Mr. Sensitive

July 27, 2012

FSX Friday Update

Filed under: Uncategorized — lbej @ 17:00

OMG you guys!  Facebook earnings!  Before the Thursday earnings release and analyst call (Zuckerberg was on the call!  OMG!)  FB stock was at $27, down from the IPO price of $38; today it traded below $23.  The problem is that Facebook—one of the most important companies in the world—had an IPO managed by greedy idiots and still has an arrogant, incompetent controlling shareholder/CEO.  Zuckerberg created Facebook, probably.  He has total control of the company, definitely.  Does he know anything about managing a giant, publicly-traded corporation subject to suffocating media and investor scrutiny?  I’m going out on a limb and saying no.  And to this point, at least, he doesn’t seem to care.  Is that his prerogative?  Alas, yes—he has something like a 75% voting interest.  But do you want to own the stock of a company whose lord and master has zero management ability and no interest in developing any?  I say no.  So far, the market agrees.  But wait, there is this one guy…

“[Zuckerberg] revealed in his opening remarks that he actually does care about revenue growth and I think he said it so many different ways and sounded quite sincere – I believe him,” says Michael Pachter of Wedbush Securities.”And I think investors will probably believe him. The guy demonstrated his commitment to be a competent CEO. I was real impressed.”

That is the worst buy recommendation I’ve ever heard.  First of all, I listened to that opening statement, and not only did Zucky not write it, I’m pretty sure he hadn’t even read it before somebody woke him up to get on the call.  Remember, Zuckerberg is all-powerful; he can rename the company Poopbook and there’s nothing other shareholders can do about it.  So our bullish analyst doesn’t think Zucky wants to be a great CEO; not even a good CEO.  Just competent.  Note also that if our bullish analyst believes he’s committed to being a competent CEO, it’s implied that he’s not competent now.  Oh well, at least the stock is cheap.  Except the P/E is still 60; whoops.

Overall, the market moved higher, and the Family Stock Index cruised along with it, up 2.3% on the week to settle out at 12,537.  The earnings came in fast and furious all week, and more than a few bellweathers missed on the top and bottom line expectations, so this is a tremendous showing overall for the bulls.  GDP wasn’t as bad as expected and the ECB President didn’t administer last rites for the Euro; evidently we don’t need much more than that to rally nicely.  The market overall has held up much better than I expected through the first month of Q3.  If we can trade at these levels, plus or minus five percent, through the elections in November, well, that would just be swell.  Wait…did I just jinx us?



  • Reagan (REGN) +12.5%.  Reagan’s back on top again, retaking the #1 spot for the quarter and the year and rolling to within sight of her April high of $145.  Investors needing to add some crazy to their portfolios are trying to get in ahead of the back-to-school insanity.  Reagan gets real letter grades for the first time this year.  Coincidentally, I’m thinking of turning the basement into a fallout shelter.
  • Zondro (ZQK +18%) and Wilson (WILC +5.4%).  Fine; you can spend afternoons inside, at least until this heat wave passes.  Just shut up and try to stink less.
  • LULU +7.4%.  Lulu went crazy for a few weeks and became an outside-only cat.  This might work for Marisa, champion bird-murderer that she is, but Lulu is one of the least capable cats you’re likely to find.  She lost a lot of weight and I started to worry; not coincidentally, her stock collapsed from $81 to $50.  This week I’ve been bringing her inside at night and she’s eating again.  I’m such a softy.
  • Nicole E. (NICE) +5.7%.  Nicole & Justin will be hosting Jenny & Reagan in a couple weeks, and the pressure is on Nicole E. to defend her share of the Fun-Aunt-Nicole mantle after Nicole M. made a strong play for sole possession last month (ask Reagan if you don’t know).  The market thinks she’s up for the challenge.


  • Nami, Lita (NL -0.8%) and Zero (ZIP -3.3%).  If I unleashed Brinky on Carrboro at all, it wouldn’t be before he’s potty-trained.  For investors in the rump of JV Team Charlotte, I guess that’s still way too soon.
  • Ruby (RJET) -5.0%.  Maybe Dustin and Lisa will decide to renew their vows soon and some Electric Sliding could ensue.  Katie and I could re-up instead, I guess, except I won’t leave my house and alas, there’s no room here for a party.  Brinky has block parties, but they’re not that kind of block parties.
  • Mario the Younger (WMAR) -8.4%.  Mario may be forced to look to the upcoming NFL season for an Electric Slide panacea; perhaps he could host a Steelectric Slide party.  Something to think about…and never, ever do.
Name Ticker 7/27/2012 Change
Brinkley BCO $23.25 +0.17
Charlotte ICE $134.25 +3.16
Dustin DST $54.07 +0.07
Icarus ICS $15.60 +0.11
Jenny JNY $10.54 +0.38
Jodi Ann JOY $53.01 +1.47
Justin SCI $12.93 +0.30
Katie CATY $16.52 +0.40
Lee MSTR $117.08 +1.75
Lisa LNCE $23.40 +0.46
Lucas LEI $1.61 +0.08
Lulu LULU $61.58 +4.23
Marcus MCS $13.56 +0.23
Mario T.E. MGEE $48.81 +0.22
Mario T.Y. WMAR $10.82 -0.99
Marisa MOLX $25.30 +1.06
Namilita NL $11.79 -0.09
Nicole E. NICE $35.89 +1.93
Nicole M. COLM $51.93 -1.04
Reagan REGN $136.90 +15.25
Ruby RJET $4.71 -0.25
Wilson WILC $4.29 +0.22
Winston ED $64.90 +1.13
Zero ZIP $11.09 -0.38
Zondro ZQK $2.97 +0.46

Leave a Comment »

No comments yet.

RSS feed for comments on this post. TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

Create a free website or blog at

%d bloggers like this: