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Varchild2008 (86.41)

August 2010



1950s "The Truth" on Taxes

August 30, 2010 – Comments (1)

A Commenter named Quiron asked me about the 1950s as proof that High Taxation still results in economic boom times.

Well.... You would have to completely ignore the fact that the 1950s consisted of not 1 but 2 of America's and Canada's biggest construction projects ever.

In 1954 we had the St Lawrence Canal (apologize it's late and I am tired typing this) between America and Canada.  That created tons of jobs developing that.

We also had in the 1950s the International Highway Project... Massive... One of the biggest Construction Spending Projects in U.S. History.

So that sorta..lopsidedly distorts the economy quite a bit.

But....   TAXATION in the 1950s  is not as it may seem.....

SEE?   Look at the far right column.  That column shows you when Top Marginal Income Taxes take effect.

Throughout the 1940s they took effect after you make $200,000 or more.

In the 1950s... You have had to make $400,000 or more in a year before suffering the top marginal rate.   And the Top Marginal Rate was basically smaller in size than in the Mid 1940s.

So this stuff needs to be analyzed.

Also... Dwight D. Eisenhower cracked down on Illegal Immigration.  Extraditing Thousands out of the country.  People don't know about this cause many sources do not mention it.  But this one does: (And Rush Limabugh has made mention of this fact on his radio show):

How Dwight Eisenhower Solved Mexican Illegal Border Crossings.    A Good Read folks!  Especially for LEFT of CENTER types that think HIGHER TAXES =  Better Economy.

The truth is you need to look at more than TAXES to really understand the truth.

President Eisenhower never interferred with the private sector... He didn't raise regulations and rules and enact moratoriums and environmental restrictions....  He left business alone to grow.

While doing so he also worked to repair relations with Russia and other nations.
Threw away Mossadeq and replace him with the SHAH.

There's a lot of history liberal lefties need to sink their teeth into.
I know I brushed up on my Eisenhower  needs to do the same:-)  [more]



Just Tax the out of them

August 29, 2010 – Comments (7) | RELATED TICKERS: APOG

On DAILY KOS today we have an article written by Mark Summer called "Terminators."  It is an interesting read but scroll down to the end and you read:

"In a period that may be surprisingly short, all of what we consider traditional "service" work may tumble down into the single digit land of agriculture. 80% of us will be doing... something else.  [more]



Feds are out of Bullets Big Time

August 27, 2010 – Comments (3)

Very disappointed here that Wall Street would have a ridiculous reaction before and after the speech was leaked... That speech was Ben Bernanke's speech to be delivered today...17 pages of "More of the same" "We are out of bullets" that the FEDs have spoon fed us for years.

But the sickening reality is that there are so many people out there that think the Fed Chairman and Timothy Geithner and so on have all of this power to influence the economy with.   When the economy does extremely well and the President is a Republican....Then the Liberal Lefties all point to the Fed Chairman and say "It is clearly because of the Fed Chairman and nothing to do with the Republican President's policies."

And that is going on right now.....  People freaking out over how the Fed Chairman is out of bullets here.... How Benny the B  (as Alstry puts it) can only offer 17 pages of Dry Garbage to Spew while CNBC Reporters are in the backround Beaming about how "It doesn't make sense anyhow to expect Benny the B to change policies... So this doesn't matter!"


What matters though is ultimately that policies HAVE TO CHANGE.....   HAVE TO..... 

While Alan Greenspan had no problems speaking out against President Bush's Tax Cut Policy before it happened and then PRAISE it GREATLY after it happened and lowered unemployment to 4.5%.   What we have is BENNY the B  terrified to say anything in opposition to THIS President....Barack Obama.  [more]



BAC to where I sold you

August 24, 2010 – Comments (0) | RELATED TICKERS: BAC

While President Obama and his administration are thumping their chests and patting eachother on the back for "Mission Accomplished" in getting the economy out of the crisis..... (BAC) is priced BELOW the price I sold it at during the 2009 stock market low bounce that the stock had.

I bought BAC at around $5.00 - $6.00 and sold it at $12.71.    I sold it because I didn't like the longer term view of the stock and felt that any share price movement UPWARD would eventually come back down.

