THIS SPEAKS FOR ITSELF…

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Yes…these are our government officials. Don’t worry that these mean, nasty oil and gas companies employ tens of thousands of hard working Americans. This speaks for itself…an administration that picks and chooses winners and losers…and those they don’t like? Just use the bully pulpit to slam them. Hey…let’s just vote these people for another four years.  Read this…

“…Sen. James Inhofe (R-OK) took to the Senate floor today to draw attention to a video of a top EPA official saying the EPA’s “philosophy” is to “crucify” and “make examples” of oil and gas companies – just as the Romans crucified random citizens in areas they conquered to ensure obedience.

Inhofe quoted a little-watched video from 2010 of Environmental Protection Agency (EPA) official, Region VI Administrator Al Armendariz, admitting that EPA’s “general philosophy” is to “crucify” and “make examples” of oil and gas companies…”

Continued

SOURCE: http://cnsnews.com

 

04/25/2012: GARY ON NATIONALLY SYNDICATED INVESTORS EDGE RADIO BROADCAST

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http://archives.warpradio.com/btr/InvestorsEdge/042518.mp3

JUST LETTING YOU KNOW

We knew yesterday we were going to have a gap to the upside today off of Apple. But we also had Fed meeting today in which a whole bunch of people get together in a room and say, “We’re going to print money we don’t have to buy bonds to keep interest rates down in order to do this, that and the other thing….but don’t worry, everything’s going to be okay in the long run.”

There’s not a thing I like about what Bernanke is doing or what he’s done in the past. That’s my thought process. In any economy, if you print $3 trillion, keep interest rates at zero percent…you can get things on the move. It’s the repercussions of that kind of interference in markets that I worry about. And they interfered in the past, going to ridiculous rates, enabling the major bubble in hours. My worry is that they’re enabling another bubble here…and it only ends badly.

Apple…Some Very Big Numbers

Apple today, finished up 50. It’s like a 56 dollar stock going to 61 in one day. That’s all it is. Volume was tepid for a gap on earnings. Let me tell you a few tidbits here here:

  • Revenues were up 59% percent.
  • Earnings were up 92%.

These are very big numbers. On GaryK.com, I put up some numbers on Apple. Click here to view them. Just a fabulous story.

Here’s a couple more tidbits that even I didn’t know.

I woke up this morning and I turned on Bloomberg. And it turns out that Apple is 18% of the Nasdaq-100. The Nasdaq-100 today was up 2.7% and Apple was up about 9% today. That’s equals to about 1.7% of the 2.7% gain on the Nasdaq-100.

  • Apple is 12% of the Nasdaq.
  • Apple is 4% of the S&P 500.

What else happened in Apple is that a lot of things moved in sympathy. A bunch stocks that have stuff going into Apple got slammed this week because of the news out of “disappointing activation numbers from Verizon.” But they all turned-tail back to the upside today. So the SOX was up 9 and change off of the Apple news.

On top of that, the higher beta names got a bid, when they saw Apple have a bid.

Apple held the 10-week/50-day moving average (after undercutting it just for a day) and when back up above it. It hit 618 at 9:55 ET and closed at 610. And I wrote down this note to tell you:

In the near-term, I really don’t have a clue here. What one would hope for, is it to sit around a bit for a week, put in some sort of handle…and then head on upwards. That is the take.

There are 34 Apple buy recommendations, one sell with a 280 price target, and I think there were 6 holds…

That is the whole Apple story and I wanted to repeat it to you because I got a bunch of emails today asking me about Apple.

Not many companies come around that can stand the test of time. And the amazing thing about Apple is that it’s really a three product company, as whole. But what they’ve been able to do is the “cool factor” to make you get the next one that shows up. And they hold back just enough in each product, so that you’ll want to get each new version as they are released.

The other part of the equation is that they’re just in single digits worldwide on the smart phones while getting 75% of the profits.

So all around…a darn good day. 

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.

 

SOME NUMBERS ON APPLE…WOW!

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Some numbers on Apple…wow!

Earnings:

  • Apple had net income of $11.6 billion on revenue of $39.19 billion. Earnings per share were $12.30 (versus Street analysts consensus of $10.06 per share, $9.52 billion in profits on revenue of $36.8 billion);
  • Profits rose 94%; revenues gained 58.9%for Q1
  • Apple’s cash = $110.2 billion at end of Q1 (up from $97.6 billion at year’s end)
  • ~$74 billion of Aple’s cash is held offshore.
  • Gross margin rose to 47.4% from 41.4% a year earlier.
  • Apple has beaten Wall Street’s consensus estimates in 16 out of its last 17 quarters;
  • Apple has 360 million cumulative iOS device sales.

iPhones:

