:49% G: 223% N: 125% ~ $D 0% $G 0% $V 0% $P 0%
The Raven sold a sliver of NRG, but that was more of an intraday trade.
He also added a new spread position, he's long EMC and short SNDK, they're not technically a pair as they are in very different sectors, however they are both in the growth universe and certainley looked at by similar analysts and tech investors, however SNDK is far more commoditized and consumer dependant. EMC on the other hand is far more of a b2b (business to business) play, its also wrapping up its market position by overpaying for its latest aquisition - perhaps the 'value' guys would like this moat building move. He also thinks that its a better business with much higher quality earnings. SNDK reported numbers last night, it beats 09Q2 expectations, actually making a profit! it did bring down forecast for H2 revenue. Its made a profit by cost cutting and an improvement in pricing: he can't see much more room on that front to drive profitability and he doesn't see the pricing getting much better, in which case the huge run up in the stock in the last couple of weeks seems overdone.

The Raven is in a nicely pessimistic cynical move today so he's going to have a look at the airlines Continental and United just to cheer him up...

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