Tuesday, August 07, 2007

Morning Update

The Asian markets are looking pretty solid with Shanghai continuing to soar. Europe is very bullish especially the FTSE. The US markets have opened weak though strength is picking up and it looks like we may go green after the hour. All hangs on the FOMC announcement at 2:15pm ET.

Oil prices continue to move lower which is a relief of sorts.Its time equities rally on oil moving lower like they are supposed to. Gold is weak this morning though it appears to be gaining while silver is up slightly. The US dollar is gaining strength though it may weaken after the FOMC annoucement.

There is news that Bear Stearns is trying to screw investors in its hedge funds by liquidating in the Cayman Islands instead of New York. Cayman laws favor the fund over the investor. I so hope Bear Stearns goes under. Such evil thoughts on my part. Maybe Jim Cayne, Warren Spector and Sam Molinaro will be the new Ken Lay, Jeff Skilling and Andrew Fastow. Imagine that !

This morning I've been buying AKAM and BWLD. Why ? AKAM looks dirt cheap here and if it gets below $30 I'll double my position. Trading less than 20 times 2008 earnings for a company growing earnings 30-40% a year. Internet content providers are here to stay. AKAM hasn't been this cheap since last July. And BWLD just got an analyst upgrade today. This restaurant is growing astonishingly fast and there is immense growth ahead yet the stock price has been knocked to the ground after reporting inline earnings.

Contempleting selling off some LVS and adding WYNN instead. WYNN earnings were phenomenol. The growth in Macau is way beyond anyones expectations. I like MPEL here too. Macau is going to be a lot bigger than Vegas. 3 billion customers withing a 5 hour flight. Wow !!

I expect a strong market reaction after 2:15pm. A very strong reaction. Don't know which way yet but I'm sitting on plenty of cash and ready to go in once I see the correct direction.

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