04/30/2012: GARY ON NATIONALLY SYNDICATED INVESTORS EDGE RADIO BROADCAST

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http://archives.warpradio.com/btr/InvestorsEdge/043018.mp3

JUST LETTING YOU KNOW

Monster Beverage (MNST) has been a very strong stock with good earnings and revenue growth. Coming into today, the stock was 65.53. It had a breakout on an upgrade on January 17 and has basically not looked back. Earnings are going to be reported this week or early next week.

In the middle of the day, the Wall Street Journal reported that Coca Cola (KO) is in talks to buy Monster Beverage. Now, I have no idea where the Wall Street Journal got these reports from. But I do know that Monster Beverage stock went from 64.19 to 83.95 within 10 minutes. And, of course they stopped trading for a few minutes in between.

For a few hours, it traded around. It went to 84 and came down to 75. And then something happened at 3:55 PM ET when stock was at 76.05. Coca Cola announced that they absolutely have had no talks whatsoever with Monster Beverage.

Simple as that. Or not so simple.

Coca Cola announced that they have a distribution relationship with Monster in many markets. They’re always in contact with Monster to maximize the value of their commercial arrangements. But they stated that they are not in discussions to acquire Monster Beverage.

Well, the stock closed at 65, down 52 cents.

What’s the point I’m trying to make? Well, first of all it was 76 at 3:51 PM ET and it 84 at 11:57 PM ET. The stock finished down about 20% from the highs.

First off, if you got caught in this and bought it. I have a recommendation. I would write the SEC and have them investigate who leaked such information for where the Wall Street Journal reported this, moving that stock. Because, there’s thing that journalists do not have disclose their sources. But I gather in lawsuits, something’s gotta give.

But here’s the lesson. Pick your poison. I mentioned this thousands of times on this show. Pick your poison.

I can understand that you want to make money getting caught up in this news. But you’re going to get hour head handed to you…not all the time, but a decent amount of time. You also need to know that the person who came up with this so-called “whatever” is going to jail if it’s found out that he traded on the information he gave.

And as I looked at the news from the Wall Street Journal, their article sure as heck sounded like they knew what they what the heck they were talking about. Very weird.

I don’t play these things. And I must tell you that have missed a few darn good ones to the upside. But I’ve missed a lot of darn bad ones to the downside.

I think the Wall Street Journal should be held accountable to some extent, but won’t be more than likely.

And I just don’t know what to make of things like this except…pick your poison. 

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Gary Kaltbaum owns Kaltbaum Capital Management, LLC (“KCM”), an investment adviser registered with the U.S. Securities and Exchange Commission. The opinions expressed herein are those of Mr. Kaltbaum and may not reflect those of KCM. The information offered in this publication is general information that does not take into account the individual circumstances, financial situation or individual needs of an investor. The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results.

 

NEVER BREAK UP WITH A DENTIST

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A recently dumped Polish dentist got revenge on her former boyfriend by removing all of his teeth – causing his new girlfriend to give him the boot as well, the New York Daily News reported.

Anna Mackowiak, 34, agreed to treat a toothache for her ex-boyfriend, Marek Olszewski, 45, just a few days after he had broken up with her.  According to the New York Daily News, Mackowiak initially tried to be professional about the process but had a sudden change of heart when she saw him lying in her chair.

Continued

SOURCE: http://www.foxnews.com

ONE OF THE MANY REASONS I WILL NOT FLY THIS AIRLINE

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After a weekend of brutal publicity over its refusal to grant a dying Vietnam vet a $197 ticket refund because his doctor forbids him to fly, Spirit Airlines issued has a simple response:

“No.”

Continued

SOURCE: http://www.foxnews.com

THE FREEDOM TOWER RISES!

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This is one rivalry with sky-high stakes.

The owners of 1 World Trade Center — which will surpass the height of the Empire State Building today — are waging an all-out business war against its Midtown cousin, The Post has learned.

WTC operators want to steal business from the Empire State Building by promoting their observation decks and winning back broadcasters that beam their signals off of the Midtown skyscraper’s massive antenna.

