FAS is so great! No, seriously. I have a blog post about Nam Tai Electronics that I wanted comment to, but in my recent experience I get lots of good discussion on 3x leveraged ETF's, and not a peep about stocks of real companies. A re-post (minus some self-indulgent nonsense) is below. [more]
No, seriously. I had a dream last night that Nam Tai Electronics (NTE) was being acquired for about $5.50 per share. (The way my mind works, it is relatively uninteresting who is doing the acquiring, so my dream didn't include that part.) This has almost no predictive value (as noted in a previous post about a dream I had about NTE). In fact, it was after that that I dreamed I was watching one of my best friends play a video game that seemed like a combination of RPG, turn based-strategy, and the music (if you can call it that) of The Lonely Island (parental advisory: a lot of TLI lyrics are inappropriate for children, prudes, or pretty much anybody else for that matter). I was eating a pizza, I started kibitzing, and he said "Something wrong with your pizza?" I replied with "Shut up!" And he said "That's what I'm saying." That's just to say that in my dreams, everyone else gets the best lines. I must be a very genuinely selfless, generous guy, because it's my brain coming up with this stuff, and just giving it away to my friends while sticking me with "Shut up!" [more]
In Focus in a big way, actually. Almost half of my money is in Focus Media (FMCN). I also own some arbitrage puts on SINA, but they keep diverging. I can't grasp why. Is the deal not going to go through? Then why is FMCN falling? Their stock fell on news that they were selling their fastest-growing, most profitable division to SINA. Questionable call, but if they're getting more than 1/3 share of SINA per share, then why are they trading for less than 1/3 (and now less than 1/4) SINA's price? Especially with so much cash on their debt-free balance sheet! [more]
To all the people I've been taunting about FAS, an update: I've sold most (but not all) of my FAS Monday afternoon, realizing a >40% gain, plus a handful of FAS shares that are basically free. If FAS goes to 50, I'll have another huge gain on my hands. If FAS goes to 0, I'll still have my original big gain.
I preceptualize that none of you ever again doubt the power of poor gov't policy to enrich the few.
Khan Academy has unwittingly convinced me to deploy a good bit of risk capital into FAS, the 3x financial bear ETF provided by Direxion. In fact, I may put my entire Roth IRA into it. Why? Well, I know a little about politics. And when a bad plan comes along, politicians usually go for it. And what's a worse plan than taking taxpayer dollars and Fed loans and giving them to irresponsible bankers? [more]