When in Despair

When in Despair the Bull is there people.

Tomorrow I see great things for all of my faithful followers. The JR Bull has been telling us all for many weeks now about the financials surge upward and he has been correct so far. Something, the Bull cannot place his hand on it, but something is telling the Bull the financials are going to make a run upward tomorrow. Is it the Bulls imagination or is it a message from above? For tomorrow we will find out how divine the Bull really is.


What does the Bull like tomorrow:

The Bull loves his financials, He loves Citigroup(C), He loves LEH, UBS, GS, and on and on. The Bull feels that divine feeling that is indescribable.

The Bull loves XTNT, HNAB, and ACAT at the prices they are at at the end of the after hours are a steal for any Bull. I would make a bid for them or buy right at open if they stay at the prices they are at which are (5.00, 0.93, and 6.38).

The Bull also wants his disciples to be long in MYGN, AUEGF, HGLC, DE, VRTX, BMRN, ARBA, JBHT, W, KB, and BULL.

Short Wise: Bull would be short in RAMEW, ACCP, and VTLAF. I would look to short if they open at their current prices, PIII, NGSX, NENG, TRMM, and BEAR.

The Bull has two intersting articles for everyone:

First up AOL's best offshore bank account spots:

http://money.aol.com/forbes/tax/worlds-top-tax-havens

- I will comment on this tomorrow but needless to say the list is inane.

Here is a wonderful article on the art of the hedge fund, the people interviewed are minor league players but I think its a great read for everyone who thinks bankers, and investment bankers run the show:

http://nymag.com/nymetro/news/bizfinance/finance/features/10426/

Here are the Bull's favorite parts:

"“You work for us,” Zachary likes to let Harry know. Zachary represents a two-year-old hedge fund called Pirate Capital, a name that Zachary says gets people’s attention. (And if that doesn’t, then the 32 percent returns per year do.) For $20 million, Pirate purchased 13 percent of Harry’s company, which runs prisons. This makes Pirate Harry’s largest shareholder and, as Zachary sees it, Harry’s boss."

- Most people don't look at businesses like this but this is how they are looked upon on Wall Street. The largest shareholder is the true CEO.

"“Investment bankers?” says one hedge-fund guy. “Their lives are miserable.” He ticks off the shortcomings—he seems to have been keeping track. The punishing hours, the endless pitching, and all those dull, needy clients. What could be worse? Perhaps only a job at a sleepy mutual fund, a plain vanilla, as the hedge-fund managers sometimes call them."

- The Bull's thoughts exactly.

By comparison, the hedge-fund manager’s life seems effortless. Gloriously client-free and with reasonable hours. “I got into this business,” says one hedge guy—is he stifling a yawn?—“so I could make money while I sleep.”

- The last line might be the funniest in the article but only shows this "hedge fund manager" is clueless.

"The investment banker talks your ear off, charms you with his minor gifts. And for what? To give advice. There’s a hedge-fund put-down. “We get to pull the trigger,” says one manager."

- Why the Bull can never understand why people go to work for investment banks.

"Just for the pleasure of illustrating the point, one hedge-fund guy sitting at a café in a burgundy golf shirt—he has no clients and thus no dress code—grabs his cell phone off the table. “Give me $100 million of . . . ,” he says, and names the company. “That’s how hard it is.” It’s that easy if—and here’s the implication—you have the nerve. As one hedge manager all but snorted, “Bankers have no appetite for risk.”"

- No appetite for risk answers my previous question.


"And so, he tells you what financial advisers tell most every hapless investor. Diversify your portfolio and your asset classes. Which is his way of letting you know he’s not going to actually manage your money. Rather, he’ll divide it into a few asset buckets and diversify it by industry group, and then he’s going to, as Loeb says of Ross, “extract his fee,” which, though he does his work up front, must be paid each year.

For most hedge-fund managers, this is insanity. “You might as well walk through Times Square with money sticking out of your pockets and yell, ‘Rob me!’ ” says one. Hedge funds don’t, as a rule, take the diversified view, an attempt, in their mind, to perform just like everyone else. They’re looking for winners. Their goal is to get in near the bottom and slip out of the way when the top crests."

- Couldn't agree more, wouldn't your rather own 10 stocks in the best sector than the best stocks in the worst sectors?

"To a hedge-fund manager’s mind, mutual funds, or plain vanillas, are lazy. Vanillas, so the thinking goes, make their money through their vast marketing machine. Their investment goal is simply not to lose more than the market average. “My eyes glaze over when people start talking about their performance relative to an index,” says Loeb. “I’m an absolute-return guy,” says another manager. After all, no profits, no bonus."

- The Bull shoots for 5% a day regardless of how the market is doing.

"And so, for hedge-fund managers, investing is an aggressor’s game. “If you’re buying into the market,” points out one, “then, by definition, you’re saying the person selling to you is an idiot.”"

- Luckily there is plenty of idiots out there.

“Diversification is deworsification,” says Carvin, then tosses his head back and laughs like Beavis."

- Agreed

"Every dollar ticks with pressure. You report to investors every month. You earn bonuses every year. “I have to make money every day,” says one hedge-fund guy."

- The Bull charts how he does every hour. One down hour and he goes nuts.



The Bull has to go go get some sleep, for Miami demands the Bull be at his usual best.

Here ends the reading of The Bull Chapter four, verse 8.

The Bull