“We’re looking to maximize revenue and maximize the reputation of 1 World Trade Center,” Douglas Durst, who is building the Freedom Tower in partnership with the Port Authority, told The Post

Continued

Source: http://www.nypost.com

AND I QUOTE NANCY PELOSI…

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And I quote Nancy Pelosi:

“God bless them for their spontaneity. It’s young, it’s spontaneous, it’s focused and it’s going to be effective.”

Continued

SOURCE: http://cnsnews.com

GREECE ANYONE?

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Terry List, a teacher in Saginaw Township, Mich., has a depressing lesson for her students: “I would not recommend to my pupils to become a teacher in Michigan.”

What’s discouraging her? A proposed pension-reform bill in Michigan would derail her plans to retire — at age 47.

After these rapacious reforms, List would have to work another 16 years, to age 63, in order to earn her retiree health-care benefits. “I understand we have to tighten our belts,” she laments, “but we don’t have to use a tourniquet and cut off the blood supply entirely.” Under the reforms, such a tourniquet means she could still retire now and have a guaranteed income for the rest of her life, but she’d have to pay for her own health care until age 65 — like, you know, most Americans.

Continued

SOURCE: http://www.nationalreview.com

THE KING OF CRAP SPEAKS AGAIN

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The king of crap speaks again. Now they are trying to make you believe this President has nothing to do with the massive deficits. Oh yeah…election year combined with the fact they think you are dummies! Read this: 

Disappointing GDP number — we’re not growing fast enough to make any significant headway on reducing the output gap — but hey, no need for further Fed action.

But let’s talk right now about fiscal policy. I wrote this morning about our de facto austerity. Here’s another indicator. Look at government (all levels) purchases of goods and services, that is, actually buying stuff as opposed to transfer payments like Social Security and Medicare. 

Continued

SOURCE: http://krugman.blogs.nytimes.com

04/27/2012: GARY ON NATIONALLY SYNDICATED INVESTORS EDGE RADIO BROADCAST

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http://archives.warpradio.com/btr/InvestorsEdge/042718.mp3

JUST LETTING YOU KNOW

This is a call to each and every one of you.

In case you did not know, the corrupt failures in Washington, D.C that have spent us into oblivion, to where all they do is deficit spend and have no care, no pain and no qualms whatsoever. And just print money to pay for these deficits, which will cause long term problems.

Guess what they’re talking about now. Yes…I’m not making this up.

They are now looking at retirement accounts. You see there’s about $18 trillion in retirement accounts. And now they’re trying to do something different with them. Why? That’s where the money is.

Do not let these crooks get away with it.

The only thing good that has ever been done is retirement accounts:

  • Our ability to take money and put it away on a tax deferred basis, whether it’s a regular IRA or a SEP, where you do not the taxes on it now, but you pay it later when you take it out.
  • Or a Roth IRA where do you do not get your deduction now, but you tax out tax free.

Now our wonderful sleazy scummy politicians want to get their greasy grimy hands on this. This week, the House Ways and Means Committee heard from several experts on the subject, now meaning there’s increasing focus on retirement savings. What they’re thinking about is changing the tax structure and the way you get the write-offs.

They are looking at:

  1. Taking away tax advantages for inherited IRAs, making the heirs empty them out and pay any income tax due within 5 years.
  2. Capping retirement plan contributions at $20,000 or 20% of compensation, when right now it’s capped at $50,000.
  3. Replacing exclusions and deductions for retirement savings with a tax credit

…and I could go on and on.

Kids, start yelling and screaming at your congressman, senator and whoever else.

That’s all I can tell you.

Every politician in Washington is an abject failure as stewards of our money and our Treasury. Our Treasury Secretary is an abject failure. Our President, an abject failure. George Bush, an abject failure. Hank Paulson, an abject failure. Ben Bernanke, a double abject failure…as stewards of our hard-earned taxpayer dollars.

And you have Barack Obama who simply took Federal spending from $2.5 trillion to approximately on average to $3.5 trillion approximately on average overnight and has kept it there–enriching his cronies, his buddies, and his friends. He lied to each and every one of you about who he was and what he’s about.

And now he’s across the country yelling and screaming, “do not change who’s running the show because they’ll take it away from you.”

Anyone who’s interested in balancing budgets now are “extremists, racists and uncaring people who want to throw out the poor in indigent. They do not care about children and the elderly.”

