Tuesday, August 14, 2007

Now Is Not The Time To Panic - Article

Wall Street Journal Online Article

Receiving Emails About ...What Is Going On?

There seems to be a panic on the street and all logic usually goes out the window. While we are losing short term, I think that a bounce is warranted and soon. I would be holding stocks like AA, ATI, Delphi, AMX and a few others. Having made some markets in stocks years ago...when the markets look ugly and sellers keep hitting the bids, the strategy was to just drop the bids and keep dropping them until the selling stops, unfortunately. The values were worth more, but when everyone wants to sell at one time, it is usually the practice to drop. Its like trying to sell your house immediately today and there are really no buyers. The prices we see today are not what I would call "real". In time of chaos, and hype played up on programs like CNBC, we find that there is a limited market or no market for stocks when everyone panics as we have seen over the past few days. The fundamentals haven't changed so please remember that if you are nervous. Focus on the fundamentals and it will all work out.

Remember these very important lessons:
1) When the market is running and you get euphoric and you start calculating all the money that you are making - sell some stock and keep selling if it continues to run
2) When the market looks bad are you are scared beyond belief - buy some high quality stocks and leg in more on further drops
3) Repeat the process

2 Billionaires Buying Stock - Carl Icahn and Harold Simmons

Carl Icahn: WASHINGTON, Aug 14 (Reuters) - U.S. billionaire investor Carl Icahn reported on Tuesday that his fund has taken significant stakes in aluminum companies Alcan Inc. and Alcoa Inc. (AA), which had previously held discussions to merge. Icahn Management LP reported in a filing with the U.S. Securities and Exchange Commission its holdings as of June 30, which included a 3.52 million share stake in Alcoa and a 1.18 million share stake in Alcan.

Harold Simmons - Click Here

Monday, August 13, 2007

FED's Monetary Policy

Last night Bloomberg reported that the FED's goal was to take rates from 5.25% to 4.75% by March of 2008. I would bet on an emergency FED rate cut before their next meeting if things get worse. Stay calm, everything will work out with a lot of EC's working together to calm the markets.

Anatomy Of A Professional Wash Out - InterOil - IOC

You have to assume that good news from IOC went to insiders and preferred stockholders a few months ago. With that news, here's what the Billionaire investors and large hedge funds do. SLAM the bids with huge blocks. Maybe even initiate a huge short position and drive out all stop orders and small investors, then re-buy those shares and then some. Following what appears to be a collapse in the stock, the manipulators take the stock to new highs when the real news is disseminated to the average folk. See for yourself. This is how the game is played.

Here is the news: Click Here

Here is the chart: Click Here