Sep

26

Portfolio rotation: AVAV, GS, CHCG trade alerts

September 26, 2007 | Leave a Comment

This morning I decided to significantly alter the composition by making a few quick moves. First, I added a sizeable position in AVAV early this morning at $22.97. I will withhold my comments on the stock for a later post, but this is a very interesting defense play that is showing very strong action of late.

Additionally, I decided to sell my entire stake in GS and rotate the position into CHCG. This was simply a case of […]

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Sep

23

Quick notes on Goldman’s quarter

September 23, 2007 | Leave a Comment

I’ve heard a lot of blasphemy surrounding Goldman’s recent quarter, so let’s set the record straight:

1) Regarding the sale of Horizon, Goldman is being accused of making the sale to offset credit market weakness. Two points: first, go ahead and take $900 million out of Goldman’s income for the quarter. Guess what, they still beat estimates handily. Second, private equity investments are a core part of Goldman’s business. We are not talking about GE or […]

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Sep

18

Fed surprise mandates a re-evaluation of the markets

September 18, 2007 | 1 Comment

The Federal Reserve’s 50 point cuts in both the fed funds rate and the discount rate obviously took the market by great surprise today, as evidenced by the wild gyrations in virtually all the financial markets after the announcement at 2.15pm. The surge in equities, with all major indices rising by more than 2 percent, appears to signal something more than simply a short squeeze on the back of the Fed rate cut.

There were certainly other signs that today’s […]

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