Friday, September 21, 2007


The market continues to advance. Oil, technology and housing are some of the sectors leading the way. Solid earnings growth from Oracle and Nike are contributing tho this wave of bullishness. Billionaire Wilbur Ross bid for American Home Mortgage servicing unit is another bullish factor.

Shares of Harman International are plunging on speculation that KKR and Goldman Sachs will abandon their bid to buy the audio equipment maker.Buyout and private equity transactions are going to be more select going forward . Money is not as easy to come by these days. Interest rates may be lower but, the cost of debt financing has increased. Investors will only do deals that make absolute sense. Nothing of a speculative nature that we so in the not so distant past.

The Dollar continues its decline into the dustbin of history. Great for Gold, Silver, the Euro, Oil and anything that is denominated in the greenback. Foreign banks will reduce their dollar holdings. Eventually oil and other commodities will be priced in a currency other than the USD.

A quick review of some of my holdings. NYX is looking to break out of its slump. The past few sessions have been bullish as Borse Dubai takes a 20% stake in the Nasdaq and Qatar takes 20% of the LSE. I reduced my position in LVS which continues to advance in relentless fashion on news of strong turnout in Macau. HANS continues its rise to new 52 week highs. Same with OVTI. My biggest holding at 8% GE has been another solid performer. I sold off my GS position between $204 and $210. BRLC and JADE have been very frustrating do I've increased stakes in both positions to around 4% of the portfolio combined. My AMZN short continues to leave me with a headache. Amazon needs to grow earnings 40% annually over the next 5 years to justify its current valuation. A recession and retail slowdown will not help. Once Bill Miller starts selling the fall will occur. Patience is required.

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