09/19/2012: GARY ON NATIONALLY SYNDICATED INVESTORS EDGE RADIO BROADCAST
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https://archives.warpradio.com/btr/InvestorsEdge/091918.mp3
JUST LETTING YOU KNOW
I’m not going to call it a disappointing day in the market, but the market came in toward the end of the day.
The story of the day was a big plunge in oil prices…HUGE. Light Sweet Crude went from 112 to just about 108. A barrel of oil went from about 95.50 to 92.13. What was the news? Well the Saudi Arabians announced that they’re doing to ramp up production in order to keep prices down. So, very simple…the cynic in me says that somehow the Saudi got some pretty serious largesse out of the Obama administration to get the price of oil down entering the election. That would never happen would it? Naw! Well the cynic in me says so.
Anyway, the happy guy in me says good. Why? High oil prices do nothing for nobody except the people that are pumping it out. And I’m not talking about Exxon and those guys. They make a penny or two on every gallon. It’s the people “over there” that make the big bucks. So oil stocks were down a little and I would have though oils stocks would be down much, much more.
But the Euro was stronger and the dollar was weak…that helps the commodities blah, blah, blah.
Semiconductor stocks were weak. There were a few breakdowns. ASML, KLAC, LRCX and a few others. Stay away from them.
Housing stocks were strong.
Gold was flat. Silver down a smidge. Gold and silver stocks were mostly on the green side.
A few of the Internet based setocks like Google, Amazon, Linkedin are on the very strong side. Facebook was very strong too.
Another Gary Lesson
Questcor Pharmaceuticals was down 24 to 26 for a 50% drop. Here’s the background. It’s a drug company, but as best as I know, they have drug that treats multiple types of illnesses. I believe it’s called Acthar and without getting into it, the story was that a company called CitronResearch came out and stated that Aetna will no longer reimburse for the drug. Questcor tried to refute it, but the market didn’t care. I’ve watched Questcor stock go up a lot from 2011 to 2012. I missed it.
Why?
Because I don’t want to own a company that only has one product, unless it’s Apple (and they actually have three).
That’s me. And this Questcor had earnings and revenues.
I just don’t want to wake up in the morning owning a company with one drug – and this happens. And there may be nothing to the story. And maybe Questcor’s right and it’s minor.
It didn’t stop the stock from dropping 50%.
As I tell you on this show, we all have to pick our poison. You get to decide on where you go and how you want to go.
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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.