Mr. Sensitive

April 19, 2013

FSX Friday Update

Filed under: Uncategorized — lbej @ 16:49

This was a rough week for a stock market coming off all-time highs: gold and silver prices collapsed on Monday, with gold suffering its largest one-day drop in over three decades; the Dow Industrials slid 250 points on Tuesday, with most of the losses registered even before news of the Boston terror attacks crossed the wires; the widely-followed VIX (volatility index for the S&P 500) jumped 40% through Thursday; and then there were the ugly earnings reports.  Again and again, this was the story: Company X beats profit expectations; Company X misses sales/revenue expectations; Company X stock gets crushed.  From eBay to Bank of America to IBM to GE, the street wasn’t buying the expense management/margin expansion/ cost cutting story.  Listen to the market, S&P 500 CEOs: corporate America is lean enough, and if you can’t grow your business, the market will punish you no matter how carefully you stage-manage quarterly earnings.

As an investor, I wouldn’t touch the big banks with a ten-foot pole.  Why?  Let’s see: fairy-dust balance sheets; broken lending cultures; arrogant, overpaid executives (I’m talking about you, Jamie); contracting net interest margins.  Is that enough?  How about this narrative: banks are too timid and/or incompetent to lend, so they can only boost revenues by taking operational and market risk, and they can only goose profits by cutting non-revenue-producing staff in areas like operational and market risk management.  Add to that the aggressive push-back against any and all banking regulation (I’m talking about you again, Jamie) and you have an industry that is less profitable and less capable than it was in 2007, but hardly less risky.  Get ready for TARP: The Sequel, coming sooner than anyone thinks.

The Family Stock Index underperformed the broader market this week, pulled down by long-time laggards (Zero, Brinky) and bull-market leaders (me, Justin) alike.  Decliners swamped advancers by a margin of 22 to 3, and eight of those declining stocks suffered losses greater than four percent.  The FSX ended the week at 14,884, down 2.9%, even after a 148-point rally on Friday.  After a long period of relative quiescence, volatility is back in a big way: the FSX was down 422 on Monday, up 172 Tuesday, down 265 Wednesday, down just 80 Thursday, and then up 148 today.  Is it time to panic?  Always.

Advancers

  • Ruby (RJET) +4.6%.  Grandpa drove to Richmond and then to Philadelphia; Boo-boo didn’t.  I’m told that Grandpa sings along with his bad music when he’s driving; I’m told he doesn’t sing well.  These rumors might be baseless, of course, but the market’s buying.

Decliners

  • Justin (SCI) -4.2%.  I don’t know what this is about.  Justin’s coming to the Pfaff in a couple weeks for his NCSA board meeting, and you know the Pfaff is always jumpin’.
  • Ghost Marisa (MOLXA) -5.3%.  If Marisa is still haunting Brinky’s room, she’s got to be jealous of his light-up turtle and dog—who wouldn’t be?
  • Brinkley (BCO) -5.4%.  A consensus is building here that Brinky’s something of a doofus, with his devoted mother the only holdout.
  • Jenny (JNY) -5.7%.  Jenny’s been spending more time with her parents this week; is the market trying to say we’re not cool?
  • Zondro (ZQK) -6.9%.  Still an outside dog.  Still not convinced he should be.
  • Lee (TGI) -7.0%.  I was due for a pullback after hitting an all-time high last week.  Besides, my cheek swelled up for no reason on Monday and I’m not convinced the spiders didn’t lay eggs in my face when I was clearing the thorn forest last weekend.  Reagan has another theory.  When she asked how her stock was doing, I told her she was about the same as the market, and she replied, ‘well, you’re about the same as a snarket.’  I think that’s code for ‘spiders laid eggs in your face.’
  • Zero (ZAGG) -11.5%.  Quoth the Reagan: ‘Zero doesn’t have long hair right now and I really need a picture of him with long hair.’  So there you have it.
  • Nami & Lita (NL) -14.9%.  It was a tough week for the cats.  Here’s an artist’s rendering:

HoM241

Name Ticker 4/19/2013 Check
Brinkley BCO $25.07 -1.44
Charlotte ICE $154.38 -3.82
Dustin DST $69.41 -0.93
Ghost Marisa MOLXA $22.72 -1.27
Icarus FAST $48.14 -1.35
Jenny JNY $13.27 -0.80
Jodi Ann JOY $54.21 -0.26
Justin SCI $15.62 -0.69
Katie CATY $18.91 -0.30
Lee TGI $75.99 -5.68
Lisa LNCE $24.81 -0.45
Lucas LEI $1.28 +0.05
Lulu LULU $68.38 -1.22
Marcus MCS $12.07 -0.46
Mario T.E. MGEE $54.82 -0.90
Mario T.Y. MAR $41.34 -1.25
Namilita NL $10.48 -2.03
Nicole E. NICE $34.43 -0.63
Nicole M. COLM $58.50 -0.62
Reagan REGN $212.58 -3.26
Ruby RJET $11.02 +0.48
Wilson WILC $6.79 -0.05
Winston ED $62.48 +0.57
Zero ZAGG $6.60 -0.85
Zondro ZQK $5.82 -0.43

 

 

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2 Comments »

  1. Brinky’s not a doofus, okay? We need to remember “Quoth the Reagan” for all time so we can use it whenever she blogs again.

    Comment by euregirlsandboys — April 20, 2013 @ 08:02 | Reply

  2. Wow, you can tell Reagan that Zero’s actually been thinking about growing his hair long again. Looks like he better do it. She really knows her stuff.

    Comment by Charlotte — April 22, 2013 @ 15:42 | Reply


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