And guess what?  I was right!!!     Took me many many months to be right....but I am right...
Bank of American Collapse (BAC)  is now selling at $12.64 a share.

This goes to show that when I tell people to TRUST THEMSELVES and never give up on their strategy of when to buy, when to hold, and when to sell..... that it is what they need to do.... TRUST YOURSELF... In the end you will be proven right far more often than wrong.

Too bad I can't say the same for President Obama and his Administration.  They continue to be a disaster for this country as they go around the country taking credit for getting our economy out of a crisis........uhm.....

9.5% unemployment
27+% nosedive in existing home sales in July
GDP in Q2 to be revised further down closer to just a paultry 1.3%
Epic Catastrophic Debt that is 89% of our economy
$1.17 trillion of debt piled on this year alone so far as of end of July.  [more]



The Barack Obama Rap Song

August 16, 2010 – Comments (10)

Can't Take Your Vote Back  -   By Varchild2008

"Never too soon....never too tarp the pearly west gate...
Never too real.....never too fake....You vote and watch your heart brake....

you wach your heart brake......You think that I'm a snake......But I ain't no Jake

Never too low....Never too High....Pot Smokin shall be legalized....
When I was so young....never so old.....Never did what I was told....
Yes I smoked a few joints....sold a few hits....Ya never did care about those tid bits...

about that tid bit.....They call be Prezident.....Cause I'm self evident...

Drop your party tea.....spit out your coffee.....Oil Moratorium spree!
You did vote for me.....The RIGs now want to flea....Cap and Trade to save a tree!

Never for peace....Always on Attack.....Can't take your vote back....
Never  for peace...Bailouts for lease....Pourin High Taxation Grease...

Can't Take your Vote Back......They say obamacare is just Wack....
Can't Take your Vote Back...... I support the Mosque near the point of Attack....
Can't Take your Vote Back......Financial Banks having Regulation Heart-Attack
Can't Take your Vote Back......What property is yours the FEDs now take back...
Can't Take your Vote Back.....Can't Take your Vote Back....

You think I'm Michael Jordan....But I govern like Peewee Herman...Fool!

Ha ha Ha Ha.......Where's your Messiah Now....Hippie Punks!  
Voted for the Black Man cause its your White Boy Guilt Trippen Master Plan...
You Hoped for Chocolate Corn Flakes when all's ya get is Oat Bran

Employments way down....Debt is way up....Hope to get you all Bankrupt!
Never too Smooth....Never too Calm.....I can sing the Ramadan Song...

Michelle's off to Spain....I ride Chicago Plane....I Hope Alexi's Sane...
He can be a Pain...Bank Scandal's a Drain....Midterm voters are insane...

Drop your party tea.....spit out your coffee.....Oil Moratorium spree!
You did vote for me.....The RIGs now want to flea....Cap and Trade to save a tree!

Can't Take your Vote Back......What property is yours the FEDs now take back...
Can't Take your Vote Back.....Can't Take your Vote Back....

PEACE!.....For the Iranians.....Aight?  I'm out....of food stamps for the poor that is.....
I'm Prezident Barack Obama... And I approve this Rap Song!"

P.S.  (SBUX)  is badly lagging the entire Coffee Sector.....  While many will tell you to pick a different stock.....Varchild says that this only provides an opportunity to STRIKE BIG into SBUX...  SBUX is a screaming buy while it continues to sit idle below $25.00 a share.  They pay a dividend while you wait the thing back up to new highs.  [more]



Lincoln Memorial is Gone

August 11, 2010 – Comments (0)

Do you have a 2010 Penny on you?  Go ahead and check your wallet or purse for one.  Pull it out to the front..  See Abraham Lincoln?  Now flip it over.. *POOF*   Lincoln memorial is gone.  Placed by a shield shaped E. Plurabus Unum.

Fitting I suppose... America is in such deep debt racking up $1.17 Trillion so far this year in debt that we will soon be forced to sell off the Lincoln Memorial to China... Assuming President Obama hasn't already done so.



Varchild versus Markos Moulitsas

August 10, 2010 – Comments (1)

Everything in QUOTES is from an article MARKOS MOULITSAS wrote recently straight off the front page of    Last Article/Portion in Quotes, though, is from JOAN McCarter. 