  • Apple sold 35.1 million iPhones — up from 18.65 million units a year ago.
  • iPhones (+ ecosystem) are 57.9% of Apple’s sales, up from 52.7% prior Q.
  • iPhones are now available in more than 100 countries and at 230 wireless carriers (versus 90 countries and 186 carriers a year ago).
  • iPhone sales in Asia Pacific doubled.

iPad:

  • iPad sales were 11.8 million units — up more than 150% from a year ago.
  • Since its launch two years ago, Apple has sold 67 million iPads (Tim Cook: “It took us 24 years to sell that many Macs, and five years to sell that many iPods, and over three years for that many iPhones.”)
  • iPad channel inventory was about 2 million at the end of the quarter, which is below the company’s target range of 4-6 weeks of iPad inventory.
  • App Store has 600,000 apps, 200,000 of them specifically for iPad.

Everything else:

  • China accounted for $7.9 billion of revenue — about 20% of Apple’s total; this is a 300% gain from year ago levels.
  • Two years ago, Apple sales in China were 2% pf total.
  • Apple sold 4 million Macs during Q, up 7% vs Q1 2011;
  • iPod sales were 7.7 million units, down 15% vs Q1 2011;
  • iTunes sales = $1.9 billion Q1 — an annual run rate of about $8 billion per year (up 35% year over year).
  • Retail store revenues jumped 38% from 2011 Q1;
  • 24th straight Q that the Mac has outgrown the broader PC market.
  • Non Mac PC shipments in the United States totaled 15.5 million units in the first three months of 2012, representing a 3.5 percent decline from the same period last year

I AM STUNNED!

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Oh joy! And you all thought things have changed…that these people learned their lessons of too much derivatives. You all thought the regulators did something about this enormous blob of #%&#@. Of course, according to these masters of the universe, everything is under control. Go check out the underlying numbers on these opaque instruments. I am stunned! 

LONG STORY: A derivative is a legal bet (contract) that derives its value from another asset, such as the future or current value of oil, government bonds or anything else. Ex- A derivative buys you the option (but not obligation) to buy oil in 6 months for today’s price/any agreed price, hoping that oil will cost more in future. (I’ll bet you it’ll cost more in 6 months). Derivative can also be used as insurance, betting that a loan will or won’t default before a given date. So its a big betting system, like a Casino, but instead of betting on cards and roulette, you bet on future values and performance of practically anything that holds value. The system is not regulated what-so-ever, and you can buy a derivative on an existing derivative. 

Continued

SOURCE: http://demonocracy.info

I THOUGHT SOME OF THESE NUMBERS WOULD HAVE BEEN WORSE!

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MUNCIE, Ind.—Johnny Whitmire shuts off his lawn mower and takes a long draw from a water bottle. He sloshes the liquid from cheek to cheek and squirts it between his work boots. He is sweating through his white T-shirt. His jeans are dirty. His middle-aged back hurts like hell. But the calf-high grass is cut, and the weeds are tamed at 1900 W. 10th St., a house that Whitmire and his family once called home. “I’ve decided to keep the place up,” he says, “because I hope to buy it back from the bank.”

Continued

SOURCE: http://www.nationaljournal.com

04/23/2012: GARY ON NATIONALLY SYNDICATED INVESTORS EDGE RADIO BROADCAST

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http://archives.warpradio.com/btr/InvestorsEdge/042318.mp3

JUST LETTING YOU KNOW

I received a bunch of emails. 60 Minutes had a show last night on Lehman Brothers. Now, I have not seen it, but I taped it. 9 out of 10 emails I have received went something like this, “Gary were you right!”

What I am being told is that corruption, felonies, misdemeanors, crimes, cover-ups—you name it were done in the financial markets. And, in all the emails I got, everybody mentioned the same thing…not a single person went to jail.

And some asked the question, “How can that be?”

How can nobody go to jail for these crimes that were committed?

What’s my answer?

I don’t know.

A lot of these crimes were done in plain sight. I still recall Citigroup—on purpose took a ton of bad loans of their balance sheet to make their earnings look better. I told you as it occurred. And then two years later they admitted to it. But nobody go in trouble.

So my answer is, I don’t know.

And therein lies my longer term worries. If you do not punish bad behavior, eventually somebody’s going to try to get away with that same bad behavior…and really nobody’s been punished.

So I don’t know what to tell you. But if you have a chance watch the recording of it.

That lets me segue into the other thing we found out today. As you know I have pulled no punches on John Corzine. I believe he’s a crook. I believe he committed a felony. If I saw him on the street, I’d say it right to his face.

It’s now being found out that I may be right. It’s now being revealed that his nuanced answers on Capitol Hill were just lies. John Corzine is a bundler of a half million dollars for Barack Obama (or more). Now what is wrong with this picture? A man who more than likely committed a massive felony where $1.5 billion of investors’ money is missing…and this administration happily, has no qualms about letting him be a bundler in raising capital for the election.