That’s the game. Ladies and gentlemen, except about 5 to 10 people in Washington, they’re all abject failures. And it’s getting worse by the day. Every day when I go to GaryK.com and look on the right side at this little clock that keeps on going DEBT, DEBT, DEBT and more DEBT put upon your children.

Now watch this.

Just stop reading for 10 seconds.

$417,000 was just added to our debt in the past 10 seconds.

You got me on that? Leave no doubt. At the end of this road, there will be a debt implosion. Because the people running the show do not give a crap about it. This president does not care about debt. He thinks it’s funny.

And they want to come after your retirement accounts.

Just letting you know. 

LISTEN TO GARY LIVE ON WEEKDAYS

6-7 pm EST

Best of Investor’s Edge
Saturdays 1-2 am EST

Gary Kaltbaum owns Kaltbaum Capital Management, LLC (“KCM”), an investment adviser registered with the U.S. Securities and Exchange Commission. The opinions expressed herein are those of Mr. Kaltbaum and may not reflect those of KCM. The information offered in this publication is general information that does not take into account the individual circumstances, financial situation or individual needs of an investor. The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results.

 

04/26/2012: GARY ON NATIONALLY SYNDICATED INVESTORS EDGE RADIO BROADCAST

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http://archives.warpradio.com/btr/InvestorsEdge/042618.mp3

JUST LETTING YOU KNOW

IBD, called yesterday as a Follow-Through Day

I got a lot of emails about this. Here’s what that means.

William O’Neil studied the history of bull and bear markers and tried to figure out the defining characteristics that show up during bull and bear markets. His goal was harness these characteristics and figure out what drives these markets either to the upside or the downside.

What he realized is that every bull move throughout history has had something called a Follow-Through Day. The Follow-Through Day does not equal a bull move 100% of the time. But every bull move has started with one. Thus, we follow it.

Here’s what a Follow-Through Day is:

  1. You take any low in the market.
  2. 4 to 7 days later, you get a move on heavier volume than the day before on any of the major indices.
  3. Recently, it’s been between 1.7% and 2% for the move. These percentages change with markets and their volatility.
  4. Yesterday, IBD called a Follow-Through Day, even though it was only 1.4%.

I received a lot of emails overnight. Let me say two things:

  1. I believe it was last May that there was a Follow-Through Day of 1.4%.
  2. It failed miserably.

Does that mean this will fail? No. We’ll look for signs that it’s not…and that it will.

That’s all. I too question 1.4%, when they really want 1.7% to 2%. But I must tell you that every time I’ve tried to argue with O’Neil, I’ve lost. Basically, I’m going to look on this as a Follow-Through Day, until proven otherwise. That proof could come tomorrow. You could get huge distribution tomorrow and then you get a huge turn down. Typically, you know if a Follow-Through Day is going to fail within the first 3 days. If you start to get real distribution within 3 days of one, you’re in real big trouble. If you start to get big distribution on days 4 through 7, there’s less of a chance to fail, but still not good news.

But the other thing you want to see following a Follow-Through Day are stocks coming to life. And must tell you, on a day today – a bunch of stocks came to life, that includes a bunch of areas, a couple of areas, and some names. So I thought today was a pretty darn good day.

But you don’t just use one day as evidence. You continue look for more and more evidence.

Now the other part of the equation I got from the emails was: Could this just be end of month “Window Dressing?”

Sure. They’re very good at it and we do know we’re heading in to May. For me though, I’ve got to treat it as a Follow-Through Day until it shows me it’s not.

And that’s it.

And if you want a better understand of all this, get How to Make Money in Stocks by William ‘ONeil. Do a little bit of work and homework on your part. 

LISTEN TO GARY LIVE ON WEEKDAYS

6-7 pm EST

Best of Investor’s Edge
Saturdays 1-2 am EST

Gary Kaltbaum owns Kaltbaum Capital Management, LLC (“KCM”), an investment adviser registered with the U.S. Securities and Exchange Commission. The opinions expressed herein are those of Mr. Kaltbaum and may not reflect those of KCM. The information offered in this publication is general information that does not take into account the individual circumstances, financial situation or individual needs of an investor. The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results.