[Markos quoting Atrios in Midday Open Thread] " Atrios:

As emptywheel points out, it's a bit inartful to claim the administration "got our economy moving again." As with Recovery Summer, it's at best poor messaging and at worst a failure to understand that... the economy sucks."  [more]



Top 10 Undeserving 5 Star Caps Picks

August 09, 2010 – Comments (11) | RELATED TICKERS: FEEDQ , RIG , ATVI

10)   (FEED)       What have you done for me lately?  After spiking well above $10.00 a share in 2008, it has since crashed and stayed in the duldroms of $2.XX.  

This is the company that mislead its shareholders about the health of its business before announcing that it needed to issue more shares to cover their losses...... Losses stemming from Beijing Hosting the Olympics, cause Chinese People ate significantly less fresh Pork.   The Frozen Pork imports also cut into their business significantly.

Now AgFeed wants to get into the Frozen Pork business?  What does that say about the strength of its fresh Pork business?

9)  (VDSI)    Vasco Data Securities was a stock a lot of people gave big GREEN THUMBs in expectation of President Obama Style Handouts in the form of the FEDs spending CASH for digitizing Hospital Records... Many thought Vasco Data Securities was ready to provide this line of business... Not to mention the HYPE over the Federal Government's need for increased Data Security that was played and played and over played in the Lame Stream Media.

Can you say..........................................................WRONG!
Yet only 7 ALL STARS are brave enough to red thumb this one.

8) (SDTH)    Down but not quite out.... None the less.. This one's ShengDa Blech..... 

7) (RIG)  If I told you investing in RIG on February 2nd 2009 will net you a lagging of 34.16% against the S&P 500 would you put your hard earned cash into this pick?  

Apparently an awful lot of CAPS All Stars would!

6) (JNJ)  They don't make Baby Showers like they used too.....  Just ask this stock lagging the S&P 500 by over 27% since 10/27/08.

5) (ATVI)   Ever since the merger, Bobby Kotick worked some magic by turning Activision Blizzard, a sure fire success story, into a gaming company despised gamers...   Just write a post in the forums on  with a subject line of "I love Bobby Kotick what about you?" and see how far that gets you.

Since 10/06/08  the stock sits lagging the S&P 500 over 18% and leaving investors empty handed during the week of the Starcraft 2 launch.    That sorta happens when you throw out the 2 founders of "Call of Duty" just after trashing the founding company behind Guitar Hero.    What will ATVI do for an encore?  Create a "Kill Spiderman" game just for kicks?

4)  (BP)   A 5 star stock.....before the oil spill that is....Good Job All Stars!   Now they have bailed out on the stock after it has already bottomed and is on the rise......Good Job All Stars!

3)  (CRNT)  A notorious Israel disappointer in the Tech Sector is also notorious for being a 5 star caps pick for long as I've been investing....   As high as $13+ beginning of 2010 and now it sits around $7.XX.    And yet it remains a 5 star caps pick.

I guess All Stars are DIE HARD when share prices FALL HARD

2)  (CHK)  Pains me to put this one here.... Chesapeak had a long history of nice share price growth in its past.....  But this is a "What have you done for me lately world" and we have ourselves a
stock sitting $1.49 above its 52-week low with a 1.2% dividend yield.   Mediocrity laughs at CHK and the All Stars still giving it a 5 Star Caps Pick Rating.

1)    The #1  Worst Stock that All Stars are giving a 5 Star Caps Pick Score too?????

The name of that stock will be revealed soon!!!

But first... Let's get to the *CORE* of the matter!

This hideous stock does not have a single All Star red thumbing the stock.... Not 1.....  In fact....21 All Stars just can't get enough of this stock.....  Only 4 Caps Players PERIOD are brave enough to red thumb the stock.

This one is a massive stinker of a stock and All Stars are dropping the ball....  I guess when it comes to CEMENTING *hint* *hint* a bad opinion.....All Stars on are professionals at it.

The #1 bad stock......  is.........  (GENC) <---------  5 Star Caps Pick scraping along the bottom with massive Revenue Losses.   [more]



How can CBOU become CMG?