Any conflict of interest here, ladies and gentlemen?

Where is Eric Holder, our Attorney General on this? This is what I mean by a level playing field—there isn’t any.

I told you from day one, “Don’t worry John Corzine because if they had a video of you with a gun in a bank holding it up and the video was right in your face in place sight, you’d get away with it because you’re John Corzine…and that’s how it goes.”

And I’m sorry to say this ladies and gentlemen, it is what it is.

And I am as frustrated as you are. Do you know why?

I read here a little bit earlier:

A man…a very stupid man, went into a McDonalds and asked for a cup for water. Well, he cheated. He got soda instead. He needed to pay a dollar. When the manager noticed he was drinking soda, he said, “You have to give me a dollar.”

He didn’t.

The manager called the police. The police came and charged him with a misdemeanor.

Since he had another misdemeanor, they charged him with a felony.

And now this guy who stole a Coke…is in jail.

But not one person from Lehman, or Citigroup or Bear Stearns, or Washington Mutual or Countrywide Financial OR John Corzine are in jail.

Matter of fact, not one of them has been charged. And they committed crimes in plain sight.

I’m just letting you know, I’m going to keep fighting the fight.

Every single one of you continues to be persistent and tenacious in the fields that you’re in, for you and your family. And just try to put this in the back in your file manager. And we’ll watch the markets as they will dictate policy when all is said and done.

And there will be point in time when I’m going to just stop talking about this because it is pretty much on the nauseating side. 

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.

 

IT IS ALMOST LIKE TOM FRIEDMAN LIVES IN ANOTHER WORLD!

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DO THESE PEOPLE JUST MAKE THINGS UP AS THEY GO ALONG? DOES THIS MAN NOT KNOW WE HAVE $16 TRILLION IN DEFICITS? DOES THIS MAN NOT KNOW THAT JUST ABOUT EVERY MAJOR INITIATIVE GOVERNMENT HAS STARTED IS OR WILL BE INSOLVENT? DOES THIS MAN NOT KNOW WE HAVE MORE GOVERNMENT REGULATIONS ON THE BOOKS THAN EVER BEFORE? DOES THIS MAN NOT KNOW THERE ARE MORE LAWS ON THE BOOKS THAN EVER BEFORE? DOES THIS MAN NOT KNOW GOVERNMENT IS NOW INVOLVED IN EVERY FACET OF OUR LIFE BECA– USE THEY THINK THEY KNOW BETTER? IT IS ALMOST LIKE TOM FRIEDMAN LIVES IN ANOTHER WORLD! READ THIS: 

DOES America need an Arab Spring? That was the question on my mind when I called Frank Fukuyama, the Stanford professor and author of “The End of History and the Last Man.” Fukuyama has been working on a two-volume opus called “The Origins of Political Order,” and I could detect from his recent writings that his research was leading him to ask a very radical question about America’s political order today, namely: has American gone from a democracy to a “vetocracy” — from a system designed to prevent anyone in government from amassing too much power to a system in which no one can aggregate enough power to make any important decisions at all?

Continued

SOURCE: http://www.nytimes.com

HE HATED TOO MUCH EXECUTIVE POWER…BEFORE HE LOVED IT

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WASHINGTON — One Saturday last fall, President Obama interrupted a White House strategy meeting to raise an issue not on the agenda. He declared, aides recalled, that the administration needed to more aggressively use executive power to govern in the face of Congressional obstructionism.

“We had been attempting to highlight the inability of Congress to do anything,” recalled William M. Daley, who was the White House chief of staff at the time. “The president expressed frustration, saying we have got to scour everything and push the envelope in finding things we can do on our own.”

For Mr. Obama, that meeting was a turning point. As a senator and presidential candidate, he had criticized George W. Bush for flouting the role of Congress. And during his first two years in the White House, when Democrats controlled Congress, Mr. Obama largely worked through the legislative process to achieve his domestic policy goals.

Continued

SOURCE: http://www.msnbc.msn.com

WHAT’S ANOTHER $8 BILLION SLUSH FUND?

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Call it President Obama’s Committee for the Re-Election of the President — a political slush fund at the Health and Human Services Department.

Only this isn’t some little fund from shadowy private sources; this is taxpayer money, redirected to help Obama win another term. A massive amount of it, too — $8.3 billion. Yes, that’s billion, with a B.

Here is how it works.

The most oppressive aspects of the ObamaCare law don’t kick in until after the 2012 election, when the president will no longer be answerable to voters. More “flexibility,” he recently explained to the Russians.

Continued

SOURCE: http://www.nypost.com