TMFDeej (99.47)

I.O.U.S.A. / Analysis of Ken Heebner's Q2 Positions

August 21, 2008 – Comments (4) | RELATED TICKERS: BTU , CNX , TS

I have a couple of quick notes this morning.

I believe that tonight is the special one-time airing of the new movie I.O.U.S.A. at select movie theaters across the country.  Yes, I realize that Agora Financial, the company of noted gold bug and dollar hater Addison Wiggin, is involved in this movie's production and that they likely benefit if the dollar continues to fall, but I don't care.  The United States' national debt is a serious problem that we and are children are all going to end up paying for.  The movie features some impressive individuals, like Warren Buffett and Pete Peterson (co-founder of Blackstone), which certainly adds to its credibility.  Given the fact that I have an extremely pregnant wife and a four year-old son, it's very unlikely that I'll be able to make it out to see the movie tonight, but I do want to see it.  If anyone has a chance to check it out, make sure to let me know what you think.

Here's the trailer for it.

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I have finally had an opportunity to take a look at Ken Heebner's new second quarter positions.  The general theme of him being hot on commodities seemes to have continued, despite their recent weakness he is sticking to his guns (I like that). 

Heebner was really hot on coal (hot coals, ha ha) during the quarter.  He added 7,690,000 shares of Peabody Energy (BTU) (4.67% of his portfolio) and 5,880,000 shares of CONSOL Energy (CNX) (4.56% of portfolio).

Heebner still appears to be very bullish on oil as well.  He substantially added to his position in the oil services company Halliburton (HAL) (now 3.81% of portfolio) and driller Nabors (3.48%).  He also bought 4,295,000 new shares of Hess (HES) and 8,550,000 new shares of oil sands play Suncor (SU).

Other large Heebner positions include:

Cummins (CMI) - now 3.43%, engines, particularly diesel

Tenaris (TS) - now 2.85%, steel pipes

National Oilwell Varco (NOV) - now 2.71%, drilling parts, particularly for oil rigs, I really like this one

Ford (F) - now 2.61%, Huh?  Perhaps this is a hedge against his long oil positions, but I don't get this one.  If I was going to buy ford, I would buy its bonds...KSK yielding something like 17% with greater protection in the event of bankruptcy

Weatherford (WFT) - now 2.16%, oil services

Arch Coal (ACI) - now 1.32%, obviously more coal

Devon Energy (DVN) - now 1.12%, oil & nat gas E&P

I think that you get the idea.  He started dipping his toe into real estate a little bit, but all of his positions there are less than 0.75% of his total portfolio so it looks like he's just playing around a little with the sector.

Deej