August 09, 2010 – Comments (2)

Here's a quizz question....  What do you look at to determine how a growth story small shop can grow and become as big as a big time company with a big time share price?

There's a lot you have to look at....  First, in any sector you have to realize there are subsectors and business lines...   I used to think that the ridiculous press releases about "Such and Such market is $300 billion" because there was no way a small company would ever grow to earn anything close to that....

But you have to at least understand that if Business A is in a business sector that makes $300 billion while your Stock... Business B  is in a sector that makes $150 Billion, that the growth rates for your business versus the bigger business A is drastically different.  

But how different???  That is where you have to be extremely smart and really have to think.

Just because (TODAY) one sub-sector of the Restaurant Business is cumulative making far more money than another sub-sector does not mean there is a Greater sub-sector and a Lesser one..

You also have to disect whether or not the smaller earning sub-sector is the way that it is because it is simply newer.....   being Newer means no company exists doing business in that sub-sector for anywhere close to as long as Business A and its competition has been doing business.

The longer you exist the chances are the bigger you become and thus more earnings you can pull.

So you have to identify a lot of factors involved to explain for example:

Selling Coffee + Tea   (CBOU) or (GMCR) or (SBUX) examples...


Selling Dinners, Lunches, Breakfasts    (CMG)
Let's compare CBOU against CMG..


20 million shares outstanding
Share price today at the close $10.10
Expected EPS for 2010 is .43eps    (was .44 last week Friday)
P/E  23.5
Cash per Share  .89
P/Cash Flow   9.9
No Dividend


31.1 Million shares outstanding
Share price today at the close $151.34
Expected EPS for 2010 is  $5.10
P/E  29.7
Cash per Share  $9.84  
P/Cash Flow  21.9
No Dividend

CMG has about twice as many shops as CBOU in 35 states... far more states than CBOU.
It has a much bigger international business than CBOU.

But none of that explains anything better than Line of Business that CMG is in versus a CBOU.

You simply can expect more growth from a CMG to justify the much higher P/E ratio and P/Cash Flow multiple.

Simply put....  Don't just look at the #s in the Financials to compare 1 stock versus another.

You need to know the Line of Business they are in as well as how NEW and TRENDY one business is versus another.

For example....   E-Books  do not earn more $$$$$$  yet versus  Paper / Hardcover books....
But, I would not think to buy a Barnes and Knoble or Borders versus an Amazon or Apple simply because there's more money today in PAPER Books versus electronic....

You have to follow the trend and determine if the Electronic Business for Books is going to eventually surpass that of the Paper Books...

Remember when Video Games made significantly less money than Movies?
Now Movies make significantly less money than Games!

See how it works?     

If a stock boasts some new technology they just researched and are going to manufacture in mass production this year or next year... or in 5 years....     PAY ATTENTION!!!!  [more]



Change of Heart on Virg Bernero? yes

August 04, 2010 – Comments (0)

As crazy as it may seem..... Doing some quick research pouring over the budget proposals of past years in lansing Michigan....  [more]



Varchild voted for Rick Snyder

August 03, 2010 – Comments (4) | RELATED TICKERS: F , CBOU.DL , AXL

Michigan election for Governor is not about:

A)  How many goodies and freebies we can get our Union Buddies by milking the Cash Cow of Michigan Taxpayers for all they are worth............................  Like a vote for Virg Bernero amounts too.


B)  Abortion.....  Right to Life...... Abortion.... No Abortion......

This is about our state's economy and our state's image and our state's loosing college students to other states....

Ndamakhan Suh  refuses to sign a contract with the Lions..... What is going on there I can not know but I do know that it does not reflect anything but heavy Reluctance (warranted) to wanted to have to live in a State that is in Shambles from 8 years of Granholm.


This is certainly a race for reviving the economy...   improving Michigans image.... 

This can not happen if we continue with the ANTI-BUSINESS  atittude of Granholm by going with a Union Thug like VIRG is.....   Do we seriously want a "VIRG"  to *Stick to Businesses*  that have already been punished severely by the Michigan Business Tax and Income Tax Hikes?



That makes sense......  What we need is a UNION LABOR  Thug for Governor cause  FORD, GM, CHRYSLER was doing just fine when the UAW drove them out of business nearly.....

Michigan just got bailed out by Barack Obama and Bush due to our wrong mindedness and irresponsibility of the past.....  A direct cause of Governmental Regulations and Taxation that has strangled any once of profit it could for many years.... forcing companies like (AXL)  American Axle to pick themselves up and move to Mexico.

Earlier this year (WHR) decided to layoff more people in Benton Harbor... It's home city... It's birth city........  Seriously.....  If WHIRLPOOL is jumping ship from Michigan...... 

Do you honestly think  keeping WHIRLPOOL in Michigan can't happen unless we have a  VIRG BERNERO   (Union Labor Thug)  running things?  Do you think the guy is going to be Business and C.E.O. friendly? 

Do you think VIRG Benero will generate an Economy that Ndamakhan Suh could live with without asking for tens and tens of millions of guaranteed money in order to play for the LIONS???

I don't think so.....   I think it is simple.....  RICK SNYDER has many many many flaws... I understand all of his flaws......  But.....  When it comes down to it.....

I WANT MY MICHIGAN BACK  and who better to do it than someone who has proven he can manage businesses successfully?      What business as VIRG run successfully???? seriously????

RICK SNYDER has run internet companies.....  Gateway.....  And has worked with the MEDC and SPARK....  He has plenty of economic experience and his 10 point plan spells out exactly what is ailing Michigan's economy....  He knows what is wrong and he has a plan that I support.

Therefore....  Varchild supports RICK SNYDER for Governor.......

STOCK TO WATCH TOMORROW:  (CBOU)   This one is in my portfolio and reports earnings after the bell tomorrow....  Carribou Coffee has 18 shops in Michigan and would certainly benefit with a RICK SNYDER Governor......   Carribou would be HURT by a VIRG Bernero Governorship so keep your eye out on the Michigan Governor Race if you have Companies with lots of MICHIGAN exposure in your portfolio.

(F)  +  (CBOU)  =  Huge Michigan exposure that I am invested in and I am certainly nervous over whether Rick Snyder can pull out a Primary Win and then defeat VIRG Bernero.




The Roasting of Paul Krugman

August 03, 2010 – Comments (4)

I was not aware of any of this because why on Earth would I log onto Paul Krugman for economic discussion?  It turns out that in the past 6 months there was plenty of economic discussion in which numerous source material after source material from economic science articles or research from past economic scientists was brought up in refutation to Paul Krugman's Keynesian economics.

In short....  If you are on the FENCE about supporting Conservative Free Market,  Supply Side Economics, over Liberal Keynesian, Labor Union Economics....

Then you most certainly need to read the article above from American Thinker....

The article just brings up the 6 month long discussions that went on Paul Krugman's Blog.

You be the judge....  But I think Keynesian Economics is essentially DEAD or at least gasping its last breaths as the Global Countries of Planet Earth are slowing by surely burying it.  [more]



$11 Dollar Wonder Stocks

August 02, 2010 – Comments (1)

I have nearly 200 stocks in my CAPS Portfolio.  Of those the following are $11 dollar stocks.

And I WONDER if I caught some kind of crazy pattern?

AA  $11.71     UP trend  [more]



Lack of Substance on DAILY KOS

August 01, 2010 – Comments (5)

Notice a trend on Daily Kos if you ever scroll down through the articles?

How about the fact that:

A)  They never discuss what they want.....

B)  If out of some super rarity they do talk about what they want specifically they never bother to check to see if it ever works.

Well right now at this exact time:     Sunday night at just after 10:00 p.m.

The entire DAILY KOS website consists of just 2 types of articles on the front page:

A)  Republicans/Conservatives are idiots and we must defeat them.


B)  Open Threads

That's it folks....  They do not discuss the issues of the day....  They do not discuss the state of the economy..... They do not discuss the state of the War in Afghanistan....

They do not discuss the impact of OBAMACARE.....

They do not discuss anything......anything........anything......

except "How do we win elections!!!!!  We want to win Elections!!!!  Need more Democrats!!!!!"

These people have the HOUSE + SENATE + WHITE HOUSE  and they can not offer us any substance beyond mewling about not having enough Democrats elected.



We put these people in charge of our Stock Market, Economy, and Military?  [